Once a PoA is registered, an unlimited number of component project activities (CPAs) can be added without undergoing the complete CDM project cycle.
Compared to regular CDM project activities, this programmatic approach has many benefits, particularly for less developed countries or regions.
The main benefits of PoA are:
Source: CDM Programmes of Activities, UNFCCC Web Site, 2013.
The classical structure of CDM uses a project-by-project process for registering and verifying projects. This approach involves very high transaction costs, a long time to market, and a high risk of non-registration. It is also very difficult to implement such a process in least developed countries and small island states where average project sizes and the scale of national markets tend to be smaller, so relative transaction costs are higher.
In order to reduce transaction costs in CDM and expand the mechanism’s applicability to micro project activities, the CDM Executive Board launched the Programme of Activities modality. Under this modality, a PoA Coordinating/Managing Entity (CME), which can be (for examples) a government agency, NGO or business, develops a PoA which defines broad parameters for project activities (referred to as CDM Programme Activities or CPAs) that are eligible for inclusion in the PoA.
Whereas stand-alone CDM projects must be approved individually by the CDM Executive Board, a PoA needs to be registered only once by the CDM Executive Board. After that, it can include an unlimited and unspecified number of individual CPAs without recourse to the CDM Executive Board.
Projects that distribute compact fluorescent lamps, efficient cook-stoves, Building refurbishment or solar water heaters, are some examples where PoAs, as defined by CDM, can be used. The modality is also applicable for larger scale activities such as small hydro power plants or composting.
Source: Wikipedia, 2013
At the programme layer the organizational, financial and methodological framework is defined by the CME. This entity requests and coordinates the PoA and is the focal point of communication for the CDM Executive Board. The project's life period may take up to 28 years.
Quelle: Wikipedia, 2013
The activity layer is a sub-layer where the real emission reductions take place by conducting various programme activities (CPAs). These CPAs may be single activities or bundles of activities which either may take place all in one location or at various locations. Under certain conditions it is possible to use various baseline and monitoring methodologies and by that it is possible that various different activities and technologies can be combined as for example energy efficiency and the implementation of renewable energy forms. The entity (Designated Operational Entity DOE) in charge of verifying the PoA is responsible for adding new CPAs. The CPAs life span corresponds to the traditional CDM one and ranges between 10 years (one-time) and 7 years (which may prolonged twice).
Quelle: Wikipedia, 2013.
Programmes of Activities (PoAs)
On the UNFCCC web site you will find the following PoAs' details: