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 Guidance for determining the occurrence of debundling under a PoA provides that the rules relating to debundling also apply to small-scale CDM Programme Activities (CPAs) under a Programme of Activities (PoA) (EB 33, Annex 21).  Debundling for a PoA is determined according to the following rule:

For the purposes of registration of a Programme of Activities (PoA), 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, which:

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 sectoral scope, and;

The boundary is within 1 km of the boundary of the proposed small-scale CPA, at the closest point (EB 33, Annex 21, paragraph 1; EB 36, Annex 27, paragraph 7).

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 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.18 and 5/CMP.1 respectively, the CPA of a PoA can qualify to use simplified modalities and procedures for smallscale CDM and small-scale A/R CDM project activities (EB 33, Annex 21, paragraph 2; EB 36, Annex 27, paragraph 8).

The following diagram shows a decision tree for determining the occurrence of debundling under a PoA (EB 36, Annex 27):