Session 7: CDM projects baseline and additional, Standardized baselines development

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Session 7: CDM projects baseline and additional, Standardized baselines development CDM Training Workshop for DNAs and Stakeholders in Pakistan Islamabad, Pakistan, 21+22 August 2017 Jens Radschinski, Head of the RCC Bangkok UNFCCC - Regional Collaboration Center, Bangkok

Key CDM concepts Baseline and additionality Emission reductions Sustainable development CER price and demand 2

Standardized baseline What is standardized baseline? Baseline established for a Party or a group of Parties to facilitate the calculation of emission reductions and removals; and/or Used for determination of additionality for CDM project activities, while providing assurance for environmental integrity. Why SBs? Important strategy for promoting access to CDM projects and PoAs and wider mitigation actions in developing countries and sectors through simplification in developing baseline, baseline factors and or additionality Baseline, baseline factors developed using SBs can be used for wider mitigation actions under CDM, NAMAs and NDCs SB is a reliable and recognized tool that offers a transparent means to develop baseline or baseline factors for MRV purpose of mitigation outcomes 3

The concept CDM Methodologies/ tools Standardized Baselines (SBs) Specific project boundary Project-specific baseline to be determined Project-specific demonstration of additionality Sector-specific standards (regional, national, or international) Pre-determined Sectoral baseline Pre-determined additionality using positive list 4

Approaches to develop SBs The approach of the Guidelines for the establishment of sector specific standardized baselines ; A methodological approach contained in an approved, proposed new or revised baseline and monitoring methodology; A methodological approach contained in an approved, proposed new or revised methodological tool; or The approach of the Guideline: Establishment of standardized baselines for afforestation and reforestation project activities under the CDM. 5

SB process bottom - up Submitted using an approved methodology, tool or SB guidelines. For any other approach, use the submission procedure for PNM or revision of methodology/tool. For submission by group Who can submit? through DNA of Parties, the approval of Parties all DNAs is required, and PPs any one of DNAs can International industry organizations submit and act as focal point. Admitted observer organizations Documentation required for submission: CDM-PSB form Assessment report, and Letter of approval from DNA(s) Additional documentation supporting submission (e.g. relevant data and documents including a quality control report, statistics, studies, etc.) 6

SB process assessment report Assessment report by: DOE contracted by DNA, or Secretariat (up to first 3) submissions for Under represented Party Group of Parties, where all Parties are under represented. The DNA of under represented Party may decide to omit the submission (up to first 3) of assessment report, in such cases Secretariat will prepare the same. No fee is payable for SB submission. 7

SB process top - down SB initiated by the Board (proposal by secretariat following the receipt of an expression of interest by the DNA(s) of a Party(ies) using an approved methodology, tool or SB guidelines. DNA(s) submits: DSB development agreement (CDM-DSBA- FORM) Secretariat prepares a draft development plan of the DSB (CDM-DSBP-FORM), in consultation with the DNA(s) Secretariat prepares SB in accordance with the development plan. 8

SB Process revision, clarification and update Revision: Submitted by a proponent, through DNA (with forms, revised SB, LoAs, assessment report, if applicable) bottom up Decided by Board top down Clarification: Submitted by proponents, DNA, DOE or any other stakeholder (using form) DNA is notified of the receipt of the request for clarification Decided by Board to issue clarification Update: Submitted by a proponent, through DNA (with forms, updated SB, LoAs, assessment report, if applicable) Submission between 270 to 180 days prior to the date when the validity of the current standardized baseline expires 9

QA-QC guidelines Applicable to collection, processing, compilation and reporting of data needed for the SBs. o DNAs develop or validate the datasets used for the establishment of standardized baselines; o DOEs assess the quality of the data management system of the DNA rather than checking the quality of a specific set (or sets) of data. o Project participants or other entities (Parties as well as international industry organizations or admitted observer organizations) develop standardized baselines. QA/QC Guidelines include the quality control (QC) procedures for assessing the quality of a given datasets and the quality assurance (QA) procedures for ensuring the overall quality of the datasets. The guidelines establishes data quality objectives to be achieved by QA/QC system established by DNA. The guidelines describes the general provisions that QA/QC system must have. The guidelines establishes the requirement of documentation needed. 10

Present Status 35 SBs in total are approved, only 3 from Asia-Pacific 15 bottom up and 8 top down submissions are under processing, one from Asia-Pacific Sectors covered are: Electricity generation Rural electrification Cement Charcoal Waste (LFG flaring and electricity/power generation) Rice mill Rice cultivation Cook stoves Forestry 11

