UNFCCC Secretariat

SDM programme

Nurturing demand for

the CDM and CERs

Agenda item 2.2 Paragraph 5 of the annotated agenda, Annex 2

CDM EB 87

Paris, France, 23 to 27 November 2015

Agenda item 2.2

Paragraph 5 of the annotated agenda, Annex 2

2

Procedural background

The 2015 CDM management plan (MAP) defines Goal 2 as

“Nurture policies to broaden demand for, and participation in,

the CDM”

At EB81 the Board requested the secretariat to provide regular

updates.

At EB84 the Board requested the secretariat to continue its

efforts while giving special attention to the use of the CDM in

the aviation sector and by the Green Climate Fund.

At EB84 Board also took note of an information note on the use

of the CDM infrastructure in other fields and reiterated the need

for outreach and proactive engagement to increase awareness

on how the CDM infrastructure can be used in other fields.

Agenda item 2.2

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3

Purpose

The purpose of this information

note is to update the Board on

additional work that has been

undertaken in 2015 to nurture

demand for the CDM and CERs,

and to provide suggestions for

how relevant activities may be

further strengthened in the 2016

MAP.

Agenda item 2.2

Paragraph 5 of the annotated agenda, Annex 2

International Civil Aviation Organization

• CDM and VC Platform relevance to ICAO

Market based Measure post-2020, to be

adopted in 2016.

• Cooperation with aviation organizations to

encourage voluntary pre-2020 action.

International Maritime Organization

• Increasing interest among private sector

actors

• Likely to follow suit with ICAO after

COP21?

4

Engagement with other intergovernmental organizations

Agenda item 2.2

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Support to United Nations system

UN system

COP 21

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COP 21

Climate neutrality of COP21 in cooperation with

French presidency

Invitation to all participants - Climate neutral badges

On-site climate neutral desks

Presentations at EB side event, C4C Business

Forum, UNFCCC-IETA side event etc.

Continuous media presence

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Cooperation with international finance institutions

Mapping of options

Identification of opportunities

Development of models

Consultations with key actors

Demonstration of concepts

work in progress

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Cooperation with civil society and business organizations

UNFCCC’s Climate Neutral Now fully aligned

with promotion of the use of CDM/CERs.

Initial focus on business and

sector associations – IATA, UIC, IPC, ACI….

Engagement with champion companies,

organizations and individuals – steady

increase in uptake

Further emphasis on sports and cultural

events and conferences

Expanding towards consumers, consumer

facing orgs, and social media

Linked with Global Compact/C4C

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Online platform for voluntary cancellation of CERs

Weeks of operation 7

Number of visitors 17,193

Number of transactions 149

Volume of cancellation 4,170

Average price USD 2.42

Number of projects available 20 (25 offers)

Number of CER’s available 444,280

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Customers by country

10

Latvia

Australia

Denmark

France

Japan

Czech Republic

Belgium

Norway

Poland

Finland

India

China

Chile

Singapore

Sweden

Spain

Hong Kong

Brazil

Canada

Switzerland

United Kingdom

Germany

United States

0 10 20 30 40 50 60 70

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Comparison with other Online offset providers

o Online offset providers compared: 10

o Most offset providers offers VCS, CER or domestic offsets, and in

some cases own projects.

o Only one provider exclusively working with CERs

o Quoted prices are much higher (x10-100) than at VC platform

o Some providers offers wide range of projects based on

technology types and host country

o All online providers issue a certificate to confirm sale

o All providers use PayPal solution

o Larger volumes often not available for online access

o Many online providers emphasize local non-climate benefits

o Typical number of visits: 500-5000/month

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Online platform for voluntary cancellation of CERs

Challenges

• Not all CERs in the CDM

registry are available

• Inactive projects

• Outdated MoC

• CERs already contracted

• Problems with payment

modes

• Unwilling to engage in

small-scale sale

Enabling measures

• Dedicated follow up with

projects

• Continuous outreach also

to supply side

• Enable bank transfer

• Add Adaptation Fund filter

• Allow SOP payment for

blocks of CERs

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Online platform for voluntary cancellation of CERs

Improved user features

• Add public history page to list all transactions

• Improved back-end reporting capability for analytics

• Numerous small, but essential, performance optimizations

• Welcome pages in French and Spanish – to be expanded

• Display adapted to only show project types with CERs for sale

Further options (2016)

• Additional payment methods

• Express options (automatic pick of CERs)

• Automate VC action in CDM registry

• Improve project specific information

• Possibility to purchase CERs from more than one project

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Subsequent work and timelines 1. Continued engagement with ICAO, IMO and the UN system

2. Explore and promote the use of the of the CDM infrastructure in

other fields, including within the context of the GCF and green bonds;

3. Continued support for policy related use, including

on how the CDM may be integrated in policy

development and implementation of INDCs;

4. Enhancing the collaboration with international

sector and business associations to encourage

use of the VC platform.

5. Developing and implementing a strategy for

reaching consumers, directly or via consumer-

facing companies and organizations

6. Improvement and operation of the VC platform, including increasing

the number of CDM projects and CERs available on the platform,

7. Dedicated outreach and promotion of the CDM and the VC platform,

including coordination with cooperative climate action initiatives.

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Agenda item 2.2

Paragraph 5 of the annotated agenda, Annex 2

Recommendations to the Board

1. The Board may wish to take note of the work

conducted in 2015, and suggestions and ideas for

related work in 2016.

2. The Board may wish to consider proposed continued

activities in the context of discussions for the 2016

Management Action Plan.

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