Understanding CDM Methodologies - SuSanA
Understanding CDM Methodologies - SuSanA
Understanding CDM Methodologies - SuSanA
Create successful ePaper yourself
Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.
Box 17: OM/ BM calculation where the necessary data is not publicly<br />
available (China)<br />
CM Calculation in<br />
China<br />
Efficiency Proxy:<br />
Best commercially<br />
available<br />
Technology<br />
Capacity Addition<br />
accepted Proxy<br />
for BM<br />
“Request for guidance: Application of AM0005 232 and AMS-I.D in China” 233<br />
requested, among others, the following two deviations: (i) use of average<br />
efficiency of existing power plants in the grid as proxy for estimating fuel<br />
consumption, and (ii) use of annual capacity additions during the last three years<br />
for estimating the BM emission factor.<br />
Similar to the Brazilian case described above, the first deviation was not accepted<br />
but the following alternative approaches were suggested by the EB:<br />
• For the OM calculation, the average emission factor for the grid for each fuel<br />
type can be used; and<br />
• For the BM calculation, use the best technology commercially available in the<br />
provincial/ regional or national grid of China, as a conservative proxy, for each<br />
fuel type.<br />
With regards to the second deviation, the alternative approach was accepted<br />
based on the justification that the group of power plants to be considered for the<br />
BM calculation could not be selected as no plant specific power generation data<br />
was publicly available. The capacity addition from one year to another (i.e. the<br />
annual capacity addition over the last three years) was accepted as the basis for<br />
the BM calculation 234 .<br />
<strong>CDM</strong> Projects in Combined Margin Calculation<br />
<strong>CDM</strong> Projects are<br />
not considered in<br />
OM and BM<br />
ACM0002 stipulates that registered <strong>CDM</strong> projects shall be excluded from<br />
both OM and BM calculation. As per the underlying <strong>CDM</strong> principle on<br />
additionality, the baseline scenario should reflect the case that would have<br />
happened without the <strong>CDM</strong> project. This implies that the baseline scenario<br />
does not need to take into account registered <strong>CDM</strong> projects in baseline<br />
emission calculation. This is because such <strong>CDM</strong> projects would not have<br />
happened without the <strong>CDM</strong>, hence do not represent the baseline. This clear<br />
guidance has set important precedence on treatment of registered <strong>CDM</strong><br />
projects in baseline emission calculation, but the MP/ EB has recently made a<br />
decision against this guidance for a specific project type (see Box 18).<br />
Box 18: Inclusion of <strong>CDM</strong> project power plants in baseline emission<br />
calculation<br />
For new Coal<br />
Plants, BM has<br />
to include <strong>CDM</strong><br />
Projects<br />
ACM0013 “Consolidated baseline and monitoring methodology for new grid<br />
connected fossil fuel fired power plants using a less GHG intensive technology<br />
(version 01)” was approved, with a vote of 8:2 at EB 34, after a lengthy debate<br />
on whether coal should get credits under the <strong>CDM</strong>. Interestingly, the final<br />
outcome requires the inclusion of registered <strong>CDM</strong> project power plants in the<br />
sample group for baseline emission calculation. This decision wants to ensure<br />
that “renewable resources projects are neither impacted nor jeopardized and the<br />
potential for the application of this methodology in a particular geographic area<br />
decreases, as more of these projects are registered under the <strong>CDM</strong>” as per the<br />
explanation given by EB 34 235 .<br />
232<br />
AM0005 was later consolidated into ACM0002.<br />
233<br />
See “Application of AM0005 and AMS-I.D in China”, available at: http://cdm.unfccc.int/UserManagement/FileSt<br />
orage/6POIAMGYOEDOTKW25TA20EHEKPR4DM.<br />
234<br />
See the EB response to the request for deviation, available at: http://cdm.unfccc.int/UserManagement/<br />
FileStorage/AM_CLAR_QEJWJEF3CFBP1OZAK6V5YXPQKK7WYJ.<br />
235<br />
See EB34.<br />
52