RCC support RCC Bangkok provides following support: a) Capacity building of DNA and relevant national stakeholders b) Direct technical support to develop, revise or update the SB c) Facilitate the expression of interest process for topdown d) Provide clarification to understand the issues identified by DOEs 12

Experience of developing standardized baselines based on grid emission factors

Outline Turning GEF into approved SBLs DNA role Required data RCC assistance

Turn GEF into approved SBL 20 DNAs in AP published GEF; None GEF in AP has become approved SBL; Improve reliability; Can be used for not only CDM, but NAMAs, INDCs, GCF proposals, etc. Grid emission factor East Asia: China, Republic of Korea, DPR Korea, Mongolia Southeast Asia: Viet Nam, Thailand, Indonesia, Philippines, Malaysia, Cambodia, Laos, Laos and Thailand, Singapore, Myanmar and China South Asia: Pakistan, Sri Lanka, Bangladesh, Bhutan and India, Bhutan, India Pacific: Fiji, Papua New Guinea Approved standardized baselines Grid emission factor for the Southern African power pool Grid emission factor for the Republic of Uzbekistan Grid emission factor for the Belize national power grid Grid emission factor for the national power grid of Uganda Grid emission factor for the electricity system of the Republic of Armenia Emission factors for central grid and regional mini-grids of the Gambia Grid emission factor for the Dominican Republic Rwanda grid emission factor Grid emission factor of Mauritius Grid emission factor of Sao Tome and Principe Grid emission factor for the Republic of Sudan

The role of DNA CDM-PSB-Form (Version 3.0): Proposed Standardized Baseline Submission Form GEF calculation sheet Tool to calculate the emission factor for an electricity system Table to calculate the emission factor for an electricity system (excel sheet) GEF report Quality control report

Required data Electricity system Name of Power Unit/country Date Commissione d Installed Capacity Installed transmission line capacity Fuel Type Technology Net electricity generation (MWh) Fuel consumption for electricity generation (t, mass or volume) CDM projects (MW) (kv) Year 2011 2012 2013 2014 2015 2013 2014 2015 Plant 1 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 2 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 3 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX System 1 Plant 4 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 5 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 6 XXXX CDM XXXX XXXX Wind XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 7 XXXX XXXX XXXX Import XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 8 XXXX CDM XXXX XXXX Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX System 2 Plant 9 XXXX XXXX XXXX Import XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 10 XXXX CDM XXXX XXXX Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 11 XXXX XXXX XXXX Diesel Oil - Open cycle XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 12 XXXX XXXX off-grid Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 13 XXXX XXXX XXXX Diesel Oil - Open cycle XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 14 XXXX XXXX off-grid Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 15 XXXX XXXX XXXX Diesel Oil - Open cycle XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX System 3 Plant 16 XXXX XXXX off-grid Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 17 XXXX XXXX off-grid Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 18 XXXX XXXX off-grid Hydro XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 19 XXXX XXXX off-grid Solar XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 20 XXXX XXXX XXXX Diesel Oil - Open cycle XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 21 XXXX XXXX XXXX Diesel Oil - Open cycle XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 22 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Plant 23 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX System 4 Plant 24 XXXX XXXX XXXX Lignite Coal - Subcritical XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

RCC assistance Let us know your interest Prioritize those countries that had less than 10 CDM projects and activities as of 31 December, 2010 Check the completeness of data Support the calculation of GEF as well as the preparation of the GEF report and CDM-PSB Form Support the whole process of submission until approval

http://cdmcobenefits.unfccc.int/pages/create-a-report.aspx

The sustainable development (SD) tool enables Clean Development Mechanism (CDM) project developers to showcase the sustainable development benefits of their projects and programmes of activities. The tool contains a short survey about the project's co-benefits, which is used to create a detailed sustainable development cobenefits report that is then published on the UNFCCC's website for public access Questionnaire SD Tool 20

SD Tool http://cdmcobenefits.unfccc.int/ http://cdmcobenefits.unfccc.int/pages/sd-reports.aspx 21

Email address: RCCBangkok@unfccc.int Skype: RCC.Bangkok Office address: IGES Regional Centre 604 SG Tower 6th Floor, 161/1 Soi Mahadlek Luang 3; Rajdamri Road, Patumwan, Bangkok, 10330, Thailand Jens Radschinski, Head of the RCC Bangkok UNFCCC - Regional Collaboration Center, Bangkok