Environmental and SD guidelines - for ITMOS and the SDM Implementation of markets and non-markets provisions in the Paris Agreement First project meeting, 15 May 2016, Hotel Kanzler Andenauerallee 148, 53113 Bonn, Germany Environmental and SD guidelines - for ITMOS and the SDM Karen Holm Olsen Low Carbon Development Programme UNEP DTU Partnership

Outline SD provisions in Article 6 of the PA Built on CDM SD tool experience Background and evaluation of its usefulness Recommendations to improve the tool How to transtion from CDM to SMM and beyond? Issues and concerns for discussion Outlook to the future of a SMM SD(G) tool

Climate change and sustainable development The PA Article 2 (objectives), Article 4 (mitigation) and Article 6 (cooperative approaches) state that climate change shall not be seen in isolation but in context of SD and poverty alleviation In the PD the UN 2030 Agenda for global SDGs is welcomed The PA and SDGs recognize the intrinsic relationships between SD and CC. Yet, the two processes are parallel but separate and approaches and tools to ensure synergies and avoid trade-offs are largely missing

SD provisions in Article 6 ITMOs (Art. 6.2): SHALL ensure that it promotes SD SMM (Art. 6.4): Has the double aim to ‘contribute to mitigation of GHG emissions and foster SD’ Rules for the SMM will be developed at international level by the CMA The PD, par. 37 b states that rules shall be based on: ‘Real, measurable, and long-term benefits related to the mitigation of climate change’ Non-market approaches (Art. 6.8-6.9): A framework for non-market approaches to sustainable development is defined SD should be treated the same way across all Art. 6 market provisions to ensure the consistency and integrity of the PA (A. Marcu, discussion paper for this meeting)

The CDM SD tool – background The CMP in 2011 mandated the CDM EB to highlight SD co-benefits of CDM projects CDM EB launched the CDM SD tool in 2012 and it went online in April 2014 In 2015 the German Emissions Trading Authority tasked the Wuppertal Institute and UNEP DTU Partnership to conduct the research project ‚Evaluation and development of recommendations on the CDM EB‘s SD tool including the sustainability requirements of other flexible mechanisms‘ Reports are available here: http://www.dehst.de/EN/Climate-Projects/climate-projects_node.html;jsessionid=73B7A1323914B67BF48C1F9ADADCD764.2_cid292

Comparing the CDM SD tool with other mechanisms & stakeholder needs

Recommendations for improvements Recommendations at two consecutive levels: Level 1: Improvements to the SD tool Level 2: Enhancement of the SD tool Level 1: Improvements Introduce no-harm safeguards Develop monitoring and reporting guidelines Introduce 3rd Party validation and verification of SD claims Link enhanced stakeholder requirements to the CDM SD tool Level 2: Enhancements Introduce UNFCCC certification of SD co-benefits - Meet interest in national certification (see Thailand); - Develop UNFCCC certification framework for DNAs with low capacity Create a global standard for quantification of SD co-benefits - Develop a global approval standard for quantification methodologies

Issues for discussion The host country prerogative to define SD Voluntary or mandatory SD assessment International guidelines and contribution to SDGs Additionality for GHG and SD outcomes? One aim per mechanism

Outlook to the future for the CDM SD tool Enhanced CDM SD tool can set best practice guidance beyond CDM Linking and harmonization with emerging mechanisms (Art. 6.2, 6.4 and 6.8-6.9) Not only carbon, also development relevance (SDGs) Globally harmonized SD assessment has multiple benefits: - Comparable across mechanisms - Mainstreamed into national development planning -Integrated into national and international performance measurement Enhanced SD(G) tool CDM SD Tool Source: Adapted from CDM EB88 Annex 1

Karen Holm Olsen kaol@dtu.dk Thanks! Karen Holm Olsen kaol@dtu.dk