20060430-IEA-Issues_Related_to_a_Programme_of_Activities_under_the_CDM_26页_582kb

Programme/Project Activities under CDM: Summarizes a report from the OECD/IEA evaluating the potential benefits and identifying key issues related to "project activities under a programme of activities" (PCDM) within the Clean Development Mechanism (CDM). This mechanism aims to reduce greenhouse gas emissions in non-Annex I countries while allowing emission credits for Annex I countries under the Kyoto Protocol, and promoting sustainable development.

Key Findings/Conclusions:

1. Need for Definition Clarity: Core concepts like "programme of activities" and its relationship to "bundling" need clear definitions and clarification (e.g., overlap between these concepts, eligibility of mandatory policies implemented but funded by private entities, scope, location, activities involved).
2. Potential for Increased Effectiveness: PCDM (allowing large-scale bundling and registering PCDM project activities) has the potential to enhance CDM effectiveness by reducing transaction costs for mitigating emissions from numerous small, dispersed sources (like energy efficiency or transport projects), encouraging wider spread of activities.
3. Current Challenges/Issues:
   • PCDM Definition: Decision 4/CMP.1 allows PCDM eligibility but provides no definition.
   • Variability: Registered projects show diverse characteristics regarding crediting periods (e.g., multiple overlapping periods), monitoring requirements (e.g., percentage of sub-activities and systems), and project participants.
   • Methodologies: Lack of approved methodologies in key sectors like transport and energy efficiency limits these project types.
   • Guidance Overlap: Provisions for PCDM and bundling are ambiguous and potentially overlapping.
   • Subsequent Considerations: Uncertainty regarding when to apply EB guidance on additionality (MA guidance relies on host country policies which may change), leakage, and baseline scenarios before CDM projects can be implemented.

Implementation: The CDM EB should provide specific guidance for PCDM regarding additionality, crediting periods, unique location identification, pre-approved emission calculations, boundaries, leakage, and avoiding double-counting, especially for large-scale and national policy context. Decisions on these points may be needed on a case-by-case basis or through generic guidelines, allowing for flexibility.