PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II)...

PDD Preparation Cairo, June 14th -15th , 2004

TIMS/EEAA CD4CDM- Third National Workshop (Phase II) UNEP RISO / APEX

PDD Preparation Process and PDD Preparation Process and FormatFormat

Amr Abdel-Aziz, Ph.D.Consultant



CDM Project CycleCDM Project Cycle First step in

the CDM project cycle



Who Prepares a PDD ?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.)



Why Prepare a PDD ?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



PDD Cost ?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



PDD Preparation ProcessPDD 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)



Registration ProcessRegistration 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



PDD FormatPDD FormatPDD 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 5 Annexes



PDD FormatPDD FormatA. General Description of Project Activity

B. Baseline Methodology

C. Duration of Project Activity / Crediting Period



PDD FormatPDD Format

D. Monitoring Methodology and Plan

E. Calculation of GHG Emissions by Sources

F. Environmental Impacts

G. Stakeholder Comments

Objections



PDD FormatPDD FormatAnnex 1 : Contact Info on Project Participants

Annex 2 : Info Regarding Public Funding

Annex 3 : New Baseline Methodology

Annex 4: New Monitoring Methodology

Annex 5: Table of Baseline Data



Proposing a new MethodologyProposing a new Methodology

Have to submit draft PDD + Annex 3 for new baseline methodology + Annex 4 for 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



Small Scale Projects - CriteriaSmall Scale Projects - CriteriaRenewable 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



Small Scale Projects - RequirementsSmall 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



Small Scale Projects - FormatSmall Scale Projects - FormatA. General description of project activity

B. Baseline methodology

C. Duration of the project activity/crediting period

D. Monitoring methodology and plan

E. Calculation of GHG emission by sources

F. Environmental impacts

G. Stakeholder comments

Annex 1. Contact information on project participants

Annex 2. Information regarding public funding

Annex 3. New baseline methodology

Annex 4. New monitoring methodology

Annex 5. Table of baseline data



Bundling and DebundlingBundling 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



Useful Resources and ToolsUseful 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



RecommendationsRecommendationsDo 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)

PDD Preparation Cairo, June 14 th -15 th, 2004 TIMS/EEAA CD4CDM- Third National Workshop (Phase II)...

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