Consolidated text on principles, modalities, rules and guidelines on mechanisms pursuant to Articles 6, 12 and 17 of the Kyoto Protocol
Note by the Chairmen
Part Two: Article 12 of the Kyoto Protocol
Submission by Australia, Canada, Iceland, Japan, New Zealand, Norway, Russian Federation, Ukraine, and the United States
August, 2000
Note: The paragraphs referred to below correspond to paragraphs in "Future FCCC/SB/2000/4 (xx June 2000)," distributed by the Chairs to delegations in Bonn on June 23, 2000.
Draft Decision C/CP.6
We can support separate decisions on the mechanisms, since the decision on Article 17 will need to be approved by the COP, and the decisions on Article 12 and Article 6 would be approved by the COP/moP. However, we reiterate that it will be important to ensure that all decisions on the mechanisms go forward in tandem.
Paragraph 2. Please bracket paragraph 2(a) pending further discussion of the reference manual.
Paragraph 3. Please bracket this paragraph.
Draft Decision -/[CMP.1]
Preamble
Please bracket the entire section of the Decision beginning with the phrase, "Affirming that..." and ending with the clause on fungibility/non-fungibility: "....effective environmental equivalence".
Paragraph 3.
Option 2: Replace "these [modalities and procedures] [guidelines]" with "this decision". Please bracket the phrase "...the first commitment period and " in the second last sentence.
Please add the following sentence to the end of each of the optional paragraphs:
["Any revisions to this decision shall be made by consensus of the Parties."]
II. Annex
Paragraph 1. Please bracket this paragraph - not the right location in the text.
Paragraph 2. Please bracket this paragraph - same rationale as in Paragraph 1.
Paragraph 3(a). Please bracket this paragraph.
Paragraph 8(a). Change "Determine" to "Approve"
Paragraph 8(b). Set out as two options, with the second option being:
"Review the regional distribution of projects with a view to identifying any systemic barriers and reporting to the CoP/moP."
Paragraph 8(c) and 8(d): Please bracket both paragraphs.
Paragraph 8(f). Please bracket this subparagraph
Paragraph 8(i). Please make following additions: Make public all relevant...including that contained in... and insert the following text at the end of the paragraph:
Except as required in the applicable procedures contained in CoP/moP decisions or by law, information obtained from CDM project participants marked as proprietary or confidential, where such information is not otherwise publicly available, shall not be disclosed without a written consent of the provider of the information. Emissions data or other data used to determine emissions additionality shall not be considered confidential.
Paragraph 11. Please bracket [...and shall act in their personal capacities.]
Paragraph 21. Please add as the third last sentence in this Paragraph: "Any such decision that adversely affects registered project activities shall be taken only after the affected project participants have had the possibility for a hearing.
Paragraph 22. Please bracket this paragraph.
Paragraph 24. Please bracket this paragraph.
Paragraph 24bis. The executive board shall review proposed new methodologies for calculating baselines and proposed new methodologies for ensuring that crediting for sinks projects reflects real, measurable and long-term benefits in enhancement of removals and/or avoidance of emissions of greenhouse gases (refer to paragraph 57 Option2 (c)) prior to the registration of a project using such methodology. Whenever the executive board approves such a methodology, it shall include it in the reference manual referred to in paragraph 25, [along with any relevant guidance related to its application to other projects with similar characteristics]. (Note: This may also be appropriately placed in paragraph 8(a).
Paragraph 25. Please make the following changes: "The Executive Board shall maintain a reference manual for the purpose of facilitating and enhancing transparency in the development of baselines, monitoring and other relevant project elements, in accordance with Appendix B. The reference manual shall include approved baseline methodologies and multi-project baselines (and such other guidance that the executive board considered will facilitate and enhance transparency in the development of projects.
Paragraphs 30 and 31. Change "shalls" to "will:" since operational entities are not Parties, they do not assume obligations.
Sub paragraphs 31 (e) and (f). Please bracket both sub-paragraphs.
Paragraph 34. Please bracket.
Paragraph 35.d. Add a new bracketed option: "[Has not been found to be out of compliance with] the provisions..."
Paragraph 40. Please bracket this entire paragraph or set out as two options with the second options reading:Option 2: Private and public entities may participate in CDM project activities with the approval of the Parties involved.
