1. Grant A. Kirkman Team Leader - Methodologies Sustainable Development Mechanisms UNFCCC secretariat http://unfccc.int Current status of Post-2012 discussions and the status of the Clean Development Mechanism Roundtable on Corporate Strategies in Response to Climate Change World Environment Center Augsburg, 24–25 October, 2007

2. Responding to the science | Political imperative The scientific advice is unequivocal, providing a strong foundation for policy The world is looking to the UN Climate Change Conference in Bali to deliver a political response to the science Bali can launch an intensive global effort to design and agree on a post-2012 agreement, which prevents the worst projections of the IPCC from becoming a reality

3. The international dimension | A global undertaking Central role of the UNFCCC Full mobilisation of the international system required International public-private partnerships National action central but national governments acting alone will not manage Coping with impacts, vulnerability and adaptation calls for global solidarity

4. Current situation | Building momentum for action Unparalleled attention at the highest level Problem accepted => search for solutions The economics and the consequence of investment decisions better understood Business ready to act, seeking clarity on policy directions Dynamic national climate change policy developments International climate change policy at a turning point Continued lack of trust among governments

5. Analysing strategic approaches | Informal Governments have concluded a two- year informal dialogue process on long-term cooperative action to address climate change Report of co-facilitators of this process feeds into the Bali Conference This has build trust among governments and provided channels for inputs

6. The two-track approach | Launched in Montreal 2005 Convention Dialogue: Analysis of strategic approaches Kyoto Ad-hoc Working Group Development goals Adaptation Technology Potential of markets Positive incentives for voluntary action by developing countries Appropriate national and international response Financing Mitigation potential and range of mitigation objectives Means to achieve objectives Consideration of further commitments Formal negotiations Informal process

7. Findings of the Dialogue | Increased understanding Shared goals and principles Building blocks –Mitigation –Adaptation –Technology –Investment and finance Options for further work

8. Global action guided by shared goals and principles Sustainable development objectives and national circumstances Investment and Finance MitigationAdaptation Technology Findings of the Dialogue | Layers

9. Building blocks of an effective response | Mitigation Mitigation –Nature and content of commitments (including types and levels of emission limits) –Frameworks for voluntary national mitigation action programmes and incentives for developing countries –Deforestation and land use –Sectoral approaches

10. Building blocks of an effective response | Adaptation Adaptation –Impact, vulnerability and adaptation assessments –National planning and decision-making –Access to and availability of finance

11. Building blocks of an effective response | Technology Technology for adaptation and mitigation –Deployment and diffusion of existing technologies –Research, development and demonstration of new technologies

12. Building blocks of an effective response | Finance Finance and investment –Shifting private investment –Market-based mechanisms –Public finance

13. Breakthrough in Bali | What would constitute a success? Common understanding of the required building blocks (not agreement on the specifics) Decision to negotiate a comprehensive post-2012 agreement Establishment of a negotiating process with clear tasks Agreement on a timeframe (2009-2010)

14. Building the regime | Intensive design process Nature and content of commitments International and national adaptation response Market-based mechanisms Frameworks for voluntary national mitigation action programmes Sectoral efforts Major technology initiatives Deforestation and land use

15. Industrialized countries (Annex I) Developing countries (Non-Annex I) CDM project activity  To assist in achieving sustainable development  To assist in meeting their emission limitation commitments Project participants Investors (private business, governments, NGOs) What is the CDM?| Design

16. CDM | Characteristics Market mechanism offering developing country (non-Annex I) opportunities to participate in the carbon market Participation is voluntary and both public and private entities can participate Lowest marginal cost of abatement Ensures sustainable development (as defined by the host country) Projects or programs must result in real, measurable and long-term greenhouse gas (GHG) emission reductions Additional to any E.R’s that would occur in the absence of the project An international supervisory and standards setting body (CDM EB) Is open to regulatory and stakeholder scrutiny, at all times Employs bottom-up, re-use and broad application principles for standards Offers o low cost option (SSC) Offer a large scale option (A/R and non-A/R) Offers a multi-project option (PoA and bundling) A global currency (CERs) with a strong SD and ToT spin-offs

