C ARBON P ARTNERSHIP F ACILITY 1 A PRIL 2014 S ELLER P ARTICIPANT T RAINING M ONITORING AND V ERIFICATION

C ARBON P ARTNERSHIP F ACILITY 2 Topics of the session Monitored data Monitoring process Verification Issuance Data flow Calculations CDM aspects Data flow Calculations CDM aspects Objectives Organization Roles and responsibilities Means of control Objectives Organization Roles and responsibilities Means of control Preparation Stakeholders Audit process MR Writing Documents Preparation Stakeholders Audit process MR Writing Documents UNFCCC process

C ARBON P ARTNERSHIP F ACILITY 3 1. Monitored data Data flow Calculations CDM aspects Data flow Calculations CDM aspects

C ARBON P ARTNERSHIP F ACILITY 4 Monitored data Physical phenomenon (Flow, temp, etc…) CDM instrument Automatic Measurement Data Logger Manual Measurement Manual Log CDM database Data Record Back Up database Back up policy Scans Description of data flow in CDM

C ARBON P ARTNERSHIP F ACILITY 5 Monitored data Landfill gas projects

C ARBON P ARTNERSHIP F ACILITY 6 Monitored data Flow, %CH 4, pressure, temperature, efficiency of destruction, electricity consumption Flow meter, gas analyzer, T & P sensors, thermocouple, electricity meter Automatic Measurement Data Logger Manual Measurement (electricity consumed) Manual Log CDM database Data Record Back Up database Back up policy Scans Data flow: landfill gas projects

C ARBON P ARTNERSHIP F ACILITY 7  Baseline emissions : – Amount of CH 4 actually destroyed Principle: amount of LFG x % of CH 4 in LFG x efficiency of the destruction Formula: LFG flare,y x w CH4 x D CH4 x FE – Electricity generation (quantity of tCO 2 “avoided”) Principle: quantity of electricity actually delivered to the grid x emissions factor of the grid Formula: EL LFG (MWh) x EF EL (tCO 2 /MWh)  Project emissions : – Electricity consumption Principle: quantity of electricity actually consumed x emissions factor of the grid Formula: PE EC,y = EC PJ,y x EF EL x (1 + TDL y ) – Fuel consumption Principle: quantity of fuel actually consumed x emissions factor of the fuel Formula: PE FC,y = FC i,j,y x NCV i,y x EF CO2,i,y Understanding the logic behind data

C ARBON P ARTNERSHIP F ACILITY 8 Monitored parameters must be: Recorded automatically when continuous monitoring is required Exhaustive Consistent Analyzed Unalterable Auditable Backed up Archived CDM aspect of data and calculations Calculations must be: Reproducible Strictly compliant with the PoA-DD / CPA-DD Computed on a regular basis (monthly or weekly) You must be able to know almost in real time how much CERs are generated You must be able to spot an inconsistency and take a corrective action as quick as possible

C ARBON P ARTNERSHIP F ACILITY 9  Inconsistencies: – Record of 105% methane in the LFG – Flare temperature of 1999°C – Inconsistent daily electrical consumption because the reading was monitored in kVAr instead of kWh – Negative electricity consumption based on manual readings – Flow recorded when flare / genset off – Fuel consumption much higher than diesel generators’ technical specifications (due to fuel robbery) – Fixed value of flow every minute for several days, etc.  Loss of data: – Failure of the memory card – Signal disruption – Reset of the system – Loss of the onsite computer where the system was installed and data stored Potential data issues: examples

C ARBON P ARTNERSHIP F ACILITY Monitoring process Objectives Organization Roles and responsibilities Means of control Objectives Organization Roles and responsibilities Means of control

C ARBON P ARTNERSHIP F ACILITY 11 Objectives : – Generate ER at CPA level and issue CERs for the overall program for all CPAs – Ensure monitored data is controlled and inconsistencies are spotted out immediately – Implement a standard organization and reporting for all CPAs of the program – Define clear monitoring responsibilities – Maintain direct communication between CME and CPA Operators – Maintain CPA / PoA database up to date – Avoid calibration delays – Manage the Information Systems: Automated data capture / Machine-To-Machine protocols Back up policy (at CME level) Monitoring process

C ARBON P ARTNERSHIP F ACILITY 12 CDM Expert CDM PoA Manager CDM & Carbon Finance Director Monitoring Manager LFG plant technician and manager CPA 1CPA 2CPA-3 World Bank CME – main responsibilities: CDM, financing, management CPA Implementers – main responsibilities: plant operations Support Monitoring Manager Monitoring Manager Organizational structure Monitoring process LFG plant technician and manager LFG plant technician and manager IT officer

