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Understanding CDM Methodologies - SuSanA

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A handful of projects have submitted requests to include new baseline<br />

scenarios, with variable level of success (see following section on baseline<br />

and additionality). Other projects may be diverting too much in terms of their<br />

methodological approach and have been recommended by the MP to apply<br />

similar, yet different methodologies than ACM0006 (see Box 43).<br />

Revision to<br />

include Heat only<br />

Boilers rejected<br />

Box 43: Fuel switch projects involving heat generation only<br />

A request for revision 291 suggested that a project involving a fuel switch from<br />

fossil fuel to biomass residues in a heat-only boilers be eligible under ACM0006.<br />

The MP explained that the project was not eligible because it is not appropriate<br />

to assume that only fossil fuel would be used in the baseline scenario, more so<br />

considering that historically, boilers have generated heat using biomass residues.<br />

Additionally, the proponent mentioned that the project could use different types<br />

of biomass than biomass residues throughout the crediting period, which was<br />

inconsistent with ACM0006. The MP recommended the project proponent to<br />

consider using AM0036, which had specifically been created for fuel switch from<br />

fossil fuel to biomass residues in heat-only boilers (the methodology had not<br />

been approved when the request had been submitted). However, the MP warned<br />

that, like ACM0006, AM0036 did not allow the use of biomass types other than<br />

biomass residues.<br />

257<br />

Project Boundary<br />

Project Boundary<br />

includes Plant,<br />

Transport and<br />

Waste Disposal<br />

Site<br />

The project boundary shall include all the sites and transportation routes<br />

where emissions arise as a result of the project. These include the site where<br />

the power plant or retrofit is implemented, the site where the biomass<br />

residues are produced, the transportation routes between the site(s) where<br />

the biomass residues are sourced and the project’s power plant, and the<br />

site(s) where the biomass residues would have been dumped or left to decay<br />

in the absence of the project. The project boundary should also include all<br />

the power plants connected to the grid the project activity is connected to.<br />

To determine the spatial extent of the project’s grid and calculate the project’s<br />

build margin (BM) and operating margin (OM), project proponents should<br />

refer to the latest version of ACM0002 (see section 5.2.3).<br />

Baseline scenario and additionality<br />

Three Elements of<br />

Baseline Scenario:<br />

Power, Waste<br />

Treatment, Heat<br />

In determining their project’s baseline scenario, project proponents should<br />

first identify all credible alternatives with respect to:<br />

1. How power would be generated in the project area in the absence of the<br />

project;<br />

2. The treatment of the biomass residues in the absence of the project;<br />

3. How the heat the project proposes to produce would be generated in the<br />

absence of the project (specific to cogeneration power plants).<br />

Matrix of 20<br />

Baseline Scenario<br />

Options<br />

ACM0006 provides several plausible alternative baseline scenarios for each<br />

of the aforementioned categories. Upon identifying the most plausible<br />

baseline alternatives for power generation, heat generation, and biomass<br />

handling, project proponents should identify all realistic combinations of the<br />

three. Project proponents must then verify whether the identified combined<br />

baseline scenario is included in the list of applicable baseline scenarios found<br />

in ACM0006. In total, ACM0006 (version 6) proposes 20 different combined<br />

257<br />

See AM_REV_0019<br />

113

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