What is bundling?
Bundling is defined in EB 21, Annex 21 as follows:
Bringing together of several small-scale CDM project activities, to form a single CDM project activity or portfolio without the loss of distinctive characteristics of each project activity (EB 21, Annex 21, paragraph 3).
Bundling of small-scale projects is permitted by the modalities and procedures for small-scale projects:
Several small-scale CDM project activities may be bundled for the purpose of validation. An overall monitoring plan that monitors performance of the constituent project activities on a sample basis may be proposed for bundled project activities. If bundled project activities are registered with an overall monitoring plan, this monitoring plan shall be implemented and each verification/certification of the emission reductions achieved shall cover all of the bundled project activities (4/CMP.1, Annex II, paragraph 19).
The advantage of bundling is that bundled projects can obtain a single validation report and a single certification report for the entire bundle, which streamlines these processes for project participants.
Project activities in a bundle can be divided into a series of sub-bundles:
Project activities within a bundle can be arranged in one or more sub-bundles, with each project activit[y] retaining it[s] distinctive characteristics. Such characteristics include its: technology/measure; location; application of simplified baseline methodology. Project activities within a sub-bundle belong to the same type. The sum of the output capacity of project activities within a sub-bundle shall not exceed the maximum output capacity limit for its type (EB 21, Annex 21, paragraph 3).
A sub-bundle is defined as:
An aggregation of project activities within a bundle having the characteristics that all project activities within a sub-bundle belong to the same type (EB 21, Annex 21, paragraph 4).