The CDM
Project Activity Cycle
UNFCCC CDM joint workshop
21-22 March 2003
Bonn
Franz Tattenbach
Member CDM Executive Board
Vice Chair CDM Meth. Panel
Kai-Uwe Barani Schmidt
UNFCCC/Cooperative Mechanisms
[email protected]
Background
Negotiations challenge: make it conducive to
private sector / intergovernmental decision
making / environmental integrity
Outcome(!simplified!): Delegated system
whereby Executive Board approves
methodologies and accredits designated
operational entities (DOE). DOE registers
project activities which apply approved
methodologies subject to a request for
review by the Board or Parties involved
CDM project Cycle
Institutional Setup
Project
Operational
Participant(PP) Entity (DOE)
Executive Board(EB)
Project Design
Validation/Registration
* (within 8 weeks)
OR
Validation /Registration
New Methodology
Monitoring
Verification &
Certification
Issuance of CERs
* An automatic step
unless a review requested.
*
Companies (private/public)
(within 15 days)
CDM project activity cycle
AE0
Design
PP
EB&COP/MOP
DOE
DOE
DNA
Validation/registration
EB
Monitoring
Verification/certification
Issuance
PP
DOE
EB
CER
Design of a CDM project activity
PP
DOE
DNA
EB
PP
DOE
EB
CER
Baseline and monitoring
methodology
– (new or approved)
Information to be provided
(Appendix B / CDM-PDD)
Sustainable development (info with
DNA of host?!)
“Preamble”:
– Transfer of sound and safe
technologies
– No diversion of ODA
Validation / Registration
PP
DOE
DNA
EB
PP
DOE
Designated operational entity
Validation process
– (new or approved methodology)
EB
CER
Validation requirements
Designated national authority
– Written approval prior to
submission of request of
registration
Registration by EB:
– An automatic step unless a review is
requested within eight weeks by one
Party involved or three board members
Monitoring
PP
DOE
DNA
EB
PP
DOE
EB
CER
Project participant or third party
Provisions for the monitoring
plan(MP) / Monitoring
methodology
Implementation of MP condition
for verification-certification and
issuance
Monitoring report
Verification – certification
PP
DOE
DNA
EB
PP
DOE
EB
CER
Designated operational entity
– Verification: Ex post determination
– Certification: written assurance
Monitoring report: DOE to make publicly
available
Verification process
Verification report
Certification based on verification
Verification and certification report publicly
available
Issuance
PP
DOE
DNA
EB
PP
DOE
EB
CER
Certification report submitted to EB
by DOE is a request for issuance
Issuance final after 15 days if no
request for review of DOE because
of fraud, malfeasance or
incompetence of DOE
CDM registry administrator issues
and withholds share of proceed for
administration and adaptation
Design/
Design/validation/ registration
New
idea
s
PP
Repository of approved methodologies
Additionality and baseline methodology
PP
Additionality is defined in terms of GHG emissions (para. 43)
DOE
DNA
EB
PP
GHG
DOE
EB
Baseline = the scenario that reasonably
represents what would occur in the
absence of the registered project activity
=> methodology to determine (para. 44)
CER
If GHG of
proposed
CDM project
activity
smaller than
GHG of
baseline ->
additional
CERs
CDM project activity
t
Information to be provided
Appendix B / PDD:
– Summary of comments by local stakeholders and how due
account was taken of them;
– Documentation on analysis of environmental impacts;
– Additionality and Baseline and monitoring methodologies
conform with requirements of M&P;
– Provisions for monitoring, verification and reporting conforms with
requirements of M&P
In addition,
– Letter of approval by Parties involved (SD confirmation by Host Party)
M&P: Modalities and procedures of the CDM
Design/
validation/ registration
Design/validation/
New
idea
s
Submits
CDM-PDD
Repository of approved methodologies
PP
New methodology
OEx
Rejects if not conform
with validation
requirements
else forwards
OE1
OE2
…
OEn
EB
Two cases
Approved method.
“Automatic”
Rejects new method.
Registration
CDM proj. activities
Project 1
Project 2
…
Project n
Submits request to
EB for registration
PP to provide to OE written approval of
voluntary participation by DNA of each party involved
UNFCCC: Parties,
stakeholders,
accredited NGOs
UNLESS Review is
requested
If requested within 8 weeks by either one Party
involved or at least three board members.
Verification - certification and issuance:
flow chart
OE1
OE2
…
OEn
CERTIFICATION report
OEx* =request for issuance
Issuance
Assigns Ser. No
by EB
-Collects SOP
-Issues into registry
accounts
PP
Monitoring Report
Verification Report
Certification Report
CERs
VERIFICATION
activities
Monitoring
data
Site visits if deemed
necessary by OEx
UNLESS Review
is requested
If requested within 15 days by either
one Party involved or at least three board
members. Only fraud, malfeasance or
incompetence of OE!
* An OE may be allowed by the EB to perform validation and “verification and certification” for the same CDM project activity
CDM project Cycle
Roles and responsibilities
Project
Operational
Participant(PP) Entity (DOE)
Project Design
Provide info
Validation/Registration
Confirm that
requirements
are met
OR
Validation /Registration
New Methodology
Monitoring
Verification &
Certification
Issuance of CERs
* An automatic step unless
a review is requested.
Executive Board(EB)
* (within 8 weeks)
Implement
Certify ERs
*
Companies (private/public)
(within 15 days)
Legend
PP =project participants;
AE = an applicant entity
EB = executive board of the CDM
DOE = designated operational entity (Any private or public
body that has been accredited by EB and designated by
COP/MOP)
DNA = designated national authority for the CDM (The
request for registration needs to include a written approval of
voluntary participation by the DNA of each Party involved)
CER = certified emission reductions
M&P = Modalities and procedures of the CDM