Major Highlights of EB Decisions on Developments of CDM Projects

AIT Asian Regional Workshop on “Capacity Development for CDM”19 – 21st October 2005

Major Highlights of EB Decisions on Developments of CDM Projects

Ram M. Shrestha, Sudhir Sharma, Suparno Majamdar and S. Kumar

Asian Institute of TechnologyKlong Luang, Pathumthani

Thailand

19th October 2005

AIT Asian Regional Workshop on “Capacity Development for CDM”19 – 21st October 2005

Agenda CDM Project activity status

Status on CDM methodology approval

Designated operational entities

Afforestation and Reforestation (A&R) projects

Large scale projects

Small scale projects (SSC)

Registration of CDM project activities

Asian Regional Workshop on “Capacity Development for CDM”19 – 21st October 2005AIT

CDM Project activity Status As of 30th September 2005

Total number of Projects currently under Validation process 308Total number of Projects validated till date 248

Out of which number of small scale projects 110

Projects currently being validated 60

Out of which number of small scale projects 24

Total number of projects under Registration process 42

Number of projects under (registration) review 2

Number of projects currently under consideration for registration 15

Number of projects already registered 26

Of which number of small scale projects 14


Registered CDM Projects (1) – As of 13th Oct 2005

Region wise distribution of CER's

S Asia42.42%

SE Asia, China & Korea

19.58%

Africa0.48%

S America32.86%

Pacific Islands0.34%

N&C America4.33%

2

6

1

87

2

012345678

Number of Projects Registered

Africa N&CAmerica

PacificIslands

S America S Asia SE Asia,China &Korea

Region

Region wise Distribution of Registered Projects (as of 13th Oct 2005)

South America& South Asia

leading the pack(>60%)Closely followed byCentral Americas

South Asia& South Amecica

accounting for 75%of CER’s.HFC project in Korea

propelling that region’sCER’s.

Total Number of Registered projects: 26Location of projects: India (5), Honduras (4), Chile (4), Brazil (2), Korea (2), Others (9)


Registered CDM Projects (2) – As of 13th Oct 2005

Technology wise Distribution of CER's - Registered Projects

MSW30.12%

HFC59.10%

Fuel Switch0.26%

EE0.09%

RE3.86%

RE - Biomass0.77% Cogen

0.30%AWMS5.51%

Most RegisteredProjects are in

Renewable energy orMSW categories

HFC generates max. CER due to high GWP.MSW – High potential

area

Technologies used in Registered ProjectsTechnology wise distribution of Registered projects

3

1 1 12

6

10

2

0

2

4

6

8

10

12

AWMS Cogen EE FuelSwitch

HFC MSW RE RE -Biomass

Technology

Num

ber o

f Pro

ject

s


CDM Project activity Status (2)

Region-wise distribution of projects

C Asia2%

Africa4%

S Asia24%

SE Asia & China & Korea

17%

Pacific Islands1%

N & C America14%

S America38%

Based on 237 projects submitted to EB as of 13th Sep 2005 (includes registered, validated, under validation, under review).

Total CER estimated fromthe submitted 237 projects

is 53.54 Millions

Region-wise distribution of CER's

Africa2%

SE Asia & China & Korea30%

Pacific Islands1%

S Asia20%

C Asia1%

N & C America12%

S America34%

Brazil, India, China, Mexico & Honduras main contributors to their respective regions


Current CDM Project activity Status (3)

Technology -World-wide Project Distribution

Waste Heat - E2.53%

HFC1.69%

Transport0.42%

EE4.64%

Fuel Switch4.64%

RE - Biomass6.75%

Cogeneration15.19%

CH4 - Leak Reduction

1.27%N2O Reduction

0.84%

RE - Wind / Hydro / GT /

Solar30.80%

MSW & AWMS31.22%

Total number of projects considered: 237 (as of 13th September 2005)

Technology - World-wide CER Distribution

RE - Biomass1.26%

Cogeneration3.64%

CH4 - Leak Reduction

1.37%

Fuel Switch2.44%

EE0.43%Waste Heat - E

2.94%

Transport0.01%

HFC22.38%

MSW & AWMS25.92%RE - Wind /

Hydro / GT / Solar

11.38%

N2O Reduction28.23%

1) MSW & AWMs projects dominatingS.American scene.

2) HFC & N2O projects have high CERs due to their high GWP

3) Cogen projects –mainly in Brazil & India

4) Wind – China5) Hydro – Central & South America


Status of CDM methodology approval (1) Large scale emission reduction CDM projects

Total number of New Methodologies submitted for approval: 132 Out of which methodologies approved : 24

• The Approved methodologies (AMs) (for Large Scale Projects) are under the following Sectors

Sector Scope No. of AMsRenewable energy based electricity generation 5Cogeneration 2Landfill gas capture 9Fugitive emissions 2Fugitive emissions (Halocarbons & sulphur) 1Demand side energy efficiency 3Industrial process (Fuel switching) 1Chemical Industries 1Total 24


Status of CDM methodology approval (2)Total number of Approved Consolidated Methodologies – 6

They are under sectoral scopes ofLandfill gas projects

– Grid connected electricity generation from RE – Grid connected electricity generation from Biomass

Residues– Partial substitution of fossil fuels by alternative fuels in

Cement production– Waste gas and / or heat utilization for power generation– Increasing blend in Cement production

A&R CDM projects Methodologies submitted for approval – 13 Approved till date – none

Small scale CDM projects Approved methodologies till date- 15


Status of CDM Methodology approval process (3)

The Small scale (SSC) AMs are under the Sectoral scopes of -

Sectoral Scope No. of AM

Energy (Elec., Mech., Thermal) for the user 3

RE generation for grid 1

Energy Efficiency 6

Agriculture 1

Fuel Switching 1

Low GHG emitting vehicles 1

Methane avoidance & recovery 2

Total 15


Designated Operational EntitiesApplicant entities (AEs)

Number of AE’s Allowed to submit New Methodologies: 26• 4 from Non-Annex I countries (2 Korean and 2 South American)

Total number of DOEs operating currently: 11

Only 2 of them are approved to undertake certification, rest all are approved only for validation.

