In response to regulatory uncertainty, carbon markets are emphasizing development co-benefits to leverage carbon assets. There is a disconnection between the types of projects with high development co-benefits (such as household energy projects with dispersed sources of emissions) and the type of projects that match professional backgrounds of Designated Operational Entities (DOE). Although DOE have developed experience in these projects, often the complexities of household energy projects are poorly understood and the existing methodologies leave a lot of room for interpretation. Conversely, many project developers do not appreciate the challenges faced by DOE to validate and verify projects, such as improved cook-stoves, which have numerous measuring challenges. The research on Performance of Designated Operational Entities in Household Energy Projects – Benchmarking Survey argues that some straight forward improvements could simplify validation and verification process. Suggestions include;
- Improved knowledge sharing between project developers and DOE to identify areas of improvements.
- Future iterations of the DOE performance evaluation might highlight specific bottlenecks to be addressed by both DOE and project developers.
- Capacity building for DOE and project developers to address areas of improvement
- To DOE on particular project types to help them better assess the projects. This might include how key precedents for the interpretation of methodologies.
- To project developers on most common causes of delays
- Project developers and DOE to negotiate a timeline and key milestones to aid project planning.
The discussion is timely as the recent emphasis on measurement of non-carbon outcomes of projects will broaden the role of DOE beyond carbon accounting. The online discussion will invite feedback on these suggestions and examine further how co-operation between project developers and DOE might be enhanced.
The full report can be downloaded here.