Over the years, the BMU has conducted a large number of activities to promote further development of programmatic approach (Programmes of Activities (PoAs)under the CDM. Programmatic CDM was promoted because it is suitable for use with small-scale projects which in many cases not only result in emission reductions, but are at the same time especially effective in assisting sustainable development. With this approach, many small-scale projects can be bundled into a larger PoA, significantly reducing the administrative effort for each individual activity. The programmatic approach has been particularly effective with projects involving energy efficiency, such as PoAs to distribute clean and efficient cooking stoves, and to provide efficient lighting. It has also proved successful in establishing small- scale renewable energy facilities, especially those involving solar power.
Although the CDM and thus its programmatic approach have only limited prospects for the future, the concept is still of great interest because, in principle, it lends itself to use with other mitigation mechanisms, with international climate financing and perhaps also with international cooperation mechanisms under Article 6 of the Paris Agreement. The BMU thus continues its long-term engagement in support of PoAs, albeit with a slightly broader focus.
A key function of this work is performed by the “PoA Working Group”, which is financed by the BMU and coordinated and headed by Perspectives GmbH. The working group focuses on the scientific, regulative and policy making aspects of the PoAs, originally as part of the CDM, but increasingly also with an eye to international climate financing and the new mechanisms to be developed under Article 6. It provides a platform for dialogue, thus enabling exchange of experience and the coordination of measures to support PoAs. The PoA Working Group comprises established experts from various bodies such as the BMU, the World Bank, the United Nations Development Programme (UNDP), the CDM Project Developer Forum, the DNA Forum, the German Emissions Trading Authority (DEHSt) and others. During regular meetings, experts and representatives of relevant institutions (such as the UNFCCC, selected DNAs and DOEs) exchange views and experience on the current situation and the further development of PoA modalities and procedures. In the past, the working group had also worked with the CDM Executive Board on issues concerning the treatment of PoAs. Many of the recommendations put forward by the working group have been integrated into the PoA modalities and procedures, resulting in improved conditions for PoA implementation and use.
The working group has proven to be a valuable expert body: in particular, the mix of specialist finance-related knowledge and the combined experience of the members, especially with regard to PoA implementation and other emission reduction activities in host countries, enable fast identification of urgent issues concerning PoA implementation and the development of appropriate solutions. In the future, the working group will increasingly focus on issues concerning international climate financing and the market mechanisms to be developed under Article 6 of the Paris Agreement. One key issue in all of this will be how experience with the PoA model itself and also with associated instruments can be used to design the emission reduction instruments of the future.
Implementation: Perspectives Climate Change GmbH
Other Organisations Involved: World Bank, United Nations Development Programme (UNDP), Project Developers Forum, DNA Forum, KfW, German Emission Trading Authority (DEHSt), Institute for Global Environmental Studies (IGES), KfW, Project Developers Forum, Designated Operational Entities Forum, Swedish Energy Agency, Belgium Technical Cooperation.
Lifecycle: since 2011