1. PoA AFTER Cancun - READY TO TAKE OFF NOW
Presentation title
PoA AFTER Cancun - READY TO TAKE OFF NOW
SEVENTH CDM JOINT COORDINATION WORKSHOP
Bonn, Germany
March 2011
Massamba THIOYE, Manager of the Standard Setting Unit
UNFCCC secretariat, programme

2. THE CMP MANDATE
Requests the Executive Board to reassess its existing regulations related to PoA in order to:
(a) Further clarify the application of existing rules
regarding the demonstration of additionality
to PoAs and the definition of eligibility criteria
for the CPA inclusion in a PoA; and

3. DEFINITION
A PoA is a voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal, via an unlimited number of CDM project activities (CPAs)

4. WHAT IS A PoA CDM rules 10 independent projects 10 independent PPs
10 PDDs developed
10 validations
10 registrations by UNFCCC to get in the CDM
10 verifications each year to generate CERs
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CDM rules
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5. WHAT IS A PoA CDM rules PoA PoA rules 01 PoA
01 Coordinator, unlimited number of participants
Unlimited number of CPAs not identified ex ante
During 28 years in the boundary
01 validation to get the PoA with 01 CPA in the CDM
09 validations to get the CPAs in the PoAs
01 verification each year to generate CERs based on sampling
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PoA rules
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CDM rules
PoA
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6. ADDITIONALITY OF THE PoA
Demonstration that in the absence of the CDM either:
the proposed voluntary measure would not be implemented, or
the mandatory policy/regulation would be systematically not enforced, or
that the PoA will lead to a greater level of enforcement of the existing mandatory policy /regulation
No guidance on how to establish that a voluntary
measure would not be implemented without CDM

7. ADDITIONALITY OF THE PoA
Approaches for additionality demonstration:
The project is not attractive; or
The project might be attractive but faces barriers; or
The project is attractive but there is another more attractive option of investment; or
The performance of the measure is higher than a benchmark performance
- Measure is not meant to be attractive
- Option 4 more suitable but not always applicable

8. ADDITIONALITY CRITERIA
What is to be demonstrated at the PoA level is:
the policy/measure leads to performances that are
higher than a benchmark if relevant
under the specific conditions of the PoA, a CPA that
meet the criteria of inclusion in the PoA, meet the
general criteria for additionality demonstration
A PoA DD is a standard for additionality demonstration. The PoA has to establish that compliance with its eligibility criteria ensures compliance with the general requirements for additionality demonstration

9. INCLUSION CRITERIA OF CPAs
Presentation title
INCLUSION CRITERIA OF CPAs
The eligibility criteria, shall allow for demonstration that the CPA is an activity that:
Is triggered by the implementation of the
policy/measure and would not occur
in the absence of the PoA; or
Is triggered by the enforcement of the
mandatory policy/regulation and would not
occur in the absence of the PoA

10. INCLUSION CRITERIA OF CPAs
They are translations of the general requirements in the CDM standards into simpler requirements specific to the PoA
For additionality, the PoA could translate the general requirements for additionality demonstration into inclusion criteria
Additionality is to be demonstrated/assessed at the CPA level against the inclusion criteria

11. EXAMPLES Feed-in tariff for renewable
If the most important parameters for the attractiveness of a wind farm are the power capacity P and the average wind speed S, the criteria for inclusion of a wind farm CPA might be related to P and S
The PoA can establish that for values of P and S below defined thresholds, the IRR of a CPA will be lower than the benchmark

12. EXAMPLES P Not Additional Additional S
Demonstrating additionality of a CPA consists of showing that the (P,S) values of the CPA is below the limit curve

13. EXAMPLES
For the diffusion of small appliances (e.g. ICS), an investment analysis is not necessarily the most relevant approach
The penetration rate of the appliance might be one criteria for inclusion of a CPA in the PoA that addresses the additionality issue
Only CPAs in regions where the penetration rate is lower than a threshold can be eligible for inclusion in the PoA
Only CPAs that leads to performance higher than a threshold defined in the PoA are eligible

14. LIABILITY ISSUE
Clarification of what is meant by erroneous inclusion of CPA: Inclusion of a CPA that does not meet the eligibility criteria of the registered PoA.
Risk = Probability of occurrence *Impact

15. THANK YOU FOR YOUR ATTENTION