overview_ presentation from unfccc

8/3/2019 Overview_ Presentation From UNFCCC

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Kai-Uwe Barani

SchmidtSecretary

CDM Executive Board

Clean

Development

Mechanism

Carbon Forum America

26 February 2008


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Legal basis in the Kyoto Protocol

Run by Executive Board (EB) answerable to KP Parties

EB back-stopped by UNFCCC secretariat with support for:

Registration and issuance

Accreditation of certification companies

Methodologies for emissions baseline setting andmonitoring

CDM general overview| International mandate


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Additionality

Define operationally what would happen in the absenceof a CDM emission reduction project

Two experts

two views

Agreement how best to do it

A challenge for any offset mechanism/market outsidean inventory target based system

CDM general overview| International challenge


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Not an academic concept

CDM is up and running!

CDM general overview| Worlds largest CO2 offset system

2 years of operational experience (in the context ofexponential growth!)

100,000,000 CERs issued at USD15 worth about 1.5billion -

low global administration cost below 1% Large pool of learning opportunities


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CDM general overview| Global reach

945 projects registered to date

49 countries 119 million certified emission reductions (CERs) issued

approx. additional 2000 projects in pipeline

2.6 billion CERs expected to end of 2012

341 below 25 K CERs/y; 23 projects above 500 K/y


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0

39183

685

945

114

471

750

1,600

3,000

100

530

940

1,900

2,700

0

500

1000

1500

2000

2500

3000

3500

May 2005 (SB22) December 2005

(COP/MOP1)

May-06 May-07 Feb-08

Registered project activities Projects in the pipeline Projected CERs

No.

ofP

rojects/

CERsbefore2012(millions)

An explosion of project activities representinga broad range of project types and sizes

CDM general overview| Strong demand


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Stakholders say CDM is:

A development tool Executive Board should make it finddevelopment opportunities

A market mechanism it will find low-cost reductions on itsown, guided by private sector interests/market forces

CDM general overview| Competing views


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Actually, CDM is both.

It creates incentive for investment

That assist in sustainable developmentand

In lower cost opportunities foremission reduction

CDM general overview| Creating incentive


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A key challenge (imperative) is to maintain quality. Each CER mustrepresent an emission reduction equivalent to one tonne of CO2, sothat an emission can be offset, and done so cost effectively.

The EB must strike a balance:

Recognize the challenges/constraints faced by projectproponents and engage in constructive dialogue with projectproponents

Ensure the public interest, the quality imperative, so that anoffset produced does not result in an increase in emissions

CDM general overview| CDM quality standard


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CDM projects that entered pipeline in 2006 estimatedto result in USD 25 billion in capital investment

(almost doublethe USD 14 billion in total investment leveraged throughGEF in the climate change area since it started more than 10 yearsago)

CDM renewable energy and energy efficiencyprojects registered in 2006 expected to result inUSD 5.7 billion in capital investment

(about triplethe ODA support for energy policy and renewable energyprojects in the same countries. Almost as much as private investment inrenewable energy and energy efficiency (USD 6.5 billion in 2006) in thesame countries)

CDM general overview| Investment, financial flows

Condensed from the report of the CDM Executive Board to the COP/MOP 2007

, page 4.


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CDM general overview| Investment, financial flows

Most CDM projects are small

Most are in energy industries (renewable/non-renewable)

Projects in pipeline, by emission reductions (number of expected CERs)Registration pipeline >3000 projects (including registered projects)


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CDM is new, but it has already shown that it can work, that it

can evolve and adapt

Whats more, stakeholders have direct influence on theevolution/improvement of CDM

These facts, together with CDMs full transparency,* haveearned the mechanism respect, has enabled CDM toweather misplaced criticism and benefit from constructivecriticism

* Virtually every document, related to every project, is available onthe CDM website.

CDM general overview| Transparency


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Bears important lessons in how to establish additionalemission reductions in a measurable and verifiablemanner for use as offsets

Moved offset concept to operation on a global scale

Bears important lessons regarding bottom-up approachand participation

Assists in sustainable development

CDM general overview| Learning by doing

CDM:


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CDM Bazaar

http://www.cdmbazaar.net/

Catalogue of decisions (test):

http://test.cdmis.net/catalogue-test

CDM UNFCCC website

cdm.unfccc.int

UNEP RISOE

http://cdmpipeline.org/

Thank You!

We are here to interact. Drop in to our booth.

overview_ presentation from unfccc

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