CCXG Oct 2019 Governance and design issues relating to baseline methodology and approval - Jane Ellis

1. Climate Change Expert Group www.oecd.org/env/cc/ccxg.htm
Governance and design issues relating to
baseline methodology and approval
CCXG Global Forum on the Environment and Climate Change
1 October 2019
Jane Ellis
Based on Lo Re, Ellis, Vaidyula and Prag (2019, draft)
“Designing the Article 6.4 mechanism: assessing selected baseline
approaches and their implications”

2. 2 Climate Change Expert Group
Outline
 National processes (transferring party)
o Approval/authorisation
 International processes
o Relevant experience from the CDM
 Possible lessons for Article 6.4

3. 3 Climate Change Expert Group
National processes – transferring Party
 Emissions accounting
may differ for host
countries between
CDM and A6.4
 Process to approve
crediting projects,
authorise credit
transfers may need to
be revised/ developed Emissions
GHGinventory
Article 6.4 w corresp. adj.
Accounted
emissions =
(inventory + a)
a
GHGinventory
(No emissions target, so
no “accounted emissions”)
a
Emission levels in
the absence of the
activity A (baseline)
Under CDM
X X

4. 4 Climate Change Expert Group
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00
Singapore Brazil Peru UAE
International: lessons from CDM
Uneven methodology use
e.g. % of CDM activities
Significant variation in baseline levels
within a single approach for a
given country and project type
tCO2eq/MWh
Large-scale
grid-connected
renewables
(ACM0002)
Small-scale
grid-connected
renewables
(AMS-I.D.)
All 241
other
meths.

5. 5 Climate Change Expert Group
Possible lessons for Article 6.4
National
 Changes in accounting may mean transferring countries
need to strengthen processes for approval/authorisation
International
 A single baseline approach can lead to a wide variety of
baseline levels, depending on detailed assumptions,
methods etc. used … so safeguards/checks important
 Applying approved CDM methods to Article 6.4 will not
necessarily lead to conservative baselines
 Equal regulatory process vs uneven use
of CDM methodologies

6. 6 Climate Change Expert Group
Thank you!