1. UNFCCC secretariat Overview of the PoA and business models Training-Workshop on the “Uganda Municipal Waste Compost Programme” 21st -24th Oct 2013, Mukono Municipality, Uganda Session 3: The Concept of Programme of Activities (PoA)

2. 2 Outline Basic concepts PoA project cycle Business models PoA implementation in Africa

3. 3 PoA concept and benefits CME CER Buyer CPA $$$ CME – coordinating or managing entity CPA – CDM programme activity Unlimited number of similar CDM project activities (CPA) can be administered under a single programme umbrella. Scale up the CDM No specified size limits Can be geographic (e.g. a certain city/province), CPA can be time bound (e.g. activities commencing in a certain year). Reduce transaction costs Individual project developers not directly engaged in the CDM process Monitoring and verification possible for a number of CPAs Reduces regulatory risks and uncertainties

4. CPA Inclusion in PoA PoA DD Potential CPAs CPA Inclusion checked by DOE and uploaded in CDM website PoA at the time of registration PoA DD CPA Inclusion over the PoA Lifetime PoA DD

5. PoAs vs. Project activities PA- Single ProjectPA- Bundle of projectsPoAs Single location Multiple locations within a country Multiple locations, across countries Single PPMultiple PP PP known ex-ante All PP known ex-ante - each participant in a bundle is a CDM project participant At least one PP known ex- ante, rest join later; Individual CPA developers do not need to be formal programme participants. 1 project at a time A number of activities submitted as 1 project activity at a time Activities submitted over the life-time of the POA One crediting period One crediting period for all activities Each activity has own crediting period

6. CDM PoA Project Cycle PoA Project design document (PoA-DD) National approval Validation Registration Verification / certification Issuance of Certified Emission Reductions (CERs) Monitoring Coordinating/Managing Entity (CME) Designated national authority (DNA) Designated operational entity (DOE) CDM Executive Board (CDM EB) Step Who’s responsible Post-Registration Changes / CPA inclusion CME Renewal of Crediting Period DOE CDM EB Validation Renewal of crediting period PP/CME DOE CDM EB

7. Upstream roles of the CME UNFCCC DNA DOE(s) CER buyers Banks/Investors CER buyers Banks/Investors CME Bringing together the various carbon, legal and financial aspects in a coherent structure Submit PoA-DD, CPA-DD & monitoring reports, Arrange validation and verification Secure political support & awareness, Obtain letter(s) of approval and authorisation(s) Communicate with Executive Board Coordinate the issuance of CERs Arrange monetization of the future CERs, Facilitate CPA implementers’ financing, Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013

8. Downstream roles of the CME CME Ensuring leadership, administration and monitoring of the carbon platform Promoter A Promoter B Promoter C Design and manage the programme Ensure access to relevant technology and expertise, Provide training on carbon methodologies & procedures, Facilitate CPA implementers’ financing Develop PoA-DD and CPA-DDs, Organise relationships among stakeholders & participants, Ensure long-term CDM compliance Secure ownership of carbon revenues, Set-up & manage projects information global database, Arrange for carbon revenues redistribution Promote and expand the programme Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013

9. Indicative structure of a typical CME Responsibility and authority (structure of organization, operational team, management team) As many different structures as CMEs; further examples from real-case studies of NEMA, ABREF & KenGen... Source: Ecosur Afrique, Regional CME/DNA Training and Workshop 2013 - Adapted from KfW manual for management systems at CMEs (2012) - Installation and commissioning of new project units; - Product identification and maintenance of continuous records; - Customer training and introduction to O&M; - Legal agreements with end-users. - Eligibility check & decision of inclusion of future CPAs; - Proper commissioning and distribution of the system(s); - Compliance of the technology with the PoA requirements; - Periodical monitoring set up and reports per CPA. - Registration, inclusion and CERs issuance follow-up - Innovations introduction in future CPA-DDs - Control of all issued serial numbers; - Changes / replacements of serial nos. during CPA life; - Check installed units’ certified quality and standards. - Monitoring supervision in accordance with registered monitoring plan; - Check and store measurement methods and recording frequency; - Monitoring data consolidation and processing to central database; - Annual monitoring report consistency

10. CFL programme business model example Source: KfW PoA Blueprint Book, 2010 PoA Business Models

11. Efficient stove programme business model example Source: KfW PoA Blueprint Book, 2010 PoA Business Models

12. Domestic biogas programme business model example Source: KfW PoA Blueprint Book, 2010 PoA Business Models

13. SWH programme business model example Source: KfW PoA Blueprint Book, 2010 PoA Business Models

14. Small Hydropower (SHP) programme business model example Source: KfW PoA Blueprint Book, 2010 PoA Business Models

15. Registered PoAs as of 12 Oct 2013 All PoAs: 224 All Africa: 64 (29%) South Africa: 30 (13 %) Registered PoAs as of 12 Oct 2013 All PoAs: 224 All Africa: 64 (29%) South Africa: 30 (13 %) Distribution of Registered PoAs Africa PoAs as of 12 Oct 2013 All Africa: 64 Single-country PoAs: 49 (77%) Multi-country PoAs: 15 (23%) Africa PoAs as of 12 Oct 2013 All Africa: 64 Single-country PoAs: 49 (77%) Multi-country PoAs: 15 (23%)

16. Registered PoAs hosted by African countries

17. Summary PoAs present many advantages – small-scale, dispersed activities (e.g. household and small commercial level, transport, agriculture) can become viable with flexibility, scaling up and standardization associated with PoAs Africa is doing well with PoAs - with 29% share of total registered compared to stand alone projects (only 2%) There is still a lot of potential that can be tapped through addition of host countries and CPA inclusion – need support of DNAs and partnerships between LDCs and non-LDCs (with the closure of EUTS to non-LDCs) A PoA is a long-term venture (up to 28 years) involving many actors- CME needs to have good management system, transparent design and clear incentives for project owners to join in, as well as for other support entities (e.g., for monitoring and maintenance) who do not directly profit from the CERs generated.

18. Thank you for your attention CDM Regional Collaboration Centre A collaboration between the UNFCCC Climate Change Secretariat and the East African Development Bank EADB Offices, No. 4, Nile Avenue P.O. Box 7128, Kampala, Uganda Phone: +256 (0) 312517814