Overview on CDMOverview on CDM

By Ann Gordon

Ministry of Natural Resources and the Environment

14th July 2011

Overview on CDMOverview on CDM

ContentsUnited Nations Framework

Convention on Climate ChangeKyoto Protocol to the UNFCCCAnnex I targetsThe Kyoto Mechanisms

United Nations Framework United Nations Framework Convention on Climate Change Convention on Climate Change (UNFCCC)(UNFCCC)

Ultimate Objective: “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system…within a timeframe sufficient to allow eco-systems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.”

UNFCCC- Developed UNFCCC- Developed CountriesCountriesCommitment - To return

individually or jointly to their 1990 levels of emissions of greenhouse gases (GHG) by 2000

However, their emissions continue to rise

UNFCCC UNFCCC Belize signed in 1992Belize ratified in 1994Convention came into force on 21

March 1994At COP 1 (1995) the Ad hoc Group

on the Berlin Mandate (AWG-BM) was established to draft an agreement to strengthen developed country commitments

8 negotiating sessions culminating in the Kyoto Protocol at COP 3 in 1997

Kyoto ProtocolKyoto Protocol

Parties included in Annex I (developed countries) shall reduce their overall emissions of GHGs by at least 5% below their 1990 levels in the 2008-2012 commitment period

Came into effect on 16 February 2005 when 50 Parties representing 55% of global GHG emissions ratified◦US withdrew

Greenhouse Gases (GHG)Greenhouse Gases (GHG)

Carbon dioxide (CO2)Methane (CH4)Nitrous oxide (N2O)Hydrofluorocarbons (HFCs)Perfluorocarbons (PFCs)Sulphur hexafluoride (SF6)

Sectors/Source CategoriesSectors/Source Categories

EnergyForestryIndustrial ProcessesAgricultureWasteSolvent and other product use

Quantified Emission TargetsQuantified Emission TargetsParty Quantified emission

limitation and reduction commitment

EU-15 -8%

United States -7%

Poland, Canada, Japan, Hungary

-6%

Croatia -5%

New Zealand, Russian Federation

0%

Norway +1%

Australia +8%

Iceland +10%

The Kyoto Protocol is the first concrete steps to curb GHG emissions

How Annex I countries meet How Annex I countries meet Kyoto commitmentKyoto commitment

Targeted GHG Reductions

Annex I countries

Domestic Actions

The Kyoto Protocol is the first concrete steps to curb GHG emissions

How Annex I countries meet How Annex I countries meet Kyoto commitmentKyoto commitment

Targeted GHG Reductions

Annex I countries

Domestic Actions

Flexible Kyoto Mechanisms

KYOTO MECHANISMS

Article 6: Joint

Implementation

Article 12: Clean

Development Mechanism

Article 17: Emission Trading

Partnership:Annex I + Annex

I

Partnership:Annex I + Annex

I

Partnership:Annex I + non-Annex I

ERUs CERs AAUs

Clean Development Clean Development MechanismMechanism

Annex I Countries

Non-Annex I Countries

Financial Investments

Developing countries

Industrialized Countries

Clean Development Clean Development MechanismMechanism

Annex I Countries

Non-Annex I Countries

Financial Investments

Technology Transfer

Developing countries

Industrialized Countries

What makes projects eligible for What makes projects eligible for CDMCDM

Baseline-What would happen in the absence of the Project

Emission Reduction

Project Emission

Baseline Emission

CERs

GHG Emissions

Year

Without CDM

With CDM

What makes projects eligible for What makes projects eligible for CDMCDM

CERs = Emission ReductionEmission Reduction = Baseline Emission – Project Emission-Leakage

Baseline-What would happen in the absence of the Project

Emission Reduction

Project Emission

Baseline Emission

CERs

GHG Emissions

Year

Without CDM

With CDM

Revenues from CERs

The CDM is supervised by the Executive BoardThe Executive Board is composed of 10

members , including one from each of the 5 official UN regions, one from the SIDS, and 2 each from AI and NAI

The EB accredits operational entitiesThe EB maintains a CDM registry

-issue new CERs-manage an account for CERs levied

adaptation and administrative expenses-maintain a CER account for each NAI

hosting a CDM project

International Structure for International Structure for CDMCDM