Implementation of the Suppressed Demand Guidelines in New and Existing SSC Methodologies

Carolyn Luce, Small Scale Working Group Member

FIRST SDM JOINT COORDINATION WORKSHOP, Maritim Hotel, Bonn, Germany

24 - 25 March 2012

2

OVERVIEW

I. A few definitions

II. SD Work Programme

III. Prioritized Methodologies

IV. Request for Revisions/Approach

V. Further Stakeholder Input

3

SD Guidelines – Scope and Applicability

• Applicable when the minimum service level is not met, eg. For basic lighting, purified water, water treatment);

Provides methodological approaches for two issues:

• The identification of the baseline measure under a suppressed demand situation; and

• The identification of the baseline service level that should be used to calculate baseline emissions in a suppressed demand situation.

4

Definitions from the Guidelines

Minimum service level: The service level that is able to meet basic human needs (e.g. basic housing, basic energy services including lighting, cooking, drinking water supply)

Income effect: Occurs when the demand for a service would increase over time in the baseline scenario as a result of an increase of income.

Rebound effect: Occurs when the demand for a service would increase as a result of the decreased cost of the service per unit in the project scenario.

Work programme on SD Guidelines (1)Existing Methodologies:

1. Scan methodologies to assess:

• If suppressed demand has been already addressed • If suppressed demand is relevant;

2. Prioritize methodologies for revision, taking into account:• Pertinence of minimum service level

• Priority sector

• Potential for improving regional distribution of CDM

• Usage rate of the methodology

5

Work programme on SD Guidelines (2)

3.Define the minimum service level in methodologies

- using international/national sources

4. Request input from DNAs, stakeholders and practitioners:

a) Teleconferences; b) Call for public inputs, including comments on draft

revisions; c) Dedicated methodology workshops.

5.Assessment of the draft revised methodologies by SSC WG..

6

SSC Meths where SD is taken into account

• AMS-I.A. Electricity generation by the user

• AMS-I.D. Grid-connect reneable electricity generation

• AMS I.E. Switch from non-renewable biomass for thermal applications by the user

• AMS-I.K. Solar cookers for households

• AMS-I.L . Electrification of rural communities using renewable energy

• AMS-II.G. Energy efficiency measures in thermal applications of non-renewable biomass

• AMS-III.AV. Low greenhouse gas emitting water purification systems

7

SSC Meths prioritized for revision

• AMS-I.A. Electricity generation by the user

• AMS III.AR Substituting fossil fuel based lighting with LED/CFL lighting systems

• …

8

Requests for Revisions

• Requests for revisions of methodologies to take into account SD Guidelines are welcome:

• Recently received requests for revisions include:

• AMS-III.F Avoidance of methane emissions through composting

• AMS III.AR Substituting fossil fuel based lighting with LED/CFL lighting systems

• …

9

10

Approach for baseline emission intensity1. Identify various alternative measures available to the PPs

that satisfy the same need as the need satisfied by the project activity;

2. Eliminate alternatives not in compliance with laws;

3. Rank the remaining in order of quality of the service provided;

4. Assess them in the sequence identified in step 3 and eliminate alternatives that faces barriers;

5. The first alternative not eliminated by step 4 is the baseline (needs to be updated regularly)

11

Approach for baseline level of service

Where the level of service of the project activity cannot be met with the baseline measure

Baseline level of service = Minimum level of service

The minimum service level is determined based on:

(a) National/international peer reviewed research or relevant studies;

(b) Benchmarks that take into account that emissions will rise to achieve the international/national development goals.

Opportunities for Stakeholder Input

- Proposed new methodologies

- Request for revision of methodologies

- Teleconferences; - Calls for public inputs, including comments on draft

revisions; - Dedicated methodology workshops

Your input is welcome ….

Thank you

12