1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Implementing Article 6.4: Design options and
the role of different actors in the possible
transition of CDM activities
Luca Lo Re (IEA)
Based on: “Operationalising the Article 6.4 mechanism: options and implications of CDM activity
transition and new activity registration”, L. Lo Re and J. Ellis (2021, draft)
CCXG Global Forum on the Environment & Climate Change
March 2021

2. 2 Climate Change Expert Group
Outline
• Overview of actors involved in the possible transition of eligible CDM activities
• High-level criteria to guide the process for the possible transition
• Assessment of options to enable an efficient possible transition
• Conclusions

3. 3 Climate Change Expert Group
?
Overview of actors involved in the possible transition
Kyoto Protocol (CDM) Paris Agreement (A6.4) Others
CMP CMA
CDM EB 6.4SB
CDM host Party A6.4 host Party
DNA for CDM DNA for A6.4
DOE for CDM DOE for A6.4
PPs APs
SBSTA
SBI
UNFCCC secretariat
Take “official
decisions”
?
Elaborate
recommendations
Make choices
Implement “official
decisions” and
choices

4. 4 Climate Change Expert Group
High-level criteria to guide the process for the
possible transition of CDM activities
01
Ensure co-ordination across
different UNFCCC regimes
04
Minimise administrative
burden on host Parties
02
Optimise regulatory
efficiency
03
Minimise administrative and
monetary burden on project
participants of transitioning activities
05
Compatibility with Article
6.1 of the Paris Agreement

5. 5 Climate Change Expert Group
Ensure co-ordination across different UNFCCC regimes
CMP CMA
Invitation to co-operate
Acceptance to co-operate
CDM EB
mandate
6.4SB
mandate
Co-operate
recommendations recommendations
request request
SBSTA
SBI

6. 6 Climate Change Expert Group
Assessment of options for the possible transition
Optimise regulatory
efficiency
Minimise admin, $
burden on PPs
Minimise admin
burden on HP
Compatibility with
A6.1
Use of existing CDM
approved
methodologies without
any revision for an
interim period
High High Medium Low-High
Review (and potential
revision) of selected
CDM methodologies
Medium Medium Medium
Low-High
Review (and potential
revision) of all existing
CDM methodologies
Low Low Low High
The process for transitioning CDM activities could be organised in different ways; different options have
different time, resource implications
• Key question 1: what options are available for the use, review and possible revision of CDM methodologies
for transitioning activities?

7. 7 Climate Change Expert Group
Assessment of options for the possible transition
Optimise regulatory
efficiency
Minimise admin, $
burden on PPs
Minimise admin
burden on HP
Compatibility with
A6.1
Use existing CDM
accreditation
procedures as an
interim process
Medium-High High High N/A
6.4SB to review and
potentially revise the
existing CDM
accreditation system
Medium Medium Medium
N/A
Establish a completely
new accreditation
system for the Article
6.4 mechanism
Low Low Low N/A
• Key question 2: what options are available for the use or review of existing accreditation system?

8. 8 Climate Change Expert Group
Conclusions
• Different actors have different characteristics, with potential advantages and
disadvantages of their involvement in specific tasks of the possible transition
• Co-ordination among actors across different UNFCCC treaty regimes will be
key to enable that a possible transition is efficient
• High-level criteria could be used to assess options and guide decisions on the
possible transition
• Potential trade-offs in certain cases, e.g. in terms of burden on host Parties
and project participants, and the compatibility with Article 6.1 of the Paris
Agreement.

9. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
THANK YOU!
Implementing Article 6.4: Design options and
the role of different actors in the possible
transition of CDM activities
Luca Lo Re (IEA)
Based on: “Operationalising the Article 6.4 mechanism: options and implications of CDM activity
transition and new activity registration”, L. Lo Re and J. Ellis (2021, draft)
CCXG Global Forum on the Environment & Climate Change
15 – 17 March 2021