Session 3: The Concept of Programme of
Activities (PoA)
Overview of the PoA and business models
Training-Workshop on the
“Uganda Municipal Waste Compost Programme”
21st -24th Oct 2013, Mukono Municipality, Uganda
UNFCCC secretariat
Outline
•
Basic concepts
•
PoA project cycle
•
Business models
•
PoA implementation in Africa
2
PoA concept and benefits
•
Unlimited number of similar CDM
project activities (CPA) can be
administered under a single
programme umbrella.
• Scale up the CDM
• No specified size limits
• Can be geographic (e.g. a
certain city/province),
• CPA can be time bound (e.g.
activities commencing in a
certain year).
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• Reduce transaction costs
• Individual project developers
not directly engaged in the
CDM process
• Monitoring and verification
possible for a number of
CPAs
CER Buyer
CME – coordinating or managing entity
CPA – CDM programme activity
• Reduces regulatory risks and
uncertainties
3
CPA Inclusion in PoA
PoA
DD
PoA DD
PoA at the time of
registration
Potential
CPAs
CPA Inclusion
checked by DOE
and uploaded in
CDM website
PoA DD
PoA
DD
CPA Inclusion over the
PoA Lifetime
PoAs vs. Project activities
PA- Single Project
PA- Bundle of projects
PoAs
Single location
Multiple locations within a
country
Multiple locations, across
countries
Single PP
Multiple PP
Multiple PP
PP known ex-ante
At least one PP known exAll PP known ex-ante - each ante, rest join later; Individual
participant in a bundle is a
CPA developers do not need
CDM project participant
to be formal programme
participants.
1 project at a time
A number of activities
Activities submitted over the
submitted as 1 project activity
life-time of the POA
at a time
One crediting period
One crediting period for all
activities
Each activity has own
crediting period
CDM PoA Project Cycle
Who’s responsible
Step
PoA Project design
document (PoA-DD)
National approval
Validation
Coordinating/Managing
Entity (CME)
Designated national
authority (DNA)
Designated operational entity
(DOE)
CDM Executive Board
(CDM EB)
Registration
Post-Registration Changes /
CDM EB
Renewal of
crediting period
CPA inclusion
Monitoring
DOE
DOE
Validation
Verification / certification
CDM EB
PP/CME
Renewal of
Crediting Period
Issuance of Certified Emission
Reductions (CERs)
CME
Upstream roles of the CME
Bringing together the various carbon, legal and financial aspects in a coherent structure
DNA
UNFCCC
Secure political support & awareness,
Obtain letter(s) of approval and authorisation(s)
Communicate with Executive Board
Coordinate the issuance of CERs
CME
DOE(s)
CER buyers
Banks/Investors
Submit PoA-DD, CPA-DD & monitoring reports,
Arrange validation and verification
Arrange monetization of the future CERs,
Facilitate CPA implementers’ financing,
Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013
Downstream roles of the CME
Ensuring leadership, administration and monitoring of the carbon platform
Design and manage the programme
Promoter B
Ensure access to relevant technology and expertise,
Provide training on carbon methodologies & procedures,
Facilitate CPA implementers’ financing
CME
Develop PoA-DD and CPA-DDs,
Organise relationships among stakeholders & participants,
Ensure long-term CDM compliance
Promoter A
Secure ownership of carbon revenues,
Set-up & manage projects information global database,
Arrange for carbon revenues redistribution
Promoter C
Promote and expand the programme
Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013
Indicative structure of a typical CME
Responsibility and authority (structure of organization, operational team, management team)
- Eligibility check & decision of inclusion of future CPAs;
- Proper commissioning and distribution of the system(s);
- Compliance of the technology with the PoA requirements;
- Periodical monitoring set up and reports per CPA.
- Installation and
commissioning of
new project units;
- Innovations
introduction in
future CPA-DDs
- Product
- Control of all
identification and
issued serial
maintenance of
numbers;
continuous records;
- Changes /
- Customer training replacements of
and introduction to serial nos. during
O&M;
CPA life;
- Legal agreements
with end-users.
- Check installed
units’ certified
quality and
standards.
- Monitoring
supervision in
accordance with
registered
monitoring plan;
- Check and store
measurement
methods and
recording frequency;
- Registration,
inclusion and CERs
issuance follow-up
As many different structures as CMEs; further examples
from real-case studies of NEMA, ABREF & KenGen...
- Monitoring data
consolidation and
processing to
central database;
- Annual monitoring
report consistency
Source: Ecosur Afrique, Regional CME/DNA Training and Workshop
2013 - Adapted from KfW manual for management systems at CMEs (2012)
PoA Business Models
CFL programme business model example
Source: KfW PoA Blueprint Book, 2010
PoA Business Models
Efficient stove programme business model example
Source: KfW PoA Blueprint Book, 2010
PoA Business Models
Domestic biogas programme business model example
Source: KfW PoA Blueprint Book, 2010
PoA Business Models
SWH programme business model example
Source: KfW PoA Blueprint Book, 2010
PoA Business Models
Small Hydropower (SHP) programme business model example
Source: KfW PoA Blueprint Book, 2010
Distribution of Registered PoAs
Registered PoAs as of 12
Oct 2013
• All PoAs: 224
Africa PoAs as of 12 Oct 2013
• All Africa: 64 (29%)
•
All Africa: 64
• South Africa: 30 (13 %)
•
Single-country PoAs: 49 (77%)
•
Multi-country PoAs: 15 (23%)
Registered PoAs hosted by African countries
Summary
• PoAs present many advantages – small-scale, dispersed activities (e.g. household
and small commercial level, transport, agriculture) can become viable with flexibility,
scaling up and standardization associated with PoAs
• Africa is doing well with PoAs - with 29% share of total registered compared to stand
alone projects (only 2%)
• There is still a lot of potential that can be tapped through addition of host countries
and CPA inclusion – need support of DNAs and partnerships between LDCs and
non-LDCs (with the closure of EUTS to non-LDCs)
• A PoA is a long-term venture (up to 28 years) involving many actors- CME needs to
have good management system, transparent design and clear incentives for project
owners to join in, as well as for other support entities (e.g., for monitoring and
maintenance) who do not directly profit from the CERs generated.
Thank you for your attention
CDM Regional Collaboration Centre
A collaboration between the UNFCCC Climate Change Secretariat
and the East African Development Bank
EADB Offices, No. 4, Nile Avenue
P.O. Box 7128, Kampala, Uganda
Phone: +256 (0) 312517814