lulucf cdm small-scale projects -small-scale energy projects -current draft text in sbsta/2003/l.13...
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LULUCF CDM small-scale projects
-Small-scale energy projects
-Current draft text in SBSTA/2003/L.13
-Simplified procedures for energy projects
-Potential savings from simplified procedures
-How large is small-scale?UN
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Jens Mackensen
Energy projects that are eligible for simplified modalities and procedures include:
(i) Renewable energy projects activities with a maximum output capacity equivalent of up to 15 megawatts (or an appropriate equivalent);
(ii) Energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of 15 gigawatt/hours per year;
(iii) Other projects activities that both reduce anthropogenic emissions by sources and directly emit less than 15 kilotonnes of carbon dioxide equivalent annually.U
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Baseline establishment (Paragraph 24d, FCCC/SBSTA/2003/L.13)
“[In the case of afforestation and reforestation project activities under the CDM that [remove at most 15 kilotonnes of CO2 equivalent per year] [or] [are implemented in an area of less than [XX] hectares,] in accordance with simplified procedures developed for such activities;]”
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Monitoring (Paragraph 31d, FCCC/SBSTA/2003/L.13)
“[In the case of afforestation and reforestation project activities under the CDM that [remove at most 15 kilotonnes of CO2 equivalent per year] [or] [are implemented in an area of less than [XX] hectares, follows simplified monitoring procedures developed for such activities;]]”.
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Simplified modalities and procedures for energy small-scale projects include the following:
•Project activities may be bundled, but total size of bundle should not exceed limits stipulated in paragraph 6 (c ) of decision 17/CP.7;
•Requirements for Project Design Document are reduced;
•Baselines methodologies are simplified;
•Monitoring plans are simplified;
•Same operational entity may undertake validation, verification and certification;
•CDM Executive Board may propose lower share of proceeds to cover administrative costs and registration fees.U
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Search costs (fixed) Negotiation costs (degressive)Baseline determination costs (fixed)Approval costs (fixed) Validation costs (fixed) Review costs Registration costs (fixed) Monitoring costs (fixed) Verification costs (degressive)Review costs Certification costs (degressive) Enforcement costs (proportional) Transfer costs Registration costs
Adopted from Michaelowa & Stronzik, 2002
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For small-scale projects (2-20 Kilotonnes CO2 equivalent per year) transactions
costs are estimated to reach up to 10 Euro per t CO2). Michaelowa & Stronzik (2002) estimate that the minimum fixed costs for any CDM project amounts to 150,000 Euro, of which costs for baseline determination and monitoring represent approximately 30%.
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MethodLocatelli & Pedroni, 2003
Median value (ha)
% of profitable projects <500 ha
% of profitable projects <1000 ha
Ton-year
11,000 0% 2.8%
ACS 3,000 5.1% 17.7%
TCER1 2,300 13.7% 30.2%
TCER2 3,250 9.7% 23.1%
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Extreme condition
Ton-year
ACS TCER1 TCER2
Crediting period only 10 years
275,000 14,200 3,000 50,000
CER price of only 3$/tCO2
30,000 6,750 4,500 6,550
Highest transaction costs
18,550 5,650 3,700 5,000
2% risk discounting per year
11,000 5,150 2,400 3,250
CER price to increase 3% per year
11,000 3,000 14,550 30,000
Without any condition
11,000 3,000 2,300 3,250
(Locatelli and Pedroni, 2003)
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Thank you
Jens Mackensen, PhDUN Environment Programme
++254 20 62 42 51/32 83
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