DRAFT TEXT on CMP 11 agenda item 4 Issues relating to the clean development mechanism Version 2 of 5 December 2015 at 18:00 Draft decision -/CMP.11 The Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol, Recalling the provisions of Articles 3 and 12 of the Kyoto Protocol and decision 1/CMP.6, Cognizant of decision 3/CMP.1 and subsequent guidance provided by the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol relating to the clean development mechanism, I. General 1. Welcomes the report for 2014 2015 of the Executive Board of the clean development mechanism (hereinafter referred to as the Executive Board); 1 AGREED 2. Commends the Executive Board for the substantial work undertaken over the past year; AGREED 3. [Expresses satisfaction with the success of the clean development mechanism of the Kyoto Protocol, which to date has been responsible for: (a) Over ## project activities being registered in over # countries; (b) Over # component project activities being included in over # programmes of activities registered in over # countries; (c) Over # billion certified emission reductions being issued and over USD # billion being invested; (d) Over # certified emission reductions voluntarily cancelled; (e) Over # certified emission reductions being transferred through the share of proceeds to the Adaptation Fund; (f) Over # of revenue being accrued for the Adaptation Fund from the sale of certified emission reductions; (g) # loans under the clean development mechanism loan scheme being approved and over # of total commitment; (d)(h) # sustainable development co-benefit description reports being published using the voluntary sustainable development tool;] 4. Welcomes the launch of the online platform for voluntary cancellation of certified emission reductions 2 ; AGREED 1 FCCC/KP/CMP/2015/5. 2 <https://offset.climateneutralnow.org/> 1 of 6
5. [Requests the Executive Board and the secretariat to ease the [access to information on] [understanding of] the sustainable development impact of projects proposed on the voluntary cancellation platform of the UNFCCC;] 6. Encourages Executive Board to continue the simplification process with the aim of further streamline the project cycle, registration and verification process, development and approval of standardised baselines and also its accreditation procedure; AGREED 7. [Requests the Executive Board to explore options, including practices already in place, for using the CDM as a mitigation tool beyond offsetting, inter alia through sharing the emission reductions, voluntary cancellation of CERs, deregistration of project activities and/or shortening of crediting period lengths, and report back to the SBI at its forty-fourth session;] 8. Requests the Executive Board to collect examples where Parties have chosen to retain mitigation benefits from the projects they host, 9. Invites submissions by Parties and accredited observer organizations on this matter by 3 April 2016 for consideration by the SBI at its forty-fourth session. 10. [Encourages Parties hosting CDM projects to retain, on a voluntary basis and in a transparent way, a share of the mitigation benefits resulting from the projects, taking into account in particular project type, technologies, location and age of the project activities, to support them in the implementation of their NAMAs and national policy priorities and to contribute to the avoidance of double counting of efforts;] 11. [Requests the Executive Board to explore synergies between CDM and other market mechanisms and carbon pricing instruments to ensure the cost-efficient use of resources, coherence of market instruments and the avoidance of double counting, in particular regarding infrastructure and technical arrangements, tools, governance structures and processes;] 12. [Requests the Executive Board to prepare an analysis of the role of the CDM as mitigation tool beyond 2020, links and interactions with other tools and to forward recommendations for consideration by the SBI at its forty-forth session;] 13. [Requests the Executive Board to explore synergies between CDM and international climate finance institutions [to foster the use of the CDM.] [by using CDM or part of its methodological standards, including MRV];] 13. [(alternative to 11-13) Requests the EB to expedite efforts to encourage interested stakeholders to nurture the demand of the CDM and CERs.] 14. [Invites the Executive Board to host a workshop with stakeholders, inviting the members of the GCF Board on how the existing and future CDM pipeline could be leveraged through the GCF mitigation window[, and also discuss ways for avoiding unilateral trade barriers on CER market,] before SB 44;] II. Accreditation 15. Designates as operational entities those entities that have been accredited, and provisionally designated, as operational entities by the Executive Board to carry out the sector-specific validation functions and/or sector-specific verification functions described in the annex; (EB recommendation) AGREED 16. [Requests the Executive Board to [analyse [and publish a report on] possible] [implement as soon as possible appropriate] facilitative measures to ensure the continued 2 of 6
participation of Designated Operational Entities in the CDM [in particular in the underrepresented region in the CDM] [taking into accout of paragraph 40 below];] 17. Requests the Executive Board to ensure continued interaction with Designated Operational Entities through the DOE Forum; III. Baseline and monitoring methodologies 18. Decides to allow the submission of a request for revision of a baseline and monitoring methodology without a draft project design document in cases where the Executive Board considers that the assessment of such a request can be conducted without the project-specific information; (EB recommendation) AGREED 19. Requests the Executive Board to implement paragraph 18 above by revising relevant regulations; (EB recommendation) AGREED 20. [Encourages the Executive Board to [move ahead] [continue] with the development of a [methodological digitization tool for automatic generation of project and programme design document] [digitized methodology-specific design document forms][web-based system for supporting CDM project activities];] 21. Recognizes the simplification and streamlining of methodological standards and procedures achieved by the Executive Board in the last