UNFCCC Secretariat Status of negociations on CDM Perumal Arumugam Regional Workshop on CDM and NAMAs for Latin America and the Caribbean,Bogota, (31 – 02 Sep 2014)

2 Background Decision 4/CMP.9, at the thirty-ninth session of the Subsidiary Body for Implementation (SBI), requested the secretariat to prepare a technical paper, by 19 March Three parties and eight other observer organizations submitted inputs to technical paper. SBI 40 discussed the informal note prepared by the co-chairs in WARSAW taking into account the technical paper.

3 Elements covered in the technical paper 1.Membership and composition of the EB 2.Liability of DOE to compensate for the issuance of CER resulting from significant deficiencies in validation, verification and certification reports 3.Provisions for programmes of activities 4.Length of the crediting period 5.Requirements for the demonstration of additionality 6.Further elaboration of the role of designated national authorities 7.Simplification and streamlining of the project cycle for certain project categories

4 Key items in the Technical Paper - Governance Removing the distinction between members and alternate members Providing seats to private-sector and other organizations Allocating a seat for least developed countries Improving transparency in the nomination process Limiting total length of service and terms on the Board Improving gender balance Ensuring competence Protecting against conflict of interest Professionalizing chair and vice-chair roles

5 Key items in the Technical Paper – DOE Liability Limiting the scope of liability Changing the threshold of designated operational entity behaviour that triggers liability Creating a reserve of certified emission reductions Deducting certified emission reductions from later issuance Deleting current requirements

6 Key items in the Technical Paper – Programme of activities Add new section in M&P Environmental impact assessment and the local stakeholder consultation (PoA vs CPA) Additionality and baseline setting (PoA vs CPA) Inclusion of CPAs into a PoA by DOE Duration of the crediting period Several host Parties CPAs to have different monitoring and verification schedules Specific provisions on multi country PoA.

7 Key items in the Technical Paper – Length of crediting period & Additionality Shortening the length of each crediting period and/or reducing the possibility of renewal Introducing a flexible approach to determining the length of crediting periods Inclusion of [requirements] [principles] [means] for the demonstration of additionality Possible [requirements] [principles] [means] Investment analysis; Common practice analysis; Barrier analysis; Positive lists; ‘First -of -its -kind’; Dynamic baselines; Standardized approaches. E+/E- policies Limiting technology types Reassess baseline scenario at RCP

8 Key items in the Technical Paper – Role of DNA Inclusion of separate section in M&P Clarifying the roles of designated national authorities – (include current roles) Increasing transparency at the designated national authority level (elements under discussion) Validation by DNA Handling complaints and stake holder comments Requirements for the content and form of letters of approval Key principles on withdrawal and suspension of LoA

9 Key items in the Technical Paper – Simplification in validation and A/R Remove validation for specific types of project activities Remove the thresholds of micro scale CPA. Land Parcel Timing of verification Permanence Additional activities (LULUCF)

10 Outcome of June sessions Agenda item 6 (a) Review of the CDM modalities and procedures to continue in LIMA Strong view of some Parties in favour (and against) to link the concept of net mitigation in CDM M&P review Rule 16 of the Rules of Procedures followed A new Co-Chairs note is issued, it reflects the areas that Parties would like to further consider in Lima, "agreed" views of those issues that shall be included in the review and finally those matters that are outside the scope of the review and therefore do not require further consideration. No official status for this document It captures the progress of the deliberations by Parties and expected to be used in LIMA. No mandated inter-sessional work has been agreed by Parties, Work will cover the possibilities for the scope of such a review and its implications.

UNFCCC Secretariat UNFCCC secretariat, SDM programme THANK YOU! A.K.Perumal, Team Lead, Programme Officer, Standard Setting Unit of SDM, UNFCCC