CDM: Proposed New Methodology. Meth Panel Recommendation to the Executive Board. (Version 03.1)

PROPOSED NEW BASELINE AND MONITORING METHODOLOGIES (CDM-NM) - Version 03.1

CDM – Executive Board

CDM: Proposed New Methodology Meth Panel recommendation to the Executive Board

To be completed by UNFCCC Secretariat Date of Meth Panel meeting:

Related F-CDM-NM document ID number F-CDM-NM0 : (electronically available to EB members) “ ”

Related F-CDM-NMex document ID number(s) F-CDM-NMex0 : (electronically available to EB members)

Related F-CDM-NMpu document ID number(s) F-CDM-NMpu0 : (electronically available to EB members)

Signature of Meth Panel Chair …………………………………………….. Date:

Signature of Meth Panel Vice-Chair …………………………………………….. Date:

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F-CDM-NMmp doc id number NM

Date when the form was received at UNFCCC secretariat

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This template shall not be altered. It shall be completed without modifying/adding headings or logo, format or font. PROPOSED NEW BASELINE AND MONITORING METHODOLOGIES (CDM-NM) - Version 03.1

CDM – Executive Board

NM0xxx Version ## (to be completed by UNFCCC)

CLEAN DEVELOPMENT MECHANISM PROPOSED NEW BASELINE AND MONITORING METHODOLOGIES (CDM-NM) (Version 03.1)

CONTENTS

Section A. Recommendation by the Methodological Panel (to be completed by the Meth Panel)

Section B. Summary and applicability of the baseline and monitoring methodology

Section C. Proposed new baseline and monitoring methodology

Section D. Explanations / justifications to the proposed new baseline and monitoring methodology

Instructions for using this form In using this form, please follow the guidance established in the following documents:  Guidelines for completing the project design document (CDM-PDD) and proposed new baseline and monitoring methodologies (CDM-NM);  Technical guidelines for the development of new baseline and monitoring methodologies (contained in part III of the above);  Relevant methodological guidance by the Executive Board. This guidance can be found at Formatting Instructions:  The form provides the formatted headings which should be used throughout the document;  Please note that each paragraph in section C and D should have a paragraph number, as demonstrated through example. When adding further paragraphs, please ensure it is numbered;  Please use word equation editor to write equations;  Please format figures, tables and footnotes to update automatically;  Please note the footnotes have a separate format (Times New Roman - size 10).1 Please complete sections B to E. In section C, the text shaded in grey shall not be changed, whereas other text is used as an example and may be changed or deleted.

1 Format for footnotes.

CDM – Executive Board Page 1

Section A. Recommendation by the Methodological Panel (to be completed by the Meth Panel)

Recommendation (preliminary or final / approval or rejection / consolidation) >>

2. Major changes required >>

3. Minor changes required >>

Section B. Summary and applicability of the baseline and monitoring methodology

1. Methodology title (for baseline and monitoring), submission date and version number >> Standardised methodology for the production of sustainable charcoal and charcoal briquettes

2. If this methodology is based on a previous submission or an approved methodology, please state the reference numbers (NMXXXX/AMXXXX/ACMXXXX) here. Explain briefly the main differences and their rationale. >>

3. Summary description of the methodology, including major baseline and monitoring methodological steps >> This methodology is applicable to project activities which install and operate new production and supply charcoal and/or charcoal briquettes to the household fuel market. In the baseline, charcoal would have been produced from the informal charcoal sector, from partly non- renewable wood, using traditional technologies with a low yield and with substantial associated methane emissions. In the project, charcoal is mostly produced from inputs which do not lead to a reduction in forest carbon stocks. Advanced production processes with low methane emissions and high yield can be applied in the project.

A standardised approach is applied to determine whether the most likely baseline scenario is the production of charcoal from the informal charcoal sector.

Baseline emissions are calculated based on the emissions which would have occurred from the supply of an equivalent quantity of charcoal products by the informal charcoal sector. This is done in three steps: (i) the total amount of carbon supplied by the project in the form of fuel is determined; (ii) the equivalent quantity of standard charcoal the informal charcoal sector would have produced to supply the same amount of carbon is calculated; (iii) the equivalent amount of standard charcoal is multiplied by the corresponding standard emission factor, taking into account the fraction of non-renewable wood used in the baseline.

Project emissions are solely calculated based on the quantity of methane emitted in the project. No meaningful CO2 emissions occur as the project does not deplete forest carbon stocks. Unlike earth mound kilns and earth pit kilns from the informal charcoal sector used in the baseline, project facilities might consume power for the mechanical processing of the biomass and the agglomeration of fines into charcoal briquettes. For this reason, leakages related to the consumed power are taken into account.

