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Fast Track to Support Low-Income Countries & Regions under the CDM

Carbon Finance UnitWorld Bank

Fast Track CDM for Low-Income Countries and Regions (LICRs)

Dialogue with LICR

DNAs

Input to UNFCCC process

Analytical work on SBs and

CDM fast tracking

Piloting and

testing

Fast Track CDM for

LICRs

Standardized baselines (to simplify

baseline and additionality

determination)

Simplifed Monitoring requirements as a

result of SBs

Broadening the CDM for LICR for a

spectrum of LULUCF activities and

generalization of the E- rule

Registration through a standardized

eligibility checklist with validation and verification in one

step

Simplified PoA procedures for PoAs

targeting mico- activities

Increased DNA role

Standardized Baselines for LICRs

Introduction of standardized elements in already approved SSC / new SSC meth., relevant to LICRs.

Preliminary list of technologies:- Renewable energy (off grid)- Rural electrification- Cookstove- Solar water heaters- Heating & cooling / Building- Transformers, transmission and distribution of electricity- Transport (introduction of new technology/modal shift)- Biogas avoidance/recovery (composting/domestic biodigestors)- Charcoal production- LULUCF

Standardized Baselines for LICRsProposals for standardization include:Default values, e.g.:

-default ratio for renewable/non-renewable biomass for cookstoves. -default factors for project emissions, e.g., composting/domestic biodigestors.

Deemed saving: e.g. deemed fuel consumption for cookstove. Modeled approach: e.g., EE in building Simplified monitoring: e.g., EE supply-side intervention: monitoring of market penetration rates. Baselines setting : e.g., standards set by the government for appliances. Penetration rate to define additionality: e.g., transportation sector. Develop new SSC methodologies: grid electrification of rural communities.

Standardized BaselinesRural Electrification, SSC methodology (under development)

Project type: Electrification of remote settlement (grid-extension or mini-grid connections), includes households/commercial users. High efficiency lighting/more efficient power generation.

Cap on total energy consumption per household to rural universal access level (250 kWh, EIA 2009).

Baseline activity level for lighting: based on “minimum standard” for lighting, equivalent to 2 CFLs x 15W x 5 hr/d (EIA 2010) , convert to lumens and fuel consumption for kerosene lamp.

Deemed baseline emissions: based on fuel lighting characteristics and operational assumptions (0.75 tCO2/household p.a.).

Share of lighting vs other appliances is pre-defined: 30/70%. Project emissions: T&D losses, SF6. Simplified monitoring : households electricity consumed under project activity (individual or group). Commercial users: individual electricity meters.

Recent Experiences: Validation Process

Started validation(independent audit)

Successfully complete validation to date

Wait in CDM queue

Registered to date (2 years later)

Process Days at stageProjects that started validation in 2009

1213

397*

397

397

120

--

325

90

30†

90^

55 90^

CDM document review (completeness check)

Secretariat & RIT Review

Executive Board decision

300

* Note: Also 4 negative validations and 70 validations terminated†Note: Maximum time to complete the process^Note: Estimate based on WB ExperienceSource: IGES and RISOE

Registration – recent experience

491 days

Total: average case

Request for registration to date 395 28

see below

If fail, go to back of queue

Start of Validation to Registration:

Fast Track CDM for LICRsStreamline approach for CDM project (micro-project activity)

CDM project (currently)

PDD by PE

Validation of PDD by DOE

Registration EB

Monitoring

Verification by DOE

Issuance CERs

Fast track CDM project in LIR

Check list filled PE

Registration EB

Monitoring

Verification by DOE (check

list/monitoring)

Issuance of CERs

Fast track for projects in LDCs/SIDs etc. (micro project):

1. Standardized check list/technology specific /relevant to LICRs.

2. Automatic registration if project complies with criteria in check list.

3. Verification by DOE of 1) conformity with check list; and 2) monitoring.

Proposal , to be developed along with the principles:- Environmental integrity/

Conservativeness- Safeguards for implementation (e.g.

high efficiency lighting)

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THANK YOU

The World Bank Carbon Finance Unitwww.carbonfinance.org

Fast Track CDM for LDC+CPAs with micro-project activity

PoA (currently)

PoA & CPA PDD by CME

Validation by DOE

Registration EB

Monitoring of CPAs

Verification DOE

Issuance CERs

Fast track PoA

PoA PDD only - by CME

PoA validated by DOE

Registration EB

Monitoring of units

(sampling)

Verification DOE

Issuance of CERs

Fast track for PoA in LDCs/SIDs etc. (micro CPAs):

1. Only PoA PDD (i.e. not CPA-DD) to be prepared for registration. Units /CPAs do not need to be validated at inclusion.

2. PoA PDD validated by DOE. Should contain check list of eligibility requirements and must comply with additionality requirements for micro scale CDM projects

3. Monitoring periodically undertaken for representative sample of all units included in PoA.

4. Verification - DOE ensure units comply with eligibility criteria i.e. verification = “quasi validation”. Risk of liability much less than at point of registration.

5. Issuance of CERs with verification report once approved by EB.