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The Carbon Protocol of SA (CPSA) is now the Coordinating Management Entity (CME) for three PoA’s listed below. Two Mining Energy Efficiency PoA’s are still under development.

1. SCOPE AND PURPOSE

The Carbon Protocol of SA acts as a platform for the hosting of a Programme of Activities (PoA) under the United Nations Framework Convention on Climate Change (UNFCCC) Clean Development Mechanism (CDM) of the Kyoto Protocol (KP).

2. PRINCIPLES

The principles according to which the platform is structured are:

Role of the CPSA
The role of the Carbon Protocol of SA is to act as Coordinating and Managing Entity (CME) for the PoA. In this regard it will also act as a trustee and coordinator in the best interest of each the underlying Component Project Activity (CPA) as part of the PoA.

Independence:
The platform is structured to balance the interests of all the role players in the PoA. These include the CPA owners, carbon credit buyers, technology suppliers or carbon consultants. This structure prevents possible conflict of interest between the different entities in the PoA.

Each PoA is structured and managed independently from all other PoA on this platform to ensure autonomy.

Control
The control of each PoA is specified in the Operational Agreement entered into between the Carbon Protocol of SA, the Project Developer of the PoA (typically the first Component Project Activity (CPA1) owner and a Carbon Specialist.

Management
Each PoA is managed by a Management Committee constituted in terms of the Operational agreement.

3. OPERATIONAL AGREEMENT

The PoA is governed by an Operational Agreement. The parties to this agreement are:

1: The Carbon Protocol of SA
The Carbon Protocol of SA is a not-for-profit organisation focussed on the climate change space in Southern Africa.

2: The Project Developer 
This is typically the CPA1 owner, but can also be other parties such as Certified Emission Reduction (CER) buyers or technology providers.

3: The Carbon Specialist
This is a carbon consulting firm who performs all of the duties required by the rules of the CDM, the UNFCCC Executive Board of the CDM and the Designated National Authority of the host country. The Carbon Specialist operates under a service level agreement.

The Operational Agreement covers the following aspects of the PoA:

  • Control of the PoA.
  • Financial management of the PoA.
  • Rights of the project developer.
  • Communication with the Executive Board of the CDM and the Designated National Authority.
  • Marketing of the CER.
  • Inclusion of new CPA.

4: REGISTERED PoA’S

The Carbon Protocol of SA has four PoAs registered with the UNFCCC:

  • PoA Name: Grid Connected Photovoltaic (PV) Renewable Electricity Generating Facilities PoA
  • PoA Nr: PoA 8630
  • UNFCCC web reference:
  • CPA1 is Cennergi (Proprietary) Limited
  • For more information on the above registered PoA or to bid for inclusion as a new component project activity on this platform, please contact the CME coordinator, at info@carbonprotocol.org or refer to section 5 below.

  • PoA Name: Solar Energy Programme for South Africa
  • PoA Nr: PoA 8535
  • UNFCCC web reference: 
  • CPA1 is Sishen Iron Ore Company (Proprietary) Limited / Kumba
  • For more information on the above registered PoA or to bid for inclusion as a new component project activity on this platform,please contact the CME coordinator, at info@carbonprotocol.org or refer to section 5 below.

  • PoA Name: South African Wind Power Projects PoA
  • PoA Nr: PoA 8742
  • UNFCCC web reference:
  • CPA1 is Cennergi (Proprietary) Limited
  • For more information on the above registered PoA or to bid for inclusion as a new component project activity on this platform, please contact the CME coordinator, at info@carbonprotocol.org or refer to section 5 below.

  • PoA Name: Cogeneration and-or trigeneration at commercial sites
  • PoA Nr:PoA 9347
  • UNFCCC web reference
  • CPA1 is MTN
  • For more information on the above registered PoA or to bid for inclusion as a new component project activity on this platform, please contact Carbon Protocol at info@carbonprotocol.org

5. MANAGEMENT OF THE PoA

The composition of the Management Committee is specified in the Operational Agreement and will vary from PoA to the next.

The following parties are typically included in the Management Committee:

  • Representatives of the CPA
  • Carbon Protocol of SA coordinator
  • Legal advisor
  • Carbon specialist

The Management Committee manages the PoA with respect to:

  • Scheduling of verifications, depending on carbon market conditions and the requirements of the CPA owners
  • Entering into agreements on behalf of the PoA with respect to issues such as verification agreements with the Designated Operational Entity (DOE), Emissions Reduction Purchase Agreement (ERPA) with carbon buyers service level agreements with carbon specialists, etc.

6. INCLUSION OF NEW COMPONENT PROJECT ACTIVITIES

The inclusion of a new CPA is a two-step process:

1: Technical eligibility
All CPA’s must comply with the eligibility criteria of the PoA as specified in the registered Programme of Activities Design Document (PoA-DD). The eligibility of any new CPA is checked by the carbon specialist appointed for this PoA.

2: Commercial Inclusion
The commercial terms of inclusion of a new CPA must be agreed upon between the owner of the new CPA and the management committee of the PoA.

7. COMMERCIAL ARRANGEMENTS

The finance of the PoA is structured in the following way:

Control
The finance is controlled by the Management Committee of the PoA. The Management Committee prepares a management plan and a budget on an annual basis. These documents form the basis on which the PoA is managed.

Costs
The costs of the PoA is covered in the following ways:

  • All costs must be specified in the annual budget
  • Costs are recovered from carbon credit revenue retained in the PoA
  • In the event that sufficient carbon credit revenue has not been retained, CPA owners will be required to pay an annual fee to cover costs. This must be specified in the annual budget
  • CPA owners are required to pay a joining fee to the Carbon Protocol of SA upon joining the PoA

Royalty
The project developer of the CPA1 of each PoA earns a royalty from all carbon credit revenue as compensation for the costs and effort invested in the development of the PoA. This is typically between 2% and 5% of CER.

For more information: The Kyoto Protocol and carbon credits www.unfccc.int/cdm