1. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Major Highlights of EB Decisions on Developments of CDM Projects Ram M. Shrestha, Sudhir Sharma, Suparno Majamdar and S. Kumar Asian Institute of Technology Klong Luang, Pathumthani Thailand 19 th October 2005

2. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Agenda  CDM Project activity status  Status on CDM methodology approval  Designated operational entities  Afforestation and Reforestation (A&R) projects  Large scale projects  Small scale projects (SSC)  Registration of CDM project activities

3. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 CDM Project activity Status As of 30th September 2005 Total number of Projects currently under Validation process308 Total number of Projects validated till date248 Out of which number of small scale projects110 Projects currently being validated60 Out of which number of small scale projects24 Total number of projects under Registration process42 Number of projects under (registration) review2 Number of projects currently under consideration for registration15 Number of projects already registered26 Of which number of small scale projects14

4. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Registered CDM Projects (1) – As of 13th Oct 2005 South America & South Asia leading the pack(>60%) Closely followed by Central Americas South Asia & South Amecica accounting for 75%of CER’s. HFC project in Korea propelling that region’s CER’s. Total Number of Registered projects: 26 Location of projects: India (5), Honduras (4), Chile (4), Brazil (2), Korea (2), Others (9)

5. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Registered CDM Projects (2) – As of 13 th Oct 2005 Most Registered Projects are in Renewable energy or MSW categories HFC generates max. CER due to high GWP. MSW – High potential area Technologies used in Registered Projects

6. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 CDM Project activity Status (2) Based on 237 projects submitted to EB as of 13 th Sep 2005 (includes registered, validated, under validation, under review). Total CER estimated from the submitted 237 projects is 53.54 Millions Brazil, India, China, Mexico & Honduras main contributors to their respective regions

7. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Current CDM Project activity Status (3) Total number of projects considered: 237 (as of 13 th September 2005) 1) MSW & AWMs projects dominating S.American scene. 2) HFC & N 2 O projects have high CERs due to their high GWP 3) Cogen projects – mainly in Brazil & India 4) Wind – China 5) Hydro – Central & South America

8. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Status of CDM methodology approval (1)  Large scale emission reduction CDM projects  Total number of New Methodologies submitted for approval: 132  Out of which methodologies approved : 24 The Approved methodologies (AMs) (for Large Scale Projects) are under the following Sectors Sector ScopeNo. of AMs Renewable energy based electricity generation5 Cogeneration2 Landfill gas capture9 Fugitive emissions2 Fugitive emissions (Halocarbons & sulphur)1 Demand side energy efficiency3 Industrial process (Fuel switching)1 Chemical Industries1 Total24

9. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Status of CDM methodology approval (2)  Total number of Approved Consolidated Methodologies – 6  They are under sectoral scopes of  Landfill gas projects –Grid connected electricity generation from RE –Grid connected electricity generation from Biomass Residues –Partial substitution of fossil fuels by alternative fuels in Cement production –Waste gas and / or heat utilization for power generation –Increasing blend in Cement production  A&R CDM projects  Methodologies submitted for approval – 13  Approved till date – none  Small scale CDM projects  Approved methodologies till date- 15

10. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Status of CDM Methodology approval process (3)  The Small scale (SSC) AMs are under the Sectoral scopes of - Sectoral ScopeNo. of AM Energy (Elec., Mech., Thermal) for the user3 RE generation for grid1 Energy Efficiency6 Agriculture1 Fuel Switching1 Low GHG emitting vehicles1 Methane avoidance & recovery2 Total15

11. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Designated Operational Entities  Applicant entities (AEs)  Number of AE’s Allowed to submit New Methodologies: 26 4 from Non-Annex I countries (2 Korean and 2 South American)  Total number of DOEs operating currently: 11  Only 2 of them are approved to undertake certification, rest all are approved only for validation. (http://cdm.unfccc.int/DOE/list gives a list of DOEs and their sectoral scopes)http://cdm.unfccc.int/DOE/list

12. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 A&R Projects (1)  On New Methodologies  Methodologies should be stand alone – clear separation should exist between PDD and NMB (EB 18)  Additionality assessment (EB 18) No common practice step required. Should include either, a barrier or an investment analysis.  EB “inviting” project participants to include methods for demonstrating eligibility of lands for A&R projects (EB 18).  Developing a new form for screening new methodologies (EB 18) (Source:http://cdm.unfccc.int/EB/Meetings/018/eb18repan5.pdf )http://cdm.unfccc.int/EB/Meetings/018/eb18repan5.pdf

13. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005  Under consideration by the EB are:  Draft version of the tool for demonstrating the additionality of A&R project activities  Not required for small-scale A/R project activities  Tool for accounting of non-CO2 emissions, including emissions from sources existing before the implementation of a project activity.  Approaches for assessment of uncertainties in proposed new baseline and monitoring methodologies  The form for submitting new monitoring methodologies (CDM-AR- NMM) & new baseline methodologies (CDM-AR-NBM) for A&R projects will be revised to incorporate provisions relating to the monitoring of social and environmental impacts. A&R Projects (2)

14. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Large Scale CDM projects (1)  Revision of Approved methodology (AM) – EB21  AM requiring significant changes to be “put on hold” – can’t be used during hold period  Project activities that have already used the above AM should submit projects for registration within 4 weeks of “put on hold” date.  The above revisions of the AM shall only be applicable to project activities registered after the date of revision. shall not affect registered CDM project activities during their crediting period.  Procedure for approval of revision of AM same as New Methodology (NM). EB to decide whether public inputs are to be invited  Project proponents can submit proposals for revision on AM to EB (through DOE).

15. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Other EB decisions -  For project activities temporarily resulting in “negative emission reductions” in a given year - CERs will only be issued when the emissions increase has been compensated by subsequent emission reductions by the project activity. (EB 21)  Any proposed project activity intending to use a New Baseline or New Monitoring Methodology, should submit a NM first followed by the submission of PDD. (EB 20)  For project activities requesting Retroactive Credits (EB 19)  Project participants will have to (for assessing additionality) consider the information that was available at the time when the decision was made to undertake the project activity. (EB 19)  For calculation of baseline emissions, the most recent information, corresponding to the vintage of data appropriate to the project, which is available at the validation stage shall be used. (EB 20) Large Scale CDM projects (2)

16. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Small Scale CDM (SSC) projects (1)  Amendment to baseline methodology (EB18)  For Type I (Renewable energy projects) If the unit added has both renewable and non-renewable components (e.g. a wind/diesel unit), the eligibility limit of 15 MW for a SSC project activity applies only to the renewable component.  For Category I.C (Thermal energy for user) For co-generation systems and/or co-fired systems to qualify under this category, energy output cannot exceed 45 MW- thermal.  For Category III.D (Methane recovery) The monitoring of methane captured and flared should be based on metering and methane content analysis.

17. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005  Eligibility as small scale projects where emission reductions of a proposed project are increasing during credit period.  If a project activity goes beyond the limit of its type in any year of the crediting period, the project can claim only the maximum CER estimated in the CDM-PDD for that year.  Project participants are required to demonstrate in the CDM-SSC- PDD that the characteristics of the project activity are defined in a way that precludes project activities to go beyond the limits for each category. The limits are: –For Type I (RE): 15 MW installed capacity, –For Type II (EE): efficiency improvements <=15 GWh every year throughout the crediting period; –For Type III (Other project activities): annual emissions <=15 ktCO2e over the entire crediting period. Small Scale CDM (SSC) projects (2)

18. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Small Scale CDM (SSC) projects (3)  Amendments of the simplified modalities and procedures for small-scale CDM project activities.  SSC WG is to :  Develop guidelines for SSC-PDD, similar to the guidelines available for the CDMPDD, to facilitate submissions.  Make recommendations for bundled project activities of: –the same type, same category and technology/measure. –the same type, same category and different technologies /measures.

19. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Small Scale CDM (SSC) projects (4)  Bundling of Projects  Once a project activity becomes part of a bundle for a project cycle stage, it shall not be de-bundled during that stage. EB may consider debundling in exceptional situations.  The composition of bundles cannot change over time.  All project activities in the bundle will have the same crediting period.

20. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005 Registration of Unilateral CDM project activities (1)  Unilateral CDM (UCDM) projects can be registered. (The registration of a project activity can take place without an Annex I Party being involved during its registration).  CER’s from UCDM projects can be transferred to Annex I party after the project’s registration. Non Annex-I Party Annex-I Party EB/CDM Registry CER’s Annex-I National Registry CER payments CER’s Registered Unilateral project Letter of Approval

21. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005

22. AIT Asian Regional Workshop on “Capacity Development for CDM” 19 – 21 st October 2005