Transportation related emissions are not taken into account:

(i) Transport related emissions commonly only represent 0 to 2% of the total baseline emissions. Due to high and sustained cost of transportation and transportation fuel, there is no incentive for long transportation distances. In countries where charcoal is consumed as a household fuel, the lack of affordability of modern fuels as used in transportation is precisely the reason why charcoal is used instead of LPG. (ii) Projects under this methodology lead to a reduction of deforestation as less trees have to be cut to produce charcoal. a. This methodology only credits emission reductions from the carbon saved in the wood which would have been used for charcoal production. b. The total carbon stock of a tree (which is cut for the production of charcoal) exceeds however by at least 20% the carbon stock of the wood which would be used in the charcoal production2. c. In turn, this methodology avoids the total loss of the tree carbon stock3 (by avoiding the cutting of the tree) yet only credit a certain share of this tree carbon stock. As a consequence, real emission reductions are well in excess of the CERs generated.

2 Typically, only stems above knee high and branches with over 2 cm in diameter are used in the production of charcoal. The associated carbon stock in small branches, leaves, the lowest part of the stem and roots represents more than 20% of the wood harvested for charcoal. 3 With the exception of deep roots which are expected to partly fossilize.

Section C. Proposed new baseline and monitoring methodology

Draft baseline and monitoring methodology AMXXXX

“Standardised methodology for the production of sustainable charcoal and charcoal briquettes”

I. SOURCE, DEFINITIONS AND APPLICABILITY

Sources

This consolidated baseline and monitoring methodology is based on [elements from] the following [approved baseline and monitoring methodologies and] proposed new methodologies:

 NM0XXX “Title of the methodology” prepared by ###;

This methodology also refers to the latest approved versions of the following tools (please delete those not applicable):

 Tool for the demonstration and assessment of additionality;

 Tool to determine project emissions from flaring gases containing methane.

For more information regarding the proposed new methodologies and the tools as well as their consideration by the Executive Board please refer to http://cdm.unfccc.int/goto/MPappmeth.

Selected approach from paragraph 48 of the CDM modalities and procedures

1. “Existing actual or historical emissions, as applicable”

Definitions: Please provide definitions of key terms that are used in this proposed new methodology

2. For the purpose of this methodology, the following definitions apply:

 Charcoal and Renewable charcoal. Charcoal is solid biofuel obtained from biomass by means of a chemical process known as “pyrolysis” or simply as “carbonization process”, which consists of the thermal decomposition of biomass in the absence of oxygen. Renewable charcoal is charcoal produced using renewable biomass resources as per the definition of renewable biomass approved in Annex 18 of the twenty-third meeting of the Board criteria.

 Charcoal products. Charcoal products are solid biofuel products obtained from biomass by means of a chemical process known as “pyrolysis” or simply as “carbonization process”, either directly in the form of charcoal blocks or from the agglomeration of small carbonized particles as a product known as “charcoal briquettes”.

 Charcoal briquettes. Charcoal briquettes are solid fuels from smaller biomass or charcoal particles whose shape and consistency is obtained from an agglomeration process.

 Biomass. Biomass is non-fossilized and biodegradable organic material originating from plants, animals and microorganisms. This shall also include products, by-products, residues and waste from agriculture, forestry and related industries as well as the non-fossilized and biodegradable organic fractions of industrial and municipal wastes. Biomass also includes gases and liquids recovered from the decomposition of non-fossilized and biodegradable organic material.

 Forest plantation after its last rotation. Lands that were previously stocked with human- induced forest plantations (e.g., pinus, palm trees, bamboo, eucalyptus, etc.) at the end of their rotation cycle (i.e., which were harvested after their last rotation).

 Dedicated plantation. A plantation implemented in the context of this project activity in order to supply the production of charcoal products with renewable biomass. A dedicated plantation must be newly established as part of the project activity. In case a dedicated plantation is an A/R CDM project, then A/R CDM modalities and procedures of approved A/R methodology apply.

 Biomass residues. Biomass residues are defined as biomass that is a by-product, residue or waste stream from agriculture, forestry and related industries. This shall not include mixed municipal waste or other wastes that contain fossilized and/or non-biodegradable material (however, small fractions of inert inorganic material like soil or sands may be included).

 Informal charcoal sector. The informal charcoal sector is a sector which produces charcoal from wood. It is characterized by the use of traditional kilns such as earth mound kilns, pit kilns or equivalent open-end technologies which require no investment besides labour. The sector may include illegal activities such as the illegal cutting, harvest of wood and the subsequent production and trade of charcoal made from this wood.

 Charcoal production facility. Under this methodology, a charcoal production facility is a facility comprising one or more carbonization unit and which produces one or more types or charcoal products (charcoal, green charcoal, briquettes).

 Gravimetric yield. Weight of charcoal produced divided by wood used for charcoal production on dry basis.

Applicability conditions

3. This methodology applies to project activities that produce charcoal products from biomass residues, dedicated plantations or wood from forest plantation after its last rotation from new facilities.

