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Q & A session on the Kyoto Protocol's clean development mechanism
1. Executive Board of the CDM:
Progress update
Question and Answer Session
Bonn, Germany, 4 June 2013
Peer Stiansen, Chair
CDM Executive Board
2. PRESENTATION OUTLINE
I. INTRODUCTION
CDM in numbers
Business plan
II. STATUS UPDATE ON CMP RECOMMENDATIONS
FROM COP 18
1. Review of modalities and procedures
2. Methodologies and additionality
3. Registration and issuance
4. Regional distribution
III. CDM FIT FOR THE FUTURE
CDM Perception survey – Preliminary results
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3. I. INTRODUCTION
To date, more than
6900 registered projects in 86 countries
1.3 billion certified emission reductions (CERs) issued
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4. Years of strong growth, steady
improvement, evolution in CDM toward
scalability
Currently:
• Low demand for CERs, resulting in
• Low prices, resulting in
• Lack of incentive to develop projects
I. INTRODUCTION
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6. I. INTRODUCTION
• Provide for simplicity in the operation of the
CDM
• Ensure the integrity of CERs
• Ensure CDM’s contribution to climate change
mitigation and sustainable development
• Expand the geographic reach of the CDM
• Promote the use, and safeguard the reputation
of, the CDM
BUSINESS PLAN INCLUDES PROJECTS THAT WILL:
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7. II. STATUS UPDATE
STATUS
• Stakeholder input to EB in January; secretariat input in
March
• EB submitted 22 recommendations in March for
consideration by the SBI
• Parties and admitted observer organizations submitted
input in March
• Secretariat prepared compilation document for
consideration by SBI
Further steps:
• Secretariat to organize workshop to facilitate progress
• SBI to prepare recommendations for
consideration by the CMP
1. REVIEW OF CDM
MODALITIES AND PROCEDURES
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8. II. STATUS UPDATE
STATUS
• Simplified modalities for the demonstration of
additionality are being further extended (work plan
approved)
• Positive lists are being applied to a wider scope of
small-scale projects
• Requirements for programmes of activities being
further developed to enhance simplicity while
ensuring environmental integrity
• Methodologies being further simplified and
streamlined with the aim of reducing transaction costs
• More cost-effective approaches in
afforestation/reforestation methodologies being
explored
2. METHODOLOGIES AND ADDITIONALITY
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9. II. STATUS UPDATE
STATUS
• Ways to streamline the registration and
issuance of projects and PoAs being considered
to ensure that average time between submission
and completeness check is fewer than 15
calendar days
• Possibility of reviewing validation process of
projects that are deemed automatically
additional is being explored
3. REGISTRATION AND ISSUANCE
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10. II. STATUS UPDATE
STATUS
• Regional collaboration centres (RCCs) are
operational in Lomé, Togo and Kampala, Uganda
• RCC in St George's, Grenada to start operation in
early July 2013
• RCCs to be established: Manila and Bogota
• New approaches being further developed
(PoAs and Standardized Baselines)
• Rules are further simplified
• Capacity-building activities, DNA Help Desk, Loan
Scheme
• More targeted methodologies being developed
4. REGIONAL DISTRIBUTION
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11. III. CDM FIT FOR THE FUTURE
• CMP reiterated importance of CDM as a tool to
mitigate climate change
• Second commitment period of Kyoto Protocol
agreed
• CDM a mature mechanism that has
proved its worth
• Possible expanding role for the CDM in emerging
emission trading systems
• Potential new sources of demand
FIT FOR THE FUTURE
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12. IV. CDM FIT FOR THE FUTURE
77.5% of recipients strongly agree or agree
that there is a role for the CDM in the future.
CDM PERCEPTION SURVEY: Preliminary results
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13. 55.9% of recipients believe that the CDM’s biggest strength is
its standards for estimation of emission reductions
IV. CDM FIT FOR THE FUTURE
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14. SOME UPCOMING EVENTS
7th
CDM Roundtable – Bonn, 20 April
Regional Calibration Workshop – China, 3-4 June,
India, 7-8 June
8th
CDM Roundtable – Bonn, 17 June
African DNA training – Cote D’Ivoire, 30 June-2 July
African Carbon Forum– Cote D’Ivoire, 3-5 July
DNA training for Asia, Pacific and Eastern Europe –
Philippines, 2-3 September
9th
CDM Roundtable – 23 August
Regional Calibration Workshop – Bonn, 5-6 Sept.
DOE/AIE Forum – Bonn, 28 Oct.
DNA Forum– Warsaw, 9-10 Nov.
STAKEHOLDER ENGAGEMENT EVENTS
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Approaching 7000 projects – Mechanism has been embraced enthusiastically, well beyond expectations More than 1.3 billion CERs issued – The ability achieve reductions and create offsets give confidence to countries to take on more ambition Presentation title
Presentation title It is clear that the CDM has come a long way – However: The prices of CERs have hit record lows due to diminished demand. This is removing incentive for project development, and threatening to erode the considerable progress made to date in implementing, growing and improving the CDM. List of accomplishments in 2012: Finalized framework for implementation of standardized baselines Adopted a consolidated methodologies procedure Scaled up assessment : Handled rush of submissions Guidance strengthened: Financial benchmarking , common practice , and first of its kind Approved standard for quality of data used to develop standardized baselines PoA rules clarified and standard revised (148 PoAs registered; a third in Africa) Rules for micro-scale projects further simplified Suppressed demand guidelines implemented Regional collaboration enhanced Loan scheme launched 26 new methodologies approved Expanded ‘positive list’ of small - scale renew. energy techs. automatically deemed additional Approved t ool project participants can use to showcase sustainable development benefits DNA help desk Project participants help desk Provided stakeholders with a complete overview of work items t o be considered
The number of projects entering validation surged in 2012, reaching a peak in April when 325 projects entered validation. You will see from the this graph that the number of projects entering validation has fallen off. Presentation title
Presentation title Adjusting the MAP to make the work match the needs and the current market situation. Special meeting in January, revist the budget in July. Gone from period of regular growth to now modest cuts.
Presentation title As they do each year, the Parties to the Kyoto Protocol gave the Board various tasks – Further guidance. An extremely important part of that work is the review of the modalities and procedures – this was actually a mandate contained in the initial decision on the CDM.
Presentation title
Presentation title Due to large submissions of requests for registration in the last months of 2012, the processing of these submissions is still taking place in 2013. After placing as priority the processing of requests for registration in November-December 2012, the Board requested the secretariat to place priority on processing of requests for issuance in March 2013 (which had been left pending due to prioritisation on registration cases). The processing of requests for issuance is now done within the CMP mandate of 15 days (the volume of pending requests for issuance was lower than those of registration). The processing of requests for registration from end of December 2013 is nearing completion.
Presentation title
Presentation title The price of CERs is currently very low. This is a function of demand – which is related to countries‘ level of ambition to reduce GHG emissions. When countries take on the level of ambition that the science tells us is needed then CDM and mechanisms like it will be indispensible. In the meantime, the Board is working to implement and to further enahance the mechanism.
Secretariat conducting a survey of views on the CDM. Preliminary results are informative and quite encouraging – Of note, like the Board, people see a continuing role for the CDM. Questionnaire received by 5,700 CDM stakeholders (Parties, NGOs, PPs, DNAs, DOEs, Academics, Environmental institutes etc.) . It was also promoted via social media and the CDM website. 867 people completed the survey Presentation title
Presentation title
Presentation title I‘ll also take this opportunity to list some of the events held and planned in 2013.