1. 1 CDM institutional framework Maria Netto UNFCCC secretariat Addis Ababa 21 October 2003 E-mail: mnetto@unfccc.int

2. 2 Snap shot of EB and Panels DOEs and accreditation process DNAs – clarifications by the EB Project Participants Summary

3. 3 CDM – Who? PP Monitoring DOE Verification/certification CER EB ** Issuance PP Design EB * Validation/registration DOE DNA 1 COP Public

4. 4 Balancing interests! COP Public PPs DOE/AEs Panel EB Secretariat

5. 5 EB – Institutional set-up/Decision Making EB Makes recommendations e.g. on M&P, accredited OE, methodologies, simplified procedures for small scales, regional distribution of projects, its R&P, etc. Report on its activities e.g. accreditation, registration, issuance of CERs, CDM registry, approved methodologies, etc. COP/MOP Decides and provides guidance Expert Panel 1 Expert Panel 2 Expert Panel N Roster of Experts and other expertise when appropriate Advise Serviced by the secretariat

6. 6 EB to draw on outside expertise. General rules for panel operations included in EB RoP; Rules of procedures for panels; TORs developed for different purposes, including competence requirements; Public calls for candidates; Assisted by “experts”if, when needed (e.g. CDM-ATs and “desk reviwers”); Fee payment – decided depending on TORs Panels

7. 7 A DOE has the following functions: Checks for completeness and forwards to EB proposed new methodologies; Validates and subsequently requests registration of a proposed CDM project activity using an approved methodology; Verifies emission reductions of a registered CDM project activity, certifies as appropriate and requests the Board to issue Certified Emission Reductions (CERs)accordingly. Role of DOE

8. 8 Role of a DOE within CDM infrastructure: Part of the institutional infrastructure of the CDM, directly interacting with project participants; Has no role in evaluating or designing proposed new methodologies for baselines or monitoring in order to avoid conflict of interest situations; The role is more that of enforcing / checking. Role of DOE

9. 9 Accreditation process Characteristics: Unique and new Taking time Important consequences due to the role of DOE Responsibility delegated by COP to EB

10. 10 Accreditation process CDM M&P and decision 21/CP.8: basic rules, standard for accreditation, EB to “provisionally” designate Oes. Procedures for accreditation CDM-AP and CDM-ATs Applicant entities

11. 11 Accreditation process CDM-AT selected Public inputs on AEs On site assessment Witnessing activities “Scopes” for accreditaion “Phased” accreditation “Indicative letter”

12. 12 Facilitation of applications from Non Annex I Payment conditions Sectoral scope(s) Phased accreditation Awareness raising in expert community Accreditation process

13. 13 Applications 18 applications 8: coordination of on-site assessment being started 8: desk review of applications / assessment of additional documentation provided on request by CDM assessment team (CDM-AT) 2 CDM-ATs are being identified

14. 14 And the role of a DNA? Each Party participating in the CDM Shall designate a national authority for the CDM (DNA) (CDM M&P, para 29) –Functions of DNA: Providing a written approval of voluntary participation Non-Annex I Party (host) include in this approval a confirmation that the project activity assists it in achieving sustainable development Authorizes a private and/or public entity to participate, under the Party’s responsibility, in CDM project activities. ( CDM M&P, para 33 and CDM Glossary: Project Participants)

15. 15 DNAs - Issues Institutional “focal point” Approval of projects: Set criteria/procedures? What strategy? What national priorities? Concerns: Time/transparency/conflict of interests/ stakeholders/investment attractiveness Share of information Other tasks? Priorities? (e.g. promote CDM for national business, etc.)

16. 16 CDM - Who? DNAs PP DOE EB DNA Validation requirements (PDD) Validation report Written approval of: voluntary participation sustainable development Public comments

17. 17 - In accordance with the use of the term project participant in the CDM M&P, a project participant is either a Party involved or, in accordance with para 33 of the CDM M&P, a private and/or public entity authorized by a Party to participate,under the Party’s responsibility, in CDM project activities; - Project participants are Parties or private and/or public entities that take decisions on the allocation of CERs from the project activity under consideration; - At registration, a statement signed by all project participants shall be provided clarifying the modalities of communicating with the Executive Board and the secretariat, in particular with regard to instructions regarding allocations of CERs at the point of issuance. Project participants