CD4CDM Suriname, First National Workshop, April 2008 Climate Change and CDM Institutional Architecture Glenn S. Hodes UNEP Risø Center

CD4CDM Suriname, First National Workshop, April 2008 Contents 1.Global climate change international regime 2.Climate change institutional architecture 3.Flexible Mechanisms under Kyoto Protocol 4.CDM institutional architecture 5.Key Players in CDM and Project Cycle

The United Nations Framework Convention on Climate Change (UNFCCC) Article 2: ”The ultimate objective of the UNFCCC is to stabilize atmospheric concentration of Greenhouse Gases at a level that would prevent dangerous anthropogenic interference with the climatic system

Global Warming Potentials

Greenhouse-gas Concentrations

Fossil Fuel CO 2 emissions We are now at 381 ppm CO2, + 2 ppm/year

The Fourth Assessment by the IPCC Working Group I "The Physical Science Basis" Working Group III "Mitigation of Climate Change" Synthesis ReportWorking Group II "Impacts, Adaptation and Vulnerability" Kan downloades fra

News since IPCC 3rd Assessment Report Most of the observed increase in globally-averaged temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic GHG concentrations. –Strengthened prior conclusion Projected sea level rise (2100 compared to level): cm Projected temperature increase (2100 compared to level): 1,1-6,4 degrees (from the 6 SRES Scenarios)

The Flexible Mechanisms Emission Trading (ET) Joint Implementation (JI) Clean Development Mechanism (CDM) The only way to obtain credits before 2008 was to make CDM. At the annual Conference of the Parties (COP) and the Meetings of the Parties (MOP) on Bali in December the Bali Roadmap was decided. It should lead to a new Climate Agreement Post-2012 should be agreed in Copenhagen in SBI/SBSTA meetings are held in between.

The purpose of the CDM Kyoto Protocol Article 12.2 “The purpose of the CDM shall be: To assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention, and To assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments under Article 3.”

Key Players in the CDM Process CDM Executive Board (EB). Designated Operational Entities (DOE). Designated National Authorities (DNA). CDM Project Developer/Investor. Certified Emission Reduction (CER) Buyer.

CDM institutional architecture under COP/MOP CDM-Project Project Developer Technology Supplier Technology / Know How Management Capital CERs Financing Owner/ Sponsor DOE DNA Contact CDM EB Validators

The Executive Board (EB) Ten members (fixed) and ten alternating all with specialized technical expertise. Key responsibilities: –Review & approve new methodologies related to baseline and monitoring plans. –Accreditation of Designated Operational Entities (DOEs). –Develop and maintain a CDM Project Registry. –Issue CERs. –Establish panels.

The Panels under EB 1) The Methodology Panel -evaluates proposed new methodologies (NM) and makes recommendation to the EB (A,B,C marks). 2) The Small Scale Working Group has had 14 meeting. It does the same for small scale methodologies as the Meth Panel does for full scale methodologies. 3) The Afforestation/Reforestation (A/R) Working Group has had 18 meetings. It does the same for A/R methodologies as the Meth Panel does for full scale methodologies. 4) The Accreditation Panel (AP) creates an Accreditation Team (AT) for companies wishing to be accredited as a DOE 5) The Registration and Issuance Team (RIT) assists EB in their task to consider requests for registration of project activities and requests for issuance of CERs by DOEs.

CDM Project Developer Key responsibilities: –Prepare Project Design Document (PDD). –Propose/select baseline methodology and ensure additionality criteria. –Obtain all permits and approvals from DNA. –Secure project financing.

Designated Operational Entities (DOE) Independent third party assigned by EB. Project developers choose the DOE they wish. Key responsibilities: –Validate proposed CDM projects on basis of set criteria. –Verify emission reductions in GHG from CDM projects. –Medium of communication between EB and project developer.

Designated National Authority (DNA) A country-level focal point for CDM, based in Ministry of Environment, Energy, or other relevant institution. Responsibilities include: –Issue Letter of Approval to project. –Help link domestic project developers and owners to international carbon market –Establish national CDM regulations, strategy, and criteria for sustainability and approval. –In some countries, promote CDM projects.

Elements in DNA approval letter The minimum requirement: 1.The country has ratified the Kyoto Protocol. 2.Approval of the voluntary participation (this includes authorisation of specific entities participating in the CDM projects). 3.Only for Host Party: Contribution to Sustainable Development. A Unilateral project can be registered, but the CERs cannot be issued before a letter of approval has been sent in from an Annex-I country.

Designated Operational Entities (DOEs): Accredited or with Indicative Letters.