Overview on CDM By Ann Gordon Ministry of Natural Resources and the Environment 14 th July 2011

Overview on CDM Contents United Nations Framework Convention on Climate Change Kyoto Protocol to the UNFCCC Annex I targets The Kyoto Mechanisms

United Nations Framework Convention on Climate Change (UNFCCC) Ultimate Objective: “stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system…within a timeframe sufficient to allow eco-systems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.”

UNFCCC- Developed Countries Commitment - To return individually or jointly to their 1990 levels of emissions of greenhouse gases (GHG) by 2000 However, their emissions continue to rise

UNFCCC Belize signed in 1992 Belize ratified in 1994 Convention came into force on 21 March 1994 At COP 1 (1995) the Ad hoc Group on the Berlin Mandate (AWG-BM) was established to draft an agreement to strengthen developed country commitments 8 negotiating sessions culminating in the Kyoto Protocol at COP 3 in 1997

Kyoto Protocol Parties included in Annex I (developed countries) shall reduce their overall emissions of GHGs by at least 5% below their 1990 levels in the commitment period Came into effect on 16 February 2005 when 50 Parties representing 55% of global GHG emissions ratified ◦ US withdrew

Greenhouse Gases (GHG) Carbon dioxide (CO 2 ) Methane (CH 4 ) Nitrous oxide (N 2 O) Hydrofluorocarbons (HFCs) Perfluorocarbons (PFCs) Sulphur hexafluoride (SF 6 )

Sectors/Source Categories Energy Forestry Industrial Processes Agriculture Waste Solvent and other product use

Quantified Emission Targets Party Quantified emission limitation and reduction commitment EU-15-8% United States-7% Poland, Canada, Japan, Hungary-6% Croatia-5% New Zealand, Russian Federation0% Norway+1% Australia+8% Iceland+10%

The Kyoto Protocol is the first concrete steps to curb GHG emissions How Annex I countries meet Kyoto commitment Targeted GHG Reductions Annex I countries Domestic Actions

The Kyoto Protocol is the first concrete steps to curb GHG emissions How Annex I countries meet Kyoto commitment Targeted GHG Reductions Annex I countries Domestic Actions Flexible Kyoto Mechanisms

KYOTO MECHANISMS Article 6: Joint Implementation Article 12: Clean Development Mechanism Article 17: Emission Trading Partnership: Annex I + Annex I Partnership: Annex I + Annex I Partnership: Annex I + non-Annex I ERUs CERs AAUs

Clean Development Mechanism Annex I Countries Non-Annex I Countries Financial Investments Developing countries Industrialized Countries

Clean Development Mechanism Annex I Countries Non-Annex I Countries Financial Investments Technology Transfer Developing countries Industrialized Countries

What makes projects eligible for CDM Baseline -What would happen in the absence of the Project Emission Reduction Project Emission Baseline Emission CERs GHG Emissions Year Without CDM With CDM

What makes projects eligible for CDM Emission Reduction CERs = Emission Reduction = Baseline Emission – Project Emission-Leakage Baseline -What would happen in the absence of the Project Emission Reduction Project Emission Baseline Emission CERs GHG Emissions Year Without CDM With CDM Revenues from CERs

The CDM is supervised by the Executive Board The Executive Board is composed of 10 members, including one from each of the 5 official UN regions, one from the SIDS, and 2 each from AI and NAI The EB accredits operational entities The EB maintains a CDM registry -issue new CERs -manage an account for CERs levied adaptation and administrative expenses -maintain a CER account for each NAI hosting a CDM project International Structure for CDM