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CCXG Forum, March 2021, Luca Lo Re

  1. 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. 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. 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. 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. 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. 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. 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. 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. 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

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