As Paris Enters Force CDM Strengthens On-the-Ground Climate Action
Marrakech, Morocco, 4 November 2016 - The Board that oversees the United Nation’s Clean Development Mechanism (CDM) continued its search for ways in which to use the mechanism’s proven infrastructure and methods to help boost climate action in support of the Paris Climate Change Agreement goals.”
“As the Paris Agreement enters into force today, we enter a new world where urgent and rapidly rising climate action is a daily reality for all Parties and non-Party stakeholders,” Chair Eduardo Calvo said at the Executive Board’s 92nd meeting in Marrakech, just ahead of the UN climate change conference here.
“The CDM’s proven record in reducing emissions at low cost while stimulating sustainable development holds many lessons for how to assess, attract and deploy international investment successfully towards this new level of climate action. Our task is to contribute as much as we can to the objective of the Convention,” he said.
Amongst issues discussed, the Board agreed to continue the promotion of voluntary cancellation of CERs, based on the UNFCCC Platform for Voluntary Cancellation of Certified Emission Reductions and UNFCCC’s Climate Neutral Now initiative.
Specific outreach to targeted sectors, as well as new innovative ideas for how the Voluntary Cancellation of CERs may be used to further enhance climate action were discussed, with the Board agreeing to include this work in its 2017 work plan.
The Board also approved in its management action plan support to the use of CDM in climate finance by financial institutions exploring the possible refinancing of CDM projects with proceeds from the green bond market.
The Board, in response to a request from Parties, has also explored other uses for the CDM and agreed that there are potentially important evolving uses for the mechanism.
For example, Parties may wish to consider use of CERs in their emission trading schemes and nationally determined contributions.
Parties may also wish to encourage aviation and maritime companies to commit to GHG emission reductions in their operations, including through the immediate voluntary cancellation of CERs.
The meeting included discussions on improving the CDM’s project standard, validation and verification standard, project cycle procedure and stakeholder consultation processes.
Under the CDM, projects in developing countries earn a saleable credit for each tonne of greenhouse gas they reduce or avoid. The incentive has led to the registration of more than 8,000 projects and programmes in more 105 countries and the issuance of more than 1.6 billion certified emission reductions (CERs). Countries can use CERs to meet a part of their emission reduction commitments under the Kyoto Protocol.
Meanwhile the synthesis report of the annual activity reports submitted by the designated operational entities (DOEs) in 2015–2016 highlighted that there is sufficient coverage of accredited DOEs in each sectoral scope. Geographic coverage is also extensive, with more than one third of the DOEs working in countries with fewer than 10 registered CDM projects.
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