(http://cdm.unfccc.int/DOE/list gives a list of DOEs and their sectoral scopes)

http://cdm.unfccc.int/DOE/list


A&R Projects (1)On New Methodologies

Methodologies should be stand alone – clear separation should exist between PDD and NMB (EB 18)

Additionality assessment (EB 18)• No common practice step required.• Should include either, a barrier or an investment analysis.

EB “inviting” project participants to include methods for demonstrating eligibility of lands for A&R projects (EB 18).

Developing a new form for screening new methodologies (EB 18)

(Source:http://cdm.unfccc.int/EB/Meetings/018/eb18repan5.pdf )

http://cdm.unfccc.int/EB/Meetings/018/eb18repan5.pdf


Under consideration by the EB are:

Draft version of the tool for demonstrating the additionality of A&R project activitiesNot required for small-scale A/R project activities

Tool for accounting of non-CO2 emissions, including emissions from sources existing before the implementation of a project activity.

Approaches for assessment of uncertainties in proposed new baseline and monitoring methodologies

The form for submitting new monitoring methodologies (CDM-AR-NMM) & new baseline methodologies (CDM-AR-NBM) for A&R projects will be revised to incorporate provisions relating to the monitoring of social and environmental impacts.

A&R Projects (2)


Large Scale CDM projects (1)Revision of Approved methodology (AM) – EB21

AM requiring significant changes to be “put on hold” – can’t be used during hold period

Project activities that have already used the above AM should submit projects for registration within 4 weeks of “put on hold” date.

The above revisions of the AM• shall only be applicable to project activities registered after the date of revision.

• shall not affect registered CDM project activities during their crediting period.

Procedure for approval of revision of AM same as New Methodology (NM).• EB to decide whether public inputs are to be invited

Project proponents can submit proposals for revision on AM to EB (through DOE).


Other EB decisions -

For project activities temporarily resulting in “negative emission reductions” in a given year - CERs will only be issued when the emissions increase has been compensated by subsequent emission reductions by the project activity. (EB 21)

Any proposed project activity intending to use a New Baseline or New Monitoring Methodology, should submit a NM first followed by the submission of PDD. (EB 20)

For project activities requesting Retroactive Credits (EB 19)

Project participants will have to (for assessing additionality) consider the information that was available at the time when the decision was made to undertake the project activity. (EB 19)

For calculation of baseline emissions, the most recent information, corresponding to the vintage of data appropriate to the project, which is available at the validation stage shall be used. (EB 20)

Large Scale CDM projects (2)


Small Scale CDM (SSC) projects (1)

Amendment to baseline methodology (EB18) For Type I (Renewable energy projects)

• If the unit added has both renewable and non-renewable components (e.g. a wind/diesel unit), the eligibility limit of 15 MW for a SSC project activity applies only to the renewable component.

For Category I.C (Thermal energy for user)• For co-generation systems and/or co-fired systems to qualify

under this category, energy output cannot exceed 45 MW-thermal.

For Category III.D (Methane recovery)• The monitoring of methane captured and flared should be

based on metering and methane content analysis.


Eligibility as small scale projects where emission reductions of a proposed project are increasing during credit period.

If a project activity goes beyond the limit of its type in any year of the crediting period, the project can claim only the maximum CER estimated in the CDM-PDD for that year.

Project participants are required to demonstrate in the CDM-SSC-PDD that the characteristics of the project activity are defined in a way that precludes project activities to go beyond the limits for each category. The limits are:

– For Type I (RE): 15 MW installed capacity,– For Type II (EE): efficiency improvements <=15 GWh every year

throughout the crediting period;– For Type III (Other project activities): annual emissions <=15

ktCO2e over the entire crediting period.




Amendments of the simplified modalities and procedures for small-scale CDM project activities. SSC WG is to :

Develop guidelines for SSC-PDD, similar to the guidelines available for the CDMPDD, to facilitate submissions.

Make recommendations for bundled project activities of:– the same type, same category and technology/measure.– the same type, same category and different technologies

/measures.



Bundling of ProjectsOnce a project activity becomes part of a bundle

for a project cycle stage, it shall not be de-bundled during that stage. EB may consider debundling in exceptional situations.

The composition of bundles cannot change over time.

All project activities in the bundle will have the same crediting period.


Registration of Unilateral CDM project activities (1)

Unilateral CDM (UCDM) projects can be registered. (The registration of a project activity can take place without an Annex I Party being involved during its registration).

CER’s from UCDM projects can be transferred to Annex I party after the project’s registration.

Non Annex-I Party

Annex-I Party

EB/CDM RegistryCER’s Annex-I NationalRegistry

CER payments

CER’s

CER’sRegisteredUnilateral

project

Letter of Approval

http://www.photovault.com/Link/Technology/Power/Wind/show.asp?tg=TPWVolume01/TPWV01P05_15



Documents

Major Highlights of EB Decisions on Developments of CDM Projects