Q&A sessions at UNFCCC SB26

8 May 2007

Mr. Hans Jürgen Stehr

Chair of the CDM Executive Board

Rajesh Kumar Sethi

Vice-Chair of the CDM Executive Board

655 registered CDM projects900 million CERs expectedto the end of 2012

(assumption: no extension of crediting periods)

Status of the CDM | Measuring success

Map and statistics accessible from http://cdm.unfccc.int/Status: 8 May 2007

To date: > 1,600 projects> 1.9 billion CERs expected to the end of 2012

In pipeline:

Status of the CDM |Measuring success

0

114 100

39

471530

183

750

940

645

1,600

1,900

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400

600

800

1,000

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1,400

1,600

1,800

2,000

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May 2005 (SB22) December 2005(COP/ MOP1)

May-06 May-07

Registered project activities Projects in the pipeline Projected CERs Status: 8 May 2007

An explosion of activities

Status of the CDM | Measuring success

Status: 8 May 2007

Region KP parties Parties with DNA Parties with project experience

Parties with registered projects

Annex 1 parties (AI) 37 24 n/a 14

NAI-Africa (NAI-AFR) 44 31 11 6

NAI-Asia and the Pacific (NAI-ASP) 49 33 24 19

NAI-Latin America and the Caribbean (NAI-LAC)

32 26 19 16

NAI-Other 7 8 3 3

*number of parties with project experience can not be calculated due to lack of information

Status of the CDM | Measuring success

Status: 8 May 2007

Region Number of projects

Africa 17

Asia and the Pacific 377

Other 6

Latin America and the Caribbean 255

Sub regional: Charts look the same!

Status of the CDM | Measuring success

Status of the CDM | Measuring success

November 2006(CMP.2 Nairobi)

May 2007(SB26)

AMs 38 (plus 20 for SSC) 45 (plus 23 for SSC)

ACMs 10 10

A/R 4 (plus 1 for AR SSC) 7 (plus 1 for SSC AR)

Tools 3 5 (plus 2 for AR)

Methodology development

• Processes / Procedures – defined / open to optimisation• Methodology standard:

– Number increasing / consolidation / generic tools – Process being optimised and shortened

• Register: – 655 registered projects – 14 rejected ( a bit more than 2.5%)

• “Central bank”: – 44 million CERs for a bit more than 230 requests, – 3 rejected (less than 1.5%)

• Accreditation body: Opportunity for single accreditation recognized in all Parties to KP.

Status of the CDM | Measuring success

Status of CDM | Measuring success

• The only regulated mechanism that is up and running, that ensures “real, measurable emission reductions that are additional to what would have occurred without the project.”

• Transparency: - All information is public

- Public comments are sought

• Close to the market stakeholders:

– bottom up approach

– Increasing interaction/constructive dialogue

• Evolving with experience

Status of CDM | Measuring success

•Stimulating investment flow (>19billion by 2012

(10USD) in value of the CO2 eq. reduction only) to

non-Annex I countries

•Giving Annex I countries flexibility in how they meet

their KP commitments (presently pipeline of the

magnitude of the annual emissions of Russia).

•It is growing even in a context of perceived medium

and long-term uncertainties

CDM works, now let’s focus on:

• Continuously increasing its efficiency:

– Further information access, e.g. CDM Bazaar

– Further access to decisions, e.g. catalogue of decisions

– Further interaction with “players” , e.g. fora (DOE, DNA), project participants

• Realizing its potential (scaling up)

– Programme of activities (POA)

– Sectors: energy efficiency / transport

– Methodologies: simplicity, applicability

– Regional opportunities

• Regulatory optimization : relatively slim / streamlining and optimization opportunities have and will be pursued

• EB to report to CMP3 its ability to deal with its “success”

Status of CDM | Key challenges

Finalize guidance relating to the definition of project activities under a programme of activities and procedures for registration as a single CDM project activity.

- PoA definitions and guidance adopted at EB28 (Annex 15). - A refined guidance, registration/issuance processes and forms (PDDs) ready for approval at EB32

Improved “tool for the demonstration and assessment of additionality”

Approved EB 30 (Annex 5)

New procedures to demonstrate the eligibility of lands for A/R project activities under the CDM.

First call for input closed. A Draft text available for further public inputs.

Simplified methodology for small-scale project activities that propose the switch from non-renewable to renewable biomass (1/CMP.2)

- Public call launched, - UNFCCC Side event scheduled at SBSTA 26- Consideration EB 32

Catalogue of decisions publicly available towards the end of the first quarter of 2007.

Test catalogue for trial made available in April 2007

Status of CMP mandated tasks| Overview of status

Methodologies for Transport sector and EE methodologies

AM0031 Transport Methodology

AM0046 Methodology for efficient light bulbs. Provides framework for other similar small efficiency energy appliances.

Regional Distribution of CDM -Nairobi Framework (DNA Forum in Africa)

-Ensure suitability of methodologies in all regions

- CDM BAZAAR

Accreditation - Secretariat requested to prepare background document on the development of EB validation and verification guidance document

Status of CMP mandated tasks| Overview of status

United Nations Framework Convention on Climate Change

Thank You!Catalogue test address:

http://test.cdmis.net/catalogue-test

Information

cdm.unfccc.int

Cdm-info@unfccc.int

Related events during SB26|

Tuesday, 15 May, 13:00 Side Event: CDM programme of activities

Wednesday, 16 May, 13:00

Side Event: CDM: methodologies for SSC projects that switch from non-renewable biomass