pdd and pin preparation
DESCRIPTION
PDD and PIN preparation. Technical Workshop on CDM Paramaribo, 18 June 2008 Adriaan Korthuis. Contents. PIN What and why How PDD What and why How. Project development. PHYSICAL PROJECT DEVELOPMENT. PROJECT IDEA. FEASIBILITY STUDY. FINANCING. CONSTRUCTION. OPERATION. - PowerPoint PPT PresentationTRANSCRIPT
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PDD and PIN preparation
Technical Workshop on CDMParamaribo, 18 June 2008
Adriaan Korthuis
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Contents
PIN– What and why– How
PDD– What and why– How
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Project development
PROJECT IDEA CONSTRUCTIONFINANCINGFEASIBILITY STUDY
MAKE PDD
OPERATION
REGISTERVALIDATE ISSUE CERsVERIFY
STAKEHOLDER COMMENTS
TEST ADDITIONALITY
USE OR MAKE METHODOLOGY
NEGOTIATE ERPASELECT BUYERPREPARE PIN and TERM SHEET DELIVER CERs
CDM / JI DEVELOPMENT
PHYSICAL PROJECT DEVELOPMENT
COMMERCIAL DEVELOPMENT
STAKEHOLDER COMMENTS
MONITOR
LETTER OF APPROVAL
GENERATE CERs SELECT BUYER SELL AND DELIVER
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PIN and PDD
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PIN – Key Elements Clear description of project activities and technologies
employed Identify project participants and arrangement for
implementation– Participants’ roles and their technical, financial capability to
undertake– Status of third party involvement if appropriate (e.g., PPA in case of
electricity generation project or agreement with municipality, private operator regarding ownership of waste in case of landfill project)
Eligibility outline: additionality and baseline scenario– Why the project should not happen on its own?– Sources of GHG emission reductions and total ER volume including
possible leakage Local, national, and global benefits Risks
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1. Project Financing– Bankability: sooner can achieve financial closure, better
the chances of selection – Project costs already determined and realistic– Idea of how carbon would impact implementation or
address expected financing gap
2. Credible baseline and adequate volume – Carbon credit volume should be sufficient to cover CDM
or VER transaction costs
– Suggested minimum threshold: 20 ktCO2 per year or 100 ktCO2 total before 2012.
What buyers look for (1)
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What buyers look for (2)
3. Commercially viable technology
4. Competent, credible counterparties• clear champion and institutional arrangements • sound legal arrangement -- who owns, who operates, what type
of agreement between project participants
5. Viable business + operation model
6. Demonstration of sustainability, safeguards• EIA and/or relevant environmental permits• Compliance with social + environmental safeguards plus relevance to sustainable criteria of host country
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Examples of PINs
Worldbank: www.carbonfinance.org
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Elements of the PDD A. General description of the small scale project
activity B. Application of a baseline and monitoring
methodology C. Duration of the project activity / crediting period D. Environmental impacts E. Stakeholders’ comments Annexes Annex 1: Contact information on participants in the
proposed small scale project activity Annex 2: Information regarding public funding Annex 3: Baseline information Annex 4: Monitoring Information
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A. General project description
Project description, contribution to sustainable development
Project participants Technical description Location Summary of emission reductions
Relevance
Consistency
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B. Application of a baseline and monitoring methodology
Selection of methodology – justification and application
Description of project boundary, sources and gasses– Be complete and follow the methodology strictly
Identification of the baseline scenario– Support this by adequate evidence– Identify risks of the baseline, e.g. if the situation
continues over time– Take care of logic in the PDD
Demonstration of additionality– Be complete, convincing, tranparant, well documented etc
Inventory of data Ex-ante estimation of emission reductions Monitoring plan
Conservative-ness
Transparency
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C. Dates
Starting date: the day that construction starts Crediting period:
– Single period of 10 years OR– Renewable period of 3 * 7 years
• Check of validity of the baseline• Check of validity of assumptions (e.g. additionality)• Update the baseline
Accuracy
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D. Environmental impacts
Describe environmental impacts Carry out Environmental Impact Assessment if
required by local law, and if impacts are considered considerable
Add the EIA to the PDDComplete-
ness
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Stakeholder comments
Local stakeholders must be consulted– Following local procedures
Comments of stakeholders must be described– Who was invited and how– Who was there– What information was provided– How discussion was organised– Which comments were given and concerns were raised
Report on how these comments were taken into account.
Complete-ness
Transparency
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Examples of PDDs
UNFCCC-website: cdm.unfccc.int – Project activities
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Contact details
Adriaan Korthuis Phone +31 10 217 5993 E-mail a.korthuis @ climatefocus.com
www.climatefocus.com