1. www.perspectives.cc · marr@perspectives.cc © 2011 Perspectives GmbH Programme of Activities Lessons learnt & PoAs as a chance for CDM Host Countries UNFCCC Joint Coordination Workshop 12-13 March 2011, Bonn Perspectives GmbH, Hamburg Marc André Marr

2. www.perspectives.cc · marr@perspectives.cc2 PoA specific challenges Implementation of PoAs Suitability of CE and interdependencies DNA related challenges Very limited or no experience with PoAs Methodology related challenges PoA specific requirements and limited suitability (e.g. combination) Reducing transaction costs? PoA initially involves higher CDM transaction costs DOE liability Result: Contrary to initial idea of the PoA concept Reduce transaction costs Stakeholder interaction and interrelations

3. www.perspectives.cc · marr@perspectives.cc3 PoA idea Two PoAs for newly built mini-hydro power plants for rural electrification (replacing diesel generation) PoA Case Study Mini hydro-power Africa Current status Support for Coordinating Entity Business model finalized Project developers identified PoA Idea Notes finished Incentive scheme developed Terms of references Support in promotion material

4. www.perspectives.cc · marr@perspectives.cc4 Business Model of the PoA Rural Electrification Agency will be Coordinating Entity Supports CPA developers Administers the PoA Responsible for monitoring CPA developers Construct and operate the projects Conduct on-site monitoring (metering) Financial institutions Providing soft loans PoA Case Study Mini hydro-power Africa

5. www.perspectives.cc · marr@perspectives.cc5 Key advantages of the PoAs Enable projects that would otherwise never be realized No access to finance Insufficient capabilities & capacities Support rural electrification in a sustainable way Lowering the risks for investors and carbon buyers due to established framework PoA Case Study Mini hydro-power Africa

6. www.perspectives.cc · marr@perspectives.cc6 Main challenges of the PoAs Institutional framework with interrelations and dependencies Setting up a business model which enables a high participation and being operable High level of standardization required PoA Case Study Mini hydro-power Africa

7. www.perspectives.cc · marr@perspectives.cc7 What PoAs can achieve PoAs enable project activities that otherwise would not be realized PoAs can significantly Reduce transaction costs Save time from initial idea to CER issuance Lower the risks for investors and CER buyers PoAs are able to set the basis for NAMA development PoAs can be an attractive additional CDM option

8. www.perspectives.cc · marr@perspectives.cc8 What is required for enable a greater use of PoAs? Increased stakeholder interaction => PoA Working Group Solution oriented approach Identify and develop methodological simplifications Standardization; default factors Combination of methodologies (pick and choose) PoA specific methodologies Clear guidance on Liability (currently playground for DOEs) Opportunities for up-front financing Support from UNFCCC (e.g. clear statement, guidelines, case studies)

9. www.perspectives.cc · marr@perspectives.cc9 Thank you! Perspectives GmbH Marc André Marr Head of Carbon Project Services marr@perspectives.cc