TABLE OF CONTENTS Page
1. This document contains the amendments adopted by the Executive Board of the clean development mechanism (CDM) (hereafter referred to as the Board) at its seventy-eighth meeting, to the CDM project cycle procedure (PCP) (v.05) (CDM-EB65-A32-PROC). This document will be consolidated in a revised version of the PCP.
2. The entry into force of this document is with immediate effect.
1. The following paragraphs shall read as follows:
2. The Conference of the Parties serving as the Meeting of the Parties to the Kyoto Protocol (CMP), at its first session, established the basis of a regulatory framework of the clean development mechanism (CDM) to implement Article 12 of the Kyoto Protocol through the annex to decision 3/CMP.1, the annexes II, III and IV to decision 4/CMP.1, the annex to decision 5/CMP.1, the annex to decision 6/CMP.1 and the annex to decision 10/CMP.7. The CMP revised provisions in these decisions through new decisions in subsequent sessions. In addition, the Executive Board of the clean development mechanism (hereinafter referred to as the Board) operationalized the CDM process by adopting various standards, procedures and guidelines and revised them, as appropriate, with a view to improving the CDM process
3. The following new paragraphs shall be added in the new section:
4. 4.1 bis.1. Expression of host Party agreement for CCS project activities
5. If a Party wishes to host CDM CCS project activities on its territory, it shall submit to the UNFCCC secretariat, through its DNA, an expression of its agreement (EoA) to allow the implementation of CCS project activities on its territory. A host Party’s EoA shall be submitted prior to the PDD for the first proposed CCS project activity on the host Party’s territory being published for global stakeholder consultation. A DNA shall submit the EoA by email to [Moderator-DNA@unfccc.int].
6. A host Party’s EoA shall apply to all CCS project activities implemented on its territory.
7. The EoA should list the host Party’s laws and regulations that satisfy the requirements [set out in section 4.1 bis.2 below] as an appendix.]
8. 4.1 bis.2. Laws and regulations of host Party for CCS project activities
9. Prior to the publication of the PDD for global stakeholder consultation for the first proposed CCS project activities on its territory, a host Party shall ensure that it has established laws and/or regulations that:
(a) Set procedures that include provisions for the appropriate selection, characterization and development of geological storage sites, recognizing the project requirements for CCS project activities under the CDM set out in section 11.bis.4 of the Project standard;
(b) Define means by which rights to store carbon dioxide in, and gain access to, a subsurface pore space can be conferred to project participants;
(c) Provide for timely and effective redress for affected entities, individuals and communities for any significant damage, such as environmental damage, including damage to ecosystems, other material damage or personal injury, caused by the project activity, including in the post-closure phase;
(d) Provide for timely and effective remedial measures to stop or control any unintended seepage of carbon dioxide, to restore the integrity of a geological storage site, and to restore long-term environmental quality significantly affected by a CCS project activity;
(e) Establish a means for addressing liability arrangements for carbon dioxide geological storage sites, taking into account the provisions set out in section 11.bis.9 of the Project standard;
(f) For a host Party that accepts the obligation to address a net reversal of storage, establish measures to fulfil such an obligation.
10. The following paragraph shall read as follows:
17. If the DOE is accredited for the validation function in all sectoral scope(s)1 to which the proposed CDM project activity or PoA is linked through the application of baseline and monitoring methodology(ies), the secretariat, through the CDM information system, shall make the PDD or PoA DD publicly available on the UNFCCC CDM website. The period for submission of comments for global stakeholder consultation on the PDD or PoA DD shall commence at midnight GMT subsequent to the publication of the PDD or PoA DD. The CDM information system shall inform the DOE of the location of the PDD or PoA DD on the UNFCCC CDM website and the opening and closing dates of the period for submission of comments.
18. 1 There are 16 sectoral scopes in the CDM and these are used in the accreditation of DOEs. The list of sectoral scopes, the DOEs accredited in each scope as well as the approved baseline and monitoring methodologies linked with these sectoral scopes are given on the UNFCCC CDM website.
