Renewing the crediting period
The Procedure for renewal of a crediting period of a registered CDM project activity (v.6) was adopted at EB 63, Annex 29. This replaces earlier guidance at EB 46, Annex 11 (v.5), EB 43, Annex 13 (v.4), EB 36, Annex 43 (v.3), EB 33, Annex 60 (v.2) and EB 28, Annex 40 (v.1).
This procedure is to be applied to Programmes of Activities (PoAs) every 7 years (every 20 years for afforestation and reforestation (A/R) PoAs):
In accordance with the latest guidance for PoAs, the latest version of the "Procedures for Renewal of a Crediting Period of a Registered CDM project activity" shall be applied unless modified through the provisions below, mutatis mutandis, to a PoA every seven years (every 20 years for A/R project activities). Instead of preparing a revised version of the CDM-PDD the coodinating/managing entity shall prepare:
- A new completed CDM-POA-DD
- A new version of the PoA specific CDM-CPA-DD (EB 32, Annex 39, paragraph 28).
The result is a new version of the CDM-PoA-DD and the CDM-CPA-DD:
The result of this process defines a new version of the PoA and the PoA specific CDM-CPA-DD (EB 32, Annex 39, paragraph 29).
Certain aspects of the procedures for renewal of the crediting period are replaced by the guidelines for PoAs. Below is an amalgamation of the two documents, representing the procedure for renewing the crediting period of a component project activity (CPA) within a PoA.
Procedure for renewal of the crediting period of a CPA
In order to apply for a renewal of the crediting period, project participants must update the CDM-PoA-PDD and CDM-CPA-DD as follows:
Project participants shall update those sections of the project design document (CDM-PDD) relating to the baseline, estimated emission reductions and the monitoring plan using an approved baseline and monitoring methodology as follows:
- The latest approved version of a baseline and monitoring methodology, applied in the original CDM-PDD of the registered CDM project activity, shall be used whenever applicable;
- If a baseline and monitoring methodology, applied in the original CDM-PDD, was withdrawn after the registration of the CDM project activity and replaced by a consolidated methodology, the latest approved version of the respective consolidated methodology shall be used;
- If the registered CDM project activity does not meet the applicability criteria of the options provided for by a) or b), due to their revision or due to the update of the baseline, the project participants shall either select another applicable approved methodology or request, through the DOE, a deviation from an approved methodology for the purpose of renewal of the crediting period (EB 63, Annex 29, paragraph 2).
To demonstrate validity of the original baseline, an assessment of emissions that would have resulted from that scenario must be provided.
The demonstration of the validity of the original baseline or its update does not require a reassessment of the baseline scenario, but rather an assessment of the emissions which would have resulted from that scenario (EB 63, Annex 29, paragraph 3).
This updated PDD must then be forwarded to the DOE:
To renew the crediting period of a CPA, the coordinating/managing entity shall forward, after having ensured that the CPA meets all the requirements, the completed latest version of the CDM-CPA-DD to a DOE (EB 63, Annex 29, paragraph 4).
A new letter of approval is not required:
For the purpose of renewal of the crediting period it is not necessary to obtain a new letter of approval from Parties involved (EB 36, Annex 43, paragraph 4).
The secretariat will use best efforts to remind project participants that the crediting period is due for renewal, but ultimately it is the responsibility of the project participants to ensure this is done:
The secretariat will make the best effort to inform project participants in advance of the period for requesting renewal of the crediting period in accordance with the registered modalities of communication. It remains under the responsibility of project participants to ensure that all actions are taken in accordance with these procedures in a timely manner (EB 63, Annex 29, paragraph 6).
If notice to renew the crediting period is not received from project participants within 6 months of its expiry, CERs will not be issued for the period from the expiration date to the deemed renewal date:
If the notification of the intention to request a renewal of a crediting period is not received by the secretariat six months prior to the date of expiration of the current crediting period, the project participant shall not be entitled to the issuance of certified emission reductions for the period from the expiration date of the current crediting period until the date on which the crediting period is deemed renewed (EB 63, Annex 29, paragraph 6).
