PoA identification

A PoA can include different countries, and different types of fuels or cookstove technologies. With a lifetime of 28 years, a PoA is generally preferred over standalone or bundled individual projects when several details of a proposed programme such as final number of stoves, technology, or geographical extent are not precisely predictable upfront.

The outcome of the PoA identification can be summarized in PoA Project Idea Note (PIN), analyzing all potential carbon standard issues, complemented by business considerations such as marketing, sourcing, and funding. A first CPA, which has to be registered together with the PoA, is also identified and analyzed.

Once a PoA opportunity is identified, financing needs to be secured. The PoA identification phase also includes identification of the Coordinating and Managing Entity and design of the governance and legal framework of the PoA.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Coordinating/Managing Entity, cookstove project developers, supported by consultants (if necessary, for local studies) 2~6 months 1~3 months 20,000~30,000 USD 5,000~10,000 USD
* indicative

PoA and CPA stakeholder consultation

The project developer can choose to organize the Local Stakeholder Consultation at CPA level, especially if the PoA boundaries include geographically and culturally different areas. For a CDM PoA, the Local Stakeholder Consultation can be organized at the PoA level instead of the CPA level if sufficient arguments are provided to prove that this approach is appropriate. In the case of a Gold Standard certification it is compulsory to have a consultation at both levels.

The execution of the Stakeholder consultation is the same as in the regular project cycle. The purpose is also the same: to inform the target population about the PoA and give them the opportunity to express their comments. Following the received comments, the PoA design may need modifications.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Coordinating/ Managing Entity, cookstove project developer,
local people of project area
4~6 months 3~4 months 0~2,000 USD 1,000~2,500 USD
* indicative

PoA and CPA design documentation

The design documents must be prepared at both PoA and CPA level. The PoA Design Document (PoA-DD) mostly describes the PoA boundaries, the type of technologies included, the carbon methodologies chosen, and the eligibility criteria that will determine the inclusion of CPAs.

At the CPA level, a CPA Design Document (CPA-DD) is prepared, detailing the geographical location, target population, type of cookstove, fuels targeted, baseline study and monitoring plan. The CPA-DD for the first CPA is to be prepared upfront while for subsequent CPAs, the CPA-DDs can be prepared post registration. The specific CPA-DD structure is based on a generic CPA-DD template that has to be followed by all CPAs. The content of a CPA-DD is similar to a PDD for a standalone CDM project, further adding the compliance of the CPA with the eligibility criteria listed in the PoA-DD.

According to the carbon standard targeted, additional documentation can be asked and specific monitored parameters can also be required (for example, Passports at PoA and CPA levels for Gold Standard).

Actors Time Costs*
PoA level CPA level PoA level CPA level
Carbon consultant/carbon project developer 3~6 months 2~4 months 50,000~100,000 USD 10,000~20,000 USD
* indicative

PoA host country approval

Once the PoA-DD and CPA-DD for the first CPA are completed, these are to be submitted to the Host County’s Designated National Authority (DNA) to obtain the Letter of Approval that proves that the project is in line with the national regulations. If the PoA boundaries include several countries, individual Letter of Approvals need to be obtained from all countries involved. In the case of a CDM certification, the Letter of Approval is compulsory for registration, which is not the case for voluntary standards.

The screening process and host country requirements, as well as application forms and document templates vary from country to country. In addition to the design documents and other regulatory approval documents, the national DNA may also ask for project information in their prescribed format by means of a Project Idea Note (PIN) document. Some host country DNAs may also require the CME to submit periodic updates on CPA inclusion in the post-registration phase.

A list of DNAs across the world is available at the UNFCCC CDM website.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Carbon consultant/carbon project developer 4~6 months N/A N/A N/A
* indicative

PoA and first CPA validation

The completed PoA-DD (including the generic CPA-DD template) and first CPA-DD and other documentation required by the targeted certification standard targeted are to be submitted to a Designated Operational Entity (DOE). Under most carbon standards, the design documents need to be hosted on public domain for a considerable period of time, during which time Parties, stakeholders and observers can submit comments on it.

The principal role of a DOE is to check the consistency of the PoA and first CPA documentation with relevant rules and guidelines of the carbon standard, based on site-visits and a review of the design documentation. The DOE conducts on-site visits and follow-up interviews with stakeholders for the resolution of outstanding issues. The validation is concluded with the Validation Opinion, which is the DOE’s written conclusion regarding its validation of the PoA and first CPA.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Designated Operational Entity 4~6 months 1~3 months 20,000~40,000 USD 5,000~10,000 USD
* indicative

PoA and first CPA registration

Registration is the step where a PoA is officially accepted by a carbon standard. The design documentation, including PoA-DD (and the generic CPA-DD template), first CPA-DD, the Validation Report containing the Validation Opinion and calculation spreadsheets, are submitted to the regulatory body of the carbon standard for requesting registration.

