Carbon Market Watch

For fair and effective climate protection.

Revision of ACM0002 for renewable power generation (Newsletter #1)

05 May 2009

The Methodologies Panel recommends the Board to revise the Methodologies ACM0002 for renewable power generation (paragraph 28 of the Meth Panel meeting report). CDM Watch welcomes this proposal for revision as it broadens the scope of the Methodologies to projects that retrofit existing renewable power plants. In addition and as part of this revision, CDM Watch encourages the Board to revise ACM0002 with regard to another issue: currently ACM0002 allows very large hydro power projects to establish additionality by using a barrier analysis. This is inconsistent with other CDM methodologies that require for large investments in the power sector an investment analysis (e.g. AM0029 for greenfield natural plants and ACM0013 for efficient fossil fuel power plants). CDM Watch believes that the use of a barrier analysis for large hydro power projects is not credible, as this technology is common practice in many developing countries and frequently implemented without the CDM. The additionality of many large hydro power projects has been questioned by many stakeholders (see reports by International Rivers Network). The Board should now address these concerns. An investment analysis is a more suitable approach for this type of project activities. This would also ensure consistency with similar approved methodologies and avoid the use of a rather subjective barrier analysis for a common practice technology.

Action to be taken by the Board: The Board should approve the recommendation by the Methodologies Panel on revision of ACM0002 but should make the investment analysis mandatory for greenfield hydro power projects.