Project Analysis to Identify Reasons for Delay in Validation and Issuance and Propose Practical Solutions to the CDM EB

8/4/2019 Project Analysis to Identify Reasons for Delay in Validation and Issuance and Propose Practical Solutions to the CDM EB

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Technical Session 3: Addressingchallenges in CDM project development

and management

Project analysis to identify reasons for delay in validation

and issuance and propose practical solutions to the CDM

EB,

Kumaraswamy Chandrasekara, DNV


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2

Agenda

Key Validation and Verification issues Key Pitfalls Validation and Verification

Case Study- The BSP Nepal Project -1 and 2

Success factors for registration/issuances


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Version 1 Slide 3 13 September 2011

Key Validation Issues

Project Design

Baselines

Additionality

Emission Reduction Calculations

Monitoring Plan &Provisions for consistent project operations,monitoring

Environmental/Social Impacts incl local stakeholders

Project type specific issues

Large & small hydropower projects

Biomass power projects

Fuel switching / retrofit projects

Energy efficiency projects

Landfill Gas Recovery Projects


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Key Pitfalls - Validation

Non-compliance with the applicability conditions of the

applied baseline methodology or compliance not explainedsufficiently

Applicability criteria from the methodologies are sometimes not specifically

addressed in the PDD.

In other cases, the project may be in non-compliance with one or more of the

applicability criteria

Poor Quality & Inconsistency of PDD Monitoring plan directly copied from methodology and tailored to project specifics

Inconsistencies in data sets used in calculation and detailed in the PDD.

References and links do not provide relevant information to justify assumptions given in the PDD

Monitoring and project management procedures not suitablydefined

Monitoring Methodology and Plan deficiencies


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Key Verification Issues

Thorough assessment of:

All emission reduction claims and underlying factors and calculations

Correct application of monitoring methodology

All assumptions clearly stated

Is the reported data sufficient to sustain he emission reduction claims?

Checks related to:1 Consistency with monitoring methodology

2 Factors used for project emission reduction calculations

3 Remaining Issues, CARs, FARs from Validation or Verification

4 Completeness of Monitoring

5 Accuracy of Emission Reduction Calculations

6 Management System and Quality Assurance


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Verification Pitfalls

Inconsistency of data ( transfer from in field to data base) Monitoring Equipment suitability

Improper Calibration

Control of documents and Records

High Variance between registered PDD and monitoring reportemission reductions

Monitoring Plan implementation not in line with registered

PDD and methodology

- DOE raises corrective action requests

- DOE will request for deviation with EB if correction not

possible


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Case Study- The BSP Nepal Project -1 and 2

The BSP Nepal Project -1 and 2 were sub-project of the BSP-Nepal

umbrella biogas program which aimed to install a total of 200,000small biogas digesters all over Nepal.

The BSP Nepal Project -1 and 2 were part of the fourth phase of the

biogas program and under first three phases, a total of 111,395

biogas plants have been disseminated all over Nepal. Under these sub-projects (BSP Nepal Project -1 and 2) biogas

plants biogas plants of various sizes (4 m3, 6 m3 8 m3 and 10 m3) in

several parts of Nepal (57 districts in case of PA-1 and 55 districts in

case of PA-2), covering various ecological regions (tarai, hill and

mountain) were are installed during the period 1 November, 2003to 6 April 2005 (9708 biogas plants under PA-1 and 9688 biogas

plants under PA-2).


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Case Study- The BSP Nepal Project -1 and 2what

went wrong

The project got rejected on the premise that theproject participant and the DOE (DNV) could not demonst

rate that independent assessment, including survey, random

sampling, and statistical analysis, has been conducted to

confirm that the claimed emission reductions result solelyfrom the project activity

Lack of clarity on how to design a survey

Lack of experience on part of the project

proponent in terms of verification


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ase u y- a were e even ua e c enc es awere indeed addressed better during the second

round of verifications?

Clear guidance from UNFCCC on how the survey

should be designed and conducted.

Better planning on behalf of project proponent,

while conducting survey and identifying clusters of

sample plants which are part of the project activity. Better planning in terms of DOE, planned more man

days for site visit and identified the sample district

and cluster on the desk review meeting stage itself.


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Current Issues in validation and verificationSouth

Asia

Non availability of good consultants.

Lack of standardised data related to baselines/emission factors.

Checking the Host country approval: ideally the DNA need to come out with the

facility to indicate the list of approved projects so as to make the validation easier.

Other issues in validating the current list of hydro projects:

Benchmark: No publicly available data for the country and arriving at a

standard benchmark to meet the financial analysis guidelines. Input parameters at the time of decision making: The inflation of the country

for the past three years is around 15-23%, which makes it difficult to validate

the claims now and to check the values at the time of decision making.

No clear tariff order workings to assess the revenues and other input

parameters.

Almost all the registered hydro projects face issues in verification due to the

calibration and changes in the monitoring plan.

Inadequate capacity for calibrating the meters apart from energy meters.


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Projects with Good PDDs

Keep it simple

Comply with requirements and dont make undeliverablepromises

Project participant is actively involved and well aware of

writing of PDD

Is well aware of its reach and responsibilities

Realizes that a registered PDD becomes the commitment

against which theyll be measured

Understands the PDD is nothing but a persuasive essay

Utilizes latest available public information for

benchmarking and analysis

Recently published PDDs

Information on Emission Factor, Build and Operating

Margins

All supporting information is presented in an accessibleformat and is easy to understand

All assumptions are referenced, quoted and justified

Good PDDs are

persuasive essays

and keep it simple


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Projects with Good Monitoring Plans

Monitoring Plan is feasible

Equipment specifications are correct

Specify the requirements for monitoring equipment (e.g. accuracy) without necessarily already

specify the type of equipment to have some flexibility in implementation

Committed calibration conforms to meth requirements and will be implemented

Benchmarked against other monitoring reports which have worked well

All variables and parameters committed can be controlled and monitored

Good monitoring plans are visionary


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Projects with Good Implementations

Implementation follows exactly what is described in PDD and Monitoring Plan

Equipment specifications and installations are correct

Early awareness of need for deviation or revision

Adequate calibration certificates on time

Frequency, uncertainty, independent third party

Project owner understand the importance of each parameter and regularly follow-up on

monitoring results Keep all logs and data easily available at site visit

All calculations are presented in an accessible format and are easy to understand

Practical solutions are not accepted

Make use of pre-validation and initial verification services

Good implementations are meticulous


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What else?

There is a huge potential for CDM projects in Bhutan, Nepaland Bangladesh (LDC countries). The future lies in PoAs, for

which the requirements of the PoA are to be understood fully

by the PPs.

DNAs should create awareness by capacity building

workshops with prospective PPs/Associations. DOE can be

involved to explain the pitfalls / requirements of

methodologies etc.

DNA of the countries to fix the grid emission factors to

facilitate easier projects implementation.


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Thank you

[email protected]

Documents

Project Analysis to Identify Reasons for Delay in Validation and Issuance and Propose Practical Solutions to the CDM EB