Overview of Two CDM Guidebooks

Side Event: CD4CDM ProjectCOP 10, Buenos Aires

December 11, 2004

Sami Kamel,UNEP RISOE Centre, Denmark

2

BackgroundBackground

CD4CDM Project is currently supporting the CD4CDM Project is currently supporting the production of two CDM Guidebooks:production of two CDM Guidebooks:

CDM Baseline Methodologies.CDM Baseline Methodologies. Bundling Small-Scale CDM Projects. Bundling Small-Scale CDM Projects.

Target audience:Target audience: Capacity building workshop participants Capacity building workshop participants

organized under CD4CDM.organized under CD4CDM. CDM project proponents, particularly in CDM project proponents, particularly in

developing countries.developing countries.

Both Guidebooks are work-in-progress.Both Guidebooks are work-in-progress.

Comments and feedback are welcome. Comments and feedback are welcome.

3

Baseline Meth GuidebookBaseline Meth Guidebook

The Guidebook is being prepared by the Asian The Guidebook is being prepared by the Asian Institute of Technology under contract from Institute of Technology under contract from CD4CDM.CD4CDM.

Objective is to present Objective is to present the process of the process of establishing baseline in a user friendly manner establishing baseline in a user friendly manner & workbook style. & workbook style.

The Guidebook complements the information in The Guidebook complements the information in UNEP’s “CDM Information and Guidebook.”UNEP’s “CDM Information and Guidebook.”

4

Structure of GuidebookStructure of Guidebook

Chapter I: Introduction to GuidebookChapter I: Introduction to Guidebook

Chapter 2: Baseline MethodologiesChapter 2: Baseline Methodologies

Chapter 3: Baseline for Small Scale CDM ProjectsChapter 3: Baseline for Small Scale CDM Projects

Chapter 4: Steps in developing project specific Chapter 4: Steps in developing project specific baselinebaseline

Chapter 5: Examples of Baseline MethodologiesChapter 5: Examples of Baseline Methodologies

Chapter 6: Baselines for Afforestation and Chapter 6: Baselines for Afforestation and Reforestation ProjectsReforestation Projects

5

The guidebook also includes:The guidebook also includes:

A glossary of important terms related to CDMA glossary of important terms related to CDM

Annotated Bibliography of some key Annotated Bibliography of some key literature on Baselinesliterature on Baselines

Description of common models used in Description of common models used in literature for establishing baselinesliterature for establishing baselines

6

Overview of GuidebookOverview of Guidebook Chapter 2 – Baseline methodologiesChapter 2 – Baseline methodologies

CDM project criteria and eligible projects. CDM project criteria and eligible projects.

Introduction to the concept of baseline and Introduction to the concept of baseline and approaches as stipulated in M&P of CDM. approaches as stipulated in M&P of CDM.

Discussion on recommended baseline approaches.Discussion on recommended baseline approaches. Key steps in determining the baseline Key steps in determining the baseline

methodology. methodology.

Procedures for the submission and approval of Procedures for the submission and approval of new methodologies.new methodologies.

7

Chapter 3 – Baselines for small scale CDM Chapter 3 – Baselines for small scale CDM projects:projects:

Three category of small scale CDM projectsThree category of small scale CDM projects

The suggested indicative baseline The suggested indicative baseline methodologies.methodologies.

Overview of GuidebookOverview of Guidebook

8

Chapter 4 – steps in developing baseline Chapter 4 – steps in developing baseline methodologiesmethodologies

Overall procedure for developing project specific Overall procedure for developing project specific baselinebaseline Application of existing baseline methodology vs Application of existing baseline methodology vs

developing new baseline methodologydeveloping new baseline methodology

Process of developing and presenting new Process of developing and presenting new baseline methodologies.baseline methodologies. Steps highlighted through examples.Steps highlighted through examples.

