Programmatic CDM

Joergen FenhannDFC 9. August 2011

Risø DTU, Danmarks Tekniske Universitet

Regular CDM implementation – unbalaced distribution of projects worldwide

Source: downloaded from UNFCCC website on 26 Oct 2010

Total submitted: 7939

Of which: 39% at validation 42% registered 2% in process of

registration 17% rejected, withdrawn

or terminatedSource: UNEP Risoe Centre CDM Pipeline, 1-August-2011

Risø DTU, Danmarks Tekniske Universitet

Regular CDM implementation – low proportion of energy efficiency and transport projects

Source: UNEP Risoe Centre CDM Pipeline, 01-10-2010

Risø DTU, Danmarks Tekniske Universitet

Large potential for dispersed, small emission reduction activities unable to benefit

Source: Figuress et al, URC CD4CDM Working paper No. 3, 2007

Risø DTU, Danmarks Tekniske Universitet

Barriers to regular CDM project implementation

• High upfront CDM project development costs (100,000 – 200,000 USD)

• Long process: on average it takes 13 months from project submission to registration, and another 15 months from registration to the first issuance

• Ex poste revenue based on actual emission reduction

• Strict schedule – project size, starting date, technology, m Once size decided, can not change Difficult to coordinate activities by different owners

Project cannot be added/expanded after project registration: size, starting date, technology, monitoring etc. fixed in registered Project Design Document

Risø DTU, Danmarks Tekniske Universitet

What is programmatic CDM?• A way introduced to overcome the above barriers to CDM implementation• Definition:

A programme of activities (PoA) is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary programmes), which leads to anthropogenic GHG emission reductions or removals by sinks that are additional to any that would occur in the absence of the PoA, via an unlimited number of CDM programme activities

• Difference from regular CDM: A programme of activities rather than a project activity can be registeredMany similar CDM project activities coordinated by a private or public

entity Flexible schedule: The activities can take place in many different

locations (including multi-country) over a period of up to 28 years

Risø DTU, Danmarks Tekniske Universitet

PCDM Project Cycle

Coordinating EntityProject participants

EB

ImplementationDOE

EB

PoA DDCPA-DD generic informationA completed CPA

DOE

CPA

Project design

DOE

validation report

Validation

Coordinating EntityProject participantsDNA

LoA

DNA Approval

PoA Registration

EB

CPACPA

Inclusion

Monitoring & Reporting

Coordinating EntityProject participants

kWh, hr…

Verification

CER

Certification & Issuance

Risø DTU, Danmarks Tekniske Universitet

Program vs activities – an exampleProgram ActivitiesContent example Content Example

Coordinating entity

Rural electrification office

Participants Households with no access to electricity

Identification Programe Activity 2

Description Use subsidies and micro-finance to promote solar-PVs (100 W, 200 W)

Description 8000 50-W + 7000 100-W solar PVs

Boundary Whole Nepal Geograpic sope

A region in Nepal

Starting date 1 Oct 2010 Starting date 1 May 2011

Duration 28 years(2010-2038)

Crediting period

10 yearsMay 2011-2021

Eligiability Only low-income households get support from the program

Eligibility Contracts with households and other evidence

Risø DTU, Danmarks Tekniske Universitet

A brief history

• Concept introduced at COP11/MOP1 in 2005• Finally approved at EB 32 in June 2007• Guidance, procedures, and PDD templates issued in

July 2007• Methodologies revised in 2007 to accomodate pCDM• Procedures further streamlined and clarified in May

2009 and July 2010• As of 1st. August 2011, 109 P-CDM projects

submitted, of which 9 registered.• Now 3 registered P-CDMs have included 1086 small

projects.

Risø DTU, Danmarks Tekniske Universitet

The speed of P-CDM activity submission is increasing now

Source: UNEP Risoe Centre CDM Pipeline, 01-August-2011

Note: surge in PoAs submmited in Dec 2009 is because it is the deadline for allowing activities start before registration of programs

Risø DTU, Danmarks Tekniske Universitet

Types and technologies of exsiting PoAs

EE demand side 40Waste 27Solar 15Hydro 10EE supply side 5Forestry & Agriculture 2Fossil fuel switch 2Biomass energy 5Agriculture 1CMM 1Transport 1Total PoAs 109

3.5% for normal CDM

1.8% for normal CDM

Risø DTU, Danmarks Tekniske Universitet

Does P-CDM lead to more balanced regional contribution? : YES

Risø DTU, Danmarks Tekniske Universitet

List of all P-CDM projectsHost country PoAsBangladesh 1 Solar PV, 1 EE households stoves, 1 Households lighting, 1 Methane avoidanceBrasil 3 Methane avoidance, 1 Landfill gasChina 1 Agricultural irrigation, 5 Methane avoidance domestic manure, 1 Methane avoidance manure, 1 Eff. electricity distribution, 4 Eff. lighting, 1 CMM, 1 Geothermal, 1 Micro hydroColombia EE commercial & residential buildigsEgypt 1 Transport scrapping old vehiclesEl Salvador 1 Household stovesIndia 2 EE householdes lighting, 1 Biomass briquittes, 1 EE chemicals industry, 1 Eff. electricity distribution, 1 EE service eff. chillers, 1 landfill composting, 1 Solar

water heating, 1 solar PV, 1 Methane avoidance, 1 EE lighting in serviceGuatamala 1 EE households stovesHonduras 2 HydroIndonesia 1 Methane avoidance palm oil waste, 2 Methane avoidance composting, 1 Hydro run of river, Kenya 1 EE households stovesMalaysia 1 Methane avoidance waste water, 1 Biomass energyMexico 1 Households lighting, 1 EE households stoves, 1 New householdsMorocco 1 Landfill gasNepal 1 Methane avoidance domestic manureNicaragua 1 ReforestationNigeria 2 StovesPakistan 1 Domestic Manure, 1 Eff lightingPapua New Guinea 1 mixed renewablePeru 2 Fossil fuel switch, 1 hydroPhilippines 1 Methane avoidance manure, 1 Household lighting, 1 landfill gas, 1 sevice air conditionRwanda 1 EE households stovesSenegal 1 Households lightingSingapore 2 EE service cooling, 1 EE household lightingSouth Africa 6 Solar water heating, 1 EE households stoves, 1 EE serviceSouth Korea 1 EE Food industry, 1 EE own generation, 1 EE household lighting, 1 EE service lighting, 1 Solar, 1 Mixed renewable, 1 cogeneration, 1 methane avoidanceSri Lanka 1 Biomas energy, 1 Landfill compostTanzania 1 Solar lamps, Solar PV water disinfectionThailand 1 Methane avoidance manure, 1 Biomass energy, 1 Gasification of biomass, 1 EE street lightingTogo 1 EE household stovesTunesia 1 Solar water heatingUganda 1 Landfill composting, 1 EE stoves, 1 water purificationVietnam 1 Solar water heating, 3 Hydro, 1 Methane avoidance domestic manure, 1 EE industryYemen 1 Eff. electricity distributionZambia 1 StovesCentral America 1 Run-of-river HydroEast Africa 1 StovesTotal 109