Understanding CDM Methodologies - SuSanA

Interpretation
of top 20% in
Approach 48 (c)
Top 15% instead
of top 20% used
in First Approved
Methodology
using Approach
48 (c)
Box 10: ACM 13 modifies the approach 48 (c) and previous EB guidance
In approach 48 (c), the emissions factor shall be 169 the lower of
1. output-weighted average emissions of the top 20 per cent of similar project
activities undertaken in the previous five years in similar circumstances
2. output-weighted average emissions of similar project activities undertaken in
the previous five years under similar circumstances that are also in the top
20 per cent of all current operating projects in their category.
No methodology was ever approved using that approach. The EB did apply
this approach in the case of ACM 13 on greenfield fossil power plants, where
the benchmark group was reduced to the top 15% performing power plants
(excluding cogeneration plants and including power plants registered as CDM
project activities) among all power plants constructed in the previous
5 years that have a similar size, are operated at similar load and use the same fuel
type as the project activity.
4.1.2 Baseline scenario definition
Choice of Baseline
Scenario has to be
explained
Baseline has to be
Output-based
Suppressed
Demand Question
The definition of the baseline scenario is a key step in any baseline
methodology. Each methodology has to include an explanation of how the
baseline is chosen 170 . The additionality test should show that the project is
not identical with the baseline scenario 171 . As the baseline scenario should
not grant CERs for decreases in activity levels outside the project activity
or due to force majeure, the baseline should be defined on an output- or
product-linked basis as an emissions factor per unit of output, at least when
the project produces and sells an output. This has given rise to a discussion
about whether in situations of suppressed demand, only that demand should
be taken into account in determining the baseline activity level. The EB
registered a project (Kuyasa low-cost urban housing energy upgrade project,
Khayelitsha (Cape Town; South Africa), UNFCCC no. 0079) where the
baseline is calculated on the basis of an activity level (indoor temperature of
houses due to heating) that has increased due to the project.
169
EB 8, Annex 1
170
EB 8, Annex 1
171
Ibid. According to EB 17, para 16, additionality determination shall be consistent with the determination of a
baseline scenario.
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