Programme of Activities (PoA)

ACX Executive Climate Change & Carbon Trading Course

KEFRI, Nairobi

12-16 November, 2012

Abbas S. Kitogo

1. What is a PoA?

2. Why PoA?

3. Key features of a PoA

4. PoA opportunities & examples

Outline

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PoA

CPACPA .. .. ..

CPA

CPA: Set of interrelated measures to reduce GHG emissions within a designated area => particularly suitable for dispersed micro activities.

CPAs can be added at

any time during duration

of PoA (up to 28 years)

CPAs must be homogenous

All CPAs end when PoA is terminated.

All CDM methodologies can be applied. The SSC threshold relevant at CPA level.

A PoA Coordinator is responsible for the PoA and communicates with the EB.

1. What is a PoA?

2. Why PoA?

- Scale up the CDM

• Increase number and size of CDM activities

• Increase emission reduction

- Allow for more project types and host countries

- Reduce transaction costs

3. Key features of a PoA

− As CDM: baseline + credited approach -> offsets

− The PoA provides the organizational, financial, and methodological framework

for the emission reductions to occur

• but the PoA does not actually achieve the emission reductions

− The emission reductions are attained at the level of the CPA

− Multiple Sites - CPAs can occur at different local, regional or national sites

− Two types of project proponents

• PoA coordinator - Coordinating/Managing Entity (CME) • CPA developers

− Unknown number and timing of projects

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PoA Design- Methodology

- Technology

- Eligibility criteria

- Baseline

- Additionality

- Monitoring Plan

Letter of Approval

CDM validation

CDM registration

Generic CPA

CPA1 CPA2 CPA3 CPAX

Some rules: inclusion of CPA under a PoA

Roles & responsibilities

• Focal point

• Manage all CER flows

• Source & contract CPAs

• Provide monitoring and verification services

Requirements for success

• Strong balance sheet

• Ability to trade / commercialise CERs

• Manage financial flows

• Ability to source and manage CPAs

• Excellent CDM knowledge

• Efficient monitoring systems

• Excellent understanding of sector and applied technology

• Strong counterparty for governments (ability to invest in CPAs)

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Coordinating/Managing Entity (CME)

- Additionality of each CPA has to be demonstrated through the eligibility criteria

for inclusion of CPAs and not on the CPA level itself

• Desk review by DOEs, no individually on-site visit

• E.g. once it has been determined that a certain technical equipment is

additional (on PoA level), e.g. a 5 W CFL of manufacturer x, every CPA with

same CFL meets additionality criteria

- CPA developers do not need to be formal programme participants

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Some rules: additionality

PoAs can use a combination of baseline methodologies

• Combination must be applied to all CPAs, in a consistent manner

• Each combination proposal is to be checked by the Meth Panel/SSC WG

• Recommendation: Include option of front-loading the request for approval of

multiple methodologies

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Some rules: Methodologies

Lighting

Equipment

Buildings

Appliances

Boilers

Stoves

Households

AgriculturePumps

Chillers

CDM Requirements

4. PoA opportunities

- Reduce fossil fuel consumptions for cooking purposes

- Replace inefficient traditional cooking stoves

- ICS consume up to 80% less firewood

- Huge SD impacts

- High potential due to:

• High dependency on inefficient stoves

• Accelerated forest degradation

• Unreliability of fuelwood

• High cost of firewood and alternative fuels

Barriers

• High initial costs

• Stove quality issues

• Monitoring difficulties

• Lack of awareness – consumers + stakeholders

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1: Improved Cooking Stoves (ICS) PoAs

- No. of disseminated stoves must be high

- Stove type, efficiency, type of replaced fuel must be known beforehand

- Possible baseline & monitoring methodologies:

1. AMS II.C “Demand-side EE activities for specific tech.” – impr. of fossil fuel stoves

2. AMS I.E “Switch from NRB for thermal application by the user”

3. AMS-II.G “EE measures in thermal applications of NRB

- Key initiatives to consider for a successful ICS PoA project:

• Involving DNA, relevant Ministries, GIZ, NGOs, etc

• Promotion & marketing + public awareness

• Partnership with local manufacturers and retailers – to reduce costs

• Testing & labeling – for monitoring purposes

• Subsidy to suppliers and incentive to users – discourage free dissemination 12

Developing an ICS PoA

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- Reduce power consumption in residential sector

- Replace highly inefficient incandescent light bulbs

- CFLs consume up to 75% less power

- Economical due to longer lifespan: 5000 – 25,000 hrs

- As a result reduce system load & enhance energy security

- High potential due to:

