8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 1/7

8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 2/7

Practical Approach for the developmentof standardized baselines

Gareth PhillipsChief Climate Change Officer, Sindicatum

Chairman Project Developer Forum

8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 3/7

Objectives of standardized baselines

• Broad reaching objectives

• For example, Preamble to Decision 3 CMP6:

• Noting that the use of standardized baselines could reduce transaction costs, enhance

transparency, objectivity and predictability, facilitate access to the clean development 

mechanism, particularly with regard to under-represented project types and regions, and 

scale up the abatement of greenhouse has emissions, while ensuring environmental integrity 

• Highlights the fact that Standardized Baselines are meant to result in a

significantly new approach to CDM

8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 4/7

Compare “conventional CDM” with CDM

under a standardized baseline“Conventional CDM”

 – Single site / single technology

 – Multiple site / single technology – PoA

 –Multiple site / multiple technologies – challenging

• These characteristics are due to the structure of the methodologies and

proof of additionality

“Standardized Baseline CDM”

• Standardized baselines call for scaled up action with reduced transaction

costs and allow for new approaches to establishment of baselines,

calculation of CER and additionality

8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 5/7

CDM under standardized baselines

Scale Type Example Baseline Additionality Quantification

Region

wide

Dispersed High volume low

cost technology,

CFLs,

cookstoves,

water purifiers

Low growth

rate for

technology

in absence of 

CDM

Barriers to

faster uptake

Deemed savings

per operational

unit

Region

wide

Site

specific

High cost, low

volume e.g. PV,

waste heat

recovery

Continuation

of current

practice, low

growth rate

E.g. Financial

analysis; barrier

analysis

Site specific

metering and

calculations;

deemed savings

Region

wide

Site

specific

Suite of 

technologies e.g.Energy Efficiency

in buildings;

transport

Continuation

of currentpractice,

quantified

via models

Beating the

benchmark

Total GHG

emissions perunit output (t

CO2 per unit)

8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 6/7

Practical approaches to the development

of standardized baselines1. Select the project first, then see if CDM can be applied to it – CDM

revenues are likely to be a small part of the overall project budget

2. The UNFCCC is preparing a framework for Standardized Baselines and

they are also open to other proposals

3. There is sufficient scope in the definitions of standardized baselines to

facilitate new types of projects but environmental integrity is paramount

4. Throughout Decision 3 CMP6 it is clear that DNAs are to be involved; they

can engage with other entities to prepare a standardized baseline

methodology

5. Consider the demand for the resulting CERs

6. Design a meth that works for the project, not one that fits the existing

methodology guidelines, tools and conventional CDM

8/4/2019 Practical Approach for the Development of Standardized Baselines

http://slidepdf.com/reader/full/practical-approach-for-the-development-of-standardized-baselines 7/7

In Conclusion

• Standardized Baselines present a very

significant opportunity to expand the CDM

• Whilst moving away from the restrictions

imposed by existing methodologies and tools

• Thank you for listening