Transparency of the CDM Communication with Project Participants and Stakeholders 1 Andrei Marcu Head of Policy and Regulatory Affairs

Why Communication is Important CDM is a successful but complex system Totally regulatory system –Impact of regulator and regulatory system magnified –Impacts individual projects but also D/S balance For CDM to be successful –Environmental integrity –Transparency –Cost effectiveness 2

Communication Should be: Increase efficiency On the record Objective Transparent Part of the process A right and an obligation [for the regulator] Ensure that the regulatory objectives are achieved at a lower cost/effort Should not: Add new layers of complexity to the CDM process Provide opportunity to gridlock the system 3

History Better communication recognized historically as critical by stakeholders –Project developers –DOEs –DNAs –Environmental community –Etc Areas of communication identified –Website –Reasons for decision –Status of projects –Project assessment – submission and decision making –Etc 4

History Direct communication recognized by the CMP in Copenhagen and Cancun CMP 5 referred to “ direct communication between PP and EB o project related matters” CMP 6 broadened and referred to in 3 area –Para 21 “to PP and stakeholders, including…” –Para 18 “Appeals process” –Para 59 – “Completeness check” 5

Communication with the UNFCCC Process SBI request for “ways to enhance the engagement with Observer organizations Article 1.b.vii of Bali Action Plan ICC submission –Improving engagement with Observer organizations on policy matters –Creation of Business Consultative Mechanism (BCM) Not an actor in UNFCCC negotiating process – “seat at the table” Recognized by the UNFCCC process as a chanel for interaction for policy related matters Organized and funded by business in a transparent way with good governance Present views and organize input - Clearinghouse Draw from all business stakeholders Multiple windows – CDM policy window being one 6

Direct Communications Two types of interaction needs to be recognized –Policy/general guidance matters –Project specific, part of the CDM project cycle Purpose –To identify/draw attention to issues –For decision making/assesment Group –Open interaction available to all –Pre selection based on submissions Interaction –EB. Interaction with EB at the request of the EB –UNFCCC Secretariat. Most of the interaction will be UNFCCC staff to clarify matters, get information, etc –Its bodies 7

Direct Communications Trigger –Mandatory. There could be places were the regulator has to initiate (e.g. when there is a request for review) –Discretionary. Where there regulator perceives a net benefit from initiating a direct interaction (e.g. completeness check), or where is it seen as solving problems (e.g. EB decisions on Issuance where EB can request presence and discussion with PP and/or DOE) Contribution –In preparation for the meeting – consultation on agenda, speakers, etc –During the meeting 8

Policy/Guidance Interaction –Unsolicited communication Should be used to draw attention to matters of importance Reply/outcome within max 30 days –Request for written input Should result in decision/outcome Reasons for decision to accompany with reference to input provided Outcome within clear timeline Could be open or pre selection –Direct interaction such as workshop, hearing Based on pre-selection Outcome within clear timeline Reasons for decision tied to content of workshop/hearing 9

Project Related Interaction Should not add new steps in the CDM project cycle Same interlocutors as in the current project cycle, depending on the step – PP, DOEs Flexibility on new material to be introduced Available to the regulator at points of assessment –Registration –Issuance –Renewal of crediting period –Methodology work stream Must be part of the project record on the UFCCC web site, except commercial confidential information Requires assignment of UNFCCC staff to projects – “who handles this file”. Why ‘anonymity” in CDM process ? Digitize the project cycle process 10

Project Related Interaction Modalities –Written communication Letter –Phone call/conference call Plus: easy, low costs Minus: more difficult for complex issues that require in depth discussions –In person meeting Plus: can solve problems that require in depth, very substantive discussions Minus: more time to schedule, additional costs involved for attendees. Could be offered as an option to PP 11

MERCURIA ENERGY TRADING SA 50 RUE DU RHÔNE, 1204 GENEVA, SWITZERLAND T