1. CONOR BARRY, Team Lead OSD UNFCCC Secretariat SDM programme Setting expectations of the workshop Bonn, 7- 8 May 2011 Workshop on Programme of Activities under the Clean Development Mechanism: Challenges and the Road Ahead

2. Executive Board, at its 59 th meeting, agreed to launch a call for public inputs on programme of activities (PoA) A total of 19 inputs were received publicly available on www.unfccc.intwww.unfccc.int Summary of the call for inputs: Annex 7 of the annotations to the agenda/ EB60. Clarifications was provided (EB60/ Annex 26) Priorities was decided by the Board (EB60/ Annex 27) Background Work on Programme of Activities (PoA) CDM - Programme of Activities 2

3. Additionality Prior consideration of CDM do not apply to PoAs No CPA will commence prior to start date of validation Full additionality assessment not required for CPA but shall be assessed as per eligibility criteria defined in the PoA-DD Micro-scale guidelines extended to CPAs Designated Operational Entity Liability Current PoA procedures only relate to excess issuance of CERs resulting from erroneous inclusion of CPA Excess issuance due to significant deficiencies in validation and verification reports will be dealt via same procedure being developed for CDM project activities Boards Clarifications: EB60/Annex 26 (I) CDM - Programme of Activities

4. Applicability of the existing CDM rules to programme of activities Request secretariat to address POA specific issues in the development of the VVS and project cycle procedures Explicitly state which existing CDM rules apply to PoAs or extend current procedures to PoA and ensure exemptions and derogations are clearly defined Following Procedures also applicable for PoAs (i)Revision of monitoring plans (ii)Deviations from approved methodology (iii)Deviations submitted prior to request for issuance Procedures for Changes to project design do not apply to PoA pending further revisions Boards Clarifications: EB60/Annex 26 (II) CDM - Programme of Activities

5. DNA and LoA Issues Post Registration addition of parties is allowed and program boundary extended if: (i)Existing registered PoA-DD revised to reflect changes – eligibility criteria of CPA inclusion (ii) DOE confirms that baseline is applicable to the extended program boundary; and (iii) DNA of new host party issues LoA and authorization to the CME Boards Clarifications: EB60/Annex 26 (III) CDM - Programme of Activities

6. Additionality Standard for demonstration of Additionality for the PoA Application of methodologies to PoAs Standard for PoA applying multiple methods CPA inclusion to PoA Standard for eligibility criteria of CPA inclusion Revised procedures to address erroneous inclusion of CPA New rules/procedures for PoA Standard and guidelines for sampling Boards Priority EB63: EB60/Annex 27 CDM - Programme of Activities

7. a)Analysis of the procedural and regulatory barriers and the issues identified in the call for public inputs for the PoA, and identification and analysis of additional barriers and challenges. b)Indentify potential solutions to overcome the barriers with more emphasis on the options for way forward. c)Provide advanced inputs to the work on further improvement in the regulatory framework in line with the directions provided by the Board in its sixtieth meeting (Annex 27 of the meeting report). Aim of the Workshop CDM - Programme of Activities 7