19. The following new paragraphs shall be added in the new section:
20. 1. The project participants shall, for each verification period, carry out history matching in accordance with the Project standard. If during history matching a significant deviation is observed (as defined by the methodology used by the project activity), the project participant shall immediately notify the host Party and CDM Executive Board in writing.
21. 2. The project participants shall follow the procedure for “changes to registered CDM project activity or programme of activities” as set out in section 6.2 above [project cycle procedure] for changes that require the prior approval of the Board.
22. The following paragraph shall read as follows:
204. If the secretariat does not receive a request for review from a Party involved or at least three members of the Board in accordance with the modalities described in paragraphs 200–203 above, the Board shall instruct the CDM registry administrator to issue a quantity of CERs claimed in the request for issuance into the pending account of the Board in the CDM registry:
(a) For project activities other than CCS: in accordance with decision 3/CMP.1, annex, paragraph 66;
(b) For CCS project activities: in accordance with decision 7/CMP.1, annex, paragraph 21 which requires that for CCS project activities upon such issuance, the CDM Registry Administrator shall promptly:
(i) Forward the quantity of CERs corresponding to the share of proceeds to cover administrative expenses and to assist in meeting the costs of adaptation, respectively, in accordance with Article 12, paragraph 8, of the Kyoto Protocol, to the appropriate accounts in the CDM registry for the management of the share of proceeds;
(ii) Forward 5 per cent of the CERs issued to a reserve account of the CDM registry, established for the CCS project activity for the purpose of accounting for any net reversal of storage;
(iii) Forward the remaining CERs to the registry accounts of the Parties and project participants involved, in accordance with their request.
226. If the Board’s final decision made in accordance with paragraph 221 or 225 above is to issue the CERs, the Board shall instruct the CDM registry administrator to issue a specified quantity of CERs into the pending account of the Board in the CDM registry:
(a) For project activities other than CCS: in accordance with decision 3/CMP.1, annex, paragraph 66;
(b) For CCS project activities: in accordance with decision 7/CMP.1, annex, paragraph 21 which requires that for CCS project activities upon such issuance, the CDM Registry Administrator shall promptly:
(i) Forward the quantity of CERs corresponding to the share of proceeds to cover administrative expenses and to assist in meeting the costs of adaptation, respectively, to the appropriate accounts in the CDM registry for the management of the share of proceeds;
(ii) Forward 5 per cent of the CERs issued to a reserve account of the CDM registry, established for the CCS project activity for the purpose of accounting for any net reversal of storage;
(iii) Forward the remaining CERs to the registry accounts of the Parties and project participants involved, in accordance with their request.
3. The following new paragraphs shall be added in the new section:
4. 8.4 Addressing non-permanence in CCS project activities
5. To address the non-permanence in CCS project activities, the monitoring of the geological storage site shall follow the criteria specified in section 11.bis.7 of the Project standard. The monitoring shall not be terminated earlier than 20 years after the end of the last crediting period of the CCS project activity or after the issuance of the CERs has ceased, whichever occurs first.
6. The monitoring of the geological storage site shall be conducted by the entity or Party that is liable for the geological storage site, or by an entity that is under contractual arrangement with the liable entity or Party.
7. A certification report submitted for a verification period after the end of the last crediting period shall not constitute a request for issuance but shall provide, where applicable, information on the amount of any net reversal of storage that occurred during the verification period as a result of seepage from the geological storage site of a CCS project activity.
8. The last certification report, submitted after the monitoring of the geological storage site has been terminated in accordance with the conditions for the termination of monitoring, as set out in section 11.bis.7 of the Project standard, may constitute a request to forward any remaining CERs in the reserve account established for the purpose of accounting for any net reversal of storage to the registry accounts of the Parties and project participants involved.
9. Upon submission of the last certification report, referred to in paragraph 4 above, and upon finalization of the consideration of the certification report by the Executive Board, the CDM Registry Administrator shall promptly forward any CERs remaining in the reserve account established for the purpose of accounting for any net reversal of storage to the registry accounts of the Parties and project participants involved, in accordance with their request.
