1. Requirement of New Rules for PoA: DOEs Perspective
UNFCCC Workshop on PoA under the CDM: Challenges and the Road Ahead
Jun Wang; TÜV NORD CERT GmbH

2. PoA Procedural and Projects Development
Table of Contents 1
PoA Procedural and Projects Development 2
Current PoA Rules compare to CDM 3
Required New Rules for PoA Registraion 4
Required New Rules for CPA Inclusion 5
Required New Rules for PoA Issuance 6
Recommendations
Stand

3. 1 PoA Procedural and Projects Development
Milestones
2007
2009
2010
2011
Procedural development
(Concept comes out in 2005)
EB 32 issued PoA Procedures for registration and issuance
EB 36 approved PoA-DD / CPA-DD templates
EB 47 issued Procedures for review of erroneous inclusion of a CPA and Procedures to approve PoA application of multi- methodologies
EB 55 updated PoA Procedures registration and issuance (Annex 38) and
Procedures for review of erroneous inclusion of a CPA (Annex 37)
EB 60 issued
Clarifications on PoA Procedures (Annex 26) &
Priority Area for PoA Regulatory Revision (Annex 27)
EB 63 plans further PoA Regulatory Revision
Key events
1st PoA GSP on
1st PoA registered on
961 new CPAs included on
(by )
No. of PoAs
No. of PoAs/CDM
At validation 1 38 73
78/2921
Registered 2 5
8/3034
Incl. new CPAs
2/-
Issued CERs
0/1034
Source: UNFCCC website
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

4. 2 Current Specific PoA Rules compare to CDM
3 Templates
Section structure
Guidance
CME Authorization
PoA Indication
Not for CPAs
Multi-Meth Approval
PoA Additionality
Sampling Plan
3 DDs
2 Reports
No CC Scheduling
PoA Doc. Design
DNA Approval
Validation
Registration
Further CPA Inclusion
Monitoring
Verification
Issuance
No Iss. interface
Materiality level?
Cancellation Acc. …
No MR template
No GSP interface
Sampling?
Materiality level
No same DOE …
100% Records
CME Responsibility
Sampling? …
No EB Approval
DNA/EB review
Eligibility Criteria
CPA Additionality
DOE liability
Sampling/Materiality
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective
Project Cycle – Programme of Activities

5. 3 Required New Rules for PoA Registration
Consistent Section Structure
Current PoA-DD and CPA-DD Template compare to CDM PDD:
Sec.
PDD
PoA-DD
CPA-DD A.
General description of project activity
… of PoA
… of CPA B.
Application of a baseline and monitoring methodology
Duration of the PoA
Eligibility of CPA Estimated ER C.
Duration of the project/ crediting period EI D.
Environmental Impacts (EI) SC E.
Stakeholders' Comments (SC)
for CPA -
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

6. 3 Required New Rules for PoA Registration
Further Guidance
PoA-DD template
Starting Date of PoA
A Monitoring Plan Vs. E.7.2 CPA Monitoring Plan
Sampling method/procedure for verifications
with different or identical verification periods
E.7.1 Table for Monitoring Parameters
Value of data applied for the purpose of calculating expected emission reductions in section B.5
CPA-DD template
CPA implementer/Operator v.s. entity/individual responsible for the CPA
B.6 missing tables for monitoring parameters
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

7. 3 Required New Rules for PoA Registration
DNA Approval
Guidance for new Host countries Approvals after PoA Registration
Optional DNA approvals for CPA inclusions – requested by some DNAs
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

8. 3 Required New Rules for PoA Registration
PoA Validation
Priority area for EB 63
PoA Additionality incl. Policy driven PoA (EB 60 Annex 27 3(a))
Multi-Meth Approval (EB 60 Annex 27 3(b))
Eligibility Criteria for CPA inclusion (EB 60 Annex 27 3(c))
Sampling Plan Guidance (EB 60 Annex 27 5(d))
Clarification on SSC meth. leakage req. under PoA:
“The scrapping of replaced equipment should be documented and independently verified.” - Who is responsible, how and when to verify? DOE, consultant, 3rd party, before/during verification…?
Clarification on mandatory policy PoA
V.s. current CDM decision on mandatory policies (EB 54 para. 54):
Definition/quantification on improvement of the mandatory policy enforcement, e.g., 50% threshold in AM0025?
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective
Project Cycle – Programme of Activities

