2Presentation titleBackgroundSDM’s core business in CP1 is focus on operation and improvement in the CDM & JIWith CP2, new conditions will apply to carbon marketsExpectation that there will be a reduction in demand for CER drastically in 2013Several new markets and instruments are emerging bottom-up globallyA new market based mechanism under UNFCCC was defined in DurbanA work programme for a Framework for various approaches was launched in Durban
3Presentation titleBackgroundThe current market situation reflects over-supply, economic uncertainties, and a generally immature market behaviorStrategically 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
4Presentation titleObjectiveIn light of current situation, objective of strategy is broadly twofold:Support markets / market approaches (including existing CDM & JI) to mature and become more sophisticatedPrepare for potential role(s) of the secretariat/UNFCCC in a new market situation
5Presentation titleSDM StrategyProvision of continued high quality support to the CDM & JI regulatory processesProvision of support to Parties in the negotiation process with regard to market-based approachesImplementation of some specific measures
6Specific Measures Overview Purpose Measure Presentation titleSpecific MeasuresOverviewPurpose MeasureBuild confidence in markets: Public commitment by market playersFuture market linkages: Engaging policy makers in new marketsExperience -> future mechamisms: CDM as standard setterFacilitate participation: Expanded registry servicesImprove integrity of mechanisms: Quality assuranceBuild capacity Regional support service
7Measures Public commitment from market players Presentation titleMeasuresPublic commitment from market playersPurpose: 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 mitigationMeans: A UNFCCC supported partnership/initiative along with key stakeholder organizations
8Measures Engaging policy makers in new markets Presentation titleMeasuresEngaging policy makers in new marketsPurpose: 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.
9Measures CDM as standard setter Presentation titleMeasuresCDM as standard setterPurpose: 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.
10Measures Expanded registry services Presentation titleMeasuresExpanded registry servicesPurpose: 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
11Measures Quality assurance Presentation titleMeasuresQuality assurancePurpose: 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 verificationMeans: 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
12Measures Regional support service Presentation titleMeasuresRegional support servicePurpose: Establish a support service to assist project development in under represented countriesOutcome: Increased capacity in under-represented areas to develop projectsMeans: 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”
13Cross-cutting measures Presentation titleCross-cutting measuresStrategic Communication &Review of Resources / ResponsibilitiesAlign communications and resources to the strategy, making necessary adjustments to related actions and means of workingBoth are essential for delivery of the various measures and overall aims
15Presentation titleOutcomeImplementation of the CDM and JI mechanisms beyond 2012 and ensuring their evolution in a complementary manner with further approaches as they evolveAllow SDM to continually be in a position to support Parties, constituted bodies and stakeholders effectively through the move toward the future market situationProvision of elements of support, including improved infrastructure, to the market