PoA Course CH 1 L1

Module 1: Introduction to PoA

Chapter 1 - The CDM and the Rationale for PoA

Lecture 1- Climate Change and the Clean Development Mechanism

UNFCCC

Growing scientific evidence of human interference in the global climate system

" The ultimate objective of this Convention... is to achieve... stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system.”

Small-scale and Bundling of CDM projects

CDM Institutional Structure

CDM Project

Bundling

Small-scale

CDM Projects

Standard

CDM Project

Activities with a high number of individual appliances and dispersed over a wide geographical area

http://cdm.unfccc.int/EB/governance.html

Congratulations on completing Lecture 1

• High monitoring costs and expected low emission reduction for each appliance
• Collectively large emission reduction potential

2005

2004

Modalities on simplified small-scale CDM projects in 2005

• Countries need to stabilize the concentration of greenhouse gases

• Common but differentiated responsibilities

• Annex I Parties (industrialized countries) and non-Annex I Parties (developing countries)

• Yearly Conference of Parties (COP) to oversee the progress towards reaching the Convention’s goal

Type 1:

Renewable energy project activities with a maximum output capacity equivalent to up to 15 MW (or an appropriate equivalent)

You should now have an understanding of the CDM and the background for PoAs

To continue learning more about PoAs,

continue to Lecture 2 by clicking the arrow below

Modalities on small-scale CDM project bundling in 2005

Type 2:

Energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of 60 GWh per year

• Small-scale projects bundled to one CDM project application

Type 3:

• Panels, Teams and Working Groups providing support for the CDM EB

Project activities that both reduce anthropogenic emissions by sources and directly emit less than 60.000 tCO eq annually

2

UNFCCC, 2004: The First ten years

Continue to Lecture 2

2001

1997

2005

1980s

1992

http://prezi.com/u0vpdbrbju_x/?utm_campaign=share&utm_medium=copy

1988

2004

2007

COP 7

COP 3

Programme of Activities

CDM Advancement

Kyoto Protocol

• The Kyoto Protocol adopted in 1997

Intergovernmental Panel on Climate Change (IPCC)

• Guidelines and procedures on Programmes of Activities in 2007

• First CDM project was registered in 2004

• Steady growth until 2012

• Legally binding emission reduction commitments for Annex I Parties

2

4

• Hydrofluorocarbons (HFCs)
• Perfluorocarbons (PFCs)
• Sulphur hexafluoride (SF )

6

2

• Nitrogen trifluoride (NF )

3

(added to the list of GHG gases in 2012)

• Regulatory risk reduced only after registration

• Return Annex I countries' aggregated emissions to approx. 5.2% below their 1990 levels

Bundling

Unlimited number of activities can be added without a complete CDM application procedure

• National targets to reduce 7 GHG gases for Annex I countries

• Carbon dioxide (CO )
• Methane (CH )
• Nitrous oxide (N O)

• To enable countries achieve emission reductions in an cost-effective way, three flexible market mechanisms were created. One of them is the Clean Development Mechanism

• Clean Development Mechanism - CDM

´“The purpose of the Clean Development Mechanism shall be to assist Parties not included in Annex I (of the UNFCCC) in achieving sustainable development and in contributing to the ultimate objective of the Convention (UNFCCC), and to assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments...” (United Nations, 1998)

• First Commitment period 2008-2012

• Regulatory risk reduced already after conceptualization of the programme

• Over 1 billion issued CERs

• 386 billion USD investment in registered CDM projects

PoA

• Confirmed that human activities were responsible for climate change

• Climate Change could have consequences for the world's social, economic and natural systems

• Called for a global treaty on climate change

World Bank PoA course

The CDM

2

• Non-Annex I Parties will benefit from project activities resulting in certified emission reductions (CERs = 1t CO equivalent); and

• Annex I Paties may use the CERs accruing from such project activities to partially contribute to their compliance with their emission limitation and reduction commitments under the Kyoto Protocol

• Assist non-Annex I Parties in achieving sustainable development

All CDM Projects in the Pipeline in Brazil +

Mexico + India + China as a fraction of all projects

• Voluntary participation approved by each Party involved

• Real, measurable, and long-term benefits related to the mitigation of climate change

• Reductions in emissions that are additional to any that would occur in the absence of the certified project activity

• Contribute to the sustainable development defined by Host Country, for example
• Transfer of technology and financial resources
• Sustainable ways of energy production
• Increasing energy efficiency & conservation
• Poverty alleviation through income and employment generation
• Local environmental side benefits

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CERs

CDM Pipeline:

http://cdmpipeline.org/

• High transaction costs and complex CDM bureaucratic procedures barrier

• Uneven distribution of projects between countries and regions

• High transaction costs incentivize large-scale projects with large CER creation

• Fixed transaction costs and complex bureaucratic procedures disincentivize small-scale activities