10. Where a verification report determines that a net reversal of storage occurred during the verification period as a result of seepage from the geological storage site of a CCS project activity, the Executive Board shall:
(a) Notify the CDM Registry Administrator to cancel, up to the amount of the net reversal of storage, the CERs issued for the CCS project activity held in the CDM registry:
(i) Firstly, from the reserve account established for the purpose of accounting for any net reversal of storage;
(ii) Secondly, from the pending account;
(iii) Finally, from the holding accounts of the project participants, proportional to the amount of CERs for the CCS project activity held in each holding account;
(b) Determine any outstanding amount of the net reversal of storage for which no units were cancelled under paragraph 6(a) above and, where such an amount is outstanding, request the project participants to transfer, within 30 days after the notification, an amount of assigned amount units (AAUs), CERs, emission reductions units (ERUs) or removal units (RMUs) equivalent to the outstanding amount to a cancellation account of the CDM registry established for this purpose or a cancellation account of the national registry of any Party.
11. Where a verification report is not submitted within the time frame specified in section 11.bis.11 of the Project standard, the Executive Board shall forthwith request the project participants to provide the outstanding verification report. If the verification report is not received within six months of the receipt of the request by the project participants, the Executive Board shall:
(a) Instruct the CDM Registry Administrator to cancel all CERs that were issued for the CCS project activity and are being held in the CDM registry;
(b) Subsequently request the project participants to cancel, within one year after the request, an amount of AAUs, CERs, ERUs or RMUs equivalent to the amount of CERs issued from the start of the CCS project activity:
(i) Minus any AAUs, CERs, ERUs or RMUs that were transferred to a cancellation account for the purpose of compensating for a net reversal of storage, prior to the request to the CDM Registry Administrator referred to in paragraph 6(a) above;
(ii) Minus any CERs issued for the CCS project activity that were cancelled in accordance with paragraph 6(a) above.
12. If the project participants do not fully comply with the requirements set out in paragraphs 6 or 7(b) above, the outstanding amount of units shall be transferred to a cancellation account of the national registry of a Party included in Annex I to the Convention (Annex I Party) or the CDM registry, within one year of the request by the Executive Board, by:
(a) The host Party, if the host Party has accepted the obligation to address a net reversal of storage in such a situation in its letter of approval;
(b) The Annex I Parties which hold CERs issued for the CCS project activity in accounts of their national registries, if the host Party has not accepted the obligation to address a net reversal of storage in such a situation in its letter of approval.
13. If the host Party has accepted the obligation to address a net reversal of storage in such a situation in its letter of approval, the Executive Board shall determine the outstanding amount of units that must be cancelled and notify the host Party concerned of the requirement for cancellation. To meet this requirement, the host Party shall transfer an amount of AAUs, CERs, ERUs or RMUs equivalent to the outstanding amount to the cancellation account established for this purpose in the CDM registry or a cancellation account of the national registry of any Party.
14. If the host Party has not accepted the obligation to address a net reversal of storage in such a situation in its letter of approval, the Executive Board shall:
(a) Determine the outstanding amount of units that must be cancelled;
(b) Request the international transaction log administrator to identify the quantity of CERs issued for the CCS project activity held in each national registry, distinguishing between units in holding accounts and other accounts, for the current and previous commitment periods;
(c) Immediately notify the international transaction log that the CERs identified as being in holding accounts are ineligible for transfers other than for the purpose of the requirement set out in paragraph 8 above. When the requirement for cancellation, as set out in paragraph 8 above, has been satisfied, the CERs issued for the CCS project activity in holding accounts shall be again eligible for transfer;
(d) Determine the outstanding amount of units that must be cancelled by each Annex I Party proportionally, by dividing the amount identified in paragraph 10(b) above by the total outstanding amount;
(e) Notify each Annex I Party that holds CERs issued for the CCS project activity in accounts of its national registry of the requirement for cancellation, as determined in paragraph 10(d) above. To meet this requirement, the relevant Annex I Parties shall transfer an amount of AAUs, CERs, ERUs or RMUs equivalent to the outstanding amount to the cancellation account established for this purpose in the CDM registry or a cancellation account of their national registries.
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Document information
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Description |
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01.0 |
4 April 2014 |
EB 78, Annex 5 Initial adoption. This amendment includes provisions related to carbon dioxide capture and storage. |
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Decision Class: Regulatory |
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