Regional Workshop: National Energy Efficiency Action Plans Kempinski Hotel, Amman, Jordan 5 - 6 December, 2010

1. Regional Workshop:
National Energy Efficiency Action Plans
Amman, 5-6 December, 2010
PoA to enhance EE in MENA region
Amel BIDA
RCREEE

2. Content
Protocol of Kyoto
Principles of CDM
Status of CDM projects
PoA approach
- coordinating entities
- Crediting period
- flexibility of rules
PoA and EE
PoA and international financing
Conclusion

3. Kyoto Protocol
- adopted at the 3rd session of the (COP3) to the UNFCCC held
in Kyoto, Japan, in December 1997.
- entered into force in February 2005
The Protocol defines quantified greenhouse gas (GHG) emissions
reduction targets for Annex I Parties. [KP Art.3 para1]
Annex I :
Developed countries having different GHG emission ceilings “assigned amounts”
for the 5-years period of 2008-2012 (1st commitment period).

4. The Kyoto Protocol introduces 3 market
mechanisms, namely the Kyoto Mechanisms.
International Emissions Trading <Article 17 of the Protocol>
Joint Implementation (JI) <Article 6 of the Protocol>
Clean Development Mechanism (CDM) <Article 12 of the Protocol>
The purpose of the CDM shall be to :
- assist non-Annex I Parties in achieving sustainable development and
in contributing to the ultimate objective of the Convention, and
- assist Annex I Parties in achieving compliance with their
commitments. [KP Art.12 para2]

5. The Clean Development Mechanism (CDM)
Annex I Parties which have ceiling for GHG emissions
- assist non-Annex I Parties which don’t have commitment, to implement project
activities to reduce GHG emissions and
- credits will be issued based on emission reductions achieved by the project
activities =(CER)
Annex I Parties can use CERs to contribute to compliance of their quantified
GHG emissions reduction targets of the Kyoto Protocol. [KP Art.12 para3(b)]
Source: IGES 2010

6. Additionality of CDM projects
Additionality: A CDM project activity is additional if GHG emissions are
reduced below those that would have occurred in the absence of the
registered CDM project activity; [CMP/2005/8/Ad1, p16 para43]
The DOE shall review the
PDD (Determining a
baseline and monitoring
methodology) to confirm
that the project activity is
expected to result in a
reduction in GHG emissions
that are additional
Source: IGES
Baseline methodologies present a description of all reasonable baseline scenarios
in accordance with approved methodologies (AMs) or new methodologies (NMs)

7. Crediting period
CERs shall only be issued for a crediting period starting after the
date of registration of a CDM project activity. [CP/2001/13/Ad2, p23 para12
• A maximum of 10 years with no option of renewal
• A maximum of 7 years which may be renewed at most 2 times.

8. CDM project cycle
(1) Planning a CDM project activity PO
(2) Making the (PDD) PO Cost
(3) Getting approval Host country DNA
(4) Validation DOE Cost
(5) Registration CDM /EB Cost
(6) Monitoring PO
(7) Verification and certification DOE Cost
(8) Issuance of CERs CDM /EB

9. CDM worldwide status
23 projects in Arab States
- Egypt : 6
- Morocco : 5
436 - UAE : 4
- Jordan : 2
48 - Syria : 2
86 - Tunisia : 2
124 1038
- Qatar : 1
179 - Mauritania : 1
5% of others
561 1% of total

10. Source: UNFCCC

12. Options of CDM projects
Single Project CDM Programme
Bundle of Projects
Large-Scale (LSC) of activities (PoA)
Small-Scale (SSC)
-A number of activities - A number of activities submitted
- 1 project only submitted as 1 project over the duration of a program
- Single location - Many locations
- Single project owner - Many project owners - Many locations across countries
- Single crediting -Single crediting period - Many project owners
Period for all activities - Each project has own crediting
- Project owner is -All project owners are period
known known - At least one project owner is
known
• 15 MWe for renewable energy
a small-scale (SSC) projects • 60 GWh/a for energy-efficiency improvement
• 60 ktCO2e/a for other activities

13. PoA is a policy instrument
A CDM Programme of Activities (PoA) is a voluntary coordinated action; by a private
or public entity which coordinates and implements any policy/measure or stated
goal (i.e incentives schemes and voluntary programs), which leads to GHG emission
reductions or increases net GHG removals by sinks that are additional to any that
would occur in the absence of the PoA; via an unlimited number of CDM program
activities (CPAs) Annex 38, EB32
PoA
CPA
CPA CPA
CPA CPA
CPA
CPA
No limit on the aggregated capacity of PoA

14. CDM PoA set up
PoA DD
Generic
CPA
CPA1 (1) Planning a CDMPoA idea (objectives/ potential) Coordinating Entity
(2) Business model Coordinating Entity Cost
(3) Making the (PoA-DD/ CPA-DD) Coordinating Entity
(4) Getting approval Host country DNA
(5) Validation DOE Cost
(6) Registration CDM /EB Cost

15. To include CPA under PoA
-Methodology
-Technology
In accordance with - Eligibility criteria
The PoA Design - Baseline
- Additionality
- Monitoring Plan
Letter of Approval CDM Validation CDM registration
PoA
CPA2 CPA3 CPA4 CPA5 CPA6
The emission reductions are attained at the level of the CPAs Program

16. CPAn implementation
(1) Eligibility Verification DOE Cost
(2) CPA inclusion CDM /EB
(3) Implementing CPA
(4) Monitoring of CPA Coordinating Entity
(5) Verification of emission reduction DOE Cost
(6) Issuance of CERs CDM /EB
(7) Distribution of CERs Coordinating Entity

