Additionality and PDD Preparation

1
Additionality and PDD Preparation

• Amr Abdel-Aziz, Ph.D.
• Integral Consult

2
Additionality
3
Additionality
Definition

• Emission reductions that are additional to any
  that would occur in the absence of the CDM
  project

CDM
Importance

• Most critical issue for project acceptance
• Project will be refused if additionality is not
  proven

4
Additionality
In Easier Terms
Barriers

• No Enforceable regulations that mandates the
  implementation of the project

5
Example N2O Abatement
Project will not be implemented
Project will not be implemented
Barrier High Investment for Project
Barrier High Investment for Project

• Enforceable regulations mandates reduction of N2O

• No regulations to mandate reduction of N2O

Project will be implemented
Project will not be implemented
Not Additional
Additional
6
Additionality
How to Demonstrate

• Flow chart of series of questions that lead to
  narrowing down of potential options
• Qualitative or quantitative assessment of
  different potential options and an indication of
  why the non project activity is more likely
• Qualitative or quantitative assessment of one or
  more barriers facing proposed project
• An indication that the project type is not common
  practice in the proposed area of implementation

7
PDD Preparation
8
CDM Project Cycle

• First step in the CDM project cycle

9
Who Prepares a PDD ?

• Responsibility of project participant
• Usually, project participant hires a consultant
  to prepare the PDD
• Project participant should avail funds for PDD
  preparation
• Can be funded through special arrangements (CD
  Projects, seller and buyer agreement, etc.)

10
Why Prepare a PDD ?

• Validation is done based on a PDD
• One of the requirements to be registered as a CDM
  project
• Registration is a step done prior to
  verification and certification
• i.e. can not have a CDM project and consequently
  certified emission reductions (CERs) without a PDD

11
PDD Cost ?

• Approximately 40,000 to 50,000
• Baseline 20,000 to 30,000
• Monitoring Plan 10,000 to 20,000
• Cost can be reduced by
• Development of Standardized baseline
• National Experts
• Previous experience of existing PDDs

12
PDD Preparation Process

• Prepare Project Identification Note (PIN) prior
  to Proceeding with PDD
• Preliminary approval of Designated National
  Authority (DNA)
• Prepare PDD
• Assign DOE for validation
• Submission of PDD to DNA to obtain official
  approval for project (voluntarily participation
  assists in achieving SD)

13
Registration Process

• Prior to registration, DOE shall make the PDD
  available for public comments for 30 days
  (parties, stakeholders, UN-FCCC accredited NGO)
• Registration requires the following
• PDD
• DNA written approval
• Explanation of how DOE has taken into account
  public comments
• Registration of project should be completed in 8
  weeks, unless there is a request for review

14
PDD Format

• PDD format available on UNFCCC CDM website
• Must prepare PDD according to format
• PDD Format available in 6 official languages of
  UN
• Working language of the board is English ? Must
  submit in english
• 7 Sections and 4 Annexes

15
PDD Format

• A. General Description of Project Activity
• B. Baseline Methodology
• C. Duration of Project Activity / Crediting
  Period

16
PDD Format

• D. Monitoring Methodology and Plan
• E. Calculation of GHG Emissions by Sources
• F. Environmental Impacts
• G. Stakeholder Comments

17
PDD Format
Annex 1 Contact Info on Project Participants
Annex 2 Info Regarding Public
Funding Annex 3 Baseline Information Annex
4 Monitoring Plan
18
Proposing a new Methodology

• Have to submit draft PDD new baseline
  methodology new monitoring methodology
• Takes approximately 4 months to get approved by
  Meth panel and EB
• Public comments are invited for 15 days
• Better use existing approved methodology to
  reduce time

19
Small Scale Projects - Criteria

• Renewable energy project activities with a
  maximum output capacity equivalent of up to
• 15 MW
•  
• Energy efficiency improvement project activities
  which reduce energy consumption, on the supply
  and/or demand side, by up to the equivalent of
• 15 GWh per year
• Other project activities that both reduce
  anthropogenic emissions by sources and directly
  emit less than
• 15 ktCO2eq annually

20
Small Scale Projects - Requirements

• Reduced requirements for PDD preparation
• Simplified baseline methodologies by project
  category
• Simplified Monitoring methodologies by project
  category
• Less cost in preparation
• Same DOE may undertake validation and
  verification

21
Small Scale Projects - Format
22
Bundling and Debundling

• Bundling
• Combining a number of small scale projects in one
  PDD to reduce transaction costs
• Projects may be bundled as long as the total size
  is below limits for single project
• Debundling a large project to benefit from small
  scale simplified procedures is not allowed

23
Useful Resources and Tools

• Approved methodologies on UNFCCC CDM website
• PDDs under review on UNFCCC CDM website
• IPCC guidelines for emission estimation
• PDD guidelines
• CDM guidebook

24
Recommendations

• Do not underestimate the difficulty of preparing
  a PDD
• Use conservative assumptions
• Be transparent and truthful
• A good PDD increases the chances of accepting a
  project
• Process entails several check points (Stakeholder
  comments, validation, Public comments, may be a
  request for review)