SD-PAMs: What, Where, When and How?

Executive Summary

All 191 Parties to the United Nations’ Framework Convention on Climate Change (UNFCCC) have agreed to reduce greenhouse gas (GHG) emissions through various policy measures. The paper discusses the concept of Sustainable Development Payment Mechanisms (SD-PAMS), which aim to incentivize sustainable development while addressing climate change.

1. Introduction

The paper provides an overview of SD-PAMS, their definitions, and how they could fit into a broader climate framework. It highlights that SD-PAMS are designed to generate financial incentives for sustainable development projects that also contribute to climate goals.

2. What Are SD-PAMS?

• Definitions: SD-PAMS are mechanisms that allow countries to generate credits for sustainable development projects that have international benefits.
• Illustration: Examples of SD-PAMS are provided to demonstrate their potential applications.

3. Who Would Participate in SD-PAMS?

• GHG Context: SD-PAMS target countries with significant GHG emissions and need to meet their climate commitments.
• Eligibility: The paper outlines which countries are eligible to participate in SD-PAMS based on their GHG emissions and development needs.

4. How Could SD-PAMS Fit in a Climate Framework?

• Generating Credits: SD-PAMS can generate "SD-PAM" credits, which can be used to offset GHG emissions.
• Interactions with CDM: The paper discusses how SD-PAMS interact with the Clean Development Mechanism (CDM).
• Stand-Alone Option: SD-PAMS can serve as a standalone option for developing countries to access funding for sustainable development projects.
• Integration Issues: The paper explores the integration of SD-PAMS into the climate regime, including the "Sao Paolo Proposal."

5. Process for Implementation Under the UNFCCC

• Identifying and Preparing SD-PAMS: Countries must identify and prepare projects that meet the criteria for SD-PAMS.
• Submitting SD-PAMS: Projects must be submitted to relevant bodies for review.
• Financing Process: The paper outlines the steps involved in financing SD-PAMS, including funding mechanisms.
• Approval/Registration Process: Projects must go through an approval and registration process to ensure compliance with standards.
• Monitoring/Reporting Process: Continuous monitoring and reporting of project outcomes are required.
• Review/Evaluation Process: Regular reviews and evaluations are conducted to assess the effectiveness of SD-PAMS.

6. Conclusions

The paper concludes by summarizing the key points discussed and highlighting the importance of SD-PAMS in promoting sustainable development while addressing climate change.

References

• Detailed references for further reading are provided.

Glossary

• A glossary of terms related to SD-PAMS and climate change is included for clarity.

Tables and Figures

• Table 1: GHG impacts of different types of policies and measures, and suggested eligibility for SD-PAMS.
• Table 2: Possible international requirements to register SD-PAMS.
• Figure 1: Influence of international benefits of SD-PAMS on the appropriate level of international oversight.
• Figure 2: Per capita energy use, energy-related CO2 emissions, and GDP for selected countries and regions.
• Figure 3: Overlap between SD-PAMs, climate change policies and measures, and the CDM.
• Figure 4: Overview of bodies and tools/decisions needed in implementing SD-PAMs.