TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Additionality
and
PDD Preparation
Amr Abdel-Aziz, Ph.D.
Integral Consult
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Additionality
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Additionality
Definition
 Emission
reductions that are additional to any that
would occur in the absence of the CDM project
Emissions
Barriers
CDM
2004
Year
2025
Importance
 Most
critical issue for project acceptance
 Project will be refused if additionality is not
proven
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Additionality
In Easier Terms
Barriers
Economic
Technology
Institutional
•No Enforceable regulations that mandates the implementation
of the project
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Example – N2O Abatement
Nitric Acid Plant
Barrier: High
Investment
for Project
Nitric Acid Plant
Project will not
be implemented
• Enforceable
regulations
mandates
reduction of
N2O
Not Additional
PDD Preparation
Barrier: High
Investment
for Project
Project will not
be implemented
• No regulations
Project will be
implemented
to mandate
reduction of
N2O
Project will not
be implemented
Additional
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
PDD Preparation
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
CDM Project Cycle

PDD Preparation
First step in
the CDM
project cycle
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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.)
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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 Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
PDD Preparation Process
 Prepare
Project Identification Note (PIN) prior to
Proceeding with PDD
 Preliminary
approval of Designated National Authority
(DNA)
 Prepare
 Assign
PDD
DOE for validation
 Submission
of PDD to DNA to obtain official approval for
project (voluntarily participation + assists in achieving SD)
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Registration Process

Prior to registration, DOE shall make the PDD available for
public comments for 30 days (parties, stakeholders, UNFCCC 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 Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
PDD Format
 PDD
format available on UNFCCC CDM website
 Must
prepare PDD according to format
 PDD
Format available in 6 official languages of
UN
language of the board is English  Must
submit in english
 Working
7
Sections and 4 Annexes
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
PDD Format
A. General Description of Project Activity
B. Baseline Methodology
C. Duration of Project Activity / Crediting Period
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
PDD Format
D. Monitoring Methodology and Plan
E. Calculation of GHG Emissions by Sources
F. Environmental Impacts
Objections
G. Stakeholder Comments
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
PDD Format
Annex 1 : Contact Info on Project Participants
Annex 2 : Info Regarding Public Funding
Annex 3 : Baseline Information
Annex 4: Monitoring Plan
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Small Scale Projects - Format
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
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
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Useful Resources and Tools
 Approved
methodologies on UNFCCC CDM
website
 PDDs
 IPCC
under review on UNFCCC CDM website
guidelines for emission estimation
 PDD
guidelines
 CDM
guidebook
PDD Preparation
Cairo, April 4th -5th , 2005
TIMS/EEAA
CD4CDM- Fertilizers Workshop
UNEP RISO / APEX
Recommendations
 Do
not underestimate the difficulty of preparing a
PDD
 Use
 Be
conservative assumptions
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, April 4th -5th , 2005
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Additionality and PPD preparation