Highlights -- 66th meeting of the CDM Executive Board

Highlights -- 66th meeting of the CDM Executive Board

Way paved for scaling up CDM through use of standardized emissions baselines

For the full report of the meeting see <http://cdm.unfccc.int/EB/index.html>.

Bonn, 2 March 2012 –- The way has been paved to greatly increase the scale, reach, objectivity and efficiency of the Clean Development Mechanism (CDM) thanks to the adoption of the last of three key guidelines relating to standardized emissions baselines by the Board that oversees the mechanism.

Today, the CDM generates carbon credits from emission reductions measured against unique baselines calculated for each and every registered project. Standardizing these baselines allows a baseline to be calculated once for an entire class of project or industry sector.

“This is an important next step in the evolution of the CDM, and part of a package of measures to reform the mechanism,” said Board Chair Maosheng Duan. “The CDM has come a long way in the past few years. With each step, the mechanism improves in efficiency, integrity and effectiveness as a tool to mitigate climate change and contribute to sustainable development.”

At its 66th meeting, the Board approved guidelines for quality control and quality assurance, designed to ensure the quality of data used to create standardized baselines. At previous meetings, the Board adopted guidelines on sector-specific standardized baselines and procedures for how project developers and countries can propose them to the Board.

“With all of the necessary guidelines now in place, we expect to see project developers and national authorities coming forward with their proposals,” said Mr. Duan.

The Board also approved, among other things, an improved baseline and monitoring methodology for electrification of rural communities using renewable energy, an updated two-year business plan and a management plan for 2012.

Also at the meeting, the Board decided to accredit the Korea Testing & Research Institute as a designated operational entity, and decided to suspend KPMG AZSA Sustainability Co., Ltd.

The CDM Board kicked off its 66th meeting, which ran all week, by electing a Chair and Vice-Chair for 2012. Mr. Duan, of China, who joined the Board in 2010 and served as its Vice-Chair in 2011, is a Professor at the Institute of Energy, Environment and Economy, Tsinghua University. Martin Hession, of the United Kingdom, will serve as Vice-Chair. Mr. Hession, who joined the Board in 2007 and was Chair in 2011, is an official at the Department of Energy and Climate Change, U.K.

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Governance and management matters
- Board elected Chair and Vice-Chair and chairs, vice-chairs and members for panels and working groups
- Two-year business plan and 2012 management plan adopted
- CDM communication and outreach workplan adopted
- DOEs to submit reports with forecasts of submissions of requests for registration and issuance
- Workplans for all panels and working groups for 2012 agreed
- Tentative calendar of meetings for 2012 agreed
- The Board agreed on steps for implementation of materiality and CCS decision agreed at CMP in Durban

Standards and procedures
- The Board approved various guidelines relating to the operationalization of the VVS, PS and PCP documents as well as the CDM glossary of terms
- QA/QC guidelines approved.