9. 3 Required New Rules for PoA Registration
As per Procedure for requests for registration of proposed CDM project activities (EB59 Annex 13):
“5. The DOE shall submit the required documents listed in latest applicable version of the completeness checklist for requests for registration, which the secretariat will make publicly available by publishing it on the UNFCCC CDM website.”
“11. …The schedule of requests for registration to be processed, including the expected date of commencement, shall be made publicly available.”
Completeness Check automatic scheduling and reporting to be adopted to the new CDM registration procedures and system
Keep deadlines of the subsequent completeness check steps
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective
Project Cycle – Programme of Activities

10. 4 Required New Rules for CPA Inclusion
DOE CPA inclusion liabilities – EB 60 Annex 27 para. 3(d) 5(e)
Revise PoA Procedures for Registration and Issuance
Current version 4.1- EB55 Annex 38:
“26. If a DNA involved in the PoA or a Board member identifies information that may disqualify a CPA from inclusion in the PoA or renewal of its crediting period, the Secretary of the Board shall be notified, in accordance with the “Procedures for review of erroneous inclusion of a CPA” within one year after the inclusion of CPA into a registered PoA or renewal of the crediting period of the CPA, or six (6) months after the first issuance of CERs for that CPA, whichever is the later, Such a request for review shall be related to issues associated with the compliance of the CPA with the eligibility criteria specified in the CDM-POA-DD. ”

11. 4 Required New Rules for CPA Inclusion
Revise CPA Erroneous inclusion Review Procedures
Current version 4.1- EB55 Annex 37:
“10. A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA shall conduct the review referred to in paragraph 9, by assessing a random sample of 10% of all CPAs currently included and submitting a report to Board within eight weeks. ”
“16. The consequences of the extension of the review are that: (a) …
(b) A further sample of 15% of included CPAs shall be reviewed in accordance with the modalities contained in paragraphs 10 to 13;
(c) If this second review also leads to the exclusion of further CPAs, the Board may decide to extend the review to all included CPAs. ”
Consequences: Re-open the review to all CPAs included!
Need clear definition on review scope of issues, materiality and limited timeframe
Project Cycle – Programme of Activities
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

12. 4 Required New Rules for CPA Inclusion
Guidance on CPA inclusion Eligibility Criteria incl. CPA Additionality requirements (EB 60 Annex 27 3(c))
Guidance on Sampling of CPA Validations and Materiality (EB 60 Annex 27 5(d))
Project Cycle – Programme of Activities
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

13. 5 Required New Rules for PoA Issuance
PoA/CPA Verification
No CPA MR template or MR GSP interface
A version of the standardized format for monitoring reports applicable to Programme of Activities (PoA) shall be established as per EB 54 meeting report para. 72;
Applicable guidelines to CPAs
“Procedures for revising monitoring plans” and “Procedures for requests for deviation prior to submitting request for issuance”;
Sampling Plan Guidance (EB 60 Annex 27 5(d))
Sampling for Baseline, Monitoring and Verification
Materiality Guidance incl. Materiality level
Procedures to approve same DOE conducting PoA Validation/CPA Inclusion and PoA Verification
E.g. automatic approval for SSC PoA as per para. 20 of the decision 4/CMP.1, Annex II
Project Cycle – Programme of Activities
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

14. 5 New Rules for PoA Issuance
PoA/CPA Issuance
Checklist and Submission Interface
Procedure for requests of Issuance of CERs (EB54 Annex 35)
“6. The DOE shall submit the required documents listed in latest applicable version of the completeness checklist for requests for issuance, which the secretariat will make publicly available by publishing it on the UNFCCC CDM website. The DOE shall submit the required documents using the electronic, internet-based, submission tool provided by the secretariat to the DOE.”
CER Cancellation/Compensation Account
In case of erroneous inclusion or issuance
Compensate CERs from CME/PP‘s other issuance
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

15. 6 Recommendations
EB 60 Annex 27, Priority areas for the forthcoming revision of the regulatory framework for PoA, para. 4 :
“The Board agreed that the work on this matter should be progressed in conjunction with the consolidation of project cycle rules and requirements into clear standards and procedures. The Board requested the secretariat to develop the project cycle consolidation in a manner that is unambiguous regarding the applicability of project requirements to programmes and ensures that exemptions and derogations are explicitly defined.
Work closely to Smoothen the rules for qualified/ eligible and sustainable PoA/CPAs

16. 6 Recommendations Work closely!
Source: Module 2 Lesson 1 Transcript, World Bank E-learning course on the CDM PoA
UNFCCC Workshop on PoA: Requirement of New Rules for PoA -DOEs Perspective

17. Thank you for your attention! Mrs. Jun Wang PoA Product Manager
GHG Auditor - Lead Assessor
TÜV NORD CERT GmbH
Langemarckstraße 20, D Essen
Fon +49 (201)
Fax +49 (201)