Transcript Climate Change and CDM Institutional Architecture

Climate Change and CDM
Institutional Architecture
Glenn S. Hodes
UNEP Risø Center
CD4CDM Suriname, First National Workshop, 23-24 April 2008
Contents
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Global climate change international regime
Climate change institutional architecture
Flexible Mechanisms under Kyoto Protocol
CDM institutional architecture
Key Players in CDM and Project Cycle
CD4CDM Suriname, First National Workshop, 23-24 April 2008
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 CO2 emissions
We are now at 381 ppm CO2, + 2 ppm/year
September 2004, [email protected]
.
The Risk to overshoot 2°C
The Fourth Assessment by the IPCC
Working Group
I "The Physical
Science Basis"
Working Group
II "Impacts,
Adaptation and
Vulnerability"
Working Group
III "Mitigation of
Climate Change"
Kan downloades fra www.ipcc.ch
Synthesis Report
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 1980-1999 level): 18-59
cm
• Projected temperature increase (2100 compared to 1980-1999
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.
Flexible mechanism
Emission Trading
Track 1 Joint Implementation
Track 2 Joint Implementation
CDM projects
Executive body
Validator/Verifier
Compliance Committee
National Government
Supervisory Committee
Executive Board
National Government
Independent Entities
Operational Entities
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 2009. SBI/SBSTA meetings are held in between.
Name of
units
AAUs
ERUs
ERUs
CERs
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.
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CDM institutional architecture under COP/MOP
CDM
EB
DOE
DNA
Contact
Validators
Project
Developer
Management
Technology
Supplier
Technology / Know How
Owner/
Sponsor
Capital
CDM-Project
CERs
Financing
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.
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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.
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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.
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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.
Indicative lettter: After the Desk Review and the On-site assessment is completed successful, the CDM Assessment Panel recommend
that the EB accredit the Applicant Entity (AE) once the CDM-AP has witnessed a CDM validation done by the AE. If this witnessing
activity is successfull, the EB can consider to register the validated CDM project.