• Energy insecurity

• Low penetration rate of CFLs

• Good GEF

Barriers

• High investment costs

• Monitoring difficulties

• Lack of awareness

• Lack of initiatives by relevant authorities

2: EE Bulbs - Compact fluorescents (CFLs)

- No. of replaced bulbs should be significant

- Possible baseline & monitoring methodologies:

1. AMS II.C: “Demand-side EE activities for specific technologies”

2. AMS II.J “Demand-side activities for efficient lighting technologies”

3. AM0046 “Distribution of efficient light bulbs to households”

- Key initiatives to consider for a successful CFLs PoA project:

• Involving DNA, KPLC, Gov’t Ministries, NGOs, etc

• Promotion & marketing + public awareness

• Partnership with manufacturers, suppliers, and retailers,

• Testing & labeling

• Subsidy/discount

• Encouraging free dissemination

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Developing a CFLs bulbs PoA

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- Reduce CO2 emissions by replacing fossil fuel

- Avoid CH4 emissions by sust. use of biological waste

- Huge SD impacts

- High potential due to:

• High dependency on kerosene & wood fuel

• High cost of kerosene, charcoal, firewood

• Livestock keeping is widespread – at least 2 cows/HH

Barriers:

• High initial cost of Digester

• Technological choice issues

• Operational, Maintenance, and Monitoring issues

• Lack of awareness – especially in rural areas

3: Domestic Biogas PoAs

- Project area identification – with adequate raw materials & potential for fuel switch

- No. of Digesters installed should be economically viable

- Possible baseline & monitoring methodologies:

1. AMS III.D “CH4 recovery in animal manure management systems”

2. AMS III.R “CH4 recovery in agricultural activities at hh/small farm level”

3. AMS I.C “Thermal energy for the user with or without electricity”

4. AMS I.E “Switch from NRB for thermal applications by the user”

5. ACM0010 “Consolidated baseline methodology for GHG emission reductions from manure management systems”

- Key initiatives to consider for a successful Biogas PoA project:

• Involving DNA, NGOs, Micro Finance institutions, Ministries, etc

• Public awareness programmes

• Technology choice, testing & QA

• Continuous maintenance of digesters

• Financial incentives and subsidies16

Developing a Domestic Biogas PoA

- Reduce CO2 emissions by replacing fossil fuel use

- Huge SD impacts

- Economical due to high technical lifetime

- High potential due to:

• Low level of electrification

• Huge Potential for small hydro

• Good GEF

Barriers:

• High installation cost

• Lack of political will

• Low level of expertise

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4: Small Hydropower PoAs – up to 15MW plant

- Technical feasibility of project area – topography, EIA, engineering stuff

- Depending on the capacity, several few plants are economically viable

- Inter-regional PoA can be an option

- Possible baseline & monitoring methodologies:

1. AMS I.D “Grid connected renewable electricity generation”

2. ACM0002 “Grid-connected electricity generation for renewable sources”

3. AMS I.A “Electricity generation by the user” – not grid connected

- Key initiatives to consider for a successful Small Hydro PoA project:

• Involving all relevant stakeholders including financial institutions

• Power purchase agreement with KPLC is a key

• Local communities benefiting from carbon finance could be an incentive

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Developing a Small Hydro PoA

- Capture and flare CH4 from landfills

- Recover LFG for generating heat & power

- Avoid CH4 emissions through waste composting

- Capture and supply upgraded LFG

- Sort and recycle materials

- Manage LFG generation

- High potential due to:

• Abundant of wastes

• Energy insecurity

• High GEF

Barriers:

• Finance accessibility – High O & M costs

• Permit and licenses acquisitions problems

• Technological choice problems

• Landfill operation challenges

• PPA issues 19

5: Solid Waste Management

- Landfill for CDM should be well designed and constructed

- Type & amount of waste should be known and measured – waste sorting

- Possible baseline & monitoring methodologies:

1. AMS III.F “Avoidance of CH4 emissions through composting”

2. AMS III.E “Avoid. of CH4 prod. from decay of biomass through controlled combustion, gasification or mechanical/thermal treatment”

3. AMS III.G “Landfill CH4 recovery”

4. AMS III. L “Avoid. of CH4 prod. from biomass decay through controlled pyrolysis”

5. AMS III.AF “Avoid. of CH4 emissions through excavating and composting of partially decayed MSW

6. AMS III.AJ “Recovery and recycling of materials from solid wastes”

7. ACM0001 “Consolidated baseline and monitoring methodology for LFG projects

- Key initiatives to consider for a successful SWM PoA project:

o Involving Municipals, KPLC, DNA, Banks, Ministries, etc

o Proper handling of waste – include public education

o Proper choice of technologies

o Marketing of products – compost, gas, electricity

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Developing a Solid Waste PoA