The DOE's opinion must address the validity of the original baseline, the impact of new policies and circumstances and the continued validity of the baseline:
The DOE's validation opinion shall assess the validity of the original baseline or its update through an assessment address the following issues:
- an impact of new relevant national and/or sectoral policies and circumstances on the baseline taking into account relevant EB guidance with regard to renewal of the crediting period at the time of requesting renewal of crediting period; and
- the correctness of the application of an approved baseline methodology for the determination of the continued validity of the baseline or its update, and the estimation of emission reductions for the respective applicable crediting period (EB 43, Annex 13, paragraph 7).
The renewal is effected by the DOE placing the updated CDM-CPA-DD on a dedicated interface or the UNFCCC website, if it determines that the CPA is consistent with the updated PoA:
This DOE shall scrutinize the information in the CDM-CPA-DD against the latest version of the PoA and documentation requirements and, if consistency/integrity is confirmed, renew the crediting period of the CPA(s) by uploading the CDM-CPA-DD via a dedicated interface on the UNFCCC CDM website. Such uploads shall be grouped and not occur more frequently than once per month (EB 32, Annex 39, paragraph 31).
Once confirmed by the DOE, the CDM-CPA-DD is then automatically included in the registered PoA:
The CDM-CPA-DD(s) are automatically included in the registered PoA and displayed with the new information on the view page of that PoA. The DOE, the coordinating/managing entity and the Designated National Authority are automatically notified of the change in the status of the PoA (EB 32, Annex 29, paragraph 32).
Identification and consequences of erroneous renewal
If the crediting period of a CPA is suspected of being erroneously renewed, it may be excluded, and all CERs issued to the CPA may need to be replaced.
The first step in such event is that the Secretary of the Executive Board will be notified:
If a DNA involved in the PoA or a Board member identifies any error that disqualifies a CPA from inclusion in the PoA, the Secretary of the Board shall be notified (EB 32, Annex 39, paragraph 33).
The Board then decides whether to exclude the CPA from the PoA:
The Board shall decide whether to exclude the CPA from the PoA with immediate effect. The coordinating/managing entity, the DOE that renewed the crediting period of the CPA and the DNAs involved shall be informed that the error has been found as well as of the decision of the Board (EB 32, Annex 39, paragraph 34).
If a CPA is excluded, it cannot be re-included in that or any other PoA, or be registered as a project activity in its own right:
The consequences of the exclusion are that ... The CPA that has been excluded shall not be re-included again in that or any other PoA, or qualify as a CDM project activity (EB 32, Annex 39, paragraph 35(a)).
The designated operational entity (DOE) that included the CPA in the PoA is responsible for replacing any certified emission reductions (CERs) issued to it:
The DOE that included the CPA, shall acquire and transfer, within 30 days of the exclusion of the CPA, an amount of reduced tonnes of carbon dioxide equivalent to the amount of CERs issued to the PoA as a result of the CPA having been included, to a cancellation account maintained in the CDM registry by the Executive Board (EB 32, Annex 39, paragraph 35(b)).
In addition, all CPAs under the PoA will be subject to a review:
The further inclusion of new CPAs and issuance of CERs to that PoA shall be put on hold and all CPAs already submitted shall be reviewed to determine if any other CPA disqualifies (EB 32, Annex 39, paragraph 35(c)).
The review is conducted by a DOE. The DOE that performed validation, registration, inclusion or verification functions is not eligible to perform this review:
A DOE, that has not performed validation, registration, inclusion or verification functions with regard to this PoA, shall conduct this review and submit a review report to the Board (EB 32, Annex 39, paragraph 36).
The Executive Board will then establish a team to consider the DOE's report:
A team shall be established by the Board to analyse the DOE's review report and make a recommendation to the report (EB 32, Annex 39, paragraph 37).
Based on the report, the Executive Board will decide whether to exclude the additional CPAs:
The Board will decide whether to exclude additional CPAs and if so, the consequences described in paragraph 35 (a) and (b) apply. Only once all required cancellations have been confirmed, the hold described in 35 (c) shall be lifted (EB 32, Annex 39, paragraph 38).