The knowledge center offers resources related to Ci-Dev's work program in the following areas under the Clean Development Mechanism (CDM):
- development of new methodologies, standardized approaches and business models;
- simplification of existing CDM methodologies, rules, tools and procedures; and
- simplification of CDM project cycle and governance.
The Standardized Crediting Framework (SCF)
This study proposes a Standardized Crediting Framework (SCF) as a new approach to crediting emission reductions for energy access, which goes beyond the current Clean Development Mechanism (CDM) Programme of Activities model, has lower transaction costs and encourages private sector engagement in energy access investments. It is a concept developed to support the transition of the CDM project pipeline to the new regulatory environment of the Paris Agreement while enabling greater reform.
Programmatic crediting still relies on bottom-up data aggregation from a large number of individual project activities joining a pre-defined crediting framework. In that context the SCF functions as a generalized PoA using more standardized rules. Such a programmatic SCF could potentially evolve into a “sectoral SCF”, based on a sectoral emissions reduction target and crediting only emission reductions achieved beyond that target.
With the pilot phase of the SCF in Senegal set to finish in the first quarter of 2019, this report provides cross-cutting lessons from the pilot that can inform the design and implementation of similar schemes in other countries. While the host country responsibility is much greater for a scheme such as the SCF, so is the engagement of local stakeholders and the potential for country ownership. Greater use of domestic expertise, such as local auditors, can further reduce costs and build capacity for climate change mitigation. Perhaps most importantly, the experience of these early pilot activities can inform the negotiations on the rules for Article 6 from a practical, developing country-focused perspective.
The first SCF pilot takes place in Senegal and focuses on the national electrification program under the Senegalese Rural Electrifiaction Agency (ASER). The findings of the pilot will be particularly relevant for contributing to post-2020 technical discussions on the design of technical elements for the new mechanism(s) such as baselines, double counting, MRV, etc. Although different national contexts may require different arrangements, the findings of the Pilot could also indicate the types of governance structures that are more efficient, transparent and inclusive.
SCF Rwanda Pilot
As part of ensuring that Ci-Dev programs can continue to benefit from carbon finance beyond 2020, Ci-Dev is piloting the “standardized crediting framework” concept in Senegal and Rwanda – a framework that could eventually form part of the Paris Agreement Article 6 crediting. This document presents a “roadmap” for the implementation of the SCF Pilot in Rwanda, after introducing the concept of the SCF and some of the key issues around future crediting frameworks.
This report seeks to inform Ci-Dev’s choice in hedging regulatory risks arising from the regime change. For this, the report first looks into the likely developments of UNFCCC mechanisms. Chapter 2 analyzes the availability of the CDM infrastructure post 2020 based on the legal and political situation. Chapter 3 then considers the status of negotiations of the new Paris mechanisms. Following this assessment, chapter 4 identifies and evaluates four strategic choices how Ci-Dev could continue to engage with its portfolio, ranging from a continuation under the CDM to options under the Article 6 mechanisms and results-based climate finance (RBCF) outside any UNFCCC market mechanism. The last chapter 5 draws up strategic recommendations.
Ci-Dev has the opportunity to contribute to the development of new market mechanisms by both showing that project and programmatic activities work on the ground, while supporting a conducive national and international policy framework. Only such an integrated approach will ensure that market mechanisms can play a crucial role in achieving the long-term goal of keeping global warming well below 2°C.
Resolving an issue of pre-financing climate payments by private lenders and investors will play a key role in unlocking the full potential of the results-based climate finance (RBCF), helping avoid the shortcomings of the market mechanisms under the Kyoto Protocol. Appropriately designed pilot facilities are needed to catalyze the required learning both on the private and public side to ensure that RBCF achieves its full potential.
The objectives of this study, commissioned by the Carbon Initiative for Development (Ci-Dev) administered by the World Bank Group are to: Identify elements of viable and successful business models needed to promote energy access projects through results-based finance (RBF) to be delivered through the purchase of Certified Emission Reductions (CERs) under the CDM (called in short “CDM RBF”); and to identify reforms of CDM regulation required to facilitate the support of such energyaccess investments by the CDM including through an RBF approach, as well as broader opportunities within climate finance to utilize RBF approaches for energy access.
This report is prepared in response to a request by the participants of the Carbon Initiative for Development (Ci-Dev) for a desktop study describing donor activities in Low Income Countries (LICs) in Africa and Asia that have elements in common with the Ci-Dev Methodology Work Program (MWP). The scope of the research was broadened during implementation to allow for a review of initiatives that had similarities related to the entire Ci-Dev work program including business models. The intent of broadening the scope was to enhance the value of the report in assisting the CiDev work plan implementation by identifying opportunities to utilize potential synergies and avoid duplication with existing donor activities.
The study’s focus lies on energy access projects in low-income countries such as activities to promote electrification, clean thermal or mechanical power and energy efficiency programs, including many household scale technologies. This category of projects is the most challenged by MRV requirements, largely due to the small and often dispersed nature of units that are bundled under an energy access Programme of Activities (PoA).
The objective of this note is to identify/assess the barriers preventing local financial institutions from utilizing carbon finance to support their financing activities, and to summarize existing attempts in using carbon revenues to enhance the bankability of these projects by reducing risks. The note is a deliverable under the Carbon Initiative for Development’s (CiDev’s) Methodology Work Program for FY15 supporting the Ci Dev achieve its objective of utilizing the Clean Development Mechanism (CDM) to spur the implementation of projects in low income countries, to the extent possible, with a focus on household energy access on Africa.
This document is the first module in a series, focusing on the topic of standardization of project registration and procedures for both stand-alone activities, using standardized baselines, and Programmes of Activities (PoAs) addressing micro-scale emission reductions.
The main purpose of this paper is to outline how the new CDM concepts of standardized baselines and suppressed demand may be used to promote energy access projects under the CDM, in the context of new and expanded role of host country DNAs. In the process, the paper also identifies challenges in the use of these concepts and opportunities for further simplification. By way of illustration, one specific energy access technology, solar home systems, is analyzed in detail.