1. BASELINE STANDARD UNFCCC secretariat workshop
Presentation title
BASELINE STANDARD
UNFCCC secretariat workshop
Bonn, Germany, 4 and 5. March 2011
Massamba THIOYE, Manager of the Standard Setting Unit
UNFCCC secretariat, programme

2. Why a baseline standard Why now
TABLE OF CONTENTS
Presentation title
Why a baseline standard
Why now
Place in the architecture of the CDM standards
What is it made of
Why the proposed approach
What will it be used for 1.

3. WHY A BASELINE STANDARD
The most appropriate approach, taking into account any guidance by the CDM EB is either:
(a) Existing actual or historical emissions, or
(b) The economically most attractive or
(c) A benchmark
The Executive Board shall develop:
Definition of project categories that show common methodological characteristics for baseline setting;

4. WHY A BASELINE STANDARD
Presentation title
WHY A BASELINE STANDARD
Provides guidance for the development of Meth and SBs
Ensures consistency
Enhances objectivity
Enhances predictability
Enhances transparency
Puts the quality gate at an early stage
So far, there is no guidance for the development of methodology as well as SBs. This is needed for the top-down and for the bottom up development of Methodologies and SBs
A baseline standard will ensure the consistency between the different CDM methodologies. Currently the same issue can be addressed differently in different methodologies. This contribute to the complexity of the CDM standard. Why in AM0034 a campaign is conducted to determine the baseline N2O EF in a Nitric Acid plant and in AM0001 the historical HFC23 EF and a benchmark are used for the baseline EF?
Currently, there are no established requirements based on which methodologies are assessed. This provide room for enhanced objectivity. The MP try as much as possible to ensure the consistency of the decision making process. However, it happens that the rationale of decisions taken several years ago are no more in the memories. The baseline standard will be the receptacle where this important knowledge will be accumulated.
With a baseline standard, the predictability of the process of considering methodology related standards will be enhanced. Methodology developers will have more possibilities to predict the outcome of the consideration of their submissions
A baseline standard available to Meth developers and based on which the rationale of rejections will be justified where applicable will increase the transparency of the process
Available to meth developers, it will put the quality gate of the Meth consideration process at the early stage

5. WHY NOW
Presentation title
We have enough experience from the bottom up development of Meth
Top-down development of Meth is just starting and needs standards
Development of SBs requires framework
A more predictable, more objective and more transparent CDM might positively influence the negotiation process
It was important to first accumulate enough experience of methodology development bottom up, relevant to the economical sector before trying to find what they have in common in term of baseline setting and develop a general standard. This is more cautious than developing a top down standard before hand.
Some might argue why now at the end of the first commitment period. Well, I think that this is precisely now that Parties have to reconsider the renewal of their contract avec CDM that we have to “parer la marie”

6. WHERE IN OUR STANDARDS ARCHITECTURE
Presentation title
M & P, CMP decisions
Baseline standard
Methodologies
Tools
SBs
CDM
Projects
CPA
PoA

7. WHAT IS IT MADE OF Project (II) Technology Switch (EEI)
Presentation title
(II) Technology Switch (EEI)
(V) More GHG intensity
output displacement
(I) One or multiple fuel switch
New outputs
Project
(IV) GHG formation avoidance
Consumer
(I) One or multiple feed stock switch
(III) GHG destruction

8. WHAT IS IT MADE OF Definition of the five MABS
Presentation title
Definition of the five MABS
Grouping of ER activities of a project into components of
same characteristics for baseline Setting using one MABS
Criteria for the identification of the applicable MABS
Algorithm for the identification of the baseline based on
each MABS
The algorithm for the identification of the baseline based on each MABS clarify the difference between baseline and baseline scenario and build the baseline on the baseline scenario
Procedure for baseline emissions calculation for the
baselines

9. WHY THE PROPOSED APPROACH
Presentation title
The standard is the methodology that combines the use of different MABS
A standard is developed for each combination of the MABS
The standard is A MABS: Higher level of standardization, more consistency, less complexity for the user
Methodologies combine the standardized MABS
The proposed approach is quite similar with the approach taken for SSC Methodologies. This is probably due to the fact that the SSC Meths started with a top down approach for Meth development
SSC Meths are of type I, Renewable energy that use MABS 5, type II that use MABS 2 and III that covers all other types of methodologies. Under the proposed approach, there is more disaggregation. Five types of MABS are proposed.
SSC projects combine the Meths as it is here proposed to combine the MABS