4. The methodology is applicable under the following conditions:

 Only newly established charcoal production facilities characterized by a new investment are included in the project. Replacement and upgrades of existing facilities cannot be part of a project under this methodology. Low investment or zero-investment technologies as found in the charcoal informal sector (e.g. pit kilns, earth mound kilns, casamance kiln, etc.) are excluded.

 No charcoal manufacturing equipment transferred from existing or former charcoal production facilities are transferred to the project.

 No significant quantities of auxiliary energy (power, fuel) are required to prepare the biomass or the charcoal briquettes.

 The biomass utilized by the project activity shall not be chemically processed (e.g. esterification to produce biodiesel, degumming and/or neutralization by chemical reagents) prior to the pyrolysis but it may be processed mechanically (e.g. pressing, filtering, agglomeration) or thermally (e.g. drying, roasting).

 Biomass used by the project facilities is not stored for more than one year; No storage of the biomass is done in anaerobic conditions.

 The project supplies charcoal to one or more identified areas in which charcoal is consumed as fuel for households, small and medium businesses and cottage industries. The charcoal is not supplied to large scale industries.

5. In addition, if the project includes the establishment of new plantations, the following conditions apply:

 The dedicated plantation must be newly established as part of the project activity for the purpose of supplying biomass exclusively to the project;

 Evidence (e.g., official land use maps, satellite images/aerial photographs, cadastral information, official land use records) demonstrating the location of plantations in the project boundary are established in areas that fall in one or more of the following categories:

(a) Grasslands;

(b) Land not under agricultural use;

(c) Forest plantation after its last rotation4;

(d) Degraded areas5.

The land degradation can be demonstrated using the .Tool for the identification of degraded or degrading lands for consideration in implementing CDM A/R project activities.

In case the plantation is implemented on land previously hosting a forest plantation after its last rotation, it shall be demonstrated that this land would not be replanted in the absence of the project activity. In order to demonstrate that a forest plantation is in its last rotation, the project proponent shall refer to the plantation management practices which are common practice in the region for the considered species.

 Grazing will not occur within the plantation;

 Flood irrigation is not expected to take place on the plantation sites.

4 See definition of “Forest plantation after its last rotation” in definitions section. 5 Degraded lands are the lands whose edaphic conditions and /or biotic richness have been reduced by human activity to such an extent that their ability to satisfy productive uses has declined (Source: BROWN, S.; LUGO, A. E. Rehabilitation of tropical lands: a key to sustaining development. Restoration Ecology. 2(2): 97-111, 1994).

 For at least ten years before the implementation of the project activity, no forest stocks were on the land where the dedicated plantations will be established; this condition does not apply to forest stocks in the form of productive forest plantations;

6. For plantations registered as A/R CDM project activity, the following applies:

 The dedicated plantation shall not be included in the project boundary as per paragraph 38 EB 25. The demonstration that the biomass originates from renewable source is not required in such a situation. In case only a part of the dedicated plantation is covered under a registered A/R project activity this condition is applicable only to this part of the plantations;

 Upstream emissions from biomass projects registered as the A/R CDM project activities, do need not be accounted if they are accounted under the respective A/R CDM projects6;

7. In addition, the applicability conditions included in the tools referred to above apply.

8. Finally, this methodology is only applicable if the application of the procedure to identify the baseline scenario results in that the supply of charcoal products from the informal charcoal sector is the most plausible baseline scenario.

II. BASELINE METHODOLOGY PROCEDURE

Project boundary

9. The spatial extent of the project boundary encompasses all charcoal production facilities included in the project. This includes among others the carbonization units included in the project as well as areas for storage, processing, bagging and weighting of inputs (biomass) and outputs (charcoal and/or charcoal briquettes).

10. The greenhouse gases included in or excluded from the project boundary are shown in Error: Reference source not found.

Table 1: Emissions sources included in or excluded from the project boundary Source Gas Included? Justification / Explanation CO No Electricity 2 CH No Assumed negligible consumption 4 N2O No

e CO2 No n i

l Auxiliary fuels CH4 No Assumed negligible e s N2O No a

B Included both for direct CO emissions and CO from CO Yes 2 2 Carbonization 2 the oxidation of the emitted CO. activity CH4 Yes Included – this is a major source of emissions.

N2O No Excluded for simplification.

6 As per paragraph 38 of the of the twenty-fifth meeting of the Board decision, for the cases where renewable biomass is procured from a registered CDM AR project activity, project emissions are accounted within the respective project so as to avoid double counting of project emissions.

Transportation CO2 No

related CH4 No Determined to be very small.

emissions N2O No

CO2 No y

t Auxiliary fuels CH4 No This source of emissions is assumed to be very small. i v

i N2O No t c

a Only zero-carbon sources of biomass are allowed in the

t CO2 Yes c project. e j

o Included – depending on the technology this may be an r CH4 Yes P Carbonization important source of emissions in the project. activity Excluded for simplification – this source of emissions is considered to be very small and only lower than in N O No 2 the project due to the use of more advanced technologies. s

e To be considered in leakages. Depending on the case, g CO2 Yes a Power this source of emissions might be important. k

a consumption e CH4 No This source of emissions is assumed to be very small. L

N2O No This source of emissions is assumed to be very small.

