Presented by: Lex de Jonge Vice-Chair CDM Executive Board Clean Development Mechanism EB perspective on recent developments, with a focus on Registration and Issuance Presented at: Q&A session SBSTA 13 June 2008

Some key figures and recent developments Number of registered projects: 1078 CERs issued so far: 0,15 billion CERs expected from registered projects: 1,28 billion CERs expected from existing pipeline to end of 2012: 2,7 billion First request for renewal of crediting period published Registration fee abolished for LDCs CDM registry fully connected to ITL and CERs being forwarded to the national registries of Annex I Parties 2 PoAs currently undergoing validation

Some key elements for a successful CDM Availability methodologies not the main bottleneck anymore: –114 methdologies are available now –Increasing number of tools to support standardizing –Continued influx of new methodologies, also for SSC Additionality Tool: –Widely used and accepted, but sometimes misused –Board works on stepwise improvements (EB39 released version 5) –Guidance on the preparation and assessment of investment analysis published at EB 39 –Despite external criticizm on additionality of projects, so far no proposals from the public for new approaches VVM draft version is out and public input to be discussed next at EB41 CDM as a whole is based on a learning by doing process EB adapts to changes over time and if necessary revises standards

Work actually underway Continued assessment of the efficiency of the review procedures, taking into account executive role of EB Work on the overall assessment of the CDM timelines with a view to accelerate the process where possible (Secretariat as well as DOEs) Further guidance on the reporting of ongoing validation activities to be considered by the EB Standardized formats for modalities of communication to be considered by EB Continued work to promote the equitable regional distribution of CDM project activities, including with partner agencies via the Nairobi Framework Accreditation of DOEs: –Promote applications from potential entities, in particular from developing countries –Development of a document on elaboration of accreditation standards for DOEs to provide guidance on requirements for accreditation –Development of VVM to guide DOEs

Experience registration of CDM projects Since April 2007 strong improved support EB by UNFCCC Secretariat –enabled by increased resources on request of the CoP –strong increase requests for review and rejections –registrations may in exceptional cases still be inconsistent, due to applicable Kyoto regulations Rejections mainly caused by additionality, incorrect use of methodology and incorrect monitoring EB considering guidance for situations in which implemented CDM projects may differ from the project description in the registered PDD Early started projects are a concern for EB (evidence of serious consideration of CDM at project starting date) 5 consecutive opportunities to obtain registration a built-in appeal procedure as well as a quality measure

Procedures for registration (similar for issuance) 1. Project Proponent (PP) prepares PDD + DOE validates (= chance # 1) 2. Completeness check UNFCCC Secretariat (= chance # 2) 3. RIT member assessment PDD sent to UNFCCC Secretariat 4. Secretariat advices EB (Summary Note + RIT advice) 5. EB members may decide to request for a review (RfR) 6. In case of RfR PP/DOE are notified about reason + invited to comment 7. Response PP/DOE sent to Secretariat (= chance # 3) 8. Secretariat advices EB and EB decides at first next meeting 9. If EB decides for review PP/DOE are notified and invited to respond to detailed questions EB Review Team (= chance # 4) 10. Responses discussed at next EB, based on Secretariat advice + RIT input 11. Sometimes EB decides to register conditional (= chance # 5)

Thank you for your attention! Time for questions & answers