C ARBON P ARTNERSHIP F ACILITY 13 Roles and responsibilities: CPA level – Plant technician and manager: operation and maintenance Network adjustment: wells regulation, leak inspection, cover, etc. Monthly and daily reports Manual logs Calibrate equipment or organize external calibration Ensure availability of spare parts Extract raw data from data logger Etc. – Monitoring manager: centralize and analyze CDM information from site operations Prepare monitoring records Compute CER calculations Upload CDM information in data base Prepare calibration planning at CPA level Focal point for communication with CME Monitoring process

C ARBON P ARTNERSHIP F ACILITY 14 Roles and responsibilities: PoA level – CDM PoA Manager: CDM compliance and CDM documentation of the PoA Verify the CDM compliance of each CPA Verify that CDM documents are available and up to date in the database Means of control: fill in QA/QC checklist Focal point with the Monitoring Manager at CPA level Prepare the Monitoring Report Manage verification with DOE Inclusion of new CPA – IT administrator: management of data base Create a documents repository: data base shared between CPA Implementers and the CME Prepare a folder structure Manage write / read only access Back up policy Monitoring process

C ARBON P ARTNERSHIP F ACILITY 15 Roles and responsibilities: – The World Bank: CDM expertise Information on CDM updates Advice on selection of DOE Technical review Sporadic help or advice for PoA management Monitoring process

C ARBON P ARTNERSHIP F ACILITY 16 CDM PoA Manager CDM & Carbon Finance Director CDM equipment CMECPA Operator Monitoring Manager Plant technician Monitoring information: from CPA to CME Monitoring process Data logger Manual logs, operations mainte- nance Monitoring records QA / QC Checklist Supervision Management PoA Database

C ARBON P ARTNERSHIP F ACILITY 17 Means of control : – At CPA Level: Monitoring Records For each CPA, synthetic means of information which is relevant for CDM and verification. CER Production Electricity consumed (and generated if applicable) Calibration Instruments ID Accreditation and training – At CME level: QA / QC checklist Excel tool to verify every month that: Information from site operations is reported in the Monitoring Records Documents are available in the data base shared between CPA Implementers and the CME Problems on site are reported and followed Monitoring process

C ARBON P ARTNERSHIP F ACILITY 18 Means of control: – Steering committees Regular direct communication between CME and CPA Implementers Review progress Solve investment related issues – Spot checks and mock verifications There is no better way than to go onsite to understand the project CME should organize “real case” quality control: onsite check of the CPA Pre-audit: verify the level of CDM issuance readiness of the project Ensure that the plant is operated and monitored as described in the CPA-DD Monitoring process

C ARBON P ARTNERSHIP F ACILITY Verification Preparation Stakeholders Audit process MR writing Documents Preparation Stakeholders Audit process MR writing Documents

C ARBON P ARTNERSHIP F ACILITY 20  Coordination - CME / World Bank: choice of DOE and timing  Align verification with ERPA and previous verification - CME / CPA Operator(s): readiness, availability  Organization and responsibilities - The CME will focus on CDM management - Manage DOE - Write and modify MR - Make sure supporting evidences and monitored data are available - The CPA Operator will focus on site operations - History of project operations - Prepare all supporting evidences - Organize logistics on site (transportation, accommodation, meals) Audit preparation

C ARBON P ARTNERSHIP F ACILITY 21  Site visit The CDM PoA Manager of the CME should go onsite prior to the DOE to: - Verify the project operations - Ensure CDM equipment is in place and properly functioning - Collect last minute missing documents - Trains the CPA operator staff: - How to answer to auditor’s questions - No document should be given to the auditor because they will all be channeled by the focal point at the end of the visit  Verification documents - Exhaustive - Up to date - Available on a DEDICATED shared directory Audit preparation

C ARBON P ARTNERSHIP F ACILITY 22 Stakeholders for the verification CPA CME DOE UNF CCC WB

C ARBON P ARTNERSHIP F ACILITY 23 Audit process 1.CME prepares the MR ; WB helps and reviews the MR 2.CME sends MR and ER summary to DOE 3.If MR is ok, DOE uploads MR to UNFCCC website 4.Wait 2 weeks before site visit 5.CME sends initial package of documents to DOE 6.Site visit 7.CME, CPA Implementer and DOE discuss issues found on site (preliminary findings) 8.DOE officially sends findings / protocol to CME 9.CME answers requests and prepares and gathers additional documents 10.CME sends everything in one shot: duly answered protocol + supporting evidences 11.DOE reviews the responses and prepares the DVR 12.When all CAR and CL are closed, auditor sends the DVR to I/TR for internal / technical review 13.New questions raised by TR  2 nd round of questions and answers 14.When 2 nd round (or more) is closed, DOE prepares the FVR 15.CME, World Bank and DOE review the final documents to correct errors and inconsistencies 16.DOE final review and approval 17.DOE sends final documents to UNFCCC: MR, FVR, ER

