Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 meeting ACM00XX: Construction of a new natural gas power plant CDM EB 83 Bonn, Germany, 13 to 17 April 2015 UNFCCC Secretariat SDM programme Procedural background The Board agreed to the methodological products for further work as contained in the tables 1 to 4 in annex 8 to the EB 78 report The Methodologies Panel (MP), at its 64th meeting, agreed on the draft consolidated methodology “ACM00XX: Construction of a new natural gas power plant” based on the revision of “AM0029: Baseline Methodology for Grid Connected Electricity Generation Plants using Natural Gas” and “AM0087: Construction of a new natural gas power plant supplying electricity to the grid or a single consumer” Launched a call for public inputs from 2 to 17 September 2014. No inputs were submitted. Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 2 Procedural background The Executive Board at its eighty-first meeting requested the Meth Panel to include the provisions in the methodology to determine the upstream fugitive emissions in the baseline for the situations where the electricity is supplied by the project plant to the grid The MP at its sixty-sixth meeting revised the proposed consolidated methodology in EB 81, taking into consideration the request from the Executive Board. Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 3 Purpose The specific mandate from EB 78 is to simplify and improve the consistency by: (a) aligning the baseline scenarios, clarifying identification of baseline alternative; (b) including estimation of leakage emissions on account of CO2 from gas reservoirs; (c) reviewing conditions related to positive leakage emissions; (d) providing a reference to the upstream emission tool; (e) analysing provisions that are contradictory to grid tool at renewal of crediting period (build margin emission factor). Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 4 Key Issue Determination of leakage Current versions of AM0029 and AM0087 require to deduct leakage by emissions that would have occurred in a baseline. Thus, if baseline is electricity generated by the power grid leakage needs to be discounted by the amount of emissions that would have occurred during production and processing of the fossil fuels that have been used in the grid connected power plants over the monitoring period. Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 5 Key issue and Proposed Solution Issue with the current approach To calculate upstream emissions for the power grid detailed information is needed ,when such information is not available few projects deviated from the procedure Proposed solution The emissions occurring from fossil fuels in the baseline is optional Where emissions occurring from fossil fuels in the baseline are included, following guidance is applied: If data are available: • 𝐿𝐸𝐵𝐿,𝑢𝑝𝑠𝑡𝑟𝑒𝑎𝑚 is based on the baseline EF If data are not available: • 𝐿𝐸𝐵𝐿,𝑢𝑝𝑠𝑡𝑟𝑒𝑎𝑚 is based on the baseline scenario (technology and fuel) Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 6 Impacts The revision of the methodology, if approved, will align the baseline scenarios, clarify identification of baseline alternative, improve its consistency with other standards and streamline it. Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 7 Subsequent work and timelines The methodology is recommended by the Methodologies Panel for consideration by the Board at its eighty-third meeting. No further work is envisaged. Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 8 Recommendations to the Board The Methodologies Panel recommends that the Board adopt this final draft methodology, to be made effective at the time of the Board’s approval. The Board may wish to consider the recommendation to withdraw the approved methodologies “AM0029: Baseline Methodology for Grid Connected Electricity Generation Plants using Natural Gas” and “AM0087: Construction of a new natural gas power plant supplying electricity to the grid or a single consumer” as these methodologies have been fully incorporated into the new consolidated methodology “ACM00XX: Construction of a new natural gas power plant”. Agenda item 4.1(b) Paragraph 25 and 26 of the annotated agenda, Annex 1 to the MP 66 report 9 Agenda item 4.1(b) Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Revision of “AM0031: Bus rapid transit projects”; “AM0101: High speed passenger rail systems”; “ACM0016: Mass rapid transit projects” CDM EB 83 Bonn, Germany, 13 to 17 April 2015 UNFCCC Secretariat SDM programme Procedural background • Revisions were initiated in response to EB 75 mandate: 1. To improve current approach of demonstrating additionality by not using CER revenues and to explore other possible means of demonstrating additionality; 2. To ensure consistency of AM0031 and ACM0016 with recently approved tool “Baseline emissions for modal shift measures in urban passenger transport”; 3. To include guidance on renewal of the crediting period. Agenda item 4.1(b) 11 Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Key issues and proposed solutions • After assessing a number of approaches in the past year MP 66 has proposed to: a) Retain investment analysis for projects undertaken by commercial entities; b) Introduce two step alternative approach (without considering CER revenues) for MRTS projects undertaken by public entities 1. Check if there are less than 2 existing lanes of same MRTS category in the host city; if no i.e. number of lanes>2 then 2. Check if MRTS emission estimates do not surpass: a. 30 gCO2/PKM for road based systems (for trunk lines); b. 0.04 kWh/PKM for electricity-based systems; c. 0.06 kWh/PKM for high speed rail systems. Agenda item 4.1(b) 12 Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Key issues and proposed solutions • MP 65 had proposed a benchmark of 20 gCO2/PKM for BRTs in draft revision of AM0031 and ACM0016 opened for call for public input. The proposed figure was based on IPCC and IEA reports • One public input was received indicating a) 20 gCO2/PKM is not achievable • Benchmark has not been achieved by any existing BRT projects b) Inclusion of feeder lines will have an impact e.g. Bogota emissions increased from 25 to 40 gCO2/PKM between 2010 and 2013 due to inclusion of feeder lines Agenda item 4.1(b) 13 Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Key issues and proposed solutions • MP 66 considered: a) Public input; and b) Data from CDM BRT projects (Monitoring reports and PDD projections); and c) Literature on performance of BRT projects (detailed in Annex 03 to the MP 66 report) • MP 66 recommended 30 gCO2/PKM for BRTs • Lower bound (average minus SD) of emission performance of CDM BRT projects; • PP may limit the analysis to trunk lines; • Guidance included on conducting the analysis. Agenda item 4.1(b) 14 Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Key issues and proposed solutions • Emissions (gCO2/PKM) from PDDs or Monitoring reports of CDM projects • Range: 19 to 55 gCO2/PKM (average 41.2 gCO2/PKM , SD 10.4 gCO2/PKM) 80 70 60 50 40 30 20 10 0 gCO2/pkm (public input) gCO2/pkm (PDD/MR) 0 5 10 15 Agenda item 4.1(b) Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Impacts The revision to this methodology will enhance its usability via providing a simplified approach to additionality that does not rely on CER revenues. Agenda item 4.1(b) 16 Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report Recommendations to the Board The Meth Panel recommends that the Board adopts these revised methodologies. Agenda item 4.1(b) 17 Paragraph 28 (a) (c) and (g) of the annotated agenda, Annex 2, 3, 5 and 9 to the MP 66 report
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