CDM Methodologies and Project Design

CDM Methodologies and Project Design

Workshop for CDM Project Developers – December 5th, 2004, Buenos Aires

The workshop was targeted at CDM project and methodology developers, Designated National Authorities (DNAs) and Operational Entities (DOEs), members of the CDM Executive Board, its Methodology Panel, methodology desk reviewers and other CDM experts.

The workshop analyzed the growing body of guidance on CDM methodologies and projects and shared lessons learned and experience with project design and CDM methodologies. The workshop aimed to support the implementation of the CDM by improving the quality of CDM projects and proposed new methodologies as well as by identifying areas that need further guidance and clarifications.

Workshop objectives were:

-Provide training for project and methodology developers: Improve understanding of CDM requirements and good practice in CDM methodology development and project preparation.

-Exchange experience and views between project developers and with CDM bodies: Identify areas where further clarification and guidance is needed, and discuss options for streamlining and simplification.

Workshop outcome:

The workshop demonstrated the spirit of cooperation between all CDM stakeholders. Participants, in particular the UNFCCC Secretariat and the chair of the CDM Executive Board, appreciated the workshop as a very useful contribution to the development of the carbon market and called for a repetition, possibly in May/June 2005 at the side of the Carbon Expo and/or the meetings of the UNFCCC subsidiary bodies.

Pleased find attached the presentations made in the workshop and the final conclusions.

Time / Subject / Presenter / Presentation
9h /

Opening Session: workshop framework

9:20h / Session 1: The process of methodology and project development. The project cycle, submission, review and approval of methodologies. Feedback and transparency.
Introduction to the CDM project cycle / Kai-Uwe Schmidt (UNFCCC Sec.) /
Introduction to CDM methodology procedures / Maria Netto (UNFCCC Sec.) /
Experience with methodology development and approval process / Dutt Gautam (MGM) /
The role and functions of a DOE / Werner Betzenbichler (TÜV Süd) /
The role and functions of a DNA / Marta Castillo (Colombia) /
10:30h / Session 2: CDM modalities, guiding principles and EB & Meth Panel concerns. Elements of CDM methodology, definitions (additionality, baseline, monitoring and calculation of ERs, boundary, leakage, …)
CDM modalities, guiding principles and concerns / Martin Enderlin (CDM EB) / Verbal only
Elements of CDM methodology / J.J. Becker (CDM EB) / Verbal only
11.50h / Session 3: Baselines approaches and methodologies: interpretation of 48a-c, types of baseline methodologies, conditions of applicability and application to different project types.
Baseline approaches and methodologies: interpretation of Para 48(a)-(c) M&P / Johannes Heister (World Bank CFB) /
Types of baselines and baseline methodologies, towards standardization / Jane Ellis (OECD) /
The issue of business as usual vs. a historic basis for setting a baseline / Louse Calviou (INEOS FLUOR, UK) / Verbal only
New methodologies and best practice in setting baselines / Jacob Graichen (Oeko-Institut) / Requested from author
Conservativeness in baseline scenarios / Lambert Schneider (Oeko-Institut) /
13:50h / Session 4: The Additionality Tool as an element of CDM methodology: role, interpretation and application.
Analysis of the Additionality Tool (with project examples) / Lasse Ringius (World Bank CFB) /
Suggestions for improvement of the benchmark analysis / Masato Masuda (M4U Limited, Japan) /
Additionality in carbon sequestration projects (with project example) / A. F. Glatzle (Inciative para la Agraria Sostenible) /
14.55h / Session 5: Concepts and tools for the calculation of emission reductions. Monitoring methodologies and monitoring plans.
Good practice monitoring plans: DOE perspective / Marco van der Linden (SGS) /
From baseline scenario to calculation of emission reductions: concepts and tools / Fernando Cubillos (World Bank CFB) / Requested from author
Theoretical basis for relative weights of operating and build margin emission factors / Naoki Matsuo (Climate Experts, Japan) /
16:10h / Session 6: The Project Design Document (PDD) and the new methodology forms: experience and good practice.
Introduction to the PDD and new methodology forms, the PDD guidelines. / Maria Netto / Kai-Uwe Schmidt (UNFCCC Secretariat) /
Good practice in drafting PDDs and new methodologies forms. Differences for different project types? More guidance needed? (with project examples) / Lasse Ringius (World Bank CFB) /
Experience with validation: what are DOEs looking for in PDDs and project documentation? Use of the Validation and Verification Manual. / Yamamoto Shingenari (Japan Quality Assurance) (-5pm) /
Good practice monitoring: project developers perspective / Gaioli Fabian (MGM) / Requested from author
17:30h / Session 7: Other specific concerns and methodological issues.
Chilean experience and some facts that may affect CDM methodologies / Olea Alfonso (APLE Cons., Chile) /
Bolivian experience with CDM projects / Ulloa Gisela (Min of Sust Dev., Bolivia) /
Methodological issues / Kyosuke Inada (JBIC, Japan) /

Verbal only

Projects that increase the service level / Klaus Oppermann (World Bank CFB) / Verbal only
Bundling of small-scale projects / Lasse Ringius (World Bank CFB) / Verbal only
Guidance on national and sectoral policies: consistency with guidance on baselines and additionality / Johannes Heister (World Bank CFB) /
18.30h / Closing Session: Conclusions for further work
Workshop summary, priority issues requiring EB guidance, follow up activity to the workshop / Charles Cormier (facilitator) / 19h / End of the workshop