1. Convention on Climate Change (CCC) Clean Development Mechanism (CDM)

2. Climate Change Science

5. Frying the Earth?

6. Climate Change Science

8. Forecast of Global Energy Demand Kyoto

9. Data Source: BP Statistical Review of World Energy 2001 and UN Population Division ) World primary energy use

10. But of course we don’t all use the same: global inequality in ‘domestic’ use Data Source: World Development Indicators, 2001 1 US 2 UK 3 Hong Kong 5 Chileans 6 Iraqis 10 Chinese 12 Zambians 16 Indians 23 Nepalese 28 Ethiopians 50 Bangladeshis

11. Convention on Climate Change The ultimate goal of the Climate Change Convention (1992) is to stabilize greenhouse gases in the atmosphere at levels that will not dangerously upset the global climate system. This should be done within a time frame that allows ecosystems to adapt naturally to climate change, ensures that food production is not threatened and enables economic development to proceed in a sustainable manner.

12. Developed nations, as well as a number of countries whose economies are in transition, such as in eastern Europe, shall adopt national policies and take measures to limit emissions of greenhouse gases. They shall also protect and improve forests, that acts as sinks and reservoirs for greenhouse gases Convention on Climate Change

13. The aim for these nations is to reduce their emissions of carbon dioxide and other greenhouse gases to 1990 levels. (The emissions of some other greenhouse gases, which also damage the ozone layer, are being controlled under other international agreements.) Convention on Climate Change

14. On a person basis, greenhouse gas emissions from developing countries are still relatively low. For these countries, the first and overriding priorities are economic and social development, and eradication of poverty. The developing nations’ share of global emissions will grow as their economies expand, and they use more energy. Convention on Climate Change

15. Developed countries shall help developing nations deal with requirements of Convention and the effects of climate change by: Providing money and technological assistance to help these nations measure flows of greenhouse gases. Assisting countries that are particularly vulnerable to harmful effects of climate change to meet the costs of adaptation. Providing environmentally sound technologies and know-how, as well as supporting the development of technologies within these nations. Convention on Climate Change

16. The Conference of the Parties (COP) is the "supreme body" of the Convention, that is, its highest decision-making authority. It is an association of all the countries that are Parties to the Convention Convention on Climate Change

17. The COP is responsible for keeping international efforts to address climate change on track. It reviews the implementation of the Convention and examines the commitments of Parties in light of the Convention’s objective, new scientific findings and experience gained in implementing climate change policies Convention on Climate Change

18. The Convention established two permanent subsidiary bodies: the Subsidiary Body for Scientific and Technological Advice (SBSTA) and the Subsidiary Body for Implementation (SBI). These bodies give advice to the COP and each has a specific mandate. They are both open to participation by any Party and governments often send representatives who are experts in the fields of the respective bodies. Convention on Climate Change

19. The SBSTA’s task is to provide the COP with advice on scientific, technological and methodological matters. Two key areas of work in this regard are promoting the development and transfer of environmentally-friendly technologies, and conducting technical work to improve the guidelines for preparing national communications and emission inventories.

20. Convention on Climate Change The SBI gives advice to the COP on all matters concerning the implementation of the Convention. A particularly important task in this respect is to examine the information in the national communications and emission inventories submitted by Parties in order to assess the Convention’s overall effectiveness

21. Clean Development Mechanism Of the some flexibility mechanisms in the Kyoto Protocol designed to engage the marketplace in meeting the commitments of the developed countries, the Clean Development Mechanism (2003) is the only one that involves developing countries. The CDM aims to direct private sector investment into emissions-reduction projects in developing countries while promoting sustainable development in these countries. Kyoto Parties with emission targets for 2008-2012 are eligible to apply certified emission reduction units from CDM-funded certified emission reductions (CER) towards meeting their target in and after 2000

22. Clean Development Mechanism The Clean Development Mechanism’s dual goals of funding sustainable development while creating cost effective greenhouse gas emission reductions can be achieved only via carefully structured contracts The CDM is unique in that the commodity it delivers – greenhouse gas emission reductions – requires no physical infrastructure for placement into international markets. Thus, if transaction costs and other barriers can be minimized, it is theoretically possible for even small-scale development projects to enhance revenue flow to developing countries via the emerging market for greenhouse gas reductions.

23. Clean Development Mechanism Purchasers of CERs will often be large, sophisticated multinationals with significant experience in project finance, commodity and derivative transactions. Some CER sellers will be multinationals as well, the sustainable development component of the CDM means local energy developers, community groups and even NGOs may end up as counter-parties. These smaller and less sophisticated sellers will likely require support to ensure that they engage in equitable contractual arrangements. In order to successfully execute a CDM transaction

24. Clean Development Mechanism In order to successfully execute a CDM transaction, the buyer and seller need to reach agreement on an appropriate structure for the transaction and an appropriate contract for the transaction. The structure of the transaction specifies the timing of cash payments by the buyer and the timing of CER deliveries by the seller. It is important that the legal agreement protect both the buyer and seller from the risk of non- performance by the other party.

25. Clean Development Mechanism Trading in carbon emission credits is a part of international agreements designed to combat climate change, thus effectively creating a new ‘commodity’ in international trade – one that is increasingly produced in the developing countries and consumed by more industrialized countries. UNDP advocates capacity development in all aspects of relevant human, institutional and system-wide issues and the creation of efficient and enabling environment and institutions for the developing countries that are producers of carbon credits.

26. Clean Development Mechanism This will ensure that they have favourable terms of trade and ability to negotiate with the private sector and other buyers as equal partners.

27. Clean Development Mechanism UNDP’s commitment to climate change is reflected in two UNDP energy priorities: Energy Priority: Promoting clean energy technology Modern energy technologies are available that can support win-win development options, addressing both global environmental protection and local development needs. These include modernised biomass, solar photovoltaics, wind, hydrogen and other renewable energy options. High-efficiency, super-clean carbon- based energy systems are part of win-win solutions. UNDP efforts in this priority area will support the introduction and adaptation of low emissions technologies that can support economic growth, social development and environmental sustainability.

28. Clean Development Mechanism Energy Priority: Increasing access to financing for energy As the majority of all new investments in energy will come from non-ODA sources, this priority will focus on support to enhance developing countries’ ability to attract investment financing for sustainable energy options. With increasing international attention on climate change issues, new energy financing opportunities are emerging. For developing countries to take maximum advantage of all these opportunities, information sharing and capacity building mechanisms are needed UNDP will support developing countries’ efforts to shape, learn about and participate in new energy financing mechanisms including the Clean Development Mechanism (CDM)Clean Development Mechanism (CDM)