year; MERGE WITH PARA 6 22. [Requests the Executive Board to develop separate baseline and monitoring methodologies for PoAs, taking into account that there is a distinct difference between project-by-project CDM and PoA, and produce a separate and consistent set of rules;] 23. Requests the Executive Board to develop more cost-effective and contextappropriate approaches for monitoring, reporting and verification with a focus on projects involving households and communities, addressing inter alia: (a) (b) (c) Procedures to manage data gaps; Regionally appropriate calibration requirements; Use of sectoral and nationally collected data where appropriate; AGREED 24. [Requests the Executive Board to ensure that all applicable national climate policies and specific national circumstances are taken into account when establishing baselines and determining additionality;] 25. [Requests the Executive Board to regularly reassess the eligibility of project types and methodologies in order to reinforce environmental integrity and additionality and to avoid risks of perverse incentives, and to seek solutions to address these risks, revise methodologies accordingly and, where such risks cannot be sufficiently minimized, make recommendations to the CMP;] 26. Requests the Executive Board to explore and [analyse options] [analyse criteria and provide options] for possible adjustments to crediting periods below maximums for project types, technologies or country contexts where such adjustments may be beneficial for expediting the project approval process while ensuring environmental integrity; 3
IV. Registration of project activities and programmes and issuance of certified emissions reductions 27. [Decides that a designated operational entity may conclude a validation and submit a validation opinion as part of a request for registration without written approval of the designated national authority of the host Party and other Parties involved, and that, in such cases, the written approval may be submitted to the secretariat directly by the designated national authority, or the project participants or the coordinating/managing entity, at any time thereafter for the registration process to be completed; (EB recommendation)] 28. [Requests the Executive Board to implement paragraph 27 above18 above by revising relevant regulations; (EB recommendation);] 29. [Reiterates its request (decision 54/CMP.10 paragraph 17) to the Executive Board to develop stand-alone rules and procedures for PoAs that would allow PoAs to develop independently from stand-alone projects;] 30. Reiterates its request (decision 4/CMP.10, paragraph 18) to the Executive Board to consider allowing, as an option, a simplified inclusion process for activities that satisfy microscale thresholds and are considered automatically additional; this option shall allow for inclusion on the basis of a pre-approved standardized inclusion template of CPAs carried out directly by the CME without prior validation through a DOE; AGREED 31. [Requests the Executive Board to reconsider paragraph 13 of decision 4/CMP. 10. with a view to allow simplified registration of project activities and PoAs that qualify as automatically additional and to consider as an option that registration is approved on the basis of a standardized-pre-approved registration template using objective criteria without prior validation through a DOE, combined with ex post confirmation by a DOE during the first verification of the compliance with the registered template of the implemented project activity or PoA;] 32. RequestsEncouranges the Executive Board to increasecontinue its efforts in communicating the enormous sustainable development co-benefits of recent CDM projects to the public, in particular as regards PoAs and energy access projects; AGREED 33. [Requests the Executive Board to develop a tool for the voluntary monitoring of Sustainable Development co-benefits of CDM projects and programmes[, including drawbacks, environmental integrity, technology transfer and job creation];] 34. [Requests the Executive Board to [transparently present] [make available] the sustainable development criteria, including no-harm considerations, used by the Designated National Authority [when] [for] issuing the letters of approval[, for each of the projects and programmes in the CDM database];] 35. [Requests the Executive Board to explore ways to ensure that projects that request issuance of CERs cannot seek crediting in other schemes for the same monitoring period and report back on this matter to Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol at its twelfth session;] 35. NEW PARA PROPOSED BY EU V. Regional and subregional distribution 36. Takes note with appreciations the important and instrumental role being played by regional collaboration centers (RCCs) in improving the regional balance of CDM project 4 of 6
activities and providing assistance to the DNAs and other stakeholders in the development of CDM project activities; REFER LANGUAGE OF 3/CMP.9, PARA 23 37. Requests the Executive Board to expand in the context of paragraph 40 below the scope and scale of RCC's assistance activities in developing countries by exploring the emerging technical and methodological areas in the context of the CDM where specific assistance is identified to be needed by the underrepresented countries in the CDM; AGREED 38. Requests the Executive Board to extend its technical assistance and support in strengthening the institutional capacity of the countries for integrating CDM into nationally determined sustainable development objectives and also providing support beyond CDM; VI. Resources for work on the clean development mechanism 39. Expresses appreciation to the secretariat for having ensured the prudent management of its resources and deep gratitude to the staff that have left the secretariat for their enormous contribution to the CDM; AGREED 40. Requests the Executive Board to ensure transparent and prudent management of the budget, including the spending for those serving on the Executive Board; AGREED 5
CMP 11 - Draft text agenda item 4 version 2 Annex Entities accredited and provisionally designated by the Executive Board of the clean development mechanism in the reporting period, including entities for which the scope of accreditation was extended Name of entity Sectoral scopes (validation and verification) 6 of 6