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Off t A ti i th CDMOffsets Aggregation in the CDM
PoAs Validation and Verification – Lessons Learned
Miguel Rescalvo
PoAs Validation and Verification – Lessons Learned
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DNV KEMA
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Impacting climate change issues
75%32% 1st75%75% of the world’s offshore wind projects are certified and verified by DNV
32%32% of all Clean Development Mechanism (CDM) projects are validated by DNV
1stReleased the world’s first standard for qualification of carbon capture and storage technologies
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Individual CDM Projects Vs PoA
PIN PDD NDAApproval Validation Registration MRV CERsP1
P2
....PIN PDD NDA
Approval Validation Registration MRV CERs
Pn PIN PDD NDAApproval Validation Registration MRV CERs
NDA
CPA DD Inclusion2nd CPA
PIN PDD NDAApproval Validation Registration MRV CERs
CPA DD Inclusion2nd CPA
.... n CPA CPA DD Inclusion
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Programmatic CDM
(PoAs)
Coordination Entity
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Basic requirements of PoAs
Sound and robust concept and business plan: S i POA ( i i i l l )- Structuring POAs (economics , incentive structure, legal structure)
- Regulatory requirements - Dealing with additionality (POA and CPA levels)- Monitoring- Monitoring
Institutional capacity for implementation: The PoA operator (coordinating entity).
Compliance with regulatory requirements: PoA rules/procedures, CDMmethodologiesmethodologies.
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Lessons learned during validation/verification
Miguel Rescalvog
Program of Activities (PoAs)
One siteOne technologyEg HouseholdsSeveral sites Eg. Households Insulation
Several sitesOne technology
One siteSeveral SitesSeveral TechnologiesOne site
Several technologiesIndustrial sites (cogeneration, lighting EE, WHR, etc)
Several TechnologiesEg. Renewables PoAHouseholds EE & insulation
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insulation
Source: WB CF-A
Changes in the geographical approach to PoAs implementation
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design
Additionality
PoA Management entity
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs
Verification
Liability
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design- Multiple countries/multiple technologies- Linked to additionality demonstrationLinked to additionality demonstration- Linked to baseline confirmation
Additionality
PoA Management entity
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs
Verification
Liability
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design- Multiple countries/multiple technologies- Linked to additionality demonstrationLinked to additionality demonstration- Linked to baseline confirmation
AdditionalityP t f th i l i it i b t ff t d b th i- Part of the inclusion criteria but affected by the program size
- From PoA to CPA depending on program size and design- Critical aspect of the inclusion criteria and DOE liability
P A M t tit PoA Management entity
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs
Verification
Liability
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design
Additionality
PoA Management entity- Requirements of the ME quality control system for CPA testing and control- New requirements, if ME does not have the system – reason for negative validation
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs
Verification
Liability
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design
Additionality
PoA Management entity
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs- Criteria reality check – 1st inclusion with PoA validation- Double counting risks
Verification
Liability
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design
Additionality
PoA Management entity
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs
Verification- Sampling: The CME has two options (to be stated in the PoA-DD):
- The DOE verifies 100% of the CPAs.- Sampling procedures are defined in the PoA-DD, and the DOE visits a number of CPAs
Liability
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Challenges in PoAs Validation/CPA Inclusion and Verification
Program size and design
Additionality
PoA Management entity
Thought to be a “Simplified” method to allow offset aggregation in LDC
Inclusion of CPAs
Verification
Liability
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PoAs liability I would run away pretty fast if I were you…. I am working in CDM as a
DOE validating PoAsDOE, validating PoAs…. it is very interesting
UNLIMITED LIABILITY - WHAT TYPE OF BUSINESSUNLIMITED LIABILITY - WHAT TYPE OF BUSINESS WOULD LIVE WITH SUCH CONDITIONS ?
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Post 2012 mechanisms … what the market is doing
CDMP j t
PoA NAMA Local AMAProject
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www.dnvkema.com
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