UNFCCC Secretariat

Overview of the CDM and the CDM project Cycle

Training-Workshop to support the “Uganda Municipal Waste Compost Programme” Kampala, Uganda, 21-24th October 2013

Session 2: The CDM Project Cycle

Objectives

Carbon Trading

CDM project Cycle

Review

Clean Development Mechanism

Objectives

Carbon Trading

Carbon Trading

How does the emission trading scheme work?

5

• Legally binding targets for emissions of six major greenhouse gases in industrialized countries during first commitment period

• New international market-based mechanisms,

creating a new commodity: carbon

• Facilitate sustainable development

The Kyoto Protocol

6

• Emission Trading (ET): exchanging emission allowances among Kyoto Protocol Parties

• Clean Development Mechanism (CDM): credits for emissions reduced/avoided through sustainable development projects in developing countries (non-Annex I countries)

• Joint Implementation (JI): credits for emissions avoided through projects in Annex I countries

Market based Mechanisms

7

= Emission allowances to sell

= Emission units/credits needed

Emissions cap

Emitter A

Emiss

ion

allo

wanc

es

Emissions cap

Downward pressure on emissions

Emitter B

=

=

=

=

Emissions cap

Emitter A

Emiss

ion

allo

wanc

es

Emissions cap

Downward pressure on emissions

Emitter B

Emissions cap

Emitter A

Emiss

ion

allo

wanc

es

Emissions cap

Downward pressure on emissions

Emitter B

Emissions Trading

Objectives

Clean Development Mechanism

projects are issued saleable credits

Sustainable Development & Carbon Credits

Contribution to Sustainable Development - employment, income generation, health benefits and infrastructure

development

10

= Certified Emissions Reduction

Time

Emiss

ions

With CDM project

Without CDM project

PROJECTS ON THE GROUND

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PROJECTS ON THE GROUND – What do they look like?

Landfill Gas Collection

Bagasse Cogeneration Power Projects

Emission reduction projects in developing countries

Project activities generate CERsCERs are traded to help Annex I Parties meet

their Kyoto Protocol emission reduction goals

Assist host country in Sustainable development

Energy Efficient Cookstoves

12

CDM is the largest and most widely recognized offset mechanism in the world. 7,217 registered projects in 89 countries1.38 billion CERs issued to date

Estimated leveraged at least USD 315 billion in capital investment to underpin climate mitigation efforts since 2004

Crediting of a further 1.4 to 6.2 billion emission reductions by 2020.

Status: EB business plan 2014 - 2015 , 4th October 2013

A Mechanism with Global Reach

Objectives

CDM project Cycle

14

QUESTION 2 – Who is involved? What is the CDM project cycle?

Verification & Certification

CDM PROJECT CYCLE

Approval

Registration

Monitoring

CER Issuance

Validation

PDD Development

EB

WHO IS INVOLVED?

Who is involved in the Project Cycle?

EBDesignated

operational entity (DOE)

Independent accredited auditors

Designated national authority (DNA)

Approves implementation of a CDM project in their

country

Project participant (PP)

Develops a project or programme of activity

Carbon ConsultantCDM advice and

CERs sales

Wider Stakeholder

s

15

UNFCCC Secretariat

16

= Certified Emissions Reduction

Time

Emiss

ions

With CDM project

Without CDM project

PROJECTS ON THE GROUND

17

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

18

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

19

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

20

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

21

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

22

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

23

CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

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CDM project cycle

Verification & Certification (DOE)

CDM/PoAPROJECT

CYCLEApproval (DNA)

Registration (EB)

Monitoring (Project Participant)

CER Issuance (EB)

Validation (DOE)

PDD Development(Project Participant)

Project Idea(Project Participant)

Objectives

Review

Review

Contribution to Sustainable Development

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Thank you for your attention

CDM Regional Collaboration Centre A collaboration between the UNFCCC Climate Change Secretariat

and the East African Development Bank

EADB Offices, No. 4, Nile AvenueP.O. Box 7128, Kampala, Uganda

Phone: +256 (0) 312517814