Executive Summary
Emissions from the energy and land-use change and forestry sectors are responsible for the majority of emissions in non-Annex I Parties to the UNFCCC. Tackling greenhouse gas (GHG) emissions from these sectors is crucial for slowing the growth in GHG emissions in non-Annex I countries. Implementing Clean Development Mechanism (CDM) projects can help achieve this aim, while also assisting non-Annex I countries in moving towards sustainable development and Annex I countries in meeting their emission commitments under the Kyoto Protocol.
Despite significant progress in the CDM over the past year—increased numbers of projects in the pipeline, registration, and credit issuance—some important sectors remain underrepresented. Countries have also highlighted the need to accelerate the approval of CDM methodologies and projects.
To enhance the effectiveness of the CDM, the COP/MOP1 agreed to provide "further guidance relating to the clean development mechanism." This decision (4/CMP.1) outlines ways to improve the operation of the CDM, including provisions for "bundling" project activities and allowing "project activities under a programme of activities" (referred to as PCDM) to be registered as CDM project activities.
Currently, 27 of the 172 registered CDM project activities involve PCDM. These projects can encompass multiple project types, be implemented across various locations, and occur in different sectors.
This paper assesses how PCDM could help increase the effectiveness of the CDM by encouraging a widespread adoption of emission mitigation activities. It also explores key issues that need to be addressed for the PCDM concept to be further implemented.
The paper concludes that:
- Key Concepts and Issues Need to Be Defined and Clarified: Understanding what constitutes a "programme of activities" in the CDM context and distinguishing it from "bundles" of CDM projects.
- Guidance on Specific Issues: Defining crediting periods, identifying project locations, calculating expected emission reductions, ensuring additionality, managing baselines, addressing double-counting, leakage, and boundaries.
- Link to EB Guidance on National Policies: Ensuring alignment with existing guidelines on national policies.
Overall, PCDM holds promise for enhancing the CDM's effectiveness, but careful consideration of implementation details is necessary.
