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Project Cycle of The Clean Development Mechanism: UNFCCC Secretariat

This document outlines the project cycle and institutional framework for clean development mechanism (CDM) projects. It describes the key steps and roles involved in: [1] designing a CDM project; [2] validating and registering the project with a designated operational entity and executive board; [3] monitoring emissions reductions by project participants; [4] verifying and certifying reductions with an operational entity and executive board; and [5] issuing certified emissions reductions credits by the executive board. It also discusses the inclusion of land use, land-use change and forestry projects and the activities of the executive board.

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Francis Xavier
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38 views

Project Cycle of The Clean Development Mechanism: UNFCCC Secretariat

This document outlines the project cycle and institutional framework for clean development mechanism (CDM) projects. It describes the key steps and roles involved in: [1] designing a CDM project; [2] validating and registering the project with a designated operational entity and executive board; [3] monitoring emissions reductions by project participants; [4] verifying and certifying reductions with an operational entity and executive board; and [5] issuing certified emissions reductions credits by the executive board. It also discusses the inclusion of land use, land-use change and forestry projects and the activities of the executive board.

Uploaded by

Francis Xavier
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Project cycle of the clean

development mechanism

UNFCCC secretariat
The institutional side

¬ COP/MOP
¬ Executive board
¬ Designated operational entities
(accredited by the executive board,
designated by the COP/MOP)
¬ Designated national authorities
(selected by Parties)

Para numbers refer to FCCC/CP/2001/13/Add.2


(decision 17/CP.7 annex)
CDM project activity cycle

Design Project participants

Operational entity
Validation and registration
Executive board

Monitoring Project participants

Verification and certification Operational entity

Executive board
Issuance
“CERs”
Design of a CDM project activity

¬ Project design document


(Appendix B)
¬ Additionality and baseline
methodologies (§43-§52)
new or approved (§37e, 38)
¬ Monitoring methodologies (§53-§60)
new or approved (§37e, 38)
¬ Select crediting period (§49)
¬ Determine project boundary (§52)
¬ Account of stakeholder comments (§37b)
and environmental impacts (§37c)
Validation and registration

¬ Designated operational entity reviews


project design document (§37)
¬ Must meet validation requirements (§37)
new or approved methodologies
¬ Designated national authority
approves project activity (§37, 40a)
¬ Operational entity submits validation
report to the executive board (§40f)
¬ Executive board registers
the project activity (§41)
an automatic step unless review requested
Monitoring

¬ Emission reductions monitored by a


project participant or a third party
¬ Monitoring plan included in the project
design document (§60)
¬ Monitoring plan provisions (§53-§54)
¬ Adjustment for leakage (§59)
¬ Preparation of a monitoring report (§60)
Verification and certification

¬ Designated operational entity:


– Reviews monitoring and verifies
reductions (ex post) (§62, 63)
– Certifies reductions (written assurance
to the executive board) (§63)
¬ Certification report is a request to the
executive board for CER issuance (§63)
¬ Verification, monitoring and certification
reports made publicly available (§63)
Issuance of CERs

¬ Executive board issues CERs on the basis of


the certification report (§64)
an automatic step unless review requested (§65)

¬ CERs issued into the CDM registry


(§66, Appendix D)

¬ CERs for the share of proceeds for


administration and adaptation withheld (§66a)
¬ Remaining CERs forwarded to Parties and
project participants (§66b)
Design/validation/ registration – flow chart 1
New Flow chart 2
ideas Submits required
information
Repository of approved methodologies
PP
Rejects new method.
Validation Registration
New methodology
EB CDM proj. activities

OEx Two cases Project 1


Rejects if not conform Project 2
“Automatic”
with validation Approved method. …
n
ith tio

requirements Project n
s w ida

else forwards to EB Submits request to


in
ys entt val

EB for registration
n
30 uirem nts o

PP to provide to OE written approval of


req mme

OE1 UNLESS Review is


voluntary participation by DNA of each party involved
OE2 requested
da
Co

…
OEn UNFCCC: Parties,
stakeholders, If requested within 8 weeks by either one Party
accredited NGOs involved or at least three board members.
Design/validation/ registration – flow chart 2
(Guidance)

Repository of approved methodologies


New
ideas
Submits required
information
Disapproves
COP/MOP
PP Rejects new method.

Validation
New methodology
OEx Request for Registration
EB
Registration
Rejects if not conform CDM proj. activities
with validation
requirements Project 1
else forwards to EB Project 2
…
Project n
LULUCF in CDM

First commitment period


- Only afforestation and reforestation project activities
- Additions of LULUCF CERs are capped
at 1% of base year emissions (x 5 years)

Second commitment period


- To be decided as part of negotiations on that period
LULUCF in the CDM

Process

• COP 9 (Nov 2003) to adopt definitions and modalities


for including such project activities in the CDM
In form of annex on afforestation and reforestation
project activities reflecting mutatis mutandis
the present CDM modalities and procedures

• SBSTA 16 (Jun 2001) to develop terms of


reference and an agenda for the work until COP 9
Work is to take into account issues of non-permanence,
additionality, leakage, uncertainties and
socio-economic and environmental impacts.
Executive board activities

¬ Liase with SBSTA on LULUCF in the CDM


¬ Baseline and monitoring methodologies
establishing panel (by 4th meeting?)
¬ Small-scale project activities
establishing panel (at 3rd meeting?)
¬ Accreditation of operational entities
¬ CDM registry
Project cycle of the clean
development mechanism

Contact
[email protected]

Knowledgebase
http://unfccc.int/cdm
INFO:
http://UNFCCC.INT/CDM
[email protected]

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