Transcript TITLE HEADER - Latin American Carbon Forum

Harnessing the
potential of the
CDM for closing
the pre-2020 gap.
Latin American and Caribbean Carbon Forum, 2014
Bogotá, Colombia
Hugh Sealy – CDM Executive Board Chair
The Emissions Gap
• UNEP estimates mitigation gap of at least 20 billion tonnes of CO2.
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CDM - Part of the solution
•
At COP 19 in Warsaw, ADP invited Parties to reduce the
mitigation gap by offsetting their emissions with CERs.
•
CDM could generate 3 billion tonnes of reductions up to
2020 (based on historical issuance/production of
offsets/CERs).
•
CDM registered projects could potentially contribute up to
8 billion tonnes (but still not enough to close the gap).
•
CDM generates REAL and MEASURABLE emission
reductions: net benefit
•
Available supply: about 430 million CERs = fraction of
potential supply
CDM is not the sole tool,
but must be part of the solution
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CERs – Real and additional emission reductions
•
CDM MRV and registry systems provide unique control over where CERs are
generated and used/cancelled.
•
CDM and CERs available now to anyone wishing to contribute to real mitigation
action – governments, companies and individuals – through voluntary cancellation
of CERs.
•
CDM has global reach, and the widest selection
of project types to implement.
•
Purchase and cancellation turns an offset into
mitigation, and provides funding and incentive
required for further mitigation to be achieved.
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CDM: well-functioning tool
• CDM is delivering what it was set up to do:
a) Mobilizing investment
b) Reducing the cost of mitigation
c) Support low Carbon development
• New mechanisms and approaches will require years to be
implemented
• CDM infrastructure works, and it can be further improved and evolved
as its newer features show: PoA, suppressed demand, standardized
baselines…
•
No need to reinvent the wheel.
• Through the CDM, Parties have access to an enormous pool of experts
and institutions.
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Next Steps
•
The CDM is operational: little is needed here.
•
So what is needed? Ambition from Parties and commitment
to use the CDM as part of the tool kit.
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Voluntary cancellation of CERs
CERs can be used for BOTH compliance and voluntary purposes
Concept of “voluntary cancellation” =
effective removal of a CER from further use or transfer.
• Voluntary cancellation can be done:
 By organizations or individuals wishing to show leadership by
voluntarily offsetting
 To increase de facto mitigation (in particular by governments)
 To support developing countries (transfer of finance, technology,
capacity-building, etc.)
 To contribute to closing the pre-2020 ambition gap
 To preserve investors’ confidence in UNFCCC mandated
mechanisms
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More positive signs
• ADP invited Parties to consider reducing the pre-2020
mitigation gap with CERs
• Carbon pricing initiatives using or considering CERs
(Mexico, Chile, Costa Rica)
• ICAO considering CDM as a possible offset mechanism
• FIFA World Cup Brazil 2014 offsetting with CERs
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Thank you
@UN_CarbonMechs
/UNCarbonMechs