To date, small-scale energy access projects and programs have received limited benefits from the Clean Development Mechanism (CDM). While recent reforms of the CDM and the advent of Programmes of Activities (PoAs) have improved the situation, energy access initiatives still only represent approximately 0.1% of the scheme’s yearly output in terms of Certified Emission Reductions (CERs). The World Bank-led Carbon Initiative for Development (Ci-Dev) commissioned Carbon Limits (project leader) and Climate Focus to carry out a study which explores new ways that could potentially assist the scaling-up of energy access initiatives. The study proposes a Standardized Crediting Framework (SCF) as a new approach to crediting emission reductions for energy access, which goes beyond the current Clean Development Mechanism (CDM) Programme of Activities (PoA) model, has lower transaction costs and encourages private sector engagement in energy access investments. It is a concept developed to support the transition of the CDM project pipeline to the new regulatory environment of the Paris Agreement while enabling greater reform. The full report is also available on the Ci-Dev website.
Climate Finance | Climate Law & Policy | Energy & Industry