Carbon Partnership Facility April 2014 Seller Participant Training

CARBON PARTNERSHIP FACILITY 1

CARBON PARTNERSHIP FACILITY APRIL 2014 SELLER PARTICIPANT TRAINING

MONITORING AND VERIFICATION

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Topics of the session

Monitored data

Monitoring process Verification Issuance

• Data flow• Calculations• CDM aspects

• Objectives• Organization• Roles and

responsibilities• Means of

control

• Preparation Stakeholders

• Audit process• MR Writing• Documents

• UNFCCC process

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1. Monitored data

• Data flow• Calculations• CDM aspects

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Monitored data

Physical phenomenon

(Flow, temp, etc…)

CDM instrument

Automatic MeasurementData Logger

Manual MeasurementManual Log

CDM database

Data Record

Back Up databaseBack up policy

Scans

Description of data flow in CDM

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Monitored dataLandfill gas projects

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Monitored data

Flow, %CH4, pressure, temperature, efficiency

of destruction, electricity consumption

Flow meter, gas analyzer, T & P sensors, thermocouple,

electricity meter

Automatic MeasurementData Logger

Manual Measurement(electricity consumed) Manual Log

CDM database

Data Record

Back Up databaseBack up policy

Scans

Data flow: landfill gas projects

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Baseline emissions: Amount of CH4 actually destroyed

- Principle: amount of LFG x % of CH4 in LFG x efficiency of the destruction - Formula: LFGflare,y x wCH4 x DCH4 x FE

Electricity generation (quantity of tCO2 “avoided”) - Principle: quantity of electricity actually delivered to the grid x emissions factor

of the grid- Formula: ELLFG (MWh) x EFEL (tCO2/MWh)

Project emissions: Electricity consumption

- Principle: quantity of electricity actually consumed x emissions factor of the grid- Formula: PEEC,y = ECPJ,y x EFEL x (1 + TDLy)

Fuel consumption- Principle: quantity of fuel actually consumed x emissions factor of the fuel - Formula: PEFC,y = FCi,j,y x NCVi,y x EFCO2,i,y

Understanding the logic behind data

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Monitored parameters must be: Recorded automatically when

continuous monitoring is required

Exhaustive

Consistent

Analyzed

Unalterable

Auditable

Backed up

Archived

CDM aspect of data and calculations

Calculations must be: • Reproducible

• Strictly compliant with the PoA-DD / CPA-DD

• Computed on a regular basis (monthly or weekly)

• You must be able to know almost in real time how much CERs are generated

• You must be able to spot an inconsistency and take a corrective action as quick as possible

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Inconsistencies: Record of 105% methane in the LFG Flare temperature of 1999°C Inconsistent daily electrical consumption because the reading was

monitored in kVAr instead of kWh Negative electricity consumption based on manual readings Flow recorded when flare / genset off Fuel consumption much higher than diesel generators’ technical

specifications (due to fuel robbery) Fixed value of flow every minute for several days, etc.

Loss of data: Failure of the memory card Signal disruption Reset of the system Loss of the onsite computer where the system was installed and data

stored

Potential data issues: examples

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2. Monitoring process

• Objectives• Organization• Roles and

responsibilities• Means of control

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Objectives: Generate ER at CPA level and issue CERs for the overall program for

all CPAs Ensure monitored data is controlled and inconsistencies are

spotted out immediately Implement a standard organization and reporting for all CPAs of the

program Define clear monitoring responsibilities Maintain direct communication between CME and CPA Operators Maintain CPA / PoA database up to date Avoid calibration delays Manage the Information Systems:

- Automated data capture / Machine-To-Machine protocols- Back up policy (at CME level)

Monitoring process

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CDM Expert

CDM PoA Manager

CDM & Carbon Finance Director

Monitoring Manager

LFG planttechnician and

manager

CPA 1 CPA 2 CPA-3

World Bank

CME – main responsibilities: CDM, financing, management

CPA Implementers – main responsibilities: plant operations

Support

Monitoring Manager

Monitoring Manager

Organizational structure

Monitoring process

LFG planttechnician and

manager

LFG planttechnician and

manager

IT officer

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Roles and responsibilities: CPA level Plant technician and manager: operation and maintenance

- Network adjustment: wells regulation, leak inspection, cover, etc.- Monthly and daily reports - Manual logs - Calibrate equipment or organize external calibration- Ensure availability of spare parts- Extract raw data from data logger - Etc.

