1. Environmental and SD guidelines - for ITMOS and the SDM
Implementation of markets and non-markets provisions in the Paris Agreement
First project meeting, 15 May 2016, Hotel Kanzler Andenauerallee 148, Bonn, Germany
Environmental and SD guidelines - for ITMOS and the SDM
Karen Holm Olsen
Low Carbon Development Programme
UNEP DTU Partnership

2. Outline SD provisions in Article 6 of the PA
Built on CDM SD tool experience
Background and evaluation of its usefulness
Recommendations to improve the tool
How to transtion from CDM to SMM and beyond?
Issues and concerns for discussion
Outlook to the future of a SMM SD(G) tool

3. Climate change and sustainable development
The PA Article 2 (objectives), Article 4 (mitigation) and Article 6 (cooperative approaches) state that climate change shall not be seen in isolation but in context of SD and poverty alleviation
In the PD the UN 2030 Agenda for global SDGs is welcomed
The PA and SDGs recognize the intrinsic relationships between SD and CC. Yet, the two processes are parallel but separate and approaches and tools to ensure synergies and avoid trade-offs are largely missing

4. SD provisions in Article 6
ITMOs (Art. 6.2): SHALL ensure that it promotes SD
SMM (Art. 6.4):
Has the double aim to ‘contribute to mitigation of GHG emissions and foster SD’
Rules for the SMM will be developed at international level by the CMA
The PD, par. 37 b states that rules shall be based on: ‘Real, measurable, and long-term benefits related to the mitigation of climate change’
Non-market approaches (Art ): A framework for non-market approaches to sustainable development is defined
SD should be treated the same way across all Art. 6 market provisions to ensure the consistency and integrity of the PA (A. Marcu, discussion paper for this meeting)

5. The CDM SD tool – background
The CMP in 2011 mandated the CDM EB to highlight SD co-benefits of CDM projects
CDM EB launched the CDM SD tool in 2012 and it went online in April 2014
In 2015 the German Emissions Trading Authority tasked the Wuppertal Institute and UNEP DTU Partnership to conduct the research project ‚Evaluation and development of recommendations on the CDM EB‘s SD tool including the sustainability requirements of other flexible mechanisms‘
Reports are available here:

6. Comparing the CDM SD tool with other mechanisms & stakeholder needs

7. Recommendations for improvements
Recommendations at two consecutive levels:
Level 1: Improvements to the SD tool
Level 2: Enhancement of the SD tool
Level 1: Improvements
Introduce no-harm safeguards
Develop monitoring and reporting guidelines
Introduce 3rd Party validation and verification of SD claims
Link enhanced stakeholder requirements to the CDM SD tool
Level 2: Enhancements
Introduce UNFCCC certification of SD co-benefits - Meet interest in national certification (see Thailand); - Develop UNFCCC certification framework for DNAs with low capacity
Create a global standard for quantification of SD co-benefits - Develop a global approval standard for quantification methodologies

8. Issues for discussion The host country prerogative to define SD
Voluntary or mandatory SD assessment
International guidelines and contribution to SDGs
Additionality for GHG and SD outcomes?
One aim per mechanism

9. Outlook to the future for the CDM SD tool
Enhanced CDM SD tool can set best practice guidance beyond CDM
Linking and harmonization with emerging mechanisms (Art. 6.2, 6.4 and )
Not only carbon, also development relevance (SDGs)
Globally harmonized SD assessment has multiple benefits:
- Comparable across mechanisms
- Mainstreamed into national development planning
-Integrated into national and international performance measurement
Enhanced SD(G) tool
CDM SD Tool
Source: Adapted from CDM EB88 Annex 1

10. Karen Holm Olsen kaol@dtu.dk
Thanks!
Karen Holm Olsen