17. The coordinating entity
Authorized by all participating - define the program concept, with has to be
(including DNA) clear on :
• the Target group(s), CPA developpers
• the service or activity to implement
Private • the organizational issues
Key role • the idea on how to organize the monitoring
Public
- submit the PoA to the EB
- communicates with the EB on all matters,
The CE has the responsibility to make the PoA a success
- Attract project developers
- Provide training
- Manage financial mechanism
- Cooperate with financial institutions
- Trading CERs
- Signing ERPA
- Allocate revenues

18. The coordinating Entity can be :
- Bank : designing attractive financial products with using the revenues to
subsidize the interest rates
shorten the loan repayment period
- Public Agency will benefit from
 introducing the PoA process
 promoting policy implementation and generating revenues to pay the
operating costs
- Energy Supply company : who are often main driver of demand-side EE measures
 reduce peaks in energy demand
 Contribute to optimizing the power generation over time
PoA can support utilities in achieving energy savings
PoA could be considered as interesting instrument

19. Crediting Period
- Duration of the PoA, is defined at the time of request for registration
by the entity, but can not exceed 28 years
- At any time during the duration of the PoA , the coordinating entity can
add any CPA with informing the EB trough the DOE
CPA 2
10 years CPA 5 CPA 7
7 years 7 years
CPA 3
7 years CPA 6
CPA 4 10 years
CPA 1 7 years PoA
7 years 28 years
- Exact number and time of CPAs implementation not known at time of
submission ( neither overall emission reductions of PoA not estimate )

20. Other advantages
• Fees registration
- For each CPA included in the program, no fees is to be paid
- Only the registration fees for a PoA is paid.
It’s based on the total expected annual emission reductions of the CPA(s)
that will be submitted together with the request for registration of the PoA.
The concept of PoA to aggregating small and dispersed projects activities subtends
the idea to bear the high transaction costs related with the CDM
• Additionality and baseline methodology
- Additionality of each CPA has to be demonstrated through the eligibility
criteria for inclusion of CPAs and not on the CPA level itself
- Baseline for the whole program is determined at the beginning in the PoA
design document (PoA-DD) for the Program of Activities.
- PoA may apply a combination of baseline and monitoring methodologies
which must be applied to all CPAs, in a consistent manner
- PoA can apply a small-scale (SSC) methodology without any limit on the
overall size of the PoA

21. • Boundary project
• Single measure, single location  Thermal insulation in building
• Several measures, single location  EE in industries
• Single measure, many locations  SWH, CFL, labeling
• Several measures, many locations  combination of RE technologies
PoA boundary may extend beyond a single host country
the project can be local, national or regional including various countries
- The PoA is an option to reach wider groups of stakeholders and types of
activities that are too small to be developped at stand –alone CDM project
- The PoA opens up opportunities for the implementation of small scale ER
Activities in household and in area where the traditional CDM didn’t gain ground
- PoA is suitable for the field of small to medium sized projects which are
geographically and temporarly dispersed and have large number of project owners
- PoA ensure certainty regarding conditions and procedures and flexible to any
PP to join a PoA at any time

22. PoA and Energy Efficiency
the PoA is introduced as a variation of CDM to giving primarily small scale emission
reduction projects the possibility to become aggregated under clear frame work
Categories of projects to apply PoA
• Energy efficiency improvement (EE appliances, EE building, EE in industries…)
• Fuel Switching
• Fugitive emission
• Industrial processes
• Renewable
• Waste
• others
Source: Pointcarbon database/ perspectives CC

23. PoA and international assistance and financing
The PoA approach considered as an option to achieve economies of scale
is attractive for some international funds :
Carbon Partnership Facility : who targets the carbon market of post 2012 which focus
on the PoA in Urban cities including the EE in the transport and in the waste sector
KFW centre created in October 2008 aiming to support the Public and private entities
in developing countries to identify the PoA potential and implement low carbon projects
UNEP Initiative to strengthen the technical assistance to the DNA and Coordinating
Entities to develop the SSC projects with PoA approach.
CDM-JI Initiative launched by the BMU (German Ministry of Evironment to enhance
the regional cooperation in MENA region in the CDM field, particularly the PoA approach
CTF (World bank &ADB and other Banks) accords concessional loans (duration 40-years
including10 years grace) for the low carbon projects
 Copenhagen accord : the commitment of industrialized countries to allow 30 US$ billion
per year to finance mitigation and adaptation projects in developing countries
(these funds will be raised to 100 US$ billions by 2020)

24. Conclusion
As the PoA apporach
 introduces the new concept of Coordinating Entity to manage the program
 provides organizational, financial, and methodological framework
 reduces the transaction costs (verification made for a sample of activities)
As the International institutions
 support through technical assistance to develop the PoA approach,
 offer opportunities to finance low carbon projects
 accord concessional loans (duration 40-years including10 years grace)
As the NEEAPS will cover an important number of dispersed projects in EE in the building,
EE for the appliances, in the manufactories, in the utilities to reduce losses, in the RE
technologies (SWH, PV) …
The potential of PoA could be very important in the Arab States
And RCREEE is there to
- assist all Arab countries to implement their NEEAPs
- help them to benefit from the international financing

25. Thank you
for your attention
Regional Centre for Renewable Energy and Energy Efficiency
Hydro Power Plants Execution Authority Ministry of Electricity and Energy (7th floor)
Block 11 - Piece 15, Melsa District - Ardh El Golf Nasr City - Cairo, Egypt
T +2-02-24154691
F +2-02-24154661
Email : amel.bida@rcreee.org
website : www.rcreee.org