Executive Board of the CDM:Progress update

Question and Answer Session

Bonn, Germany, 4 June 2013

Peer Stiansen, Chair

CDM Executive Board

PRESENTATION OUTLINE

I. INTRODUCTION

CDM in numbers

Business plan

II. STATUS UPDATE ON CMP RECOMMENDATIONSFROM 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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I. INTRODUCTION

To date, more than

6900 registered projects in 86 countries

1.3 billion certified emission reductions (CERs) issued

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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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Number of projects entering validation per month

I. INTRODUCTION

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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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II. STATUS UPDATE

STATUS

• Stakeholder input to EB in January; secretariat input in March

• EB submitted 22 recommendations in March forconsideration 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 forconsideration by the CMP

1. REVIEW OF CDM MODALITIES AND PROCEDURES

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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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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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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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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 hasproved 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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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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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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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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FURTHER INFORMATION:

http://cdm.unfccc.int/

THANK YOU

Peer Stiansen, Chair

CDM Executive Board

CDM EB Q & A session