1. SDM Strategy SDM Joint Coordination Workshop
Presentation title
SDM Strategy
SDM Joint Coordination Workshop
Bonn, Germany March 2012
James Grabert, Coordinator SDM
UNFCCC secretariat, programme

2. Presentation title
Background
SDM’s core business in CP1 is focus on operation and improvement in the CDM & JI
With CP2, new conditions will apply to carbon markets
Expectation that there will be a reduction in demand for CER drastically in 2013
Several new markets and instruments are emerging bottom-up globally
A new market based mechanism under UNFCCC was defined in Durban
A work programme for a Framework for various approaches was launched in Durban

3. Presentation title
Background
The current market situation reflects over-supply, economic uncertainties, and a generally immature market behavior
Strategically the secretariat’s SDM programme needs to focus on the medium term perspective, preparing for a new market situation with several markets, several mechanisms, while, as yet, having an undefined role

4. Presentation title
Objective
In light of current situation, objective of strategy is broadly twofold:
Support markets / market approaches (including existing CDM & JI) to mature and become more sophisticated
Prepare for potential role(s) of the secretariat/UNFCCC in a new market situation

5. Presentation title
SDM Strategy
Provision of continued high quality support to the CDM & JI regulatory processes
Provision of support to Parties in the negotiation process with regard to market-based approaches
Implementation of some specific measures

6. Specific Measures Overview Purpose Measure
Presentation title
Specific Measures
Overview
Purpose Measure
Build confidence in markets: Public commitment by market players
Future market linkages: Engaging policy makers in new markets
Experience -> future mechamisms: CDM as standard setter
Facilitate participation: Expanded registry services
Improve integrity of mechanisms: Quality assurance
Build capacity Regional support service

7. Measures Public commitment from market players
Presentation title
Measures
Public commitment from market players
Purpose: Create a long-term commitment to carbon markets from major investors.
Outcome: Public statement on engagement in markets including a declaration of role of market mechanisms for cost effective mitigation
Means: A UNFCCC supported partnership/initiative along with key stakeholder organizations

8. Measures Engaging policy makers in new markets
Presentation title
Measures
Engaging policy makers in new markets
Purpose: Explore foundations of a future integrated carbon market – how existing and new mechanisms may be linked under the future climate regime.
Outcome: Gain hands-on experiences from connecting bottom- up markets with KP markets. Possibility for greater fungibility of KP units in new markets.
Means: A systematic approach to contacting and interacting with policy makers, regulators and other key stakeholders in new markets.

9. Measures CDM as standard setter
Presentation title
Measures
CDM as standard setter
Purpose: Use CDM standards as a bridge to the future mechanisms (e.g. NAMAs, NMBM). An increased level of understanding on how the current reformed CDM can support the development and implementation of future mechanisms is needed.
Outcome: Future mechanism’s take fully into account the experience and unique expertise that has built up around CDM.
Means: Through further implementation of CDM, in particular standardised baselines and PoAs, and broadening the reach of the CDM to under represented regions, underprivileged communities, and sectors, along with process improvements that particularly build the bridge to future mechanisms.

10. Measures Expanded registry services
Presentation title
Measures
Expanded registry services
Purpose: Facilitate the uptake of market mechanisms, promotion of a common framework for tracking units.
Outcome: Registry services available to private and public (non- state) entities to allow cancellation of units on a voluntary basis.
Means: Technical set-up and operation of registry

11. Measures Quality assurance
Presentation title
Measures
Quality assurance
Purpose: Improve integrity of units generated and enhance the reputation of existing mechanisms.
Outcome: Dispelled doubts on the quality of units and improved quality in the outcomes of the various steps of validation and verification
Means: Review the internal operations and relations in the process - - PP / DOE-AIE / Secretariat and consideration of specific actions taking into account the CDM modalities and JI Guidelines

12. Measures Regional support service
Presentation title
Measures
Regional support service
Purpose: Establish a support service to assist project development in under represented countries
Outcome: Increased capacity in under-represented areas to develop projects
Means: Establish in-person support service, including through cooperation with UN agencies with local/regional presence so as to achieve efficiencies in being close to the “customers”

13. Cross-cutting measures
Presentation title
Cross-cutting measures
Strategic Communication &
Review of Resources / Responsibilities
Align communications and resources to the strategy, making necessary adjustments to related actions and means of working
Both are essential for delivery of the various measures and overall aims

14. Relationship: measures and markets

15. Presentation title
Outcome
Implementation of the CDM and JI mechanisms beyond 2012 and ensuring their evolution in a complementary manner with further approaches as they evolve
Allow SDM to continually be in a position to support Parties, constituted bodies and stakeholders effectively through the move toward the future market situation
Provision of elements of support, including improved infrastructure, to the market

16. Presentation title
Thank you!