A Modalities of Communication (MoC) statement from (or signed by) all project participants in a prescribed format must also be submitted. It designates one or more focal point entities (usually the CME) to communicate on behalf of other project participants with the regulatory body. Registration fees (which are different under various standards, see here for CDM and here for the GS) also need to be paid.

Successful PoA registration occurs after a positive assessment of all the carbon documentation by the regulatory body officials. Once a PoA is registered in a carbon registry it makes it eligible to include further CPAs and subsequently issue and trade carbon credits.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Regulatory Authority of the carbon standard 3~6 months 0 months depending on size of first CPA (CDM, GS) depending on project size (CDM, GS)
* indicative

New CPA inclusion

Any number of CPAs can be included in a registered PoA at any time during its lifetime of maximal 28 years. CPAs can be conceived and implemented by the CME or by other unrelated entities. However, it must be ensured by the CME that each of these CPAs complies with the inclusion criteria set out in the PoA-DD.

If required by the stakeholder consultation framework at the PoA level, an assessment of the likely impacts of individual CPAs on stakeholders needs to be done for each CPA. The results of the assessment have to be reported in each CPA-DD and CPA stakeholder consultation report.

A specific CPA-DD based on the generic CPA-DD template needs to be developed for each CPA and submitted to the DOE. The primary objective of the document is to establish the compliance of the CPA with all the inclusion criteria set out in the PoA-DD. The DOE shall check that the CPA(s) is(are) consistent with the overall PoA, and then include the proposed CPA(s) in the registered PoA.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Designated Operational Entity N/A 1~3 months N/A 5,000~10,000 USD
* indicative

PoA monitoring and monitoring report

The PoA Monitoring Report is very much similar to the Monitoring Report of a standalone project, with an additional feature that it serves as the consolidated document for all CPAs in a PoA at that point in time. It is setting out the GHG emission reductions achieved by the implemented CPAs of a registered PoA for a particular monitoring period.

The monitoring procedures are implemented at the CPA level, enabling tracking of a representative sample of how households use the stoves. A quality control system must also be put in place at the CPA level to ensure the efficiency of the stoves.

Furthermore, the CME needs to coordinate and supervise CPA monitoring and data collection activities in the field by the individual project developers. In the case of voluntary standards such as the Gold Standard, or the Women Carbon’s Standard, additional sustainable development parameters might need to be monitored.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Coordinating/ Managing Entity, cookstove project developers (monitoring), carbon consultant/carbon project developer (monitoring report) 18~36 months 6~18 months 10,000~20,000 USD 5,000~20,000 USD
* indicative

PoA Verification

Once the PoA Monitoring Report is completed, it is submitted to a Designated Operational Entity (DOE) for verification. Verification is the periodic independent evaluation by a DOE of monitored GHG emission reductions that have occurred as a result of all the CPAs of a registered PoA. The PoA verification is very much similar to the verification of a standalone project, with the additional feature that it serves as the consolidated verification for all CPAs in a PoA at that point in time.

Verification is concluded when the DOE issues the Verification Report, which also includes the Verification Opinion. If the Verification Opinion is positive, the PoA “has been verified” for that monitoring period and can proceed to request issuance of carbon credits for all CPAs.

The verifying DOE cannot be the one which has carried out the validation of the PoA (except if allowed by the carbon standard). It is noteworthy that CPAs included in a PoA cannot be verified independently – a combined verification at the PoA level is mandatory.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Coordinating/ Managing Entity, cookstove project developers (monitoring), carbon consultant/carbon project developer (monitoring report) 4~6 months 4~6 months sum of verification costs for all CPAs 2,500~5,000 USD
* indicative

PoA issuance of ERs

Issuance is the final step where the amount of carbon credits generated by a PoA is officially approved and issued by the carbon standard. In other words, this step makes the carbon credits ready to be sold, generating carbon revenues for the project.

The documentation like PoA Monitoring Report, PoA Verification Report containing the Verification Opinion, and calculation spreadsheets are submitted to the regulatory body of the carbon standard for requesting issuance. Issuance fees (which are different under various standards, see here for CDM and here for the GS) also need to be paid. Certified Emission Reductions (CERs) or Verified Emission Reductions (VERs) are issued into the account of the CME. The CME and/or individual CPA developers can then engage potential buyers to sell the carbon credits. If a forward sales contract is already in place, then the carbon credits are delivered to the buyer upon issuance.

Actors Time Costs*
PoA level CPA level PoA level CPA level
Regulatory Authority of the carbon standard 3~6 months 3~6 months depending on project size (CDM, GS) depending on project size (CDM, GS)
* indicative