CLEAN DEVELOPMENT MECHANISM

TOOL20

Methodological tool
Assessment of debundling for small-scale
project activities
Version 04.0
TOOL20
Methodological tool: Assessment of debundling for small-scale project activities
Version 04.0

TABLE OF CONTENTS Page

1.  INTRODUCTION ..................................................................................................... 3 

1.1.  Background .................................................................................................. 3 

1.2.  Objectives .................................................................................................... 3 

2.  SCOPE, APPLICABILITY, AND ENTRY INTO FORCE ......................................... 3 

2.1.  Scope........................................................................................................... 3 

2.2.  Applicability .................................................................................................. 3 

2.3.  Entry into force ............................................................................................. 3 

3.  NORMATIVE REFERENCES .................................................................................. 3 

4.  DEFINITIONS .......................................................................................................... 3 

5.  METHODOLOGY PROCEDURE............................................................................. 4 

5.1.  Determining the occurrence of debundling .................................................. 4 

5.1.1.  Type I project activities ............................................................... 4 

5.1.2.  Transport project activities .......................................................... 4 

5.2.  Determining the occurrence of debundling for multiple CDM projects

involving independent subsystem/measures ............................................... 5 

5.3.  Determining the occurrence of debundling under a programme of

activities (PoA) ............................................................................................. 5 

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Methodological tool: Assessment of debundling for small-scale project activities
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1. Introduction
1.1. Background
1. The Board at its thirty-fifth meeting requested the secretariat to consolidate all guidance
into one document, regarding the determination of the occurrence of debundling
including Appendix C of the simplified modalities and procedures for small-scale CDM
project activities, PoA debundling guidance, the guidance on mobile boundaries and
debunding guidance for Type I methodologies (EB 30 paragraph 37) and in doing so to
supplement this with a diagrammatic representation of the procedure.

1.2. Objectives
2. This methodological tool provides a step-wise approach for the determination of the
occurrence of debundling for small-scale project activities and small-scale component
project activities (CPA).

2. Scope, applicability, and entry into force

2.1. Scope
3. This methodological tool provides a step-wise approach for the determination of the
occurrence of debundling for the proposed small-scale project activities and small-scale
CPAs. These steps are summarized in figures 1 and 2.

2.2. Applicability
4. This methodological tool is applicable to proposed small-scale project activities and
small-scale CPAs in order to check whether they are debundled components of large-
scale project activities.

2.3. Entry into force

5. Immediately upon adoption of the methodological tool at the eighty-third meeting of the
Board (16 April 2015).

3. Normative references
6. This methodological tool refers to the following documents: Indicative simplified baseline
and monitoring methodologies for selected small-scale CDM project activity categories
(contained in annex II to decision 21/CP.8, see document FCCC/CP/2002/7/Add.3).

4. Definitions
7. The definitions contained in the Glossary of CDM terms shall apply.
8. Debundling is defined as the fragmentation of a large project activity into smaller parts. A
small-scale project activity that is part of a large project activity is not eligible to use the
simplified modalities and procedures for small-scale CDM project activities. The full

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Methodological tool: Assessment of debundling for small-scale project activities
Version 04.0

project activity or any component of the full project activity shall follow the regular CDM
modalities and procedures.

5. Methodology procedure
5.1. Determining the occurrence of debundling
9. A proposed small-scale project activity shall be deemed to be a debundled component of
a large project activity if there is a registered small-scale CDM project activity or an
application to register another small-scale CDM project activity:
(a) With the same project participants;
(b) In the same project category and technology/measure; and
(c) Registered within the previous 2 years; and
(d) Whose project boundary is within 1 km of the project boundary of the proposed
small- scale activity at the closest point.
10. If a proposed small-scale project activity is deemed to be a debundled component in
accordance with paragraph 2 above, but total size of such an activity combined with the
previous registered small-scale CDM project activity does not exceed the limits for small-
scale CDM project activities as set in paragraph 6 (c) of the decision 17/CP.7,1 the
project activity can qualify to use simplified modalities and procedures for small-scale
CDM project activities.