Monitoring manager: centralize and analyze CDM information from site operations- Prepare monitoring records - Compute CER calculations- Upload CDM information in data base- Prepare calibration planning at CPA level- Focal point for communication with CME

Monitoring process

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Roles and responsibilities: PoA level CDM PoA Manager: CDM compliance and CDM documentation of the PoA

- Verify the CDM compliance of each CPA- Verify that CDM documents are available and up to date in the database- Means of control: fill in QA/QC checklist - Focal point with the Monitoring Manager at CPA level - Prepare the Monitoring Report- Manage verification with DOE- Inclusion of new CPA

IT administrator: management of data base - Create a documents repository: data base shared between CPA Implementers

and the CME- Prepare a folder structure - Manage write / read only access- Back up policy

Monitoring process

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Roles and responsibilities:

The World Bank: CDM expertise- Information on CDM updates- Advice on selection of DOE- Technical review- Sporadic help or advice for PoA management

Monitoring process

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CDM PoA Manager

CDM & Carbon Finance Director

CDM equipment

CMECPA Operator

Monitoring Manager

Planttechnician

Monitoring information: from CPA to CME

Monitoring process

Data logger

Manual logs, operations

mainte-nance

Monitoring records

QA / QC Checklist

SupervisionManagement

PoA Database

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Means of control : At CPA Level: Monitoring Records

For each CPA, synthetic means of information which is relevant for CDM and verification. - CER Production- Electricity consumed (and generated if applicable) - Calibration - Instruments ID- Accreditation and training

At CME level: QA / QC checklistExcel tool to verify every month that: - Information from site operations is reported in the Monitoring Records- Documents are available in the data base shared between CPA

Implementers and the CME- Problems on site are reported and followed

Monitoring process

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Means of control: Steering committees

- Regular direct communication between CME and CPA Implementers- Review progress- Solve investment related issues

Spot checks and mock verifications - There is no better way than to go onsite to understand the project- CME should organize “real case” quality control: onsite check of the CPA- Pre-audit: verify the level of CDM issuance readiness of the project- Ensure that the plant is operated and monitored as described in the

CPA-DD

Monitoring process

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3. Verification

• Preparation • Stakeholders• Audit process• MR writing• Documents

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Coordination- CME / World Bank: choice of DOE and timing

Align verification with ERPA and previous verification - CME / CPA Operator(s): readiness, availability

Organization and responsibilities - The CME will focus on CDM management

- Manage DOE- Write and modify MR- Make sure supporting evidences and monitored data are available

- The CPA Operator will focus on site operations- History of project operations- Prepare all supporting evidences- Organize logistics on site (transportation, accommodation, meals)

Audit preparation

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Site visit The CDM PoA Manager of the CME should go onsite prior to the DOE to: - Verify the project operations - Ensure CDM equipment is in place and properly functioning - Collect last minute missing documents - Trains the CPA operator staff:

- How to answer to auditor’s questions- No document should be given to the auditor because they will all be

channeled by the focal point at the end of the visit

Verification documents - Exhaustive - Up to date - Available on a DEDICATED shared directory

Audit preparation

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Stakeholders for the verification

CPA

CME

DOE

UNFCCC

WB

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Audit process

1. CME prepares the MR ; WB helps and reviews the MR

2. CME sends MR and ER summary to DOE

3. If MR is ok, DOE uploads MR to UNFCCC website

4. Wait 2 weeks before site visit

5. CME sends initial package of documents to DOE

6. Site visit

7. CME, CPA Implementer and DOE discuss issues found on site (preliminary findings)

8. DOE officially sends findings / protocol to CME

9. CME answers requests and prepares and gathers additional documents

10. CME sends everything in one shot: duly answered protocol + supporting evidences

11. DOE reviews the responses and prepares the DVR

12. When all CAR and CL are closed, auditor sends the DVR to I/TR for internal / technical review

13. New questions raised by TR 2nd round of questions and answers

14. When 2nd round (or more) is closed, DOE prepares the FVR

15. CME, World Bank and DOE review the final documents to correct errors and inconsistencies

16. DOE final review and approval

17. DOE sends final documents to UNFCCC: MR, FVR, ER

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Audit process

Highlights: Basic principle of audit: all information must be supported by an evidence

All information provided to the DOE must be clearly denominated in English

Key information should be translated in English if available only in other language: dates, justifications, explanations etc.

