What is bundling?
Bundling for small-scale afforestation and reforestation (SSC A/R) is defined in the CDM Glossary of Terms 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 component project activity and with the total bundle not exceeding the limits stipulated in paragraph 6(c) of decision 17/CP.7 with the aim of lowering transaction costs per unit (CDM Glossary of Terms, Version 03).
Although this refers to the limits for small-scale (non-A/R) projects in 17/CP.7 paragraph 6(c), it should be read as referring to the limits for SSC A/R projects in 5/CMP.1, Annex, paragraph 1(i). However, the Executive Board has decided that a bundle of SSC A/R project activities can exceed the limit for net anthropogenic greenhouse gas removals provided for in the SSC A/R eligibility rules:
The Board was of the view that the provisions of paragraph 11 of annex to decision 6/CMP.1 apply to bundles of small scale A/R project activities created for the purpose of validation. Hence the limit for net anthropogenic greenhouse gas removals by sinks as provided in paragraph 1 (a) of Annex to 6/CMP.1 shall not apply to paragraph 11 (EB 32, paragraph 42).
This paragraph should also refer to paragraph 1(i).
6/CMP.1, Annex, paragraph 11 establishes that SSC A/R projects may be bundled:
Several small-scale afforestation or reforestation project activities under the CDM 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 net anthropogenic removals by sinks achieved shall cover all of the bundled project activities (6/CMP.1, Annex, paragraph 11).
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.