Download Background to the CDM - Capacity Development for the CDM

BACKGROUND TO THE CDM
By Philip M. Gwage
Structure of Presentation
• Background
 Climate Change Convention
 Kyoto Protocol
• The Clean Development Mechanism
 Objective
 Criteria for Participation
• CDM Project Cycle
• Global CDM Institutional Structure & Linkages
 The CDM Executive Board
 Participating Party
 Operational Entity
 Broad Functions of EB
• Generic National Institutional Structure &
Linkages
 Next Presentation will talk about this
Climate Change Convention
• Available scientific information indicates clearly that
the global climate is changing. Observations (recent
extreme weather events) confirm global warming
• The Intergovernmental Panel on Climate Change in its
Third Assessment Report (TAR) concludes that human
activities are main contributors to global warming
• The international community negotiated and adopted
the United Nations Framework Convention on
Climate Change (UNFCCC) to address:
 Reduction of greenhouse gas (GHG) emissions to 1990
level by developed country parties by 2000
(stabilization of concentrations of GHGs)
 Cope with negative effects of climate change
(adaptation in key sectors)
 Developed country parties would assist developing
countries in implementing the UNFCCC
Kyoto Protocol
• Re-enforces commitments of all parties
• Commits each developed country party to further
reduce their GHG emissions on average by 5.2%
below its 1990 level by the year 2012
• First commitment period is 2005 to 2012
• Developed country parties must comply with
Kyoto targets
• Kyoto Protocol provides three mechanisms to
assist developed countries comply with Kyoto
targets
• The Clean Development Mechanism (CDM) is
The Clean Development
Mechanism
• CDM is an instrument of cooperation between
developed and developing country parties
• Three main objectives:
 Assist developed country parties comply with their
Kyoto targets (lower cost of reduction)
 Assist developing country parties achieve sustainable
development
 Contribute to achieving stabilization of concentrations
of GHGs
• Criteria for participation:
 Voluntary
 Party to the Kyoto Protocol
CDM Project Cycle
• CDM Project must lead to measurable GHG
emission reductions (hence need for
environmental baseline)
• CDM project must satisfy national development
criteria e.g. must contribute to poverty reduction
hence need for sustainable development criteria
(indicators to be used to assess contribution of
project)
• CDM financing (sale of certified emission
reduction units (CERs) is a small proportion of
project costs
• Project developer must find ways and means of
raising the bulk of the money for the project
activities
• Main elements of CDM cycle
CDM Project Cycle