Transcript Specific Principles to Guide Development of Mechanisms

Regional perspectives under the
Clean Development Mechanism
Jose Domingos Gonzalez Miguez,
Ministry of Science and Technology, Brazil
Origins of CDM
Brazilian Proposal
• An efficient manner to negotiate the sharing of the burden
of mitigating climate change
• Establishment of a “Clean Development Fund”
- penalty for non-compliance with targets
- financial resources to be applied in mitagation projects and a
small fraction in adaptation projects
G77 and China Proposal
US Bilateral Discussion
• Rejection of the ideas of “penalties” and “fund”
• Mechanism for involvement of private sector
• Further flexibility mechanism
• Development of a common ground
Clean Development Mechanism
• Objectives: Promote sustainable development in non Annex I and
and contribute to the ultimate objective of the Convention, and
Help Annex I Parties to comply with Protocol targets
• The CDM is the constructive way to involve developing countries
in the global effort to mitigate climate change
- no additional commitments to non Annex I Parties
- financial resources and technology transfer
• UN Convention on Climate Change is the adequate negotiating
forum for discussing and establishing the procedures and
guidelines of CDM
• OLADE Workshop is an important opportunity for advancing
the exchange of ideas in our region and ensuring the success of
COP 4 in Buenos Aires, Argentina
Clean Development Mechanism
• Compensates non-achievement of targets by Annex I Parties
through additional mitigation efforts done in non Annex I Parties
avoiding additional global warming
• Few low cost opportunities in mitigation projects in Annex I and
wide scope for low cost emission reductions projects in non Annex I
• New and additional financial resources proportional to
non-compliance
• Increase participation of developing countries in the
implementation of the Convention additional to existing
commitments
• Concrete way of transfering financial resources and technologies
to developing countries to allow implementation of the Convention
• Allow development in developing countries to occur in a less carbon
intensive path
Specific Guidelines for the
Development of Mechanisms
• Project or trade should:
• contribute to the achievement of the objectives of the
Convention
• lead to climate change mitigation
• produce emission reductions that can be measured and
certified
• ET and JI apply only to Annex I Parties
• Flexibility mechanisms should be implemented separately
• Projects should follow same guidelines and certification
process
Similarities and Differences
among Mechanisms
Similarities
• JI & ET apply only to Annex I and involve exchanging credits
• JI & CDM are project by project basis
• JI & CDM need definition for baselines
Differences
• ET is based on (certified ?) inventories
• ET depends on 1990 emission levels (quality of information ?)
• JI is bilateral
• CDM is multilateral
CDM Institutional Arrangement
Executive Board
CDM shall be controlled by the Parties under CoP guidance
and control through a representative Executive Board
EB/CDM
• composed of a small group of representatives of Parties
• selected on the basis of parity among regions of the world
• adequately balanced representation of Annex I & non Annex I
Guidelines should be developed for the EB/CDM
• Approve and adopt methodology for certification
• Registration and evaluation of certifying agencies
• Ultimate responsibility for certification, auditing and monitoring
emission reductions
• Promote development and transparency of CDM market
CDM Institutional Arrangement
Designated National Entity
• Establish additional country especific criteria for acceptance
of projects in accordance with national priorities for sustainable
development
• Evaluate, approve and certify submitted projects
• Increase awareness on CDM by private and public entities
• Coordination with other CDM international instances
Role of Other Climate Change Related Agencies
UNEP, UNDP, IDB, GEF, etc.
Certification, Monitoring &
Verification
Project certification
CDM requires
Realization monitoring
and auditing
Certification Issues
• What is the object of the certification ?
• Which will be the entity responsible for methodology
development?
• What will be the strategy for development of methodologies?
• What is the definition of baseline for a specific project?
• How will the certifying entities be selected ?
• Which types of projects will be allowed ?
Projects Nature
Type of projects : emission reductions (and sink enhancements ?)
Sectoral priorities in accordance with specific national circunstances
Emission reductions quantified on a project by project basis
CDM Market
Annex I Kyoto Protocol emission reductions targets
minus
• Domestic policy and measures in Annex I Parties
• JI Projects among Annex I
• Emissions Trading among Annex I
= CDM Market
•Small part of targets
•Market of high economic significance