The pilot program in Senegal for results-based financing for climate change mitigation is based on the Standardized Crediting Framework (SCF) for energy access, which is a streamlined approach that combines many of the reforms previously proposed for the Clean Development Mechanism (CDM) under the Kyoto Protocol. While the SCF Pilot cannot guarantee that the activities undertaken will be eligible for crediting under the Paris Agreement, the results of the pilot will inform not only future climate change mitigation cooperation between Senegal and other countries, but also the development of rules of the new carbon market mechanisms.
The SCF Pilot will cover only Senegal, and will initially be limited to rural electrification. The SCF Pilot will initially include only one program – the rural electrification program undertaken by the Senegalese Rural Electrification Agency (Agence Sénégalaise d’Électrification Rurale – ASER).
This protocol was prepared under a contract to the World Bank as part of the Carbon Initiative for Development (Ci-Dev) by Carbon Limits AS and Climate Focus. This document outlines the rules for a pilot program in Senegal for results-based financing for climate change mitigation.
The Program Protocol, however, may be revised by the relevant authorities to include other technology areas in the future and allow for other programs. In fact, the Program Protocol has been designed to allow for future flexibility to accommodate other results-based finance programs.
The SCF Program Protocol would be approved and launched by the Governing Board.
Program governance and institutions
The SCF Pilot has an efficient governance structure that builds on the existing climate change institutional setup in Senegal. This leaner structure will test the appropriateness and effectiveness of the structure, relevant governance functions during the SCF Pilot and can potentially inform the establishment of a more permanent institutional setup in the future should the country decides to adopt such a framework as one of the most effective means of accessing climate finance for energy access programs. In addition, the SCF Pilot governance applies lessons learned from different carbon market standards, distinguishing more clearly policy and oversight-related functions from executive and administrative ones. The institutional arrangement for piloting of SCF in Senegal will be as follows, a Governin Board, a Technical Committee, an Administrator.
Figure . Governance structure of the SCF pilot
Sectors, technologies and project types covered
The SCF Pilot focuses on specific energy access technologies and project types – in other words the supply and distribution of modern energy services to new users. Emission reductions are from displacement of fossil fuel use such as in fossil fuel-based lighting systems, stand-alone diesel generators and diesel-based mini-grids.
The initial list of technologies and project types covered in the SCF Pilot include the following:
- Grid electrification
- Hybrid solar PV-diesel mini-grid electrification (new, extended or rehabilitated)
- Individual solar PV systems (e.g. solar home systems, solar water pumping, solar public lighting)
- Solar lanterns
Program cycle overview
The program cycle includes the following steps:
- Preparation: The Program Proponent develops a project concept and presents the program by filling in the Listing Template using the Listing Guidance
- Completeness Check and Listing: The Administrator, using the Completeness Check Template and Completeness Check Guidance, conducts a Completeness Check on the contents of the Listing Template. If the template is incomplete, the Administrator will request changes from the Program Proponent. If the template is complete and meets all requirements, the Administrator will inform the Program Proponent and the Governance Board of the acceptance of the program, and it will be listed in the official SCF Pilot registry.
- Monitoring: The Program Proponent monitors the performance of the program, and uses the monitoring data to complete the Monitoring Template referring to the Monitoring Guidance. At the end of the monitoring period, when the Monitoring Template is complete, the Program Proponent requests the Administrator to identify a list of Verifiers. The Program Proponent selects a verifier from this list.
- Verification: The Verifier verifies the monitoring data presented in the Monitoring Template using the Verification Template and Verification Guidance.[1]
- Certification: upon receipt of the Verifier’s positive verification report and recommendation of the Administrator, the SCF Governing Board will certify the emission reductions. Note that this step is not related to the CDM Executive Board in any way, although the same term is used in the CDM for the final approval of the verified emission reductions.
[1] During the pilot, the costs of verification will be covered by the World Bank.
More informations for programme cycle and procedure will be found in the SCF Program Protocol Ver 1.1.
Templates and guidance documents
The section lists the templates and guidance documents that are used in the SCF Pilot. If any of this documentation is revised, the most current version will appear on the COMNACC website or other designated SCF Pilot website.
- A. Methodology for Rural Electrification Ver 3.1
- B. Listing Document Template for Rural Electrification Ver 1.1
- C. Listing Document Guidance for Rural Electrification Ver 1.1
- D. Completeness Check Report Template for Rural Electrification Ver 1.1
- E. Completeness Check Guidance for Rural Electrification Ver 1.1
- F. Listing Notification Template for Rural Electrification Ver 1.0
- G. Monitoring Report Template for Rural Electrification Ver 3.1
- H. Monitoring Report Guidance for Rural Electrification Ver 2.1
- I. Monitoring Calculation Tool Ver 1.1 EN FR (annexed for the Monitoring Template for Rural Electrification (G))
- J. Verification Report Template Ver 1.1
- K. Verification Report Guidance Ver 1.1
