8053 Presentation

8/3/2019 8053 Presentation

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Baseline Methodologies forBaseline Methodologies forSmallSmall--Scale CDM ProjectsScale CDM Projects

Dirk Boehler

LAW8053 Presentation


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Clean Development Mechanism (CDM)Clean Development Mechanism (CDM)

The Kyoto Protocol provides for so-called

Flexibility Mechanisms to help countries meet

their commitment objectives.

One of these mechanisms is the CDM

(Article 12), which provides for

projects promoting

sustainable development by the

transfer of money and technology from

developed to developing countries.


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Purpose of CDM ProjectsPurpose of CDM Projects

CDM enables developed countries to fulfil

their commitments by reducing greenhouse

gas emissions elsewhere rather than at

home.

The idea behind this is that emission

reductions can be achieved more cheaply in

countries with (yet) inefficient industries and

low wages.To account for the developed countrys

commitment, the reduction achieved by a

project has to be additional to any reduction

that might have occurred without the project.


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Purpose of CDM ProjectsPurpose of CDM Projects

CDM enables developed countries to fulfil

their commitments by reducing greenhouse

gas emissions elsewhere rather than at

home.

The idea behind this is that emission

reductions can be achieved more cheaply in

countries with (yet) inefficient industries and

low wages.To account for the developed countrys

commitment, the reduction achieved by a

project has to be additional to any reduction

that might have occurred without the project.


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Additionality and BaselineAdditionality and Baseline

To determine the additionality of emission

reductions resulting from a project, one has

to establish a so-called baseline scenario.

This is

the scenario that reasonably represents the

anthropogenic emissions by sources of

greenhouse gases that would occur in the

absence of the proposed project activity.(4/CMP.1, Annex II, paragraph 27)


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Baseline MethodologiesBaseline Methodologies

Generally, the CDM Executive Board does

not provide methodologies of how to

establish the baseline of a project.

Instead, the project participant can either

develop his own methodology, which then

has to be approved by the Executive Board,

oradopt a methodology that has previously

been developed and approved.The Executive Board maintains a public

database of approved methodologies.


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SmallSmall--Scale CDM ProjectsScale CDM Projects

Forsmall-scale projects, however, the

Executive Board actually does provide a

short list ofmethodologies. Projects

qualify as small-scale if they

achieve additional emission reductions

of less than 60 gigawatt hours per

year or

install capacities of renewable energy

of up to 15 megawatts.


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Approved MethodologiesApproved Methodologies CategoriesCategories

The methodologies for small scale projects

provided by the Executive Board can be

categorized into 3 groups:

Renewable Energy Projects

e.g. household electricity generation

Energy Efficiency Improvement Projects

e.g. adoption of energy-efficient equipment Other Project Activities

e.g. methane recovery


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Approved MethodologiesApproved Methodologies CategoriesCategories

The methodologies for small scale projects

provided by the Executive Board can be

categorized into 3 groups:

Renewable Energy Projects

e.g. household electricity generation

Energy Efficiency Improvement Projects

e.g. adoption of energy-efficient equipment Other Project Activities

e.g. methane recovery


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Suppressed DemandSuppressed Demand

The installation of renewable energy

plants does not lead to any actual

emission reduction. Yet, the greenhouse

gases hypothetically emitted for theequivalent amount of conventional

electricity can be credited against the

participating developed countrys

commitment.

The idea behind this is that the renewable

energy meets a supressed demand that

eventually would have been covered by

conventional grid power anyway.


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Baseline & Additionality TestBaseline & Additionality Test

1. Identification of Alternative Scenarios

alternative scenarios to the proposed project

consistency with mandatory laws and regulations2. Barrier Analysis

barriers that prevent alternative scenarios

elimination of prevented alternative scenarios

3. Investment Analysis

4. Common Practice Analysis


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CommentComment

Even small-scale projects demand substantial legal and

economic expertise. This turns the CDM into a domain

of Big Business with questionable intentions and

practices. In fact, up to 2/3 of CDM emission reductionsare estimated to be non-additional. This abuses the

financial transfer system and draws a shadow on our

assumed emission reduction achievements.

Ironically, the administrative gauntlet is designed tohinder fraudulent abuse of the system, so the mere

liberalisation will not solve the problem.

Should we call for more CDM-related NGO activity?


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Questions?Questions?

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