5.1.1. Type I project activities

11. In cases where a DOE has, in assessing the possibility that a small scale project is a
debundled component of a large scale project activity, determined that two or more
project activities are taking place within one kilometer of each other and with the same
project participants:
(a) The DOE shall ensure that these projects are described in the PDD and that the
validation report contains specific details on how it has been determined that the
project activities are not a debundled component of a large scale project activity;
(b) The DOE shall consider the project activities to be a debundled component of a
large scale project activity even in cases where they are taking place in different
project categories, if the project activities are Type 1 project activities providing
energy to the same user and are registered, or submitted for registration, with 2
years of each other.

5.1.2. Transport project activities

12. A proposed small-scale transport sector project activity involving boundaries/sources
that are mobile, shall be deemed to be a debundled component of a large project activity
if there is a registered small-scale CDM project activity or an application to register
another small-scale CDM project activity:

1
Limits have been revised as set in paragraph 28 of decision 1/CMP.2.

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Methodological tool: Assessment of debundling for small-scale project activities
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(a) With the same project participants; and

(b) In the same project category and technology/measure; and
(c) Registered within the previous 2 years.
13. The above provision excludes the condition to check that the project boundary is within 1
km of the project boundary of the proposed small-scale activity at the closest point and is
also applicable to the guidance for determining the occurrence of debundling under a
programme of activities (PoA).

5.2. Determining the occurrence of debundling for multiple CDM projects

involving independent subsystem/measures
14. If each of the independent subsystems/measures (e.g., biogas digesters, residential
solar energy systems, kerosene or incandescent lighting replacements) included in one
or more CDM project activities is no greater than 1% of the small scale thresholds
defined by the applied methodology and the subsystems/measures are indicated in the
PDDs to be each implemented at or in multiple locations (e.g., installed at or in multiple
homes) then these CDM project activities are exempted from performing a de-bundling
check, i.e., considered as being not a de-bundled component of a large scale activity.

5.3. Determining the occurrence of debundling under a programme of activities

(PoA)
15. For the purposes of registration of a Programme of Activities (PoA),2 a proposed small-
scale CPA of a PoA shall be deemed to be a de-bundled component of a large scale
activity if there is already an activity,3 which satisfies both conditions (a) and (b) below:
(a) Has the same activity implementer as the proposed small scale CPA or has a
coordinating or managing entity, which also manages a large scale PoA of the
same technology/measure, and;
(b) The boundary is within 1 km of the boundary of the proposed small-scale CPA, at
the closest point.
16. If a proposed small-scale CPA of a PoA is deemed to be a debundled component in
accordance with paragraph 2 above, but the total size of such a CPA combined with a
registered small-scale CPA of a PoA or a registered CDM project activity does not
exceed the limits for small-scale CDM and small-scale A/R project activities as set out in
Annex II of the decision 4/CMP.14 and 5/CMP.1 respectively, the CPA of a PoA can
qualify to use simplified modalities and procedures for small-scale CDM and small-scale
A/R CDM project activities.

2
Only those POAs need to be considered in determining de-bundling that are: (i) in the same
geographical area; and (ii) use the same methodology; as the POA to which proposed CPA is being
added.
3
Which may be a (i) registered small-scale CPA of a PoA, (ii) an application to register another small-
scale CPA of a PoA or (iii) another registered CDM project activity.
4
Limits have been revised as set in paragraph 28 of decision 1/CMP.2.

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17. If each of the independent subsystems/measures (e.g., biogas digester, solar home
system) included in the CPA of a PoA is no larger than 1% of the small-scale thresholds
defined by the methodology applied,5 then that CPA of PoA is exempted from performing
de-bundling check i.e., considering as not being a de-bundled component of a large
scale activity.

5
i.e., 15 kW installed capacity or 0.6 GWh annual energy savings or o.6 ktCO2e annual emission
reductions.

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Methodological tool: Assessment of debundling for small-scale project activities
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Figure 1. Flowchart of the step-wise approach for determining the occurrence of

debundling

Start
* In the context of this diagram:
- SSC PA stands for “a Small Scale CDM Project Activity”
- A “registered SSC PA” also includes a SSC PA which applied for
registration

Is there a registered SSC PA with

Yes the same project participants as No
the proposed SSC PA?

