Transcript Presentation - Capacity Development for the CDM

CDM Project Cycle
LGED Bhaban, Dhaka
8 – 9 April 2008
Presented by
Khandaker Mainuddin
Fellow, BCAS
Background of CDM
 The
objective of The United Nations Framework
Convention on Climate Change (UNFCCC), entered
into force in March 1994, is to stabilize greenhouse
gas (GHG) concentration in the atmosphere at levels
that would prevent dangerous human interference
with the climate system.
 To
achieve this objective, all countries accept a
general commitment to address climate change and
adapt to its effects.
 The convention divides countries into two groups:
Annex-I Parties, the industrialized countries, who
have historically contributed the most to climate
change and non-Annex-I countries which primarily
include developing countries. The convention require
Annex-I countries to take lead in reducing their
greenhouse gas emissions.
 To further the goals of UNFCCC, the Kyoto protocol
was adopted at the third Conference of Parties (Cop3) held in Kyoto, Japan in1997. The Kyoto protocol
sets a legal binding on Annex-I countries to reduce
their GHG emissions.
 There are three flexible mechanisms in Kyoto protocol
through which Annex-I countries can meet their
targets on emissions reductions.
 CDM is one of these three flexible mechanisms. It is a
mechanisms whereby an Annex-I party may purchase
emissions reduction which arise from projects located
and implemented in non Annex-I countries.
6 Greenhouse Gases are Covered by the Kyoto
protocol
 Carbon dioxide (CO2)
 Methane (CH4)
 Nitrous oxide (N2O)
 Hydro-fluorocarbons (HFCs)
 Perfluorocarbons (PFCs)
 Sulphur hexafluoride (SF6)
 CDM Project Cycle

Project Design and Development

Host country Approval from the concerned
agencies

Validation

Registration

Project implementation and monitoring

Verification & certification

Issuance of certified emission reduction units
(CERs)
Project Design and Development

Development of Project Idea Note (PIN) or project
concept note (PCN) and Project Design Document
(PDD)

PDD Contains

Baseline calculation (the emissions without
the project)

Calculation of yearly emission reductions

Proof of additionality of the project

Monitoring plan of the emission reductions

Results of the stakeholders consultation

Environmental impact assessment
Project Additionality
The key eligibility requirement for a CDM project is
"additionality". Reduction in emissions must be additional
to any that would occur in the absence of the certified
projects activity.
Emissions
Baseline
Monitored project
emossions
2002
2008
Time
2012
Host government’s Approval

The Designated National Authority (DNA) of the
host country approves the proposed CDM project
against national sustainable development
objectives.

The DNA issues a letter of approval for the
proposed CDM project

In Bangladesh, the DNA consists of a two-tier
structure with the Ministry of Environment and
Forest being focal point.

The approval letter should include
1. the project participants voluntarily
participating CDM
2. project being contributing to the country’s
sustainable development.
Validation

The project design document, in particular, the
baseline needs to be assessed and validated by an
independent organization Known as “Designated
Operational Entity” (DOE).

DOEs are registered with the Executive Board of the
Clean Development Mechanism, and are responsible
for ensuring compliance of the proposed project with
CDM rules.

Validation checks
 Meeting UNFCCC’s participation requirements
 Stakeholders’ comments
 Environmental impact analysis or assessment
 Additionality of the GHG emissions reduction
 Baseline and monitoring methodologies.
Registration
 An automatic registration system from the date
that the DOE submits all necessary documents and
registration fee to the CDM EB and the CDM EB
puts the documents on the website for public
comments.
 Registration by CDM Executive Board within 8
weeks (4 weeks for small scale project).
Monitoring

Monitoring and record keeping by the project
developer

Actual GHG emission reductions compared to the
baseline

Monitoring methodology needs to be approved
by the CDM EB along with the baseline
methodology prior to registration.
Verification and Certification




DOE receives the monitoring reports from the project
developer
For verification DOE
 Checks if the monitoring report satisfies the
requirements of the registered PDD
 Checks whether monitoring methodologies have been
correctly applied
 Can conduct on-site inspection or requests any
additional information from the project developer, if
necessary
 Makes recommendations to the project developer for
any revisions related to the monitoring methodology
for the future crediting period.
 Determines the actual GHG emission reductions by
the CDM project activity.
DOE prepares the verification report and certification
report and submit to the CDM EB.
The certification report states the verified amount of
GHG emission reductions.
Issuance of CERs
Issuance of Certified Emission Reductions
(CERs)

DOE sends a request to issue CERs to the CDM EB.

CDM EB issues the certified amount of CERs within
15 days

Sale of CERs through a purchase contract
or on the spot market
Project
Developer
DNA
DOE
UNFCCC EB
Project
feasibility
assessment
CDM project
development
(PDD)
Host
country
approval
Project
validation
Project
verification
Project
registration
CER
issuance