Identification of the baseline scenario

11. Generic approach

12. The baseline used under this methodology is the consolidated GHG database for the informal charcoal sector. The database is a collection of indicators for the production of traditional charcoal kilns such as pit kilns and earth mound kilns which are used in the informal charcoal sector.

13. For this reason the methodology is only applicable if the procedure to determine the baseline identifies the following baseline scenario as the most likely

14. CC1: The baseline scenario is the production of charcoal from the informal charcoal sector

15. Baseline CC1 applicability procedure

16. The applicability of baseline CC1 can be established using either of the options 1 to 3. This procedure to establish the applicability of baseline CC1 is illustrated in Figure 1:

17. Figure 1: Baseline applicability procedure.

18. Option 1: baseline applicability based on socio-economic factors

19. The baseline CC1 is deemed applicable if either one of the following conditions is fulfilled:

(i) The project is located in an LDC as defined by the UN; As of 2011, the following countries are considered LDCs7:

Table 2: List of countries classified as defined by the UN as LDCs (last updated: July 2011)

Africa (33) Angola; Benin; Burkina Faso; Burundi; Central African Republic; Chad; Comoros; Democratic Republic of the Congo; Djibouti; Equatorial Guinea; Eritrea; Ethiopia; Gambia; Guinea; Guinea-Bissau; Lesotho; Madagascar; Malawi; Mali; Mauritania; Mozambique; Niger; Rwanda; São Tomé and Príncipe; Senegal; Sierra Leone; Somalia; Sudan; Togo; Uganda United Republic of Tanzania; Zambia.

Asia (14) Afghanistan; Bangladesh; Bhutan; Cambodia; Kiribati; Lao People’s Democratic Republic; Myanmar; Nepal; Samoa; Solomon Islands; Timor- Leste; Tuvalu; Vanuatu; Yemen

Latin America and Haiti the Caribbean (1)

(ii) The project is located in a Low Income Country (LIC) as defined by the UN and over 90% of the total charcoal production is from the informal charcoal sector (NB:

7 http://www.unohrlls.org/en/ldc/related/62/

charcoal production systems from efforts supported by NGOs, multilateral organization, ODA, the CDM or other forms of carbon finance can be ignored).

(iii) The project is located in a special underdeveloped zone (SUZ) of the host country identified by the Government before 28 May 2010;

(iv) The project located is located in an area8 with observed poverty defined as an average of less than $2 per capita per day9.

20. Option 2: deemed baseline applicability for listed countries

21. The project is located to a country where the baseline is deemed applicable as listed in the Annex 2 of this methodology.

22. Option 3: baseline applicability based on non-enforcement of laws protecting forests

23. For low income countries and lower middle income countries baseline applicability can be demonstrated based on sub-step 1b and sub-step 2b of the “Tool for the demonstration and assessment of additionality”.

24. Table 3: Step of the tool and corresponding test for option 3: baseline applicability based on non- enforcement of laws protecting forests.

Step of the tool Step 1: Identification of alternatives to the project activity consistent with current laws and regulation:

If an alternative does not comply with all mandatory applicable legislation and regulations, then show that, based on an examination of current practice in the country or region in which the law or regulation applies, those applicable legal or regulatory requirements are systematically not enforced and that noncompliance with those requirements is widespread in the country. If this cannot be shown, then eliminate the alternative from further consideration;

Corresponding Establish that at least 50% of the charcoal produced in the country or region, test with the exclusion of supported efforts10 is from illegal wood harvests or illegal charcoal making. This can be established through a local survey, from existing literature, maps or statement by the country DNA

Step of the tool Sub-step 2b: Option I. Apply simple cost analysis.

Document the costs associated with the CDM project activity and the alternatives identified in Step 1 and demonstrate that there is at least one alternative which is less costly than the project activity.

8 The area is defined as the charcoal production area. The limit does not apply to areas of charcoal consumption which are typically urban areas with higher income levels. 9 The definition of moderate poverty used by the World Bank was of $2 per person per day. In case of a more recent definition, project proponent can use the updated figure. 10 Charcoal production units and facilities with financial, technologic or training support from NGOs, multilateral organization, ODA, the CDM or other forms of carbon finance can be classified as supported efforts. Governmental support however cannot be considered as supported effort.

Corresponding Establish that the proposed production chain for charcoal products would test require an investment of more than $9 per tonne of charcoal product per year.