Is there a registered SSC PA in the

Are the registered SSC PA same project category and
No No
and proposed SSC PA, Type technology/measure as the
I activities providing energy proposed SSC PA?
to the same user? (as per
EB30, paragraph 37). Yes

Is the boundary of the registered

Yes SSC PA within 1 km of the boundary
No No
of the proposed SSC PA at the
Are the registered SSC PA closest point?
and the proposed SSC PA in
transport sector involving Yes
boundaries/sources that are
Yes Is the registered SSC PA registered
mobile? (as per EB 35, No
paragraph 58 & 59). within the previous 2 years?
Yes
Yes
Do SSC PAs comprise of
independent subsystems/measures
=<1% of applicable SSC threshold
implemented in multiple locations
(see paragraph 7)?

No

Yes Does the total size of the proposed

SSC PA combined with the
registered SSC PA exceed the limits
for SSC PAs?

No
The proposed SSC PA is The proposed SSC PA is The proposed SSC PA is
deemed to be a debundled deemed to be a debundled not deemed to be a
component of a large component of a large debundled component of a
project activity and is not project activity but can large project activity,
eligible to use the simplified qualify to use simplified therefore is eligible to use
modalities and procedures modalities and procedures the simplified modalities
for SSC PAs. for SSC PAs. and procedures for SSC
PAs.

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Methodological tool: Assessment of debundling for small-scale project activities
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Figure 2. Flowchart of the step-wise approach for determining the occurrence of

debundling under a programme of activities (PoA)

Start
* In the context of this diagram:
- Reference to POAs is to those PoAs that are: (i) in the same
geographical area; and (ii) use the same methodology as the POA to
which proposed CPA is being added
- An ‘activity’ is a (i) registered small-scale CPA of a PoA, or (ii) an
application to register another small-scale CPA of a PoA or (iii) another
registered CDM project activity

Is there an activity with the same activity

implementer as the proposed small scale
Yes CPA? OR is there an activity with the same No
coordinating or managing entity, which also
manages a large scale PoA of same sectoral
scope?

Are the activity and the

proposed small scale CPA, No
in the transport sector
involving
boundaries/sources that Is the boundary of the activity within 1 km of
are mobile? (as per EB 35, the boundary of the proposed small scale CPA
paragraph 58 & 59). at the closest point? (Para 10 applies for No
independent subsystems PoA).

Yes

Yes
Does the total size of the proposed small scale
CPA combined with the activity exceed the
limits for small scale PAs as set out in
Yes decision 4/CMP.1 and revised in 1/CMP.2 (for
energy) and 5/CMP.1 (for A/R) respectively?

No
The proposed small scale The proposed small scale The proposed small scale
CPA is deemed to be a CPA of PoA is deemed to be CPA of a PoA is not deemed
debundled component of a a debundled component of to be a debundled
large-scale activity and is a large-scale activity but component of a large-scale
not eligible to use the can qualify to use the activity, therefore is eligible
simplified modalities and simplified modalities and to use the simplified
procedures for small-scale procedures for small-scale modalities and procedures
project activities. project activities. for small-scale project
activities.

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Methodological tool: Assessment of debundling for small-scale project activities
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Document information

Version Date Description

04.0 16 April 2015 EB 83, Annex 13

Revision to reclassify this document from a guideline to a tool.
03.0 28 May 2010 EB 54, Annex 13
To provide an exempt from the debundling check for project
activities comprising of small independent subsystem/measures no
greater than 1% of applicable SSC threshold implemented in
multiple locations.
02.0 28 May 2009 EB 47, Annex 32
The revision to introduce the clarification of the Board at its forty-
seventh meeting that provides derogations from the debundling for
provisions for POAs involving “micro-scale” applications, i.e. where
the implemented units are 1% of the small-scale thresholds.
01.0 30 November 2007 EB 36, Annex 27
Initial adoption.
Decision Class: Regulatory
Document Type: Tool
Business Function: Methodology
Keywords: debundling, programme of activities, SSC project activities, transport, type (i) projects

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