C ARBON P ARTNERSHIP F ACILITY 24 Audit process Highlights:  Basic principle of audit: all information must be supported by an evidence  All information provided to the DOE must be clearly denominated in English  Key information should be translated in English if available only in other language: dates, justifications, explanations etc.  Give to the auditor only documents that you (the CME) have checked  Focal point: there is only one channel of communication with the DOE  Send the DOE all the answers + documents in one shot  The style of answers to the CAR / CL should be formal and neutral  Refer to the VVS (p 43-63) to understand the DOE’s questions  Facilitate the work of the auditor: clear package of documents, information easy to verify, anticipate the questions etc.

C ARBON P ARTNERSHIP F ACILITY 25 How to prepare a MR? Refer to the following documents: Monitoring Report writing MR form MR guidelines CPA-DD registered Monitoring information Methodo- logy and tools VVS - Raw data - Calibration certificates - Serial numbers and replacement dates - Electricity consumed -Etc.

C ARBON P ARTNERSHIP F ACILITY 26 Monitoring Report writing Highlights:  Use the latest MR template. Refer to the UNFCCC website: “F- CDM-MR - Monitoring report form”.  For a PoA, one or two MR can be submitted for the monitoring period  The MR form cannot be altered (font, headings etc.)  English only  International System of Units: dates dd/mm/yyyy and numbers 1,  The style should be formal and neutral  The MR guidelines give the precise information required by the UNFCCC: don’t add any further information

C ARBON P ARTNERSHIP F ACILITY 27 Monitoring Report writing Key content  Section A: general information on the project Refer to the CPA-DD Section A. Information also available on the project webpage at cdm.unfccc.int  Section B: implementation of the project - Describe the state of operations at the time of verification (e.g. only one flare has been installed yet). - Describe the official post-registration changes: corrections, deviations etc.  Section C: description of the monitoring system - Diagram showing the different points of measurements - Short description of the recording system (data logger, etc.)

C ARBON P ARTNERSHIP F ACILITY 28 Monitoring Report writing Key content  Section D: data and parameters - D.1: fixed parameters  refer to section B.5.1 of the registered CPA-DD. Put only the parameters that are used for the monitoring period. For example, for landfill projects: include GWP CH4 or D CH4, but not φ, OX, DOC f, MCF, k… - D.2: monitored parameters  refer to section B.6.2 of the CPA-DD. List the same parameters and provide technical specifications of the instruments used to monitor the parameters. This is the main section.  Section E: calculation of ER - Report the main formulas (copy/paste from CPA-DD) - Report the end result of BE, PE and ER for the monitoring period.

C ARBON P ARTNERSHIP F ACILITY 29 Verification documents Organize documents by “package”: 1. Monitoring report and ER summary Compilation / summary of monthly BE / PE / ER result for each CPA and total BE / PE / ER for the monitoring period for each CPA 2. Raw data – if applicable Monthly files extracted from the data logger in Excel format. Should be directly traceable to the original source 3. Emissions reductions calculations Monthly ER calculation spreadsheets for the entire monitoring period, per CPA 4. One folder per CDM instrument, each one containing: - Manual  verify manufacturer, type, model, accuracy, calibration information - Calibration reports  verify calibration dates and validity - Information on calibration frequency if not included in the manual

C ARBON P ARTNERSHIP F ACILITY 30 Verification documents Organize documents by “package”:  Other documents - Commissioning certificate - Training certificates - Organizational documents, e.g. procedures, operation manual - Main equipment specifications (flare, genset) - Electricity invoices for cross-check

C ARBON P ARTNERSHIP F ACILITY Issuance UNFCCC Process

C ARBON P ARTNERSHIP F ACILITY 32 From verification to issuance What happens when the verification is over? 1.DOE uploads FVR, MR and ER to UNFCCC website. The project is visible in this section: but the documents are not visiblehttp://cdm.unfccc.int/Issuance/completeness_check.html 2.RfI starts after a few weeks of waiting line (“awaiting scheduling”), usually 1 month 3.Then 1 week of Completeness Check 4.3 weeks of Information and Reporting Check 5.4 weeks of Issuance Request, the project documentation is now publicly available 6.Issuance of credits TOTAL 3 months at the UNFCCC

C ARBON P ARTNERSHIP F ACILITY 33 Training on CDM Operations Plans and Sub-ERPA Contracting Washington D.C., USA, 2 nd April 2014