Highlights -- 72nd meeting of the CDM Executive Board

Executive Board crafts recommendations for improved Clean Development Mechanism For the full report of the meeting see <http://cdm.unfccc.int/EB/index.html>. Bonn, 8 March 2013 – The Executive Board of the Kyoto Protocol’s Clean Development Mechanism (CDM) has agreed on 22 recommendations aimed at making the CDM a more efficient and effective tool in the international response to climate change. When they met in Doha, Qatar, last December, countries agreed to a second commitment period for the Kyoto Protocol, running until the end of 2020, and initiated a review of the rules that govern the CDM. The CDM Board was asked to submit recommendations on possible changes to the mechanism’s modalities and procedures, drawing on experience gained by the Board, the UNFCCC secretariat and stakeholders. “We have drawn on more than 10 years of experience in this work, and hope our political masters, the Parties to the Kyoto Protocol, will appreciate our recommendations,” said Board Chair Peer Stiansen at the close of the Board’s 72nd meeting. The recommendations range from calls for elaboration on the role of countries that host CDM projects and what should happen when a country withdraws a project’s letter of approval, to a recommendation that could better ensure that stakeholders’ views are taken into account during the vetting of projects. Parties to the Protocol will consider the recommendations in June in Bonn, together with submissions from Parties and observers. The review is to culminate in a decision on revised modalities and procedures when Parties meet for the UN Climate Change Conference in Poland at the end of the year. The carbon market is currently suffering from low demand, related to the level of ambition of national commitments to reduce greenhouse gas emissions. The price of CDM certified emission reductions has declined more than 90 per cent in the past year. “When demand returns to the carbon market, the CDM will be ready, more efficient and effective,” said Mr. Stiansen. Also at the 72nd meeting, the Board made progress on work to increase the number of transportation projects under the CDM. The Board requested the secretariat to develop a tool to assist in setting emissions baselines for the sector, with standardized parameters that can be applied globally, and guidelines to help develop standardized baselines at the national level. Also at the meeting, the Board made good progress in its work to strengthen the CDM accreditation system, providing guidance to the secretariat for the preparation of draft revisions of key accreditation documents – the CDM Accreditation Procedure, Accreditation Standard and the DOE Performance Monitoring Procedure. The revisions, still to be implemented, are expected to reduce cost and increase transparency, predictability and consistency in decision- making. -----