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CCXG Forum, March 2021, Sandra Greiner

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CCXG Forum, March 2021, Sandra Greiner

  1. 1. OECD/IEA CCXG Global Forum on the Environment and Climate Change Session 1: Implementing Article 6.4: Options for the possible transition of CDM activities – actors Sandra Greiner, The Gambia 15 March 2021 1
  2. 2. Focus of the intervention •The IEA/OECD draft discussion paper provides a welcome basis for thinking through the process of CDM transition • Good analysis of necessary coordination among actors & choices to be made •Two aspects deserve further exploration: 1. What are the host country tasks at the time of transition? 2. How could the 6.4SB and the CDM EB cooperate?
  3. 3. 1. Host country tasks in the transition • COP25 Presidency text: host country to provide approval of the transition to the 6.4SB •OECD/IEA: approval can take different shapes (blanket approval, grouped assessment or case-by-case) and be initiated via the 6.4 DNA or the PP • Also relevant: • What is the scope of the assessment? •What should the transition approval letter state?
  4. 4. Approval vs. authorization Article 6 DNA Article 6.4 Article 6.2 Authorization of ITMO transfer Letter of Approval Approval Para 39 (abbreviated): The approval shall include: (a) Confirmation that/ how the activity fosters SD in the host Party; (b) The approval of any potential renewal of the CP; (c) Explanation of how the activity relates to, and how the expected ERs contribute to, the host Party’s NDC Authorization Para 41: The host Party shall provide to the SB the authorization for A6.4ERs issued for the activity to be internationally transferred for use towards NDCs (…), if the Party decides to do so, and a statement as to whether a corresponding adjustment will be applied by the host Party for A6.4ERs (…). Para 70: A host Party shall apply a corresponding adjustment for all A6.4ERs first transferred consistent with decision X/CMA.2 (Guidance on cooperative approaches referred to in Article 6.2 (…)
  5. 5. Scope of the Transition LoA • Should focus on the approval of the mitigation activity, not the transfer of A64ERs as ITMOs • Transition LoA should elaborate on: • Contribution to sustainable development • Explanation how the activity relates to and emission reductions contribute to the NDC • Commitment to corresponding adjustment for A64ERs not a precondition for transition of activities – these decisions can be taken at a later stage •Host countries are free to incorporate additional requirements (e.g. update of the baseline in light of the NDC, minimum price requirements)
  6. 6. 2. CDM EB – 6.4SB coordination • OECD/IEA: CMA could mandate the 6.4SB to co-operate with the CDM EB, and in parallel, the CMP could also mandate the CDM EB to co-operate with the 6.4SB. • Given the multitude of tasks cooperation is essential • How would the cooperation look like? • Proposal: • 6.4SB to focus on regulatory tasks (e.g. approval of methodologies, accreditation standards, A6.4 registry) • CDM EB to focus on project specific tasks (project registration, inclusion renewal of crediting periods, issuance) • EB 108 recently enabled continuity of these functions on a provisional basis.
  7. 7. Thank you

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