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Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Implementing Article 6.4: Options for the Host
Party relating to the registration of any
transitioning CDM & new activities
Jane Ellis (OECD)
Virtual CCXG Global Forum on the Environment and Climate Change
March 2021
Based on: Lo Re, L. and J. Ellis (2021 draft)
Climate Change Expert Group
• Context
• Possible host Party (HP) tasks in relation to new Article 6.4 activities
• Options for HP in relation to possible transition of CDM activities to
Article 6.4
• Conclusions
Presentation outline
Climate Change Expert Group
Context
• Pace and scale of global GHG emission reductions needed is clear
• Host Party (HP) has NDC, needs to decide (if participating in A6.4):
• Criteria: whether to establish any domestic criteria for participation in A6.4
• Procedures: domestic processes to approve activities, authorise intl. transfers
• Actors: who is involved/in charge of which domestic procedures
• Standards: whether to have supplementary domestic standards for A6.4, e.g.
country-specific baseline methods, assumptions, emission factors etc.
• Widely different host Party (HP) contexts:
• Number/type of CDM projects that could transition
• Form, coverage and stringency of NDC
Climate Change Expert Group
Standards
Actors
Establish bodies to
undertake relevant
tasks (or assign to
already-existing
bodies)
Designate a
national
authority = needs CMA
agreement
= can usefully be
started prior to CMA
agreement
Optional: Establish (in addition to RMP) domestic
criteria on eligibility, timing etc
Optional: Establish any broader domestic criteria e.g.
SDGs linkages, cost floor
Technical work (e.g. development of standardised
methodologies in selected sectors)
Possible host Party tasks for new A6.4 activities (1)
• Many actions needed… and some optional actions
• These can be started before RMP agreed
Climate Change Expert Group
Possible host Party tasks for new A6.4 activities (2)
Establish
process to
authorise credit
issuance
Establish process
to assess a
proposed new
A6.4 activity
Quantitative info.
e.g. timeline of
current transfer
liabilities
Establish process
to domestically
approve proposed
activities
Procedures
AP to
submit
relevant
docs
DOE to submit
relevant forms
Define, allocate
responsibilities for
domestic A6.4
process
6.4SB to develop
activity-related
documents
Technical
input on
methods,
additionality
etc
Timeline of
expected
credits for
activity
= needs CMA
agreement
= 6.4SB
= DOE
= can usefully be
started prior to CMA
agreement
= host Party
= activity participants
Establish process
to request
registration
= new task compared
to CDM
• Some procedures could be “repurposed”
from the CDM
time
Climate Change Expert Group
Possible HP tasks for transitioning CDM activities
• The process for transitioning CDM activities could be organised in different
ways; different options have different time, resource implications
• Key question 1: which existing eligible CDM activities to approve to transition?
• Options: Blanket assessment, grouped assessment, case-by-case
• Key question 2: how to request, communicate HP approval?
• Options: Designated National Authority-led, proactive role of PP
Optimise
regulatory
efficiency
Minimise admin,
$ burden on PPs
Minimise admin
burden on HP
Compatibility
with A6.1
Blanket assessment High High High Low
Grouped assessmt. Medium Medium Medium Medium
Case-by-case Low Low Low High
Climate Change Expert Group
Conclusions
• New context; opportunity for:
• changes to domestic procedures for activity approval
• updated/new domestic criteria for A6.4 participation
• Lots of work needed, but not starting from scratch: e.g. CDM DNA
• Some new actions may be important, e.g. assessing timeline of credit
transfers from new/transitioning activities and how this could impact NDC
• Majority of HP work can start in advance of agreement on Article 6 rules,
modalities and procedures
• Trade-off between resource needs and compatibility with A6.1, e.g. in HP
approval for assessment to transition of eligible CDM activities
Climate Change Expert Group
Thank you!
For further information: www.oecd.org/env/cc/ccxg.htm
Jane.ellis@oecd.org
Luca.lore@iea.org

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CCXG Forum, March 2021, Jane Ellis

  • 1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm Implementing Article 6.4: Options for the Host Party relating to the registration of any transitioning CDM & new activities Jane Ellis (OECD) Virtual CCXG Global Forum on the Environment and Climate Change March 2021 Based on: Lo Re, L. and J. Ellis (2021 draft)
  • 2. Climate Change Expert Group • Context • Possible host Party (HP) tasks in relation to new Article 6.4 activities • Options for HP in relation to possible transition of CDM activities to Article 6.4 • Conclusions Presentation outline
  • 3. Climate Change Expert Group Context • Pace and scale of global GHG emission reductions needed is clear • Host Party (HP) has NDC, needs to decide (if participating in A6.4): • Criteria: whether to establish any domestic criteria for participation in A6.4 • Procedures: domestic processes to approve activities, authorise intl. transfers • Actors: who is involved/in charge of which domestic procedures • Standards: whether to have supplementary domestic standards for A6.4, e.g. country-specific baseline methods, assumptions, emission factors etc. • Widely different host Party (HP) contexts: • Number/type of CDM projects that could transition • Form, coverage and stringency of NDC
  • 4. Climate Change Expert Group Standards Actors Establish bodies to undertake relevant tasks (or assign to already-existing bodies) Designate a national authority = needs CMA agreement = can usefully be started prior to CMA agreement Optional: Establish (in addition to RMP) domestic criteria on eligibility, timing etc Optional: Establish any broader domestic criteria e.g. SDGs linkages, cost floor Technical work (e.g. development of standardised methodologies in selected sectors) Possible host Party tasks for new A6.4 activities (1) • Many actions needed… and some optional actions • These can be started before RMP agreed
  • 5. Climate Change Expert Group Possible host Party tasks for new A6.4 activities (2) Establish process to authorise credit issuance Establish process to assess a proposed new A6.4 activity Quantitative info. e.g. timeline of current transfer liabilities Establish process to domestically approve proposed activities Procedures AP to submit relevant docs DOE to submit relevant forms Define, allocate responsibilities for domestic A6.4 process 6.4SB to develop activity-related documents Technical input on methods, additionality etc Timeline of expected credits for activity = needs CMA agreement = 6.4SB = DOE = can usefully be started prior to CMA agreement = host Party = activity participants Establish process to request registration = new task compared to CDM • Some procedures could be “repurposed” from the CDM time
  • 6. Climate Change Expert Group Possible HP tasks for transitioning CDM activities • The process for transitioning CDM activities could be organised in different ways; different options have different time, resource implications • Key question 1: which existing eligible CDM activities to approve to transition? • Options: Blanket assessment, grouped assessment, case-by-case • Key question 2: how to request, communicate HP approval? • Options: Designated National Authority-led, proactive role of PP Optimise regulatory efficiency Minimise admin, $ burden on PPs Minimise admin burden on HP Compatibility with A6.1 Blanket assessment High High High Low Grouped assessmt. Medium Medium Medium Medium Case-by-case Low Low Low High
  • 7. Climate Change Expert Group Conclusions • New context; opportunity for: • changes to domestic procedures for activity approval • updated/new domestic criteria for A6.4 participation • Lots of work needed, but not starting from scratch: e.g. CDM DNA • Some new actions may be important, e.g. assessing timeline of credit transfers from new/transitioning activities and how this could impact NDC • Majority of HP work can start in advance of agreement on Article 6 rules, modalities and procedures • Trade-off between resource needs and compatibility with A6.1, e.g. in HP approval for assessment to transition of eligible CDM activities
  • 8. Climate Change Expert Group Thank you! For further information: www.oecd.org/env/cc/ccxg.htm Jane.ellis@oecd.org Luca.lore@iea.org