Implications of Standardized CDM Baselines for Least Developed Countries (LDCs) and their Use in National ‘Measuring, Reporting and Verification (MRV)‘-Systems

Background and Objective

With this research project on the implications of standardised CDM baselines for LDCs and their use in national measurement, reporting and verification (MRV), the Federal Environment Agency (UBA) aimed at fostering the further development of the regulatory framework for standardised baselines and illustrate their benefits for least developed countries (LDCs). The work was assigned to a consortium comprising the Wuppertal Institute and GFA Consulting Group. The research project focused on two specific questions: How can standardised baselines take account of the specific challenges faced in LDCs? And how must the regulatory framework for standardised baselines be advanced in order to exploit LCDs’ potential to the full? 

Implementation

In addressing these questions, input was gathered in two differing, but mutually enhancing ways and then analysed. In a first step, a case study was used to look at how standardised baselines allow adaptation of existing CDM methodologies to take account of host country conditions. A guideline-supported expert survey was then conducted in a second step. The experts came from differing sectors: representatives from responsible authorities in the host countries (DNAs, Designated National Authorities) that had already submitted standardised baselines, consultants who had worked on developing standardised baselines, representatives from auditors accredited under the CDM (DOEs, Designated Operational Entities) and scientists who had worked on the research subject.

Results and Outlook

The feasibility study showed that developing a standardised baseline for rural electrification that serves as-yet un-met human needs is not only technically possible, but it can also result in higher baseline emissions despite conservative estimates. A mixed picture emerges when it comes to synergies between standardised baselines and national systems for measurement, reporting and verification (MRV). Often, the development of standardised baselines does not lead to results that can be used directly and without restriction for national MRV. Conversely, the development of standardised baselines could help build human resource capacity and support local knowledge for collecting and aggregating emissions data.

The expert interviews conducted over the course of the project showed that the framework for standardised baselines has yet to meet the demand for (almost) universal application. Using the expert interviews, recommendations were developed for use in advancing the standardised baselines framework. The German Emissions Trading Authority (DEHSt) published those recommendations in the form of a discussion paper.

The results of the feasibility study were implemented in a follow-up project. Working with the Ethiopian DNA, a standardised baseline was developed for projects on rural electrification. The results of the research project were presented to some 80 DNA representatives at the 15th Global DNA Forum and the research team was also involved in a UNFCCC Secretariat-hosted stakeholder dialogue on advancing the standardised baselines framework.