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- Reduce CO2 emissions by replacing kerosene lamps with solar powered LED lights in rural areas

- Huge SD impacts – health, education, entrepreneurship

- High potential due to:

• Abundant sunlight

• Low level of electrification in rural areas (2%)

• High dependency on kerosene – too costly

• Lamps can be affordable

Barriers

• High initial cost for economically viable PoA

• Durability and efficiency issues

• Monitoring difficulties

• Lack of awareness by rural areas

• Lack of government support – e.g. tax reduction

6: Solar lanterns PoAs in rural areas – LED lights

- Project area identification – with potential for fuel switch

- PoA should cover large area – cross regional/country

- Possible baseline & monitoring methodologies:

1. AMS III.AR “Substituting fossil fuel based lighting with LED lighting systems”

2. AMS I.A “Electricity generation by the user”

Key initiatives to consider for a successful LED light PoA project:

• Technology choice, testing & quality assurance

• Marketing & promotion - public awareness

• Involving DNA, NGOs, Micro Finance institutions, etc

• Financial incentives and subsidies

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Developing a LED lights PoA

- Avoid CO2 emissions by reducing fossil fuel consumptions

- Huge SD impacts

- High potential due to:

• Abundant sunlight

• Unreliable electricity supply – energy insecurity

• High cost of electricity

• Expertise availability

Barriers

• Very high initial costs

• Technological choice problems

• Monitoring and maintenance problems

• Lack of government support – e.g. tax reduction

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7: Household Solar PV Systems PoAs

- Project area identification – with potential for fuel switch

- Many households should be involved for an economically viable PoA

- Possible baseline & monitoring methodologies:

1. AMS I.A “Electricity generation by the user”

- Key initiatives to consider for a successful Solar PV PoA project:

• Involving as many stronger stakeholders as possible

• Marketing and promotion

• Technology choice & quality assurance to ensure efficiency & durability

• Continuous monitoring of performance

• Financial incentives and subsidies

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Developing a Solar PV PoAs

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- Agr./wood/forest/bagasse residues converted into usable fuels - briquettes, pellets, sust. charcoal, electricity

- Reduce CO2 emissions by replacing charcoal, firewood, grid electricity, coal, & kerosene consumptions

- Huge SD impacts

- High potential due to:

• Abundant biomass resources

• Unreliable energy accessibility

• High cost of fuel

Barriers

• High initial investment

• Limited incentives

• Lack of expertise

• Accessibility of appropriate technologies

• Industry unwillingness

8: Agr/Wood/Forest/Bagasse (Biomass) residues PoAs

- Project area identification – with abundant biomass & potential for fuel switch

- Many users should be involved for an economically viable PoA

- Possible baseline & monitoring methodologies:

1. AMS I.E “Switch from Non-Renewable Biomass for Thermal Applications by the User”

- Key initiatives to consider for a successful Biomass PoA project:

• Proper handling of biomass residues/waste

• Linkage with technology providers

• Commercialization of biomass products - Marketing & promotion

• Capacity building activities

• Involvement of all key stakeholders

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Developing a Biomass PoAs

- Avoid CH4 emissions by improving charcoal production

- Recover & flare/combust CH4 generated in the prod. process

- Positive impacts on forests

- High potential due to:

• Unsustainable charcoal production is widespread

Barriers:

• High initial investment costs

• Technology inaccessibility

• Lack of knowledge and expertise

• Lack of awareness

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9: Charcoal PoAs

- Project area identification – charcoal production is unsustainably

- Many charcoal producers should be involved for an economically viable PoA

- Possible baseline & monitoring methodologies:

1. AMS III.K “Avoidance of CH4 release from charcoal production by shifting from traditional open-ended methods to mechanized charcoaling process”

- Key initiatives to consider for a successful Charcoal PoA project:

• Involving as many charcoal producers as possible

• Linking with technology providers

• Exploring financial means

• Monitoring & evaluation of project

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Developing a Charcoal PoAs

- Avoid CO2 emissions by displacing fossil fuel use

• Biodiesel for transportation (mobile use)

• Biodiesel for stationary use (electricity, thermal)

- Biofuel must be sold locally to claim CERs under the CDM

- High potential due to:

• Vast land & suitable climate

• High price of fuels – diesel, petrol

Barriers:

• Regulatory

• Very high initial costs

• Technology & infrastructure – car engine technology

• Market potential

• Inadequate government support

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10: Biofuel PoAs

Abbas S. KitogoMobile: +254 700 58 18 26Email: abbasum@yahoo.comURL: www.cdminafrica.ning.comNairobi, Kenya