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The three types of project activities outlined above are mutually exclusive. In a project activity with
more than one component that will benefit from the simplified modalities and procedures for SSC
project activities, each component shall meet the threshold criterion of each applicable type, e.g.
for a project with both a renewable energy and an energy efficiency component, the renewable
energy component shall meet the criterion for “Type I: renewable energy” and the energy efficiency
component shall meet that for “Type II: energy efficiency improvement”.
2.2.4 Additionality in small scale CDM (SSC)
A simplified baseline and monitoring methodology listed in Appendix B of Annex II to Decision 21/
CP.8 (FCCC/CP/2002/7/Add.3) may be used for a SSC project activity if the project participants are
able to demonstrate to a DOE that the project activity would otherwise not be implemented due
to the existence of one or more of the barriers listed below. Project participants shall provide an
explanation to show that the project activity would not have occurred anyway due to at least one of
the following barriers:
(a) Investment barrier: a financially more viable alternative to the project activity would have led
to higher emissions;
(b) Technological barrier: a less technologically advanced alternative to the project activity
involves lower risks due to the performance uncertainty or low market share of the new
technology adopted for the project activity and so would have led to higher emissions;
(c) Barrier due to prevailing practice: prevailing practice, existing regulatory, or policy
requirements would have led to implementation of a technology with higher emissions;
(d) Other barriers: without the project activity, for another specific reason identified by the
project participant, such as institutional barriers or limited information, managerial resources,
organizational capacity, financial resources, or capacity to absorb new technologies, emissions
would have been higher.
It may be mentioned here that the EB has agreed to a compilation of non-binding best practice
examples to demonstrate additionality [EB35, Annex 34] to assist the development of PDDs for
small scale CDM project activities, which incorporates public inputs and an analysis of additionality
in registered SSC project activities. A general guidance to the SSC methodologies is available [EB41,
Annex 20].
2.2.5 Approved small scale CDM (SSC) methodologies
Approved methodologies for SSC project activities, which are listed in Appendix 2, are part of the
Appendix B of the simplified modalities and procedures for small scale CDM project activities
[decision 4/CMP.1, Annex II].
Project participants may propose changes to the simplified baseline and monitoring methodologies
or propose additional project categories for consideration by the EB. Project participants willing to
submit a new small scale CDM project activity category or revisions to a methodology shall make
a request in writing to the EB providing information about the technology/activity and proposals
on how a simplified baseline and monitoring methodology would be applied to this category. The
EB shall expeditiously, if possible at its next meeting, review the proposed methodology. All new
proposed small scale methodologies submissions undergo a desk review prior to consideration by
the EB [EB34, para. 26]. Once approved, the EB shall amend the indicative list of simplified baseline
and monitoring methodologies contained in Appendix B.
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