1. Regional perspectives under the Clean Development Mechanism Jose Domingos Gonzalez Miguez, Ministry of Science and Technology, Brazil

2. Origins of CDM Brazilian Proposal An efficient manner to negotiate the sharing of the burden of mitigating climate change Establishment of a “Clean Development Fund” - penalty for non-compliance with targets - financial resources to be applied in mitagation projects and a small fraction in adaptation projects G77 and China Proposal US Bilateral Discussion Rejection of the ideas of “penalties” and “fund” Mechanism for involvement of private sector Further flexibility mechanism Development of a common ground

3. Clean Development Mechanism Objectives: Promote sustainable development in non Annex I and and contribute to the ultimate objective of the Convention, and Help Annex I Parties to comply with Protocol targets The CDM is the constructive way to involve developing countries in the global effort to mitigate climate change - no additional commitments to non Annex I Parties - financial resources and technology transfer UN Convention on Climate Change is the adequate negotiating forum for discussing and establishing the procedures and guidelines of CDM OLADE Workshop is an important opportunity for advancing the exchange of ideas in our region and ensuring the success of COP 4 in Buenos Aires, Argentina

4. Clean Development Mechanism Compensates non-achievement of targets by Annex I Parties through additional mitigation efforts done in non Annex I Parties avoiding additional global warming Few low cost opportunities in mitigation projects in Annex I and wide scope for low cost emission reductions projects in non Annex I New and additional financial resources proportional to non-compliance Increase participation of developing countries in the implementation of the Convention additional to existing commitments Concrete way of transfering financial resources and technologies to developing countries to allow implementation of the Convention Allow development in developing countries to occur in a less carbon intensive path

5. Specific Guidelines for the Development of Mechanisms Project or trade should: contribute to the achievement of the objectives of the Convention lead to climate change mitigation produce emission reductions that can be measured and certified ET and JI apply only to Annex I Parties Flexibility mechanisms should be implemented separately Projects should follow same guidelines and certification process

6. Similarities and Differences among Mechanisms Similarities JI & ET apply only to Annex I and involve exchanging credits JI & CDM are project by project basis JI & CDM need definition for baselines Differences ET is based on (certified ?) inventories ET depends on 1990 emission levels (quality of information ?) JI is bilateral CDM is multilateral

7. CDM Institutional Arrangement CDM shall be controlled by the Parties under CoP guidance and control through a representative Executive Board EB/CDM composed of a small group of representatives of Parties selected on the basis of parity among regions of the world adequately balanced representation of Annex I & non Annex I Executive Board Approve and adopt methodology for certification Registration and evaluation of certifying agencies Ultimate responsibility for certification, auditing and monitoring emission reductions Promote development and transparency of CDM market Guidelines should be developed for the EB/CDM

8. CDM Institutional Arrangement Designated National Entity Establish additional country especific criteria for acceptance of projects in accordance with national priorities for sustainable development Evaluate, approve and certify submitted projects Increase awareness on CDM by private and public entities Coordination with other CDM international instances Role of Other Climate Change Related Agencies UNEP, UNDP, IDB, GEF, etc.

9. Certification, Monitoring & Verification CDM requires Project certification Realization monitoring and auditing Certification Issues What is the object of the certification ? Which will be the entity responsible for methodology development? What will be the strategy for development of methodologies? What is the definition of baseline for a specific project? How will the certifying entities be selected ? Which types of projects will be allowed ?

10. Projects Nature Sectoral priorities in accordance with specific national circunstances Emission reductions quantified on a project by project basis Type of projects : emission reductions (and sink enhancements ?)

11. CDM Market Domestic policy and measures in Annex I Parties JI Projects among Annex I Emissions Trading among Annex I Annex I Kyoto Protocol emission reductions targets minus = CDM Market Small part of targets Market of high economic significance