Outcome Outcome of Step 2: If after the sensitivity analysis it is concluded that: (1) the according to proposed CDM project activity is unlikely to be the most financially/ the tool economically attractive (as per Step 2c para 11a) or is unlikely to be financially/economically attractive (as per Step 2c para 11b), then proceed to Step 4 (Common practice analysis).

Outcome in the The project is additional. methodology

Additionality: Please describe the procedure for demonstrating additionality

13. The measure is deemed additional for all options which have identified CC1 (production of charcoal from the informal charcoal sector) as the most likely scenario.

Baseline emissions

Project emissions

Leakage

14. Leakage from the use of biomass:

15. Project participants shall demonstrate that the use of the biomass residues does not result in increased use of fossil fuels or other GHG emissions elsewhere. For this purpose, project participants shall assess as part of the monitoring the supply situation for each type of biomass residue k used in the charcoal production facilities. Table 4 below outlines the options that may be used to demonstrate that the biomass residues used did not increase fossil fuel consumption or other GHG emissions elsewhere.

25. Table 4: Approaches to rule out leakages

L1 Demonstrate that at the sites where the project activity is supplied from with biomass residues, the biomass residues have not been collected or utilized (e.g. as fuel, fertilizer or feedstock) but have been dumped and left to decay, land-filled or burnt without energy generation (e.g. field burning) prior to the implementation of the project activity. Demonstrate that this practice would continue in the absence of the CDM project activity, e.g. by showing that in the monitored period no market has emerged for the biomass residues considered or by showing that it would still not be feasible to utilize the biomass residues for any purposes (e.g. due to the remote location where the biomass residue is generated)

L2 Demonstrate that there is an abundant surplus of the in the region of the project activity which is not utilized. For this purpose, demonstrate that the quantity of available biomass residues of type k in the region is at least 25% larger than the quantity of biomass residues of type k that are utilized (e.g. for energy generation or as feedstock), including the project plant

L3 Demonstrate that suppliers of the type of biomass residue in the region of the project activity are not able to sell all of their biomass residues. For this purpose, project participants shall demonstrate that the ultimate supplier of the biomass residue (who supplies the project) and a representative sample of suppliers of the same type of biomass residue in the region had a surplus of biomass residues (e.g. at the end of the period during which biomass residues are sold), which they could not sell and which are not utilized

L4 The biomass is from a newly established dedicated plantation

Emission reductions

16. Emission reductions are calculated as follows

ER  Q CF  f  0.95 K  GWP  K  (0.90  D ) 17. y  CCP,i y NCV ,i,y NRB,BLwood ,y CO2 CH 4,y CH 4 k,y i (1)

18. Where:

ERy = Emission reductions in year y (t CO2e/yr) QCCP,i,y = Produced quantity of charcoal product i in year y (t CO2e/yr) CFNCV,i,y = Correction factor for the project to baseline net calorific value of charcoal product i in year y (-) fNRB,BL,wood,y = Fraction of biomass of type i used in the absence of the project activity in year y that can be established as non-renewable biomass using survey methods (t CO2/yr) KCO2 = Emission factor for CO2 emissions as found in the consolidated GHG database for the informal charcoal sector (tCO2e/t standard charcoal) GWPCH4,y = Latest IPCC global warming potential of methane (tCO2e/tCH4) KCH4 = Emission factor for methane emissions as found in the consolidated GHG database for the informal charcoal sector (tCO2e/t standard charcoal) Dk,y = Pyrolysis methane destruction factor at unit k in year y (-)

19. For CFNCV,i,y, a default value of 0.66 can be used for mixed agricultural waste; a default value of 1 can be used for mixed wood, bamboo or coconut husks.

20. For Dk,y, a default value of 1 should be used for charcoal production units which can demonstrate a continuous full recovery and destruction of methane gases through combustion, with or without utilization of the energy produced.

Changes required for methodology implementation in 2nd and 3rd crediting periods

21. Refer to the “Tool to assess the validity of the original/current baseline and to update the baseline at the renewal of a crediting period” (Annex 1 of the “Procedures for renewal of the crediting period of a registered CDM project activity”)11.

11 https://cdm.unfccc.int/Reference/Procedures/reg_proc04.pdf

Data and parameters not monitored

22. In addition to the parameters listed in the tables below, the provisions on data and parameters not monitored in the tools referred to in this methodology apply.

III. MONITORING METHODOLOGY

23. All data collected as part of monitoring should be archived electronically and be kept at least for 2 years after the end of the last crediting period. 100% of the data should be monitored if not indicated otherwise in the tables below. All measurements should be conducted with calibrated measurement equipment according to relevant industry standards.

24. In addition, the monitoring provisions in the tools referred to in this methodology apply.

Data / parameter: fNRB,BL,wood,y Data unit: - Description: Fraction of biomass of type i used in the absence of the project activity in year y that can be established as non-renewable biomass using survey methods Source of data: National statistics, surveys, satellite and aerial maps.

