Clean Development Mechanism Achievement and developments

Daniele ViolettiSecretary to

the CDM Executive BoardManager,

CDM Process ManagementSustainable Development Mechanisms Programme

UNFCCC

6th session of the high-level task force on the implementation of the right to development

14 January 2010 Geneva

2011+ registered CDM projects> 1.72 billion CERsexpected to 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

Large scale projectsSmall scale projects

Status: 11 January 2010

To date: > 4,400 projects> 2.9 billion CERs expected by the end of 2012**

In the pipeline:

0 114100 183

750940

685

1,6001,900

1082

3,0002,700

1732

4200

2,900

1938

4200

2,900

0

500

1000

1500

2000

2500

3000

3500

4000

4500

May 2005(SB22)

May-06 May-07 Jun-08 Jul-09 Dec-09

Growth in registered CDM project activities, projects in the pipeline and projected CERs

Registered projectactivitiesProjects in thepipelineProjected CERs

As at 6 Dec. 2009

Status of the CDM | A strong and steady growth

Progress of the CDM | Registered CDM projects (2)

Distribution of registered project activities by scope

Progress of the CDM | Registered CDM projects (3)

Registered project activities by host partyTotal: 2,011

Expected average annual CERsfrom registered projects by host party

Total: 339,594,771

Progress of the CDM | Issuance of CERs

CERs issued by host partyTotal: 334,384,644

Number of CERs requested and issued

Title Number of CERs

Issued CERs 366,177,511

Total of CERsrequested

380,310,019

0

50,000,000

100,000,000

150,000,000

200,000,000

250,000,000

300,000,000

350,000,000

Total of CERs requested Issued CERs

Progress of the CDM | Regional Distribution

Registered projects by regionTotal: 2,011

Africa2%

Latin America and

Caribbean24%

Other1%

Asia and Pacific73%

� CDM is suffering from its success ! increasing delays in the (rigorous) approval process

� Actions EB last year included:� Policy + guidelines on how to treat project changes to the PDD� Improved criteria and procedures for PoAs (2 registered)� Timelines set for DOEs and secretariat + status published

� Transparency:� More open sessions� More information provided on decisions (revamped catalogue of decisions)

� Methodology development revisited ! prioritize� Many methodologies hardly or never used� Only 13 out of 100 methodologies = 88% reductions� Priority for transport , energy efficiency and agriculture

Ongoing work | Actions to reduce delays in the CDM

� Improvements to the process:� Methodologies (top-down development to be

applicable in under-represented project types or regions)

� Registration and issuance (revision of timelines and processes including an appeal possibility)

� Governance (enhance transparency and communication with stakeholders)

� Continue to improve procedures for PoAs

Ongoing work | CMP decision on CDM (1) in Copenhagen

� Regional Distribution:� Allocate financial resources from the Trust

Fund for the CDM, as well as any voluntary contributions from donors, to provide loans to cover in countries with fewer than 10 registered clean development mechanism project activities:(a) Costs of PDDs development;(b) Costs of validation and the first verification for these project activities;

� Encouraged DNAs to publish their sustainable development criteria

Ongoing work | CMP decision on CDM (2) in Copenhagen

� Regional Distribution:� Requests the secretariat to enhance its

support to designated national authorities and the Designated National Authorities Forum by, inter alia:

� (a) Providing training opportunities for CDM stakeholders on a continuous basis on the different elements of the CDM project cycle;(b) Facilitating information exchange and awareness-raising at the regional and subregional levels;

� Requests the secretariat to continue its work in facilitating coordination among partner agencies in the implementation of the Nairobi Framework;

Ongoing work | CMP decision on CDM (3) in Copenhagen

Where: Khayelitsha, a low-income housing development on the outskirts of Cape TownWhat: Residents have turned to the sun to provide for their heating needsHow: Houses have been equipped with insulated ceilings, solar water heaters and energy efficiency lightingResults: The project improves thermal performance, lighting and water heating efficiency of the housing units

Sustainable Development Benefits� Reduction of greenhouse gas emissions� Families have cut their electricity costs� Each solar water heater saves 1.29 tonnes of CO2 per household

annually� Reduction of local air pollution� Decreases in pulmonary pneumonia, respiratory illnesses and carbon

monoxide poisoning

Example | South Africa � Project 0079

Sustainable Development Benefits� Reduction of greenhouse gas emissions� Reduction of local air pollution from wood smoke � Reduction of harmful health consequences resulting from wood smoke� Reduction of fuel wood consumption in an area where deforestation is a

major concern � Natural recovery of forests and reforestation can take place

Where: Guinea Savannah ZoneWhat: The purpose of the project is to disseminate up to 12,500 efficient fuel wood stoves and heat retaining boxes at subsidized prices How: The new wood stoves are suitable for cooking, frying, heating, and baking flat bread. After reaching the boiling point, food can be transferred to the heat retaining box, where it can simmer until it is well cooked. Results: The wood stoves save up to 80 per cent of fuel wood

Example | Nigeria � Project 2711

Sustainable Development Benefits� The local government can improve collection services for the city� Collection services can increase at the same rate as population

growth (estimated at 2 per cent per year)� A percentage of the revenues from CERs generated by the project will

be used to finance programmes that concentrate on supply of clean water and improving the local living environment

Where: City of Pontianak�s landfillWhat: The project involves the installation of a landfill gas (LFG) collection system and flaring facility to destroy the methane gas generated at the landfillHow: The project will invest in waste collection systems and utilize some of the collected LFG to generate electricityResults: Development of solid waste collection and disposal services and improvement of the living and working environment for the landfill workers and the surrounding community

Example | Indonesia � Project 1582

Key source for this study:� PDD of 3,296 projects in the CDM pipeline (registered and

proposed) as of June 2008, located in 67 host countries

TT by project type:� 36% projects claims TT� TT is more common for larger projects� Unilateral and small-scale projects involve less TT (only 30% claims

TT)

TT by host country characteristic:� Frequency of TT claims is high for �Least Developed Countries�

(65%)� Host country can influence the extent of TT: The DNA approval

criteria may include provision for TT or technology development

Technology Transfer (TT) | Key findings (2008)

Agriculture

TT is more likely for: HFCN2OLandfill gasWind projects

Project sizeProbability of TT increases with:

Foreign participants

TT is less likely for:

Biomass energy

Cement

Fugitive

Hydro

Technology Transfer (TT) | Regression analysis

Total investment for all 3,296 projects in the pipeline is estimated at:

CDM projects in the pipeline in 2007Expected capital investment

$ 95 billion

$ 45.9 billion

In 2007 the CDM leveraged USD 33 billion in clean energy investment, considerably more than was made available through ODA

Financing | Technology transfer and overall

THANK YOU!

CDM Process ManagementSustainable Development Mechanisms

UNFCCC

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Catalogue of decisionshttp://cdm.unfccc.int/Reference/catalogue/search

Informationcdm.unfccc.int

cdm-info@unfccc.int