Overview of GuidebookOverview of Guidebook

9

Chapter 5 – Examples of Baseline MethodologiesChapter 5 – Examples of Baseline Methodologies

Presentation of approved baseline methodologiesPresentation of approved baseline methodologies

Examples for following broad categories of projects Examples for following broad categories of projects are included:are included:

Power generationPower generation Solid waste projects (methane recovery project)Solid waste projects (methane recovery project) Energy efficiency projectEnergy efficiency project

Overview of GuidebookOverview of Guidebook

10

Chapter 6 – Baselines for Afforestation and Chapter 6 – Baselines for Afforestation and Reforestation ProjectsReforestation Projects

The objective of this chapter is twofold:The objective of this chapter is twofold:

familiarize the reader with carbon familiarize the reader with carbon sequestration projects; sequestration projects;

increase reader’s understanding of how to increase reader’s understanding of how to develop carbon sequestration projects for develop carbon sequestration projects for CDM. CDM.

Overview of GuidebookOverview of Guidebook

11

Guidebook onGuidebook onBundling Bundling Small-Scale CDM Small-Scale CDM

ProjectsProjects

The Guidebook is being prepared by CRESTAR The Guidebook is being prepared by CRESTAR CAPITAL, a consultancy in India, and Dr. Jyoti CAPITAL, a consultancy in India, and Dr. Jyoti Painuly from UNEP RISOE Centre.Painuly from UNEP RISOE Centre.

Objective is to present guiding information on Objective is to present guiding information on the the process of bundling small-scale CDM projects. process of bundling small-scale CDM projects.

The Guidebook complements the information The Guidebook complements the information in UNEP’s “CDM Information and Guidebook.”in UNEP’s “CDM Information and Guidebook.”

12

Structure of GuidebookStructure of Guidebook Chapter I: Background on BundlingChapter I: Background on Bundling

Chapter 2: Definitions & Justifications for BundlingChapter 2: Definitions & Justifications for Bundling

Chapter 3: Analysis of Key Issues in BundlingChapter 3: Analysis of Key Issues in Bundling

Chapter 4: Analysis of Transactional Issues Chapter 4: Analysis of Transactional Issues

Chapter 5: Business Models for the Bundling Chapter 5: Business Models for the Bundling OrganizationOrganization

Chapter 6: Conclusions & RecommendationsChapter 6: Conclusions & Recommendations

13

Chapter 2 - Chapter 2 - Small-Scale CDM ProjectsSmall-Scale CDM Projects::

Definition of Small-Scale CDM ProjectsDefinition of Small-Scale CDM Projects

EB Action taken so far to support Small-Scale EB Action taken so far to support Small-Scale ProjectsProjects

Overview of GuidebookOverview of Guidebook

14

Chapter 3 - Chapter 3 - Analysis of Key Issues in BundlingAnalysis of Key Issues in Bundling

Bundling Case StudiesBundling Case Studies

Risks in bundling (contractual, technical)Risks in bundling (contractual, technical)

Legal issues in bundlingLegal issues in bundling

Overview of GuidebookOverview of Guidebook

15

Chapter 4 - Chapter 4 - Analysis of Transactional IssuesAnalysis of Transactional Issues

What can be bundled?What can be bundled?

Who are the bundlers?Who are the bundlers?

Overview of GuidebookOverview of Guidebook

16

Chapter 5 - Business Modelling for the Chapter 5 - Business Modelling for the Bundling OrganisationBundling Organisation

What is a typical bundling organisation What is a typical bundling organisation expected to look like?expected to look like?

What will a typical bundling organisation do?What will a typical bundling organisation do?

Overview of GuidebookOverview of Guidebook

17

Chapter 6 – RecommendationsChapter 6 – Recommendations

Capacity building & setting up a databaseCapacity building & setting up a database

Setting up online web portalSetting up online web portal

Developing a bundling tool kitDeveloping a bundling tool kit

Help in establishing a Prototype Bundling Help in establishing a Prototype Bundling organization in DCsorganization in DCs

Overview of GuidebookOverview of Guidebook

18

Both Guidebooks will be Both Guidebooks will be

downloadable upon completion downloadable upon completion from project website : from project website :

www.cd4cdm.orgwww.cd4cdm.org