PoA course CH3 L1

Module 2: PoA Management

Chapter 3: Programme Management

Lecture 1

Managerial Aspects of PoAs

Carbon Management

Financial Management

• Additional layer of requirements,

complexity and financial risk

• PoA specific funding opportunities

and challenges

• Need knowledge about

the CDM procedures

Legal Management

Business Development

• PoAs provide a service or product

• Legal complexity
• CDM legal requirements
• Country specific legal structures and requirements

• Need sound business approach

Draft a Business Plan

CME Programme Management

Draw a Roadmap for the Programme

Mandatory CME Management System

Design of the Programme

Describe the Aim of the PoA

Congratulations on Completing Lecture 1

Allocate responsibilities where they are best assumed

Envision the duration and needed planning for a PoA

Good and streamlined planning practices are important under a PoA

Effectively design and manage the programme in a coherent structure

Provide a thorough description of the aim of the PoA, and how the goal is expected to be achieved and the policy / measure implemented

Defining a PoA pursued policy or goal

CME must develop and implement a management system, to specify

CPA owners

• Financial, legal and carbon aspects

- Section C of the PoA-DD

Communities

Government

• Last for up to 28 years for non-forestry PoAs, and up to 60 years for afforestation and reforestation PoAs
• Sizable amount of stakeholders

Interactions among stakeholders need to be coordinated to achieve a swift CPA validation and inclusion

Identify policy/measure or goal the PoA seeks to promote

Clearly identify the stakeholders who are instrumental in the implementation of the CPA. E.g.:

You should now have an understanding of the complex and resource requiring tasks a CME will have to engage in in the planning of a PoA and in managing the business aspect of a PoA.

Financial Institution

CME coordinates the programme and is responsible for:

A sound business plan provides the CME with a powerful tool to define its goals, assess its competences, and present itself as a professional and visionary manager

Keep all stakeholders informed and following an agreed upon roadmap

• Predetermines the activities / technologies
• Predetermines the actors that will be involved
• Predetermines the choice of the programme's design and structure

• Roles and responsibilities and competence of personnel involved in CPA inclusion
• Records of arrangements for training and capacity development for personnel
• Procedures for the technical review of inclusion of CPAs
• Procedure to avoid double counting
• Records and documentation control process for each CPA under the PoA
• Measures for continuous improvements of the PoA management system
• Other relevant elements

• Financial institutions
• Project owners
• Government agencies
• Neighboring communities

Goal

Provide information on the CME's

GHG

Reduction

Programs

Important inputs for the definition of the PoA policy/goal:

• Programme design
• Arrangements for emission reduction generation and monitoring
• Being the focal point for all matters related to the programme
• Setting the procedures for cooperation with CPA developers
• Negotiation of emission reduction purchase agreements with CER buyers
• CME can also be a CPA developer

Efficient lighting programs are usually championed by energy ministries and/or finance ministries, but the final implementer will most likely be a local utility or a technology commercializing company that already has the framework to reach out to households, monitor power usage and enforce the program terms and conditions.

Keep updated

Highlight important milestones

• Where, when, which and how budget resources are allocated
• Where, when, which and how activities take place
• Where, when, which and how the different stakeholders are involved
• Which expectations are there for the different milestones

• Goals
• Competences
• Envisioned business development
• Research on the potential for market penetration

Technology

Diffusion

Plans

Technology

Assessments

GHG

Inventories

• Eligibility criteria when a methodology is revised or replaced
• The PoA boundary is changed
• A newer methodology version is available at the renewal of the CPA crediting period

• Technology assessments
• National, regional or sectoral GHG inventories
• Business association reports
• Technology diffusion plans for specific business sectors
• Public or private promotion programs for GHG reduction activities

To continue learning more about CME management proceed to Lecture 2 by clicking the arrow below.

Please take some time to read the examples below:

Business

Reports

Market Analysis

Describe the business aspect

Marketing and Sales

Organization & Management of the Business

The market analysis should include:

e.g. Energy efficiency, fuel switch, forestry & clean production

Example from Compact Fluorescent Lamps

Example from Industrial Boilers

Marketing Strategy

Funding

CME’s organizational structure

Organizational Chart

Example from small-scale hydropower (SHP)

Provide a review of the elements of the business and the CME

Information About the Target Market:

Business Description and Outlook:

Securing consistency when replicating activities under a programme

DOEs have more trust in PoAs with well-designed and documented management systems

• Activities, size and growth rates up until today

• Size and demographics of Target Group
• Target Group's needs and how the programme can meet these needs

• Draw an organizational chart followed by a description of the reasoning behind the structure

• Ownership setup of the programme
• Description of the management personnel responsibilities and qualifications

• Plan to penetrate the market
• Plan to grow the size of the programme
• Plan to distribute your product / services
• How the programme's business is going to reach the target group

Pricing and turnover:

• Current funding status
• Expected future funding requirements
• Expected funding from CERs
• Intended use of the funding in the business budget

Prognosis of the obtainable market share:

• Pricing structure, gross margin levels, and financial funding / loan scheme of the programme

Board

Keep the PoA roadmap up to date

• Expected number of customers
• Advantages over competitors that justifies the prognoses

Ownership Information

(Incandescent Light Bulbs)

Financial

Administrator

CEO

Competitive Analysis:

The above inputs help to shape the PoA policy/goal, define the PoA potential boundaries, and give an idea of the universe of potential interventions of the PoA

Hayashi et. al., 2010: PoA Blueprint Book

• Describe the nature of the business and the market needs that the CME is trying to satisfy

• Describe how the CME's products / services meet these needs

• Describe the end-users/organizations/businesses the programme will serve

• Describe the CME's competitive advantages

Location, competences, experience in the field, ability to bring value to the target group

• Building an effective management system as required by the CDM rules and procedures

Financial Projections

Hayashi et. al., 2010: PoA Blueprint Book

Regulatory Landscape:

• Historical Financial Information

Programme

Manager

• Efficient and least cost inclusion process to reduce costs during validation, inclusion and verification
• DOEs less reluctant to assume liabilities arising from erroneous inclusions

• Names of the owners
• Ownership Percentage
• Form of ownership

stock, general partner, limited partner

• Outstanding equity equivalents

options, warrants, convertible debt

• Management Team Profiles

Training

Officer

Historical data on financial performances

Income statements, balance sheets, and cash flow statements for the last years

Curriculum

• Competitors’ strengths and weaknesses
• Scenarios regarding competitors' response to the entry in force of the programme
• Existing barriers for market entry

technological, purchase power, infrastructure , skilled labor etc.

• Strengths enabling market entry
• Potential new competitors

Hayashi et. al., 2010: PoA Blueprint Book

• Regulatory landscape relevant to the programme's business
• How the programme will comply with the existing regulatory requirements

• Prospective Financial Information

CPA

Team

PoA

Team

Monitoring

Team

Forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets

Continue to Lecture 2

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