[1] The aim of PoAs was to allow replicable projects with low and physically spread greenhouse gas reductions into the CDM.
This type of project is often linked to higher sustainability benefits, but are too small to pay back the transaction cost involved in the CDM process.
By its thirty-sixth meeting (November 2007), the CDM Executive Board approved the official templates for Project Design Documents suitable for Programme of Activities (titled PoA-DD), its constituent activities (CPA-DD), and issued procedures to register PoAs and issue CERs.
It is also very difficult to implement such a process in least developed countries and small island states where average project sizes and the scale of national markets tend to be smaller, so relative transaction costs are higher.
[5] Projects that distribute compact fluorescent lamps, efficient cook-stoves, Building refurbishment or solar water heaters, are some examples where PoAs, as defined by CDM, can be used.
The modality is also applicable for larger scale activities such as small hydro power plants or composting.