10. WHY THE PROPOSED APPROACH
Presentation title
SBs are developed for the components not for the methodologies
Helps solve the issue of prioritization for the development of SBs
Scales up the development of SBs
Helps to address an important issue in the setting of benchmark: the level of aggregation
A SB could be developed through a simplification of existing methodology by making it specific to a given country. The first stage might be the development of qualitative baselines derived from existing approved methodologies. This does not need to have the data from the countries because the SB is a algorithm for the calculation of the baseline emissions. The second step might be the development of quantitative baseline such as a grid EF.
A SB could also be developed not based on existing approved methodologies. In this case, the baseline standard with the approach based on MABS is useful as guidance for the development of the SBs and needed for their assessment
For the development of SBs, one of the issues faced is from where to start? Which sector? Which countries? By developing standardized baseline for the 5 components through a simplification of the MABS, a lot of sectors might be covered in one go.
For a given project that include several components using different MABS, the level of aggregation is generally challenging to determine. This is mainly because the level of aggregation change from one component to another. It might be needed for the purpose of establishing a benchmark for the EF of projects in a given sector to first establish a benchmark for the different components of the project. A typical example is the benchmark EF for cement production. If the project include fuel switch, feed stock switch, EEI and increase of blending, the level of aggregation of the different component of the project might be completely different. The level of aggregation for the benchmark for the EF of the electricity consumed will be the grid. The level of aggregation for the benchmark feedstock will be the region where the project feedstock is available (component 1). The level of aggregation for the benchmark fuel will be the region where the project fuel is available (component 1). The level of aggregation for the benchmark SEC will be the region where the project technology is available (component 2). The level of aggregation for the benchmark level of blending will be the market where the cement is sold (component 5). If the project use biomass that would otherwise be left to decay, the level of aggregation for the benchmark fate of the biomass will be the region where this biomass is available (component 4).

11. WHY THE PROPOSED APPROACH
Presentation title
WHY THE PROPOSED APPROACH
Eases the assessment of methodologies by the Meth Panel
Eases the assessment of SBs by the Board particularly when they are not based on approved methodologies
Facilitates the understanding of the methodologies by the DOEs and the registration team
Under which criteria the CDM EB will approve a SB submitted by the DNA of one country and not the SB submitted by another country. The Board need to have clear criteria for the assessment of SBs submitted by countries
The availability of this baseline standard provide the basis for simplification of the CDM standard in a specific context
The lack of general rules for baseline setting make our methodologies be a jungle.

12. WHY THE PROPOSED APPROACH
Presentation title
WHY THE PROPOSED APPROACH
Guidance on how to identify and treat suppressed demand
Clarifies baseline and baseline scenario and aligns the baseline to the baseline scenario
Benchmark is preferred but is not the only possible approach
The development of a general guidance on how to treat suppressed demand was a request from CMP.5. The Board was not able to respond to that request because of the lack of a baseline standard, that provides general requirement for cross cutting issues to all methodologies. So far, suppressed demand is addressed on a case by case manner in the methodologies.
CMP.6 reformulated the request to the CDM EB

13. POSSIBLE USE The assessment of methodology and SBs related submissions
Presentation title
POSSIBLE USE
The assessment of methodology and SBs related submissions
The top-down development of methodologies
The top-down development of standardized baselines
A framework for the bottom-up development of standardized baselines by relevant entities
The revision of the approved methodologies
At least, as standard it might be used for the following
The final decision of the Board will take on bord the outcome of the discussion during this workshop with regard to the possible use of the baseline standard

14. Presentation title
TO CONCLUDE
A baseline standard will contribute to the improvement of the CDM
The approach proposed eases the assessment of methodologies and makes them easy to understand
It helps address the issues of prioritization and level of aggregation in SBs development
It helps scale-up the development of SBs
It addresses the issue of suppressed demand

15. THANK YOU FOR YOUR ATTENTION