17. CDM | Regulatory and support system COP/MOP EB UNFCCC secretariat SSCWGA/RWG MPAP RIT DOE superviseselects accreditssupports recommends supports approves

18. Status of the CDM | Measuring success Status: October 2007

19. CDM | Key project data Projects to dateTotal numberCERs expected* Project activities in pipeline > 2,600 * > 2,500 million by 2012 Project activities requesting registration47110 million by 2012 Project activities with review requested3820 Million by 2012 Project activities registered 822 > 1,060 million by 2012 CERs issued to date 171,161,604 Status: October 2007 * assuming all project activities simultaneously deliver their expected annual average emission reductions and there are no renewals of crediting periods

20. CDM | Key date on methodology standards CDM Methdological StandardsTotal numbers Total approved large-scale methodologies57 non-A/R methodologies45 non-A/R consolidated methodologies12 Total methodological tools (non-A/R & A/R)6 + 7 used in large scale non-A/R methodologies50 used in large scale A/R methodologies3 used in small scale non-A/R methodologies8 Total approved A/R methodologies (LS & SSC-A/R)10 + 1 Total approved SSC methodologies28 Status: October 2007

21. PPs/DOEs Secretariat DNA CDM EB Complete? Fee paid? Conduct validation, submit F-CDM-REG Publish request for registration, assign RIT Examine submissions Review necessary? Examine Submissions/ RIT appraisal Project Activity REGISTERED Submit initial comments Consider review case at next EB meeting If no review is requested, project activity is registered 4 or 8 weeks after request for registration Request for review published YES Registration procedure Decision 3/CMP.1, paras. 35-42 Reference NO A review will be considered if one request for review is submitted by a DNA involved, or three requests for review are submitted by EB Members Secretariat’s completeness check includes check of documentation versioning, cross- checking, use of disclosure formulation, use of English, and appropriateness of Parties’ approval See Review Procedures Terms of reference, EB-RIT EB 29 report, Annex 14 Registration/ SOP fee Decision 7/CMP.1, para. 37 Registration-related guidance and procedures: http://cdm.unfccc.int/Reference/Procedures http://cdm.unfccc.int/Reference/Guidclarif CDM | Registration procedure

22. PP via the DOE Executive Board Approved AM00XX Completeness check Enhanced pre-assessment 1 2 2 x Desk reviews One MP member 1 st possible written dialogue with PPs Secretariat 2 desk reviewers Not accepted Lead + 3 members MP or A/R WG meeting 2 nd possible written dialogue with PPs Prelim 3 rd possible written dialogue with PPs Draft Recomm & Reformat Secretariat Refor- matted meth. CA Reformatted Meth & final recomm. Reformatted Meth & recomm. Redrafted Meth & Final recomm. PP via the DOE A MP/WG to revise recommendation C Only 1 feedback loop possible Not approved possible in-meeting real-time written dialogue with PPs Only final rec. is submitted to the EB CDM | Methodology procedure

24. CDM Bazaar: http://www.cdmbazaar.net Catalogue of EB Decisions (beta): http://test.cdmis.net/catalogue-test Dr. Grant A. Kirkman Team Leader - methodologies Sustainable Development Mechanisms - programme United Nations Framework Convention on Climate Change - secretariat Martin-Luther-King-Str, 8 D-53175 Bonn, Germany Tel. +49 0228 815 1363 Fax. +49 0228 815 1999 Mobile: +49 173 216 6342 gkirkman@unfccc.int http://www.unfccc.int http://www.cdmbazaar.net CDM | Useful links

25. Investment barrier - availability of a financially more viable alternative that would have led to higher emissions Technological barrier - existence of a less technologically advanced alternative that involves lower risks due to the performance uncertainty or low market share of the new technology adopted for the project activity and so would have led to higher emissions Common practice barrier - prevailing practice or existing regulatory or policy requirements would have led to implementation of a technology with higher emissions CDM | Concept Additionality Project participants have to demonstrate to a validator that the project activity would otherwise not be implemented due to the existence of one or more barriers