introduction of guidelines for the establishment of sector specific standardized baselines
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UNFCCC Secretariat
SDM programme
SECTOR SPECIFICSTANDARDIZED BASELINES
Guidelines and Submission Procedure
Workshop on Enhancing the Regional Distribution of CDM Projects in Asia and the
Pacific
Kathmandu, Nepal
6-7 September 2011
Vernica Colerio
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BACKGROUND
THE CMP DECISIONS
Parties, PPs, and other admitted entities, through the hostcountrys DNAs, may submit proposals for SBs, forconsideration by the Board;
Requests the Board to develop SBs, as appropriate, in
consultation with relevant DNAs, taking into account theoutcome of the workshop on SBs.
Operationalizing these decisions needs:
Guidelines Procedure
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WHY SBs? - DEFINITION
WHY SBs
Reduce transaction costs;
Enhance transparency, objectivity and predictability;
Facilitate access to the CDM; and
Scale up, while ensuring environmental integrity.
DEFINITION
A SB is a baseline established for a Party or a group of
Parties to facilitate the calculation of ERs and removalsand/or the determination of additionality for CDM projectactivities, while providing assistance for assuringenvironmental integrity.
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GUIDELINES
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APPLICABILITY OF THE GUIDELINES
Sectors;
Stationary sources, but not A/R;
Most types of project activities;
Standardized baselines:
For a country or a group of countries;
Demonstrate additionality: positivelists;
Identify baseline scenario;
Determination of baseline emissions.
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MEASURES
Measure:
Broad class of GHG emission reduction activities;
Possessing common features
Four types currently covered:
1. Fuel and feedstock switch;
2. Switch of technology with or without change ofenergy sources (including energy efficiency
improvement);3. Methane destruction;
4. Methane formation avoidance.
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STEPS FOR ESTABLISHING SBs
Identify host country, output, sector andmeasure;
Establish additionality criteria (e.g. positivelists);
Identify the baseline;
Determine the baseline emission factor.
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MEASURE 1: FUEL/FEEDSTOCK SWITCH
Define sector (product Oi) and technology Tj Identify fuels/feedstocks for Tj Identify corresponding percentages of output Rank the carbon intensity of the fuels/feedstocks
TECHNOLOGY Tj Output Oi
Fuel b
Fuel p
0% 25% 50% 75% 100%
Coal Heavy Fuel Fuel Oil Diesel NG RB
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MEASURE 1: ADDITIONALITY
Identify the fuels /feedstock with higher CEFs and contributingto production of Xa% of the output Oi of the sector based ontechnology Tj.
The positive list for additionality demonstration:
Cleaner than the fuels making up Xa% NG and RB are eligible Check their commercial attractiveness and barriers
0% 25% 50% 75% 100%
Xa = 80%
Coal Heavy Fuel Fuel Oil Diesel NG RB
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MEASURE 1: BASELINE FUEL
Identify the fuels /feedstock with higher CEFs and contributing to
production of Xb% of the output Oi of the sector based on technology
Tj.
Baseline fuel:
Cleanest among the fuels making up Xb%
Fuel oil Baseline emission factor
IPCC fuel oil emission factor (t CO2 / t fuel oil) x Design specific
fuel oil consumption (t fuel oil / t Oi)
0% 25% 50% 75% 100%
Xb = 60%
Coal Heavy Fuel Fuel Oil Diesel NG RB
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MEASURE 2: TECHNOLOGY SWITCH
Define sector (product Oi) Identify technology with or without energy source Identify corresponding percentage of output Rank the carbon intensity of the technologies
TECHNOLOGY Tb Output Oi: ElectricityEnergy source b
Energy source pTECHNOLOGY Tp
0% 25% 50% 75% 100%
Sub Coal Diesel Engine OCGT CCGT RB Wind
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MEASURE 2: ADDITIONALITY
TECHNOLOGY SWITCH - Additionality
Identify the technologies with higher CEFs and contributing toproduction of Ya% of the output Oi of the sector.