Give to the auditor only documents that you (the CME) have checked

Focal point: there is only one channel of communication with the DOE

Send the DOE all the answers + documents in one shot

The style of answers to the CAR / CL should be formal and neutral

Refer to the VVS (p 43-63) to understand the DOE’s questions

Facilitate the work of the auditor: clear package of documents, information easy to verify, anticipate the questions etc.

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How to prepare a MR?

Refer to the following documents:

Monitoring Report writing

MR formMR

guidelinesCPA-DD

registeredMonitoring information

Methodo-logy and

toolsVVS

- Raw data- Calibration certificates- Serial numbers and replacement dates - Electricity consumed-Etc.

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Monitoring Report writing

Highlights: Use the latest MR template. Refer to the UNFCCC website:

https://cdm.unfccc.int/Reference/PDDs_Forms/index.html#proj_cycle “F-CDM-MR - Monitoring report form”.

For a PoA, one or two MR can be submitted for the monitoring period

The MR form cannot be altered (font, headings etc.)

English only

International System of Units: dates dd/mm/yyyy and numbers 1,000.00

The style should be formal and neutral

The MR guidelines give the precise information required by the UNFCCC: don’t add any further information

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Monitoring Report writing

Key content Section A: general information on the project

Refer to the CPA-DD Section A. Information also available on the project webpage at cdm.unfccc.int

Section B: implementation of the project- Describe the state of operations at the time of verification (e.g. only one

flare has been installed yet). - Describe the official post-registration changes: corrections, deviations

etc.

Section C: description of the monitoring system- Diagram showing the different points of measurements- Short description of the recording system (data logger, etc.)

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Monitoring Report writing

Key content Section D: data and parameters

- D.1: fixed parameters refer to section B.5.1 of the registered CPA-DD. Put only the parameters that are used for the monitoring period. For example, for landfill projects: include GWPCH4 or DCH4, but not φ, OX, DOCf, MCF, k…

- D.2: monitored parameters refer to section B.6.2 of the CPA-DD. List the same parameters and provide technical specifications of the instruments used to monitor the parameters. This is the main section.

Section E: calculation of ER- Report the main formulas (copy/paste from CPA-DD)- Report the end result of BE, PE and ER for the monitoring period.

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Verification documents

Organize documents by “package”: 1. Monitoring report and ER summary

Compilation / summary of monthly BE / PE / ER result for each CPA and total BE / PE / ER for the monitoring period for each CPA

2. Raw data – if applicable Monthly files extracted from the data logger in Excel format. Should be directly traceable to the original source

3. Emissions reductions calculations Monthly ER calculation spreadsheets for the entire monitoring period, per CPA

4. One folder per CDM instrument, each one containing: - Manual verify manufacturer, type, model, accuracy, calibration information - Calibration reports verify calibration dates and validity - Information on calibration frequency if not included in the manual

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Verification documents

Organize documents by “package”: Other documents

- Commissioning certificate- Training certificates- Organizational documents, e.g. procedures, operation manual - Main equipment specifications (flare, genset) - Electricity invoices for cross-check

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4. Issuance

UNFCCC Process

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From verification to issuance

What happens when the verification is over?

1. DOE uploads FVR, MR and ER to UNFCCC website. The project is visible in this section: http://cdm.unfccc.int/Issuance/completeness_check.html but the documents are not visible

2. RfI starts after a few weeks of waiting line (“awaiting scheduling”), usually 1 month

3. Then 1 week of Completeness Check

4. 3 weeks of Information and Reporting Check

5. 4 weeks of Issuance Request, the project documentation is now publicly available

6. Issuance of credits

TOTAL 3 months at the UNFCCC

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Training on CDM Operations Plans and Sub-ERPA Contracting

Washington D.C., USA, 2nd April 2014

[email protected] [email protected]