UNFCCC secretariat, programme

Massamba THIOYE, Manager of the Standard Setting Unit

BASELINE STANDARD

UNFCCC secretariat workshopBonn, Germany, 4 and 5. March 2011

TABLE OF CONTENTSWhy a baseline standard

Why now

Place in the architecture of the CDM standards

What is it made of

Why the proposed approach

What will it be used for

WHY A BASELINE STANDARDThe most appropriate approach, taking into account any guidance by the CDM EB is either:

(a) Existing actual or historical emissions, or

(b) The economically most attractive or

(c) A benchmark

The Executive Board shall develop: Definition of project categories that show common methodological characteristics for baseline setting;

• Provides guidance for the development of Meth and SBs

• Ensures consistency• Enhances objectivity• Enhances predictability • Enhances transparency• Puts the quality gate at an early stage

WHY A BASELINE STANDARD

• We have enough experience from the bottom up development of Meth

• Top-down development of Meth is just starting and needs standards

• Development of SBs requires framework• A more predictable, more objective and

more transparent CDM might positively influence the negotiation process

WHY NOW

WHERE IN OUR STANDARDS ARCHITECTUREM & P, CMP decisions

Methodologies

SBs

CDM Projects

PoA CPA

Baseline standard

Tools

WHAT IS IT MADE OF

New outputs

(II) Technology Switch (EEI)

(V) More GHG intensityoutput displacement

(I) One or multiple fuel switch

(I) One or multiple feed stock switch

ProjectConsumer

(III) GHG destruction

(IV) GHG formation avoidance

WHAT IS IT MADE OF

Definition of the five MABS

Grouping of ER activities of a project into components of same characteristics for baseline Setting using one MABS

Criteria for the identification of the applicable MABS

Algorithm for the identification of the baseline based on each MABS

Procedure for baseline emissions calculation for the baselines

The standard is A MABS: Higher level of standardization, more consistency, less complexity for the user

WHY THE PROPOSED APPROACHThe standard is the methodology that combines the use of different MABS

A standard is developed for each combination of the MABS

Methodologies combine the standardized MABS

• SBs are developed for the components not for the methodologies

• Helps solve the issue of prioritization for the development of SBs

• Scales up the development of SBs• Helps to address an important issue in

the setting of benchmark: the level of aggregation

WHY THE PROPOSED APPROACH

• Eases the assessment of methodologies by the Meth Panel

• Eases the assessment of SBs by the Board particularly when they are not based on approved methodologies

• Facilitates the understanding of the methodologies by the DOEs and the registration team

WHY THE PROPOSED APPROACH

• Guidance on how to identify and treat suppressed demand

• Clarifies baseline and baseline scenario and aligns the baseline to the baseline scenario

• Benchmark is preferred but is not the only possible approach

WHY THE PROPOSED APPROACH

• The assessment of methodology and SBs related submissions

• The top-down development of methodologies

• The top-down development of standardized baselines

• A framework for the bottom-up development of standardized baselines by relevant entities

• The revision of the approved methodologies

POSSIBLE USE

• A baseline standard will contribute to the improvement of the CDM

• The approach proposed eases the assessment of methodologies and makes them easy to understand

• It helps address the issues of prioritization and level of aggregation in SBs development

• It helps scale-up the development of SBs• It addresses the issue of suppressed demand

TO CONCLUDE

THANK YOU FOR YOUR ATTENTION