The positive list for additionality demonstration: Cleaner than the technologies making up Ya%
Wind and RB are eligible Check their commercial attractiveness and barriers
0% 25% 50% 75% 100%
Ya = 80%
Sub Coal Diesel Engine OCGT CCGT RB Wind
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MEASURE 2: BASELINE TECHNOLOGY
Identify the technologies with higher CEFs and contributing to
production of Yb% of the output Oi of the sector
Baseline technology:
Cleanest among the technologies making up Yb%
OCGT
Baseline emission factor IPCC natural gas emission factor (t CO2 / t natural gas) x Design
specific natural gas consumption (t natural gas / t Oi)
0% 25% 50% 75% 100%
Yb = 60%
Sub Coal Diesel Engine OCGT CCGT RB Wind
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MEASURE 3: METHANE DESTRUCTION
Additionality
If the level of CH4 destruction undertaken by ameasure is higher than what is mandatory andenforced, the measure of destruction is additional.
Baseline
The baseline level of destruction is the mandatoryand enforced level of destruction.
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MEASURE 4: METHANE FORMATION AVOIDANCE
Additionality
If the proposed disposal and treatment method is notmandatory and enforced and is less attractive, thenthe measure is additional.
Examples: landfill aeration, composting, use of
agriculture residues
Baseline
The baseline is the most commonly used disposaland treatment method;
Examples: municipal waste is landfilled.
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EMISSION FACTORS
Baseline emission factors may be developed when multiplemeasures are simultaneously applied in a sector.
For example: cement sector.
Baseline emission factors may be developed for sectionsof sectors.
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PROCEDURES
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OBJECTIVE
Provide detailed steps for the submission of proposedstandardized baselines (PSB) by DNAs for consideration by
the Board.Does not include procedures for the submission of newmethodological approaches to derive standardizedbaselines; which can be submitted by the appropriateprocedures:
New methodologies;
Revision of approved methodologies;
Revision of the approved guidelines for other
types of measures or sectors.
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OVERVIEW OF THE PROCEDURES
Submission of aPSB
DNA
DOE
CompletenesscheckSecretariat
Consideration
Secretariat
Panel and Workinggroups
Board
To approve (A)
Not to approve (C)
Preliminaryrecommendation
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SUBMISSION OF A PSB
Who submits? DNA (DOE may upload the
submission on behalf of the DNA)
Who develops? DNA;Project participants;
International industry organizations;Admitted observer organizations.
Documentation? Submission form;Report prepared by DOE:
Ensure quality of the data;Assess if the PSB was derivedin accordance with the relevantstandards and guidelines.
When to submit? Any time.
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CONSIDERATION OF THE PSB I
Who? Secretariat.
What? Assign a reference number;Invite public comments;Make public comments available;Prepare a draft recommendation;
Send to relevant Panel or Workinggroups.
Timeline Public comments: 15 calendar days;
Draft recommendation sent to relevantPanel or Working groups: 20 workingdays.
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CONSIDERATION OF THE PSB II
Who? Relevant Panel or working groups.
What? Finalize the recommendation.
Timeline No more than 2 meetings.
Possible outcomes
To approve(A)
Not toapprove (C)
Preliminaryrecommendation
Board is informedof the
recommendation.
Additional orrevised information
is requested.
Board is informedof the
recommendation.
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FINAL DECISION
Who? Board
What? Approve or not approve the PSB.
Timeline Consideration: 20 working days.If a member requests the
consideration by the Board, then thecase goes to the next meeting of theBoard.
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SUMMARY OF APROX TIMELINES
Completeness Draft Final
Check Recommendation RecommendationSubmission
15 to 55working
days
+ 50 to 80working
days
+20 to 40working
days
TOTAL: 85 TO 175 WORKING DAYS
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UNFCCC Secretariat
SDM programme
THANK [email protected]