Nashib Kafle, Associate Programme Officer

UNFCCC secretariat, Sustainable Development Mechanisms programme

Session 2: CDM Project Cycle

Validation and Registration of CDM Projects

Training-Workshop to support the

“Uganda Municipal Waste Compost Programme”

21 - 24 Oct 2013, Mukono Municipality, Uganda

Outline

• CDM Project Cycle

• Project Design Document (PDD)

• Baseline

• Additionality

• Monitoring

• Validation process

• Registration process

CDM Project Cycle

Project Design Document (PDD) &

Host Country Approval

Validation &

Request for registration

Project design

National approval

Validation

Registration

Verification / certification

Issuance of Certified Emission Reductions (CERs)

Monitoring

DOE

CDM EB

Project Participant

Step Who’s responsible

DNA

Project Design Document (PDD)

Project Design Document (PDD)

WHAT?

• Document that describes about the project, project participants, baseline, additionality

and monitoring plan.

• Prepared using the standard forms available in the UNFCCC CDM website.

WHO?

• Project participant prepare the PDD

WHY?

• PDD is the key document required for validation, registration and stakeholder

consultation.

• DNAs may also review PDD when issuing letter of approval.

Elements of Project Design Document (PDD)

• Section A: Description of project activity

• Section B: Application of selected approved baseline and monitoring methodology

• Section C: Duration and crediting period

• Section D: Environmental impacts

• Section E: Local stakeholder consultations

• Section F: Approval and authorization

Appendices

• Contact information of project participants, information on public funding, further details

on emission reduction calculations and monitoring

Key elements in PDD

Stakeholders and Environmental Impact

PDD

Ad

dit

ion

ali

ty

Bas

elin

e

Mo

nit

ori

ng

Baseline

• Scenario that reasonably represents GHG emissions that

would have occurred in the absence of the proposed

project activity

• Difference between the baseline emissions and project

emissions (after implementation of CDM project) is the

emission reduction achieved by the project.

• Baseline is established on a project specific basis using the

approved methodology. Time

GHG emissions

Baseline emissions

Project emissions

Emission reductions

Without CDM Project

With CDM Project

Additionality

• A CDM project is additional if GHG emission are reduced below those that would have

occurred in the absence of the registered CDM project activity

Prior consideration of CDM

New Project Activities

(After 2 August 2008)

• PP must inform DNA and UNFCCC in writing about the commencement of project and intention to seek CDM status

• Should be done within 6 months of project start date

• Not necessary if PDD is published before project start date

Existing Project Activities

(Before 2 August 2008)

• Demonstrate that CDM was seriously considered in the decision to implement the project activity

• Evidence may be contracts with consultants, ERPA, submission of new methodology etc.

• Assessment of real and continuing actions

Additionality demonstration (1/2)

Large scale projects

• Demonstrated using the Additionality tool

a) Investment analysis (e.g. simple cost, investment comparison, benchmark)

b) Barrier analysis (e.g. barrier that prevent the implementation of project activity)

c) Common Practice analysis

Small scale projects

• Project up to 15MW or energy saving of 60GWh/yr or methane avoidance/ destruction of less

than 60ktCO2/yr

• Demonstrate using the barrier (e.g. investment, technological, prevailing practice etc.)

• Projects in positive list of technologies are automatically additional

Solar technologies, offshore wind, wave, tidal – Up to 15MW capacity

Micro/pico hydro or wind or PV-wind hybrid or geothermal – Individual units up to 100kW

Biomass gassification/biogas – Individual units up to 100kW

Additionality demonstration (2/2)

Micro-scale project activities

• Project up to 5MW or energy saving of 20GWh/yr or methane destruction of less than

20ktCO2/yr

• Automatically additional if

Located in LDC/SIDS or special underdeveloped zone of the host country

Off grid project supplying energy to households/communities

Distributed energy generation (each system less than 1500kW and end users are

households/communities/SMEs)

Specific renewable energy technology/measures recommended by host country DNA

Isolated units (no larger than 5% of small scale threshold) where the

technology/measures are households/communities/SMEs

Monitoring

Objective of monitoring plan

• Collecting and archiving all relevant data necessary for determining the baseline

emissions, project emissions and leakage

Elements of monitoring plan

• Operational and management structure

• Responsibilities and institutional arrangement for data monitoring. recording and

archiving

• Quality assurance and quality control (QA/QC) procedures

• Uncertainty levels, methods and accuracy level of measuring instruments

• Specification of the calibration frequency for measuring equipment

• Sampling plan and method if sampling is used to monitor parameters

Monitoring Plan

Include all data, parameters and related information required by applied methodology

• Parameters fixed ex-ante (no need to monitor)

• Parameters to be monitored

Data / Parameter  

Unit  

Description  

Source of data  

Value(s) applied  

Measurement methods and procedures  

Monitoring frequency  

QA/QC procedures  

Purpose of data  

Additional comment  

Validation of CDM project activity

• Process of independent evaluation of a project activity by Designated Operational

Entity (DOE) against the requirements of the CDM

• DOE is either a domestic legal entity or an international organization accredited and

designated by the CDM Executive Board (EB)

• Currently there are 42 DOEs accredited for different sectoral scopes.

Principles for validation and verification

• Independence

• Ethical Conduct

• Fair Presentation

• Due professional care

Key Elements of Validation

Key Elements

of Validation

1.

Approval - LoA

2.

Participation

3.

Sustainable Development

4.

Compliance of the PDD

5.

Project Description

6.

Baseline and Monitoring Methodology

7.

Additionality

8.

Monitoring Plan

9.

Environmental Impacts

10.

Stakeholder Consultation

Validation Process

Submission of PDD to DOE

Publication of PDD in UNFCCC website

Desk Review of project activity

Site visit and Interviews

Draft of technical review

Feedback and clarifications

Receive responses

Final Technical Review

Request for registration

• DOE submits the Validation Report (with positive

validation opinion) and supporting documents through

dedicated interface on the UNFCCC CDM website

• Secretariat issue unique reference number for the

submission and a statement of the registration fee due

• No fee for project activities and PoAs hosted in LDCs

• Upon receipt of payment, the secretariat schedule the

commencement of the processing of the request for

registration in accordance with secretariat's operation

plan

Registration of CDM project activity

• Completeness Check (CC): Check the completeness and consistency of the documents

• Information and Reporting Check (I&RC): Check in accordance with the I&RC

Checklist for request for registration published in UNFCCC CDM website.

• Summary Note (SN): Secretariat prepare and send the summary note to CDM EB

Commencement

CC finalized

7 days

I&RC finalized

23 days

Automatic Registration

14 days

Summary Note preparation

14 days

Period to Request for Review

58 days

Request for Review by a party involved in CDM project or at least 3 EB members

Thank you

Thank you