1. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEXPDD Preparation Process and Format Amr Abdel-Aziz, Ph.D. Consultant

2. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX CDM Project Cycle First step in the CDM project cycle

3. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Who Prepares a PDD ? Responsibility of project participant Usually, project participant hires a consultant to prepare the PDD Project participant should avail funds for PDD preparation Can be funded through special arrangements (CD Projects, seller and buyer agreement, etc.)

4. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Why Prepare a PDD ? Validation is done based on a PDD One of the requirements to be registered as a CDM project Registration is a step done prior to verification and certification i.e. can not have a CDM project and consequently certified emission reductions (CERs) without a PDD

5. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX PDD Cost ? Approximately $ 40,000 to $ 50,000 –Baseline $ 20,000 to $ 30,000 –Monitoring Plan $ 10,000 to 20,000 Cost can be reduced by: –Development of Standardized baseline –National Experts –Previous experience of existing PDDs

6. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX PDD Preparation Process Prepare Project Identification Note (PIN) prior to Proceeding with PDD Preliminary approval of Designated National Authority (DNA) Prepare PDD Assign DOE for validation Submission of PDD to DNA to obtain official approval for project (voluntarily participation + assists in achieving SD)

7. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Registration Process Prior to registration, DOE shall make the PDD available for public comments for 30 days (parties, stakeholders, UN- FCCC accredited NGO) Registration requires the following: –PDD –DNA written approval –Explanation of how DOE has taken into account public comments Registration of project should be completed in 8 weeks, unless there is a request for review

8. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX PDD Format PDD format available on UNFCCC CDM website Must prepare PDD according to format PDD Format available in 6 official languages of UN Working language of the board is English  Must submit in english 7 Sections and 5 Annexes

9. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX PDD Format A. General Description of Project Activity B. Baseline Methodology C. Duration of Project Activity / Crediting Period

10. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX PDD Format D. Monitoring Methodology and Plan E. Calculation of GHG Emissions by Sources F. Environmental Impacts G. Stakeholder Comments Objections

11. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX PDD Format Annex 1 : Contact Info on Project Participants Annex 2 : Info Regarding Public Funding Annex 3 : New Baseline Methodology Annex 4: New Monitoring Methodology Annex 5: Table of Baseline Data

12. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Proposing a new Methodology Have to submit draft PDD + Annex 3 for new baseline methodology + Annex 4 for new monitoring methodology Takes approximately 4 months to get approved by Meth panel and EB Public comments are invited for 15 days Better use existing approved methodology to reduce time

13. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Small Scale Projects - Criteria Renewable energy project activities with a maximum output capacity equivalent of up to: 15 MW Energy efficiency improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of: 15 GWh per year Other project activities that both reduce anthropogenic emissions by sources and directly emit less than: 15 ktCO2eq annually

14. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Small Scale Projects - Requirements Reduced requirements for PDD preparation Simplified baseline methodologies by project category Simplified Monitoring methodologies by project category Less cost in preparation Same DOE may undertake validation and verification

15. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Small Scale Projects - Format

16. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Bundling and Debundling Bundling –Combining a number of small scale projects in one PDD to reduce transaction costs –Projects may be bundled as long as the total size is below limits for single project Debundling a large project to benefit from small scale simplified procedures is not allowed

17. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX Useful Resources and Tools Approved methodologies on UNFCCC CDM website PDDs under review on UNFCCC CDM website IPCC guidelines for emission estimation PDD guidelines CDM guidebook

18. PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEXRecommendations Do not underestimate the difficulty of preparing a PDD Use conservative assumptions Be transparent and “truthful” A good PDD increases the chances of accepting a project Process entails several check points (Stakeholder comments, validation, Public comments, may be a request for review)