Key recent developments in the CDM and JI Joint Coordination Workshop Bonn, Germany, March 2012 Andrew Howard, UNFCCC secretariat

2 Overview The mechanisms today Priorities of CDM Executive Board Improvements and directions in the CDM Standardization and upscaling Consolidation and clarification Extending the reach of the mechanism Priorities of the JI Supervisory Committee Improvements and directions in Joint Implementation

3 The mechanisms today Pioneering market instruments with years of experience Regulatory framework added to over time Ongoing focus on environmental integrity Complementary focus on efficiency, clarity, extending reach of the mechanisms, engaging with stakeholders Durban removed legal uncertainty on post-2012 CDM and JI Emerging market systems will change the market Emphasis on making the mechanisms fit for the future Many new regulatory aspects adopted recently – focus is now on ensuring their robust implementation

4 CDM priorities Greater integrity, efficiency and enhanced predictability Simplification Improved objectivity Ensuring timely processing of submissions Expansion of the CDMs reach and reputation Further regulatory developments Improved outreach Measures to promote regional distribution

5 CDM improvements – standardization and upscaling Operationalizing standardized baselines Implementation of the guidelines for their establishment Further guidelines to expand their applicability QA/QC guidelines for data Procedures for their submission and consideration by the Board Modalities to support underrepresented countries Clarified and simplified POA guidance Standard for additionality, eligibility criteria, multiple methodologies Sampling standard for reliability requirements and sampling methods First-of-its-kind and common practice guidelines

6 CDM improvements – consolidation and clarification New consolidated documents Project Standard Validation and Verification Standard Project Cycle Procedure 40 old procedures, guidelines and clarifications now withdrawn Related guidelines and forms now revised or generated More consolidation this year on methodologies procedures Ongoing revision of accreditation standards and procedures Upcoming work to guide application of materiality

7 CDM improvements – extending its reach Simplified procedures for microscale renewable projects qualifying for automatic additionality Guidelines on suppressed demand Incorporation into methodologies Upcoming improvement of the guidelines Top-down methodologies development for low-CDM regions Operationalizing the loan scheme Support for development, validation and first verification Implementing agency now getting established

8 JI priorities JISC objectives Greater efficiency, clarity and usability Promotion of the mechanism Contribute to future development of JI Revised review procedures to strengthen electronic decision- making and accelerate process Revised guidance on baseline setting and monitoring DFP Forum now established JISC finances now stable (new fees, new project volume) Major focus – new model design for future JI

9