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CDM Methods and project design: Baselines

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1 CDM Methods and project design: Baselines
Thanks - heard about different climate-relevant programmes, policies and actions - As well as emissions trading, the Kyoto Protocol also established some market-based mechanisms that are based at the project level. These are called the CDM and JI. - Will talk about these mechanisms and the impact of their implementation on wind energy markets. Will focus on the CDM. Firstly because more is happening in CDM than in JI. And also because I know more about the CDM. - Shd also point out that I have two “hats”. Analyst at OECD. And part of the CDM “regulator”. I’m talking with my OECD hat on. WB workshop: CDM methods and project design, Buenos Aires,

2 Outline What’s needed in a PDD and Methodology Why it’s needed
Experience with assessing baselines Examples of approved baselines

3 What’s needed ? PDD: Methodology annex: baseline scenario for project
ex ante (quantified) estimation of baseline and project emissions Methodology annex: Procedure by which to estimate the baseline scenario (e.g. NM0053 “…provide brief background … and context… demonstrate that project displaces … one single power plant…”) Method to calculate baseline emissions

4 Why is it needed? To get into assessment loop, i.e.
Secretariat completeness check (PDD) Meth Panel pre-assessment (NMB, NMM) Pre-assessment asks (i.a.) If EB guidance has been taken into account when drafting PDD, NMB, NMM NMB, NMM, PDD are stand-alone documents baseline scenario is defined clear, stepwise approach to additionality (including more than common practice analysis)

5 Some baselines more difficult to calculate/assess than others…
Will depend on project type. But less difficult if: Isolated system Only 1 plausible non-project scenario Baseline level (or ERs) can be easily measured/calculated Multi-component projects can use separate baseline methodologies for each component Previous EB guidance and recommendations should help designing new methodologies

6 Example baselines from approved methods
(e.g. some landfill) Absolute emissions (GHG) Absolute emissions (GHG) project baseline (e.g. gas recovery) project project implementation time project implementation time baseline (e.g. F-gas decomposition, bagasse cogeneration) Emissions (GHG/output) project implementation time


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