SDM programme

UNFCCC secretariat

Current status of the implementation of Guidelines on the consideration of suppressed demand in CDM methodologies

FIRST SDM JOINT COORDINATION WORKSHOP, Maritim Hotel, Bonn, Germany

24 - 25 March 2012

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OVERVIEW

I. Evolution of the SD guidelines

II. Methodologies where SD is implemented

III. Case study AMS I.L

IV. Future work

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Evolution of suppressed demand guidelines

• Para 47 of 3/CMP.1:M & P of CDM cite future emissions increase

• CMP.5 and CMP.6 request EB action a) SSC WG 27(2010) b) EB 61 and EB 62, 2011 (guidelines

approved)c) EB 63 (work program approved)

• CMP.7 requests EB to accelerate implementation in methodologies a) Priority focus on LDCs, SIDs, African

countries and underrepresented countries

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Key Features of SD Guidelines

• Recognises that future emissions will increase due to Income and price effects i.e. demand for a service increases in the baseline over time due to increase in income and decrease in cost per unit service during the project.

• Applicable where the minimum service level (MSL) is not met

• MSL is that service that meets basic human needs (e.g. basic housing, basic energy services including lighting, cooking, drinking water supply)

• Provides methodological approaches under a suppressed demand situation for:

• Identification of baseline measure/technology; and

• Baseline service level to use to calculate baseline emissions.

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Safeguards in SD Guidelines

(a) Environmental integrity has to be safeguarded;

(b) Financial viability of the CDM project cannot be the predominant criteria;

(c) Normative decisions have to be clearly referenced and explained;

(d) Emission intensity and baseline level of service have to be re-evaluated and updated periodically.

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AMS-I.L “Electrification of rural communities using renewable energy“ (EB 66)

• AMS-I.L joins AMS I.A and AMS III.AV;

• RE Electrification of households & SMEs with no access to electricity

• Default emission factors; a) Tranche 1: [Np < 55 kWh/year]

6.8 kg CO2/kWh;b) Tranche 2: [55< Nz <250] 1.3

kg CO2/kWh; c) Tranche 3: [Nw> 250] 1.0 kg

CO2/kWh ;

•New UN-backed emissions reduction scheme helps poorer nations use clean energy – (6 March 2012)

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AMS-I.L Rationale for defaults

• kWh/household: 4 global and 14 regional sources referenced • IEA World Energy Outlook,UNDP, UNIDO,

World Bank reports, national/regional case studies;

• 250 kWh/household/year • 55 kWh of 250 kWh is lighting;

• BL technology- Kerosene lamp (146 L/Yr), 6.8 kg CO2/kWh;

• 195 kWh of 250 kWh is for household appliances

• BL technology- diesel generator, 50% load factor,1.3 kg CO2/kWh

• > 250 kWh for other users (SMEs, agricultural water pumps)

• BL technology- DG,100% load factor, 1.0 kg CO2/kWh;

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MORE TO COME…….

• Electrification by grid extension• Revision of AMS III AR • Revision of AMS I A • Revision of AMS III F• Revision of the SD guidelines• …• ….• Your inputs are critical to make

it happen!

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