Measurement Procedure detailed in Annex 4 “Procedure for the determination of fNRB,y” or procedures (if any): newer and/or more accurate procedure. Any comment: Determined ex-ante and fixed for the crediting period 26.

Data / parameter: KCO2

Data unit: tCO2e/t standard charcoal

Description: Emission factor for CO2 emissions as found in the consolidated GHG database for the informal charcoal sector Source of data: Consolidated GHG database for the informal charcoal sector Measurement procedures (if any): Any comment: Determined ex-ante and fixed for the crediting period 27.

Data / parameter: KCH4

Data unit: tCH4/t standard charcoal Description: Emission factor for methane emissions as found in the consolidated GHG database for the informal charcoal sector Source of data: Consolidated GHG database for the informal charcoal sector Measurement procedures (if any): Any comment: Determined ex-ante and fixed for the crediting period 28.

Data / parameter: GWPCH4,y Data unit: tCO2e/tCH4 Description: Latest IPCC global warming potential of methane Source of data: IPCC Measurement procedures (if any): Any comment: 29.

Data / parameter: EFCH4,PJ

Data unit: t CH4 / t Charcoal product Description: Methane emission factor of the project activity Source of data: Gravimetric yield of the process Measurement appendix 1 and appendix 2 of the approved methodology AM0041 or other procedures (if any): approved procedures to calculate the methane emission factor of charcoal products from the yield. Any comment: The procedure is only applicable for a given combination of biomass type used

and carbonization unit. A relation between yield and EFCH4,PJ has to be determined for each combination of carbonization unit and biomass type.

Data and parameters monitored

Data / parameter: QCCP,PJ,i,y

Data unit: (t CO2e/yr) Description: Produced quantity of charcoal product i in year y Source of data: The following data sources may be used if the relevant conditions apply: Data source Conditions for using the data source a) Direct measurement (e.g. use of a This is the preferred source scale) of the weight of charcoal products supplied. b) Calculation of the total weight of If a) is not available charcoal supplied from the number of bags shipped and the average weight of charcoal product per bag.

Measurement For a) the charcoal products shipped will be weighted. procedures (if any): For b) every three months the weight of n bags shall be randomly weighted. This number of bags n shall be at least 20 if the project consists in one single production facility. For projects including multiple production facilities, 10 bags from at least 10% of all production facility in each country should be weighted Monitoring Continuous with a monthly recording frequency: QA/QC procedures: Scales used must be accurately monitored and calibrated. Records must be kept in line with production registries Use of sale receipt to cross-check the production of data Any comment:

Data / parameter: Hdown,MD,y Data unit: hours Description: Total downtime of the methane destruction system at unit k in year y Source of data: On-site measurements Measurement procedures (if any): Monitoring Continuous frequency: QA/QC procedures: Any comment:

Data / parameter: Hcarbonization,k,y Data unit: hours Description: Total number of hours of carbonization process at unit k during year y Source of data: On-site measurements Measurement procedures (if any): Monitoring Continuous frequency: QA/QC procedures: Any comment:

Data / parameter: CFNCV,i,y Data unit: - Description: Correction factor for the project to baseline net calorific value of charcoal product i in year y Source of data: Measurements and values from the scientific literature Measurement Determined in accordance with annex 3 procedures (if any): The following data sources may be used if the relevant conditions apply: Data source Conditions for using the data source a) Deemed value of 1 Charcoal from mixed plantations, coconut shells and bamboo. b) Deemed value of 0.66 Any type of mix which includes dried agricultural wastes c) Option 2: Based on the real none measured calorific value d) Option 3: Based on the three none feedstock sizes e) Option 4: Calculated based on a Only applicable to biowaste types ratio of the carbon content of the with an ash content of 10% or higher. charcoal

Monitoring Representative sampling for each category of charcoal product of type i frequency: QA/QC procedures: Any comment:

Data / parameter: m%CH4,k

Data unit: t CH4/t flue gas Description: Mass fraction of methane in stack gases from the pyrolysis process at unit k during the period t Source of data: Direct measurement Measurement procedures (if any): Monitoring Continuous frequency: QA/QC procedures: Any comment:

Data / parameter: mfPG,k Data unit: t/yr Description: Average mass flow of flue gases from the stack at the carbonization unit k Source of data: Direct measurement Measurement procedures (if any): Monitoring Continuous frequency: QA/QC procedures: Any comment:

Data / parameter: ECk,y Data unit: MWh/yr Description: Net consumption of power from the grid or from diesel generator for the charcoal production facility k in year y Source of data: Direct measurement Measurement Metering procedures (if any): Monitoring Continuous frequency: QA/QC procedures: Any comment:

IV. REFERENCES AND ANY OTHER INFORMATION

Section D. Explanations / justifications to the proposed new baseline and monitoring methodology

