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Overview of UN's Offset Mechanisms at ICAO Symposium

Explore the United Nations' offset mechanisms to reduce emissions cost-effectively. Learn about the Clean Development Mechanism (CDM), quality control, reliability, and accessibility. Discover new mechanisms under development. Presented by Robin Rix at the ICAO Symposium on Aviation and Climate Change in Montreal, Canada.

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Overview of UN's Offset Mechanisms at ICAO Symposium

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  1. Overview of the United Nations’offset mechanisms Robin Rix Lead, Strategy Development, Market-based Mechanisms United Nations Climate Change Secretariat

  2. Key messages • Offset mechanisms help countries, companies, and individuals to meet emission reduction targets at the lowest possible cost • The UN runs the world’s largest offset mechanism: • Clean Development Mechanism (“CDM”) • Operational through 2023 at least • New (and larger) offset mechanisms are being developed, to be operational by 2020 at the latest ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  3. Introduction to the CDM • Established in 1997, operational since 2001 • Aims are to reduce emissions and promote sustainable development • Two-stage process: • Registration of projects that reduceemissions in developing countries • Issuance of credits correspondingto actual reductions that are achieved ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  4. Registration Project cycle By third-party auditor By regulatorybody By project participants

  5. Statistics to date > 6800 registered projects in over 80 countries > 1.3 billion issued credits (“CERs” = certified emission reductions) ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  6. Quality • All projects are scrutinized by third-party auditors • All projects are subject to review by the governing body (CDM Executive Board) • Internationally approved standardsand methodologies • Trend toward conservativeness: • Standardized baselines • Conservative estimates,default factors, etc. ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  7. Reliability • Operation is assured until at least 2023 • Supply from existing projects: > 1.3 billion credits issued to date > 1.3 billion more credits by 2020, by current trends • Additional supply variables: • Highly price-elastic, scalable to meet demand • UN recently launched four regional offices (Colombia, Grenada, Togo, Uganda) to spur supply from underrepresented regions ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  8. Accessibility • Offset credits can be accessed by anyone: • By countries to meet international commitments • By companies/individuals to meet targets (e.g. CSR) • Voluntary cancellation procedure • Buyer identifies credits  can filter by country of origin, project type, sustainable development benefits, etc. • Buyer and seller negotiate a price • UN cancels credits upon request of seller • UN provides attestation, naming quantityand beneficiary of cancelled credits ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  9. New mechanisms (1) • New UN mechanism is under development • Projected attributes: • Sectoral/sub-sectoral(not limited to individual facilities) • Net decrease in emissions • Pilot activities planned in 2013 • Expected to be operationalby 2020 at the latest ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  10. New mechanisms (2) • Negotiations on a “framework” to recognize and support non-UN mechanisms • Recognition that countries and third-party organizations are developing mechanisms • Interest in environmental integrity: • Quality control  all credits are real,verified, permanent, and addititional • Quantity control  no credits aredouble-counted ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  11. Closing remarks Offset credits under the CDM are: ■ High-quality ■ Secure to at least 2023 ■ Easily accessed ■ Easily filtered ■ Scalable to meet demand New mechanisms are under development: ■ Scaled-up mitigation ■ Operation expected by 2020 UN offset mechanisms are a cost-effective and internationally recognized means to neutralize emissions ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

  12. Thank you! • Robin RixLead, Strategy Development (Markets)United Nations Climate Change Secretariat • rrix@unfccc.int • www.unfccc.int / cdm.unfccc.int @UN_CarbonMechs /UNCarbonMechs ICAO Symposium on Aviation and Climate Change, "Destination Green", ICAO Headquarters, Montréal, Canada, 14 - 16 May 2013

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