" Current status and perspectives of Clean Development Mechanisms Buenos Aires, September 2003 Content of the presentation: The cdm.unfccc.int homepage COP/MOP, EB (+panels), DNA, DOE The Project Design Document (PDD) Small-scale CDM project activities Baselines Brazilian CDM project proposals New developments, internet CDM sites

The UNFCCC-CDM homepage

The COP/MOP responsibilities (a)Make decisions on the recommendations made by the Executive Board on its rules of procedure; (b)The designation of Operational Entities (c)Review annual reports of the Executive Board; (d)Review the regional and subregional distribution of DOEs and CDM project activities. (e)Assist in arranging funding of CDM project activities

The Executive Board (EB) The responsibilities of EB include: a) to supervise the CDM, under the authority and guidance of the COP/MOP; b) to make recommendation to the COP/MOP on further modalities & procedures for the CDM, as appropriate; c) to review and approve new methodologies related to baseline and monitoring plan; d) accreditation of operational entities; e) to develop and maintain the CDM registry;.f) to establish Panels (Accreditation & Methodology) and rosters of experts. The EB have had 11 meetings. The Meth panel 6 (meeting documents available).

Designated National Authorities (DNA) Parties participating in the CDM must designate a national DNA (13 Latin American, 3 Asian, 1 Arab countries have informed UNFCCC) The DNA issues statements on voluntary participation and confirmation that a CDM project contribute to sustainable development in the host country The DNA establish national rules, criterias for eligibility, sustainablility and approval

Accreditation of Designated Operational Entities (DOEs) At the moment 14 entities have applied for accreditation -7 from Western Europe -6 from Japan -1 from South Korea Applicant Entities (AE) from Africa and South America missing! At EB7 the “Procedures for accrediting operational entities by the EB for the CDM” was adopted (available on the UNFCCC-CDM home page). The procedure consist of: Desk review by an Accreditation Team (AT) On-site assessment by the AT Witnessing activity by the AT

Current sectoral accreditation Scopes The Operational Entity can at the present select to be accredited for the following sectoral scopes (the Meth-panel and the AP-panel are now coordinating their sectors):

Modalities and Procedures (M&P) for the CDM The M&P for CDM projects was adopted at COP7 in Marrakesh and is the content of Decision 17/C.P.7 A special M&P for small-scale CDM was adopted at COP8, and can also be found on the UNFCCC-CDM home page. The M&P describe the general rules for the CDM project cycle, and the Executive Board have developed more detailed rules in their first 10 meetings. At their seventh meeting the detailed rules for small-scale CDM were finalized. M&P for afforestation & reforestation project will be finalized at COP9 in Milano in December.

Content of the Project Design Document (PDD) The small-scale PDD contains the same sections (fewer annexes). The project duration can be 3*7 years or 1*10 years A ”Glossary of terms used in the CDM project design document” was finished at EB7.

Eligible technologies A list of eligible categories exist for small-scale CDM. No positive list exist for full-scale CDM, only a negative list: Nuclear Power is not eligible The only eligible sink projects for the first commitment period is Afforestation and Reforestation. COP 9 in december must decide on the Modalities and Procedures for other LULUCF projects. CDM projects must give real, measurable, and long- tem benefits related to mitigation of climate change. CDM projects must be additional in the host countries

Present eligible small-scale CDM project categories The project participants can themselves propose new categories incl. methodologies to the EB.

Baseline approaches  Existing actual or historical emissions, as applicable; or  Emissions from a technology that represents an economically attractive course of action, taking into account barriers to investment; or  Average emission of similar projects activities undertaken in the previous 5 years, in similar circumstances, and whose performance is among the top 20% of their category. According to the Modalities and Procedures for CDM §48 new baseline methodologies must be using one of the three approaches:

Procedure for approval of new methodologies At EB8 the “Procedures for submission and consideration of a proposed new methodology” was finalized.

The first 21 proposed new (baseline & Monitoring) methodologies sent to the EB Conclusion: Highest activity in South America. Only one energy efficiency improvement methodology.

Guidance/clarifications from the EB  4 guidance + 1 clarification document available  Tools for demonstarting additionality  Baseline emissions shall also be calculated ex-ante  New baseline methodologies shall be proposed together  The new methodologies shall only be described in annex 3+4 of the PDD  If there is an activity increase in a project, a separate baseline must be provided for that  The three types of small-scale CDM project activities are mutual exclusive.

Registration of CDM projects The CDM registry is being constructed. It will contain public information on all CDM projects: issuance, holdings, transfer and acquisition of CERs At the EB6, the following fees were decide for the registration of a CDM project. The fee for small-scale CDM projects has been reduced to 5,000 US$:

Small-scale CDM project project proposals The Aquarius Hydroelectric Project is a 4.2 MW grid connected run-of-river hydropower plant (with no dam or flooding) at Itiquira, Mato Grosso State, Brazil (DNV portefolio) UTE Barreiro fuel switch project: This steel plant uses charcoal from Eucalyptus. The wood tar from the vapours of the charcoal production + the blast furnace gas is used for a 12.9 MW power plant (Ecosecurities).

Other sources of CDM information have critical information on CDM project + information of CDM projects by country. Joint Implementation Quarterly: An electronic quarterly newletter about the latest CDM/JI developments: PointCarbon: News on the carbon trading markets: Climate-L: Montly newletter on the climate change policy process: UNEP Risø CDM capacity building projectwww.cd4cdm.org

New developments 23 July: The EU Commission proposal for linking the EU emission trading scheme with the CDM (&JI): No nuclear projects, hydro must follow the World Commission on Dams criteria, LULUCF maybe after COP-9. Tt trading of 6% of the total allowance a review is triggered – maybe followed by a 8% cap. The WB has launched 1) the Community Development Carbon Fund, 2) the BioCarbon Fund.