UNFCCC Secretariat Overview of the CDM and the CDM project Cycle Training-Workshop to support the “Uganda Municipal Waste Compost Programme” Kampala, Uganda,

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Presentation transcript:

UNFCCC Secretariat Overview of the CDM and the CDM project Cycle Training-Workshop to support the “Uganda Municipal Waste Compost Programme” Kampala, Uganda, 21-24th October 2013 Session 2: The CDM Project Cycle

Objectives Carbon Trading CDM project Cycle Review Clean Development Mechanism

Objectives Carbon Trading

How does the emission trading scheme work?

5 Legally binding targets for emissions of six major greenhouse gases in industrialized countries during first commitment period New international market-based mechanisms, creating a new commodity: carbon Facilitate sustainable development The Kyoto Protocol

6 Emission Trading (ET): exchanging emission allowances among Kyoto Protocol Parties Clean Development Mechanism (CDM): credits for emissions reduced/avoided through sustainable development projects in developing countries (non-Annex I countries) Joint Implementation (JI): credits for emissions avoided through projects in Annex I countries Market based Mechanisms

7 = Emission allowances to sell = Emission units/credits needed Emissions cap Emitter A Emission allowances Emissions cap Downward pressure on emissions Emitter B = = = = Emissions cap Emitter A Emission allowances Emissions cap Downward pressure on emissions Emitter B Emissions cap Emitter A Emission allowances Emissions cap Downward pressure on emissions Emitter B Emissions Trading

Objectives Clean Development Mechanism

projects are issued saleable credits Sustainable Development & Carbon Credits Contribution to Sustainable Development - employment, income generation, health benefits and infrastructure development

10 = Certified Emissions Reduction Time Emissions With CDM project Without CDM project PROJECTS ON THE GROUND

11 PROJECTS ON THE GROUND – What do they look like? Landfill Gas Collection Bagasse Cogeneration Power Projects Emission reduction projects in developing countries Project activities generate CERs CERs are traded to help Annex I Parties meet their Kyoto Protocol emission reduction goals Assist host country in Sustainable development Energy Efficient Cookstoves

12 CDM is the largest and most widely recognized offset mechanism in the world. 7,217 registered projects in 89 countries 1.38 billion CERs issued to date Estimated leveraged at least USD 315 billion in capital investment to underpin climate mitigation efforts since 2004 Crediting of a further 1.4 to 6.2 billion emission reductions by Status: EB business plan , 4 th October 2013 A Mechanism with Global Reach

Objectives CDM project Cycle

14 QUESTION 2 – Who is involved? What is the CDM project cycle? Verification & Certification CDM PROJECT CYCLE Approval Registration Monitoring CER Issuance Validation PDD Development EB WHO IS INVOLVED?

Who is involved in the Project Cycle? EB Designated operational entity (DOE) Independent accredited auditors Designated national authority (DNA) Approves implementation of a CDM project in their country Project participant (PP) Develops a project or programme of activity Carbon Consultant CDM advice and CERs sales Wider Stakeholders 15 UNFCCC Secretariat

16 = Certified Emissions Reduction Time Emissions With CDM project Without CDM project PROJECTS ON THE GROUND

17 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

18 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

19 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

20 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

21 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

22 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

23 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

24 CDM project cycle Verification & Certification (DOE) CDM/PoA PROJECT CYCLE Approval (DNA) Registration (EB) Monitoring (Project Participant) CER Issuance (EB) Validation (DOE) PDD Development (Project Participant) Project Idea (Project Participant)

Objectives Review

Contribution to Sustainable Development

27 Thank you for your attention CDM Regional Collaboration Centre A collaboration between the UNFCCC Climate Change Secretariat and the East African Development Bank EADB Offices, No. 4, Nile Avenue P.O. Box 7128, Kampala, Uganda Phone: +256 (0)