Selected approach from paragraph 48 of the CDM modalities and procedures

Definitions

Applicability conditions

Project boundary

Identification of the baseline scenario

Additionality

Baseline emissions

Project emissions

Leakage

Emission reductions

Changes required for methodology implementation in 2nd and 3rd crediting periods

Monitoring methodology, including data and parameters not monitored

- - - - -

History of the document

Version Date Nature of revision(s)

03.1 20 May 2008  Second bullet of formatting instructions changed to refer to Sections C and D, rather than Section B;  Change in numbering of paragraphs. 03 EB 38, Annex 6  Revision of the structure of the document to reflect the sections of a 14 March 2008 standard approved baseline methodology.  Section A. Recommendation by the Methodological Panel  Section B. Summary and applicability of the baseline and monitoring methodology  Section C. Proposed new baseline and monitoring methodology  Section D. Explanations / justifications to the proposed new baseline and monitoring methodology 02 EB 32, Annex 17  The form “CDM-NM” was merged with the recommendation form “F-CDM- 22 June 2007 NMmp”. The F-CDM-NMmp discontinued to be used.  The change was adopted in line with the revised “Procedures for submission and consideration of a proposed new methodology” in order to simplify and streamline the process of consideration of new methodologies. 01 EB 08, Annex 02 Initial adoption 29 September 2006

Annex 2

Evidence on country eligibility

Procedure for the determination of deemed additionality on a country-level:

The eligibility of countries to apply the “open database on the informal charcoal sector” requires the baseline charcoal production to be dominated by an overwhelming majority of production from the informal charcoal sector, on the basis of forest wood processed in earth pit kilns, earth mound kilns or equivalent.

This can be demonstrated in two ways:

1) Use of the standardized applicability condition applied in the baseline methodology procedure;

2) For low income countries and lower middle income countries: specific evidence that the over 90% of the total charcoal production in the country – excluding production units from supported efforts12 - is from the informal charcoal sector.

The following entities are invited to present an evidence of country eligibility:

a) Stakeholders such as private entities involved in the development of CDM project, Non- Governmental Organization, development agencies and multilateral institutions. In this case, the evidence proposed will have to be reviewed by a DOE. An expansion of the list of countries specifically eligible can be achieved by proposing a revision of this annex, using the latest procedure for request for revision to an approved large scale methodology. In this case, the evidence as well as its validation by a DOE have to be provided.

b) DNAs of lower-middle income countries. In this case, the evidence proposed will have to be reviewed by a DOE. Once validated by the DOE, the eligibility can be demonstrated by referring to the evidence as well as its validation in the PDD or a PoA-DD if the project is part of a programme of activity.

For options (a) and (b), the proof of eligibility should remain valid for three years. This start date of the validity is defined for option (a) as the date of the addition of the country to this Annex 2 of the methodology and for option (b) as the date of validation by the DOE.

List of eligible countries:

12 Charcoal production units and facilities with financial, technologic or training support from NGOs, multilateral organization, ODA, the CDM or other forms of carbon finance can be classified as supported efforts.

Country eligibility Methodology: Standardised methodology for the production of sustainable charcoal and charcoal briquettes. Sub-project type All. from the methodology: Evidence to be For low income countries and lower middle income countries: specific evidence provided: that the over 90% of the total charcoal production in the country – excluding production units from supported efforts13 - is from the informal charcoal sector. Date of submission: DD/MM/YYYY Date of evidence DD/MM/YYYY validation: Expiration of DD/MM/YYYY eligibility: Any comment: Country name: Kenya World Bank income Low-income economies group (Atlas Method): GNI per capita: $760 (2009) (Retrieved from: http://data.worldbank.org/indicator/NY.GNP.PCAP.CD) Description of “Almost 100% of Kenya’s charcoal, and indeed for the entire East African evidence: region is produced using earth kilns, characterised by poor operation practices e.g. poor loading, use of green wood, poor control, and premature harvesting of charcoal before full carbonisation (Senelwa et al. 2006).” Source of evidence: Senelwa, K., Ekakoro, E., Kirongo1, B., Etiégni1, L., Orori1, B., Lipwoni1, V., Kaheeru Katigo, J., Mboma, L., (2009, December). Effect of Charcoal Earth Kilns Construction and Firing on Soil Chemical Characteristics. JMHT Vol. XV, (3): 91–95. ISSN: 2087-0469. Retrieved from: http://journal.ipb.ac.id/index.php/jmht/article/viewFile/3245/2184 Any comment:

13 Charcoal production units and facilities with financial, technologic or training support from NGOs, multilateral organization, ODA, the CDM or other forms of carbon finance can be classified as supported efforts.

Annex 3

Determination of correction factor for the project to baseline net calorific value of charcoal products

Charcoal products manufactured in the project facilities might not produce fuels with the same calorific value as the average considered in the baseline. This might be due to differences in (i) operating parameters of the carbonization process as well as (ii) the types of inputs (types and quality of biomass).

