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The CDM Process and Project Cycle time frame, roles and responsibilities J rgen Fenhann, UNEP Ris Centre Regional CD

The UNFCCC-CDM homepage. The COP/MOP responsibilities. Make decisions on the recommendations made by the Executive Board on its rules of procedure;The designation of Operational EntitiesReview annual reports of the Executive Board;Review the regional and subregional distribution of DOEs and CDM project activities.Assist in arranging funding of CDM project activities.

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The CDM Process and Project Cycle time frame, roles and responsibilities J rgen Fenhann, UNEP Ris Centre Regional CD

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    1. The CDM Process and Project Cycle time frame, roles and responsibilities" Jrgen Fenhann, UNEP Ris Centre Regional CD4CDM meeting Halong Bay, Vietnam, 18. November 2003 Content of the presentation: The most important web-side: cdm.unfccc.int COP/MOP, EB (+panels), DNAs, DOEs The Project Design Document (PDD) Small-scale CDM project activities The 35 proposed CDM baseline/monitoring methodologies New developments, internet CDM sites

    2. The UNFCCC-CDM homepage

    3. The COP/MOP responsibilities Make decisions on the recommendations made by the Executive Board on its rules of procedure; The designation of Operational Entities Review annual reports of the Executive Board; Review the regional and subregional distribution of DOEs and CDM project activities. Assist in arranging funding of CDM project activities

    5. The Executive Board (EB) The responsibilities of EB include: a) to supervise the CDM, under the authority and guidance of the COP/MOP; b) to make recommendation to the COP/MOP on further modalities & procedures for the CDM, as appropriate; c) to review and approve new methodologies related to baseline and monitoring plan; d) accreditation of operational entities; e) to develop and maintain the CDM registry; . f) to establish Panels (Accreditation & Methodology) and rosters of experts. The EB have had 11 meetings and the Methodology panel 8 meetings (meeting documents available).

    6. Designated National Authorities (DNA) Parties participating in the CDM must designate a national DNA (16 Latin American & Caribian, 8 Asian, 5 Arab, 1 Pacific, 4 European non-annex I countries have informed UNFCCC) The DNA issues statements on voluntary participation and confirmation that a CDM project contribute to sustainable development in the host country The DNA establish national rules, criteria's for eligibility, sustainability and approval

    7. Accreditation of Designated Operational Entities (DOEs)

    9. Sectoral scopes & approved methodologies

    10. Modalities and Procedures (M&P) for the CDM

    11. Content of the Project Design Document (PDD)

    12. Eligible technologies A list of eligible categories exist for small-scale CDM. No positive list exist for full-scale CDM, only a negative list: Nuclear Power is not eligible The only eligible sink projects for the first commitment period is Afforestation and Reforestation. COP 9 in december must decide on the Modalities and Procedures for other LULUCF projects. CDM projects must give real, measurable, and long-tem benefits related to mitigation of climate change. CDM projects must be additional in the host countries

    13. Present eligible small-scale CDM project categories

    14. Baseline approaches Existing actual or historical emissions, as applicable; or Emissions from a technology that represents an economically attractive course of action, taking into account barriers to investment; or Average emission of similar projects activities undertaken in the previous 5 years, in similar circumstances, and whose performance is among the top 20% of their category.

    15. Procedure for approval of new methodologies

    16. The first 35 proposed new methodologies sent to the EB

    17. Guidance/clarifications from the EB 4 guidance + 1 clarification document available Tools for demonstrating additionality Baseline emissions shall also be calculated ex-ante New baseline methodologies shall be proposed together The new methodologies shall only be described in annex 3+4 of the PDD If there is an activity increase in a project, a separate baseline must be provided for that The three types of small-scale CDM project activities are mutual exclusive.

    18. EB11: 4 new methodologies approved baseline & monitoring methodologies Two landfill methodolgies approved: The GHG reduction required by local regulations, must be deducted: example required CH4 emis-sion reduction at landfills. This can be done: ex-post (monitoring regulation)/ex-ante (assuming equal to 20% of CH4 production). Local regulation on airpollution making investment in coal difficult If monitoring (e.g. of el-prices) is used to make a decision it is not relevant???. The evaluation should be made up front based on a forecast.

    19. 4 new methodologies, cont. A fuel switch (coal/oil to natural gas) methodology approved: A financial test (higher NPV) of additionaily is used in the approved methodology. The remaining lifetime of existing equipment must be stated in order to argue that an investment in a new coal/oil plant is not needed in the baseline. The choice of discount rate must be justified. Emissions from mining, transportation & gas field exploration has been removed outside the project boundary, since they are not under the control of the project participants.

    20. 4 new methodologies, cont. A biomass-fired electricity generation methodoly approved: Utilising an abundant supply (no leakage of using fossil fuel instead in places using this biomass previously: supply/demand>2) of biomass (like rice-husk) that is otherwise emitting CH4 from open-air burning. CO2, N2O, CH4 emissions from transport of biomass included. Projects should be small enough to have a neglible impacts on plans for construction of new power plants.

    21. Additionality issues In three methodologies: Economical test used One uses barrier tests like for small-scale CDM

    22. Registration of CDM projects

    23. Other sources of CDM information www.cdmwatch.org have critical information on CDM project + information of CDM projects by country. CDM Investment Newletters can be ordered free at www.climatebusiness.net, it rewievs CDM developments quarterly Joint Implementation Quarterly: An electronic quarterly newletter about the latest CDM/JI developments: www.northsea.nl/jiq PointCarbon: News on the carbon trading markets: www.pointcarbon,com Climate-L: Montly newletter on the climate change policy process: www.iisd.ca/email/climate/climate-l.htm www.cd4cdm.org: UNEP Ris CDM capacity building project

    24. New developments 23 July: The EU Commission proposal for linking the EU emission trading scheme with the CDM (&JI): No nuclear projects, hydro must follow the World Commission on Dams criteria, LULUCF maybe after COP-9. Tt trading of 6% of the total allowance a review is triggered maybe followed by a 8% cap. The WB has launched 1) the Community Development Carbon Fund, 2) the BioCarbon Fund. At EB12 it was decided to develop a Frequently Asked Question section on the UNFCCC CDM web site.

    25. Latest news The first DOEs is expected to be accepted by the EB at its next meeting The first CDM projects will most probably be registered at the first meeting of the CDM Executive Board (EB) in 2004. E7 will soon start a CDM capacity building program. They will collaborate with our CD4CDM project by participating in workshops etc.

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