What is a methodology?
There are two types of methodologies in the CDM context - baseline methodologies and monitoring methodologies.
Baseline methodologies are defined in the CDM Glossary of Terms as follows:
A methodology is an application of an approach as defined in paragraph 48 of the CDM modalities and procedures, to an individual project activity, reflecting aspects such as sector and region (Glossary of CDM Terms, Version 03).
In essence, a baseline methodology is the means to estimate the emissions that would have been created in the most plausible alternative scenario to the implementation of the Programme of Activities (PoA) or the CDM Programme Activity (CPA), as appropriate. This is known as the baseline scenario.
Monitoring methodologies are defined in the CDM Glossary of Terms as follows:
A monitoring methodology refers to the method used by project participants for the collection and archiving of all relevant data necessary for the implementation of the monitoring plan (Glossary of CDM Terms, version 03).
Therefore, a monitoring methodology is the means to calculate the actual emission reductions from the project, taking into account any emissions from sources within the project boundary. A monitoring methodology sets out how project proponents should develop and implement a monitoring plan for a particular project type, in order to gather the data required to calculate emission reductions from the project.
All CDM Programme Activities (CPAs) CPAs under a Programme of Activities (PoA) must be of the same type and use the same methodology:
All CPAs of a PoA shall apply the same approved baseline and monitoring methodology, involving one type of technology or set of interrelated measures in the same type of facility/installation/land (EB 32, Annex 38, page 2).
The Executive Board has clarified that any approved methodology can be applied to a PoA as long as the additional validation requirements for a PoA are satisfied.
The Board clarified that methodologies are approved for application both to CDM project activity and to CDM programme activities (CPA) under a Programme of Activities (PoA). The Board also clarified that proposed new methodologies submitted for consideration by the Board should clearly define the activity to which the proposed methodology is applicable (EB 35, paragraph 15).
The methodology that is applied will determine whether the CPA is undertaken on a single site or multiple sites:
The applied approved methodology shall define whether the CPA is undertaken in a single facility/installation/land or undertaken in multiple facilities/installations/land... For example using an approved methodology a CPA could be a single mini hydro or using another approved methodology be a large area (e.g. city region) over which efficient light bulbs are installed at households (EB 32, Annex 38).
Small-scale CPAs may use simplified small-scale methodologies, provided they do not exceed the small-scale non-forestry thresholds or small-scale forestry thresholds, as appropriate:
In the case of CPAs which individually do not exceed the SSC threshold, SSC methodologies may be used once they have first been reviewed and, as needed, revised to account for leakage in the context of a CPA (EB 32, Annex 38).
However, these projects will need to take into account the rules on debundling.