Requirements for a Programme of Activities
A Programme of Activities (PoA) must be directed at coordinating and implementing a "policy/measure or stated goal". No clear definition is provided for these terms. However, the Executive Board has explicitly referred to "incentive schemes" and "voluntary programmes" in its definition of a Programme of Activities (EB 47, Annex 29, paragraph 3).
In general, project activities under a PoA must demonstrate real, additional and measurable emission reductions or removals attributable to the PoA:
Pursuant to paragraph 20 of decision 7/CMP.1, project activities under a programme of activities (PoA) can be registered as a single clean development mechanism project activity provided that approved baseline and monitoring methodologies are used that... ensure that the emission reductions or net anthropogenic removals by sinks are real, measurable and verifiable and additional to any that would occur in the absence of the project activity. (EB 47, Annex 29, paragraph 1).
More information on the additionality requirement for PoAs is available here.
Requirements of the policy, measure or stated goal
There do not appear to be any restrictions on the content of a policy/measure or stated goal, other than that action taken to achieve it must result in GHG emission reductions or net anthropogenic greenhouse gas removals by sinks which are additional to any that would occur in the absence of the PoA (EB 47, Annex 29, paragraph 3).
If this is true, the policy/measure or stated goal may not be required to have a purpose of reducing greenhouse gas emissions, it may be sufficient that emissions reductions or sequestration is an outcome of actions undertaken in pursuit of the policy/measure or stated goal, even though that outcome is unintended. However, it is still necessary to establish that the emissions reductions achieved by a PoA, and each of the CPAs under it, are additional (EB 47, Annex 29, paragraph 3).
Who can establish a policy, measure or stated goal?
It is unclear whether the policy/measure or stated goal must be one that is defined by governments or other public authorities, or whether it is possible for a private entity or association to state a goal unilaterally.
The original decision of the COP/MOP which confirmed that PoAs could be registered as a single CDM project activity suggests that there is no requirement for a PoAs to be connected to a policy or standard set by government. EB 47, Annex 29 provides that the coordinating/managing entity, in developing the PoA design document, must include a description of the policy/measure or stated goal that the PoA seeks to promote. Insofar that the requirement is one of description, as opposed to identification (e.g. of a pre-set policy/measure or stated goal), this would also suggest that there is no requirement for PoAs to be connected to a policy or standard set by government.
There is no guidance as to whether the goal must be realistic or achievable, or set independently of those involved in registering and implementing the PoAs. If it is sufficient that the goal to which the PoAs is directed towards achieving be stated unilaterally by a private entity, then arguably a coordinating/managing entity or project Participant could state a goal purely for the purpose of establishing a stated goal upon which a PoA can be based.
Mandatory policies and measures
The requirement that a PoA be a "voluntary action by the coordinating/managing entity" means that in general it is not possible to register a Programme of Activities where a mandatory policy or regulation requires the entity to undertake the actions involved and that mandatory standard or policy is enforced.
However, there are two situations envisaged by the Executive Board where a mandatory policy or regulation would provide a sufficient basis for a Programme of Activities - where the policy or regulation is not being enforced and where the Programme of Activities increases enforcement beyond the mandatory level required. Information pertaining to this must be provided by the coordinating/managing entity within the PoA Design Document to be completed and submitted to a DOE:
The CDM-POA-DD shall include the following information:
...
(e) Demonstration that in the absence of the CDM either:
i) the proposed voluntary measure would not be implemented; or
ii) the mandatory policy/regulation would be systematically not enforced and that non-compliance with those requirements is widespread in the country/region; or
iii) the PoA will lead to a greater level of enforcement of the existing mandatory policy/regulation (EB 47, Annex 29, paragraph 4(e)).
The guidance on PoAs does not explicitly state how the enforcement of a mandatory policy is quantified or monitored so that a baseline against which the PoA can be assessed. However, some guidance has been provided for large-scale project activities and forestry project activities, which will apply to PoAs in light of the decision quoted above.
For example, in the case of one approved baseline methodology, AM0012, the Executive Board found that while monitored compliance with a particular national policy was less than 50%, it could not be said that the policy was enforced. Once monitored compliance exceeded 50%, however, the assumption that the policy is not enforced would no longer be tenable. The baseline scenario in that case was identified as a gradual improvement of compliance with the policy.
In the case of forestry project activities, the A/R additionality tool states that "non-compliance" for the purpose of assessing additionality is equivalent to 30% of area of the smallest administrative unit that encompasses the project area (EB 35, Annex 17, paragraph 12).