introduction of guidelines for the establishment of sector specific standardized baselines

8/4/2019 Introduction of Guidelines for the Establishment of Sector Specific Standardized Baselines

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UNFCCC Secretariat

SDM programme

SECTOR SPECIFICSTANDARDIZED BASELINES

Guidelines and Submission Procedure

Workshop on Enhancing the Regional Distribution of CDM Projects in Asia and the

Pacific

Kathmandu, Nepal

6-7 September 2011

Vernica Colerio


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BACKGROUND

THE CMP DECISIONS

Parties, PPs, and other admitted entities, through the hostcountrys DNAs, may submit proposals for SBs, forconsideration by the Board;

Requests the Board to develop SBs, as appropriate, in

consultation with relevant DNAs, taking into account theoutcome of the workshop on SBs.

Operationalizing these decisions needs:

Guidelines Procedure


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WHY SBs? - DEFINITION

WHY SBs

Reduce transaction costs;

Enhance transparency, objectivity and predictability;

Facilitate access to the CDM; and

Scale up, while ensuring environmental integrity.

DEFINITION

A SB is a baseline established for a Party or a group of

Parties to facilitate the calculation of ERs and removalsand/or the determination of additionality for CDM projectactivities, while providing assistance for assuringenvironmental integrity.


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GUIDELINES


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APPLICABILITY OF THE GUIDELINES

Sectors;

Stationary sources, but not A/R;

Most types of project activities;

Standardized baselines:

For a country or a group of countries;

Demonstrate additionality: positivelists;

Identify baseline scenario;

Determination of baseline emissions.


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MEASURES

Measure:

Broad class of GHG emission reduction activities;

Possessing common features

Four types currently covered:

1. Fuel and feedstock switch;

2. Switch of technology with or without change ofenergy sources (including energy efficiency

improvement);3. Methane destruction;

4. Methane formation avoidance.


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STEPS FOR ESTABLISHING SBs

Identify host country, output, sector andmeasure;

Establish additionality criteria (e.g. positivelists);

Identify the baseline;

Determine the baseline emission factor.


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MEASURE 1: FUEL/FEEDSTOCK SWITCH

Define sector (product Oi) and technology Tj Identify fuels/feedstocks for Tj Identify corresponding percentages of output Rank the carbon intensity of the fuels/feedstocks

TECHNOLOGY Tj Output Oi

Fuel b

Fuel p

0% 25% 50% 75% 100%

Coal Heavy Fuel Fuel Oil Diesel NG RB


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MEASURE 1: ADDITIONALITY

Identify the fuels /feedstock with higher CEFs and contributingto production of Xa% of the output Oi of the sector based ontechnology Tj.

The positive list for additionality demonstration:

Cleaner than the fuels making up Xa% NG and RB are eligible Check their commercial attractiveness and barriers

0% 25% 50% 75% 100%

Xa = 80%



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MEASURE 1: BASELINE FUEL

Identify the fuels /feedstock with higher CEFs and contributing to

production of Xb% of the output Oi of the sector based on technology

Tj.

Baseline fuel:

Cleanest among the fuels making up Xb%

Fuel oil Baseline emission factor

IPCC fuel oil emission factor (t CO2 / t fuel oil) x Design specific

fuel oil consumption (t fuel oil / t Oi)

0% 25% 50% 75% 100%

Xb = 60%



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MEASURE 2: TECHNOLOGY SWITCH

Define sector (product Oi) Identify technology with or without energy source Identify corresponding percentage of output Rank the carbon intensity of the technologies

TECHNOLOGY Tb Output Oi: ElectricityEnergy source b

Energy source pTECHNOLOGY Tp

0% 25% 50% 75% 100%

Sub Coal Diesel Engine OCGT CCGT RB Wind


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MEASURE 2: ADDITIONALITY

TECHNOLOGY SWITCH - Additionality

Identify the technologies with higher CEFs and contributing toproduction of Ya% of the output Oi of the sector.

The positive list for additionality demonstration: Cleaner than the technologies making up Ya%

Wind and RB are eligible Check their commercial attractiveness and barriers

0% 25% 50% 75% 100%

Ya = 80%



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MEASURE 2: BASELINE TECHNOLOGY

Identify the technologies with higher CEFs and contributing to

production of Yb% of the output Oi of the sector

Baseline technology:

Cleanest among the technologies making up Yb%

OCGT

Baseline emission factor IPCC natural gas emission factor (t CO2 / t natural gas) x Design

specific natural gas consumption (t natural gas / t Oi)

0% 25% 50% 75% 100%

Yb = 60%



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MEASURE 3: METHANE DESTRUCTION

Additionality

If the level of CH4 destruction undertaken by ameasure is higher than what is mandatory andenforced, the measure of destruction is additional.

Baseline

The baseline level of destruction is the mandatoryand enforced level of destruction.


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MEASURE 4: METHANE FORMATION AVOIDANCE

Additionality

If the proposed disposal and treatment method is notmandatory and enforced and is less attractive, thenthe measure is additional.

Examples: landfill aeration, composting, use of

agriculture residues

Baseline

The baseline is the most commonly used disposaland treatment method;

Examples: municipal waste is landfilled.


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EMISSION FACTORS

Baseline emission factors may be developed when multiplemeasures are simultaneously applied in a sector.

For example: cement sector.

Baseline emission factors may be developed for sectionsof sectors.


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PROCEDURES


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OBJECTIVE

Provide detailed steps for the submission of proposedstandardized baselines (PSB) by DNAs for consideration by

the Board.Does not include procedures for the submission of newmethodological approaches to derive standardizedbaselines; which can be submitted by the appropriateprocedures:

New methodologies;

Revision of approved methodologies;

Revision of the approved guidelines for other

types of measures or sectors.


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OVERVIEW OF THE PROCEDURES

Submission of aPSB

DNA

DOE

CompletenesscheckSecretariat

Consideration

Secretariat

Panel and Workinggroups

Board

To approve (A)

Not to approve (C)

Preliminaryrecommendation


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SUBMISSION OF A PSB

Who submits? DNA (DOE may upload the

submission on behalf of the DNA)

Who develops? DNA;Project participants;

International industry organizations;Admitted observer organizations.

Documentation? Submission form;Report prepared by DOE:

Ensure quality of the data;Assess if the PSB was derivedin accordance with the relevantstandards and guidelines.

When to submit? Any time.


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CONSIDERATION OF THE PSB I

Who? Secretariat.

What? Assign a reference number;Invite public comments;Make public comments available;Prepare a draft recommendation;

Send to relevant Panel or Workinggroups.

Timeline Public comments: 15 calendar days;

Draft recommendation sent to relevantPanel or Working groups: 20 workingdays.


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CONSIDERATION OF THE PSB II

Who? Relevant Panel or working groups.

What? Finalize the recommendation.

Timeline No more than 2 meetings.

Possible outcomes

To approve(A)

Not toapprove (C)

Preliminaryrecommendation

Board is informedof the

recommendation.

Additional orrevised information

is requested.

Board is informedof the

recommendation.


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FINAL DECISION

Who? Board

What? Approve or not approve the PSB.

Timeline Consideration: 20 working days.If a member requests the

consideration by the Board, then thecase goes to the next meeting of theBoard.


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SUMMARY OF APROX TIMELINES

Completeness Draft Final

Check Recommendation RecommendationSubmission

15 to 55working

days

+ 50 to 80working

days

+20 to 40working

days

TOTAL: 85 TO 175 WORKING DAYS


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UNFCCC Secretariat

SDM programme

THANK [email protected]

introduction of guidelines for the establishment of sector specific standardized baselines

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