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Status of negociations on CDM

Status of negociations on CDM. Perumal Arumugam Regional Workshop on CDM and NAMAs for Latin America and the Caribbean ,Bogota, (31 – 02 Sep 2014). Background.

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Status of negociations on CDM

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  1. Status of negociations on CDM Perumal Arumugam Regional Workshop on CDM and NAMAs for Latin America and the Caribbean ,Bogota, (31 – 02 Sep 2014)

  2. Background • Decision 4/CMP.9, at the thirty-ninth session of the Subsidiary Body for Implementation (SBI), requested the secretariat to prepare a technical paper, by 19 March 2014. • Three parties and eight other observer organizations submitted inputs to technical paper. • SBI 40 discussed the informal note prepared by the co-chairs in WARSAW taking into account the technical paper.

  3. Elements covered in the technical paper • Membership and composition of the EB • Liability of DOE to compensate for the issuance of CER resulting from significant deficiencies in validation, verification and certification reports • Provisions for programmes of activities • Length of the crediting period • Requirements for the demonstration of additionality • Further elaboration of the role of designated national authorities • Simplification and streamlining of the project cycle for certain project categories

  4. Key items in the Technical Paper - Governance • Removing the distinction between members and alternate members • Providing seats to private-sector and other organizations • Allocating a seat for least developed countries • Improving transparency in the nomination process • Limiting total length of service and terms on the Board • Improving gender balance • Ensuring competence • Protecting against conflict of interest • Professionalizing chair and vice-chair roles

  5. Key items in the Technical Paper – DOE Liability • Limiting the scope of liability • Changing the threshold of designated operational entity behaviour that triggers liability • Creating a reserve of certified emission reductions • Deducting certified emission reductions from later issuance • Deleting current requirements

  6. Key items in the Technical Paper – Programme of activities • Add new section in M&P • Environmental impact assessment and the local stakeholder consultation (PoAvs CPA) • Additionality and baseline setting (PoAvs CPA) • Inclusion of CPAs into a PoAby DOE • Duration of the crediting period • Several host Parties • CPAs to have different monitoring and verification schedules • Specific provisions on multi country PoA.

  7. Key items in the Technical Paper – Length of crediting period & Additionality • Shortening the length of each crediting period and/or reducing the possibility of renewal • Introducing a flexible approach to determining the length of crediting periods • Inclusion of [requirements] [principles] [means] for the demonstration of additionality • Possible [requirements] [principles] [means] • Investment analysis; • Common practice analysis; • Barrier analysis; • Positive lists; • ‘First -of -its -kind’; • Dynamic baselines; • Standardized approaches. • E+/E- policies • Limiting technology types • Reassess baseline scenario at RCP

  8. Key items in the Technical Paper – Role of DNA • Inclusion of separate section in M&P • Clarifying the roles of designated national authorities – (include current roles) • Increasing transparency at the designated national authority level (elements under discussion) • Validation by DNA • Handling complaints and stake holder comments • Requirements for the content and form of letters of approval • Key principles on withdrawal and suspension of LoA

  9. Key items in the Technical Paper – Simplification in validation and A/R • Remove validation for specific types of project activities • Remove the thresholds of micro scale CPA. • Land Parcel • Timing of verification • Permanence • Additional activities (LULUCF)

  10. Outcome of June sessions • Agenda item 6 (a) Review of the CDM modalities and procedures to continue in LIMA • Strong view of some Parties in favour (and against) to link the concept of net mitigation in CDM M&P review • Rule 16 of the Rules of Procedures followed • A new Co-Chairs note is issued, it reflects • the areas that Parties would like to further consider in Lima, • "agreed" views of those issues that shall be included in the review and finally • those matters that are outside the scope of the review and therefore do not require further consideration. • No official status for this document • It captures the progress of the deliberations by Parties and expected to be used in LIMA. • No mandated inter-sessional work has been agreed by Parties, • Work will cover the possibilities for the scope of such a review and its implications.

  11. THANK YOU! A.K.Perumal, Team Lead , Programme Officer, Standard Setting Unit of SDM, UNFCCC parumugam@unfccc.int

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