For this reason, CFNCV,i,y (correction factor for the project to baseline net calorific value of charcoal product i in year y has to be determined.

The reference for CFNCV,i,y should be derived from the latest version of the “consolidated GHG database for the informal charcoal sector”.

CFNCV,i,y can be determined according to the following options 1 to 6:

Option 1: deemed value:

For all charcoal from mixed plantations and bamboo, the following assumption can be made:

CFNCV ,i,y  1 (2)

Where:

CFNCV,i,y = Correction factor for the project to baseline net calorific value of charcoal product i in year y (-)

Option 2: determination of CFNCV,i,y based on the direct measured net calorific value:

NCVi,PJ ,y CFNCV ,i,y  (3) NCVBL,Std ,y

Where:

NCVi,PJ,y = Net calorific value (LHV) for the charcoal product i produced in year y in the project (GJ/t)

NCVBL,Std,y = Standard net average calorific value of the baseline charcoal produced, as found in the “consolidated GHG database for the informal charcoal sector” (GJ/t)

Option 3: determination of CFNCV,i,y based on the three feedstock sizes

In accordance with the correlation developed by Parikh et al. (2005) as found in Misginna et al., the correction factor can be determined based on the following equation:

0.3536  FCi,PJ ,y  0.1559 VM i,PJ ,y  0.0078 ASH i,PJ ,y CFNCV ,i,y  (4) NCVBL,Std ,y

Where:

FCi,PJ,y = Carbon content in the charcoal product from the biomass type i, in year y (kg carbon / kg charcoal product)

VMi,PJ,y = Share of volatile matter in the charcoal product from the biomass type i, in year y (kg volatile matter / kg charcoal product)

ASHi,PJ,y = Ash content in the charcoal product from the biomass type i, in year y (kg ash / kg charcoal product)

NCVBL,Std,y = Standard net average calorific value of the baseline charcoal produced, as found in the “consolidated GHG database for the informal charcoal sector”.

Option 4: determination of CFNCV,i,y based on the carbon content

FCi,PJ ,y CFNCV ,i,y  (5) FCBL,Std ,y

Where:

FCi,PJ,y = Carbon content in the charcoal product from the biomass type i, in year y (kg carbon / kg charcoal product)

FCBL,Std,y = Standard carbon content of the baseline charcoal produced, as found in the “consolidated GHG database for the informal charcoal sector”.

Annex 4

Procedure for the determination of fNRB,y

Differentiation between non-renewable and renewable woody biomass 1. Project participants shall determine the shares of renewable and non-renewable woody

biomass in By (the quantity of woody biomass used in the absence of the project activity) the total biomass consumption using nationally approved methods (e.g. surveys or government

data if available) and then determine f NRB, y as described below. The following principles shall be taken into account: Demonstrably renewable woody biomass14 (DRB) Woody15 biomass is “renewable” if one of the following two conditions is satisfied: 1. The woody biomass is originating from land areas that are forests16 where: (a) The land area remains a forest; (b) Sustainable management practices are undertaken on these land areas to ensure, in particular, that the level of carbon stocks on these land areas does not systematically decrease over time (carbon stocks may temporarily decrease due to harvesting); and (c) Any national or regional forestry and nature conservation regulations are complied with. 2. The biomass is woody biomass and originates from non-forest areas (e.g. croplands, grasslands) where:

(a) The land area remains cropland and/or grasslands or is reverted to forest;

(b) Sustainable management practices are undertaken on these land areas to ensure in particular that the level of carbon stocks on these land areas does not systematically decrease over time (carbon stocks may temporarily decrease due to harvesting); and

(c) Any national or regional forestry, agriculture and nature conservation regulations are complied with. Non-renewable biomass

14 This definition uses elements of annex 18, EB 23. 15 In cases of charcoal produced from woody biomass, the demonstration of renewability shall be done for the areas where the woody biomass is sourced. 16 The forest definitions as established by the country in accordance with the decisions 11/CP.7 and 19/CP.9 should apply.

Non-renewable woody biomass (NRB) is the quantity of woody biomass used in the absence of the project activity ( By ) minus the DRB component, as long as at least two of the following supporting indicators are shown to exist:

 A trend showing an increase in time spent or distance travelled for gathering fuel-wood, by users (or fuel-wood suppliers) or alternatively, a trend showing an increase in the distance the fuel-wood is transported to the project area;

 Survey results, national or local statistics, studies, maps or other sources of information, such as remote-sensing data, that show that carbon stocks are depleting in the project area;

 Increasing trends in fuel wood prices indicating a scarcity of fuel-wood;

 Trends in the types of cooking fuel collected by users that indicate a scarcity of woody biomass. 2. Thus, the fraction of woody biomass saved by the project activity in year y that can be established as non-renewable, is: NRB f  (1) NRB,y NRB  DRB 3. Project participants shall also provide evidence that the trends identified are not occurring due to the enforcement of local/national regulations.

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