Debundling

Debundling is defined in 4/CMP.1, Annex II, Appendix C (Decision tree for determining the occurrence of debundling) as follows:

Debundling is defined as the fragmentation of a large project activity into smaller parts (4/CMP.1, Annex II, Appendix C, paragraph 1; previously EB 7, Annex 7, paragraph 1).

The debundling rules provide that where a project activity is properly characterised as a small part of a large project activity (rather than a separate small-scale project activity), the project activity shall not be entitled to use the simplified modalities and procedures for small-scale projects.

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 project activity or any component of the full project activity shall follow the regular CDM modalities and procedures (4/CMP.1, Annex II, Appendix C, paragraph 1).

The current guidelines for debundling under a PoA are found in the Guidelines on assessment of de-bundling for SSC project activities (version 3) (EB 54, Annex 13) and provides an overview of the above COP/MOP decision, in addition to further guidance:

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. (EB 54, Annex 13, paragraph 1)

Debundling for a PoA is determined according to the following rule:

A proposed small-scale project activity shall be deemed to be a debundled component of a large scale activity if there is a registered small-scale CDM project activity or an application to register another small-scale CDM project activity:

with the same project participants;

in the same project category and technology/measure;

registered within the previous 2 years; and

whose project boundary is within 1 km of the project boundary of the proposed small-scale activity at the closest point. (EB 54, Annex 13, paragraph 2).

However, if the combined size of proposed small-scale CPAs (that are deemed to be debundled components of a large-scale CPA) does not exceed the relevant limits for that type of small-scale project, the bundle will be eligible to use the simplified modalities and procedures:

If a proposed small-scale CPA of a PoA is deemed to be a debundled component in accordance with paragraph 2 [sic] above, but the 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 out in paragraph 6(c) of the decision 17/CP.7, the project activity can qualify to use simplied modalities and procedures for small-scale CDM project activities (EB 54, Annex 13, paragraph 3).

The following diagram shows a decision tree for determining the occurrence of debundling under a PoA: