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Focus Areas : Programmatic CDM

In India, long-lived fluorescent light bulbs would avoid millions of tons of GHG emissions from coal power plants, but most rural households cannot afford them. In Africa, collection of firewood degrades forests but distributing efficient stoves to ease the demand has been held up by high transaction costs for Clean Development Mechanism (CDM) projects. Both of these are now the focus of “Programme of Activities” (PoA) to bundle activities to realize large scale emission reductions.

The PoA track, recently approved by the Executive Board of the CDM and under consideration by voluntary market standards, allows emissions reductions to be aggregated among thousands of emissions sources without limiting the scope of the project at the outset. Project activities – such as delivering a stove, or replacing light bulbs — can be included under a single large project to aggregate investments and emission reductions. New participants can be added throughout the life of the project. This flexible approach holds enormous potential for households or small industries, especially in less developed countries, since it cuts transaction costs and opens up carbon finance opportunities to a wide range of actors such as households, banks, microfinance institutions and even government agencies.  

Climate Focus is assisting both buyers and sellers of carbon in the origination and development of PoAs including development measurement protocols and methodologies; validation support, verification and registration; contractual and legal advice on PoA structures; and cooperation with (microfinance) institutions.

Examples of activities and projects

• Development of the biogas digester programmes in Nepal and India under PoA rules
• Development of PoAs for energy efficiency loans for buildings and industry in Estonia and Ukraine
• Organization of a PoA tender for landfill projects in Morocco
• Preparation of a series of PoA project origination workshops
• Feasibility study for small and mini hydro PoAs in Indonesia