Paragraph 42. Please bracket this paragraph.
Sub-Paragraph 44(b). Please substitute the words "or administrative" for "and institutional"
Sub-Paragraphs 44(f), (g) (h): Please bracket these sub-paragraphs.
Sub-Paragraphs 45(d). Please bracket.
Sub-Paragraphs 45 (e) and (f): Please bracket these sub-paragraphs.
Paragraph 46. With the exception of requirements under paragraphs [35-37] that an Annex 1Party must meet in order to [acquire CERs][use CERs to contribute to compliance], issues of non-compliance [with provisions in this decision by operational entities ] shall be resolved by the Executive Board within the framework of the CDM.
Paragraph 50. Please insert the words "or entities" after the term "such Parties" in the second sentence.
Paragraph 51. Please bracket this paragraph.
Paragraph 52: Please bracket both options. We are further considering this matter.
Validation - Please replace this section with the word : Registration. Also make replacement where appropriate throughout text and particularly in this section.
G. Please bracket the reference to "Validation."
Paragraph 54. Registration is the process of independent evaluation of a project against the requirements of the CDM and its formal acceptance as a CDM project activity. Then bracket remainder of the entire paragraph.
Paragraph 55. Please bracket the term "validation" in the first sentence and add the term "registration" in brackets.
Paragraph 56. Set out text as Option 1 and then add following Option: Except as required by national law, operational entities shall not disclose information obtained from CDM project participants marked as proprietary or confidential, where such information is not otherwise publicly available without a written consent of the provider of the information.Emissions data or other data used to determine emissions additionality shall not be considered confidential.
Paragraph 57. We note that this paragraph is not actually an option of paragraphs 58 to 60. The words "Option A (para 57) should be bracketed.
Paragraph 57 b and c (bis)
Please add after Paragraph 57 (a) as an alternative option to paragraphs 57(b) through (i):
| (b) | The project design document contains information in accordance with the provisions of this decision, including inter alia: | ||
| i) | information relating to the calculation of the project baseline | ||
| ii) | measures to account for activities occurring as a direct result of the project activity outside the project boundary | ||
| iii) | provisions for monitoring, verification and reporting of project performance | ||
| (c) | For projects designed to enhance removals by sinks, the project design document shall ensure that crediting of sink projects reflects real, measurable and long-term benefits in enhancement of removals and/or avoidance of emissions of greenhouse gases. For this purpose, the project design document shall include: | ||
| i) | a proposed period of time during which carbon would remain sequestered | ||
| ii) | modalities to address the possibility that some or all carbon sequestered through the project is released before the time specified in subparagraph(i) has elapsed, for example through modalities for ensuring that any carbon released before the specified time period has elapsed will be made up, or modalities regarding the rate at which CERs are issued over the duration of the project. | ||
Sub paragraphs 57(d) and (i) Please bracket both subparagraphs.
Paragraph 58. Please bracket as we do not see this as an alternative to Paragraph 63.
Paragraph 59-61. Please set out this text as Option 1 and add the following option.
Option 2:
| 59.1. | The designated operational entity will review the information provided to determine whether it is sufficient to enable a decision regarding whether to register the project activity. If the information is not sufficient, the designated operational entity may request further information from the project participants, as appropriate. |
| 59.2. | If the designated operational entity determines that the project uses a baseline methodology or a multi-project baseline that has not been previously approved by the Executive Board, or is designed to enhance removals by sinks and uses a methodology for calculating the time period nd modalities specified in paragraph [57 (c)] that has not been previously approved by the Executive Board, it must forward the methodology to the Executive Board for review.The Executive Board shall expeditiously review and either approve or not approve any such methodologies in accordance with paragraph [24bis]. |
| 59.3. | If the information provided is sufficient to enable a decision, and relevant elements have been approved in accordance with paragraph 59.2, the operational entity will make a determination as to whether, on the basis of the information provided in paragraph 57, the project activity should be registered. |
Paragraph 60. Please bracket this paragraph.
Paragraph 62. Please replace references to "validation" and "validated" with "registration" and registered"
Paragraph 63. Please ensure entire paragraph is bracketed (need double brackets at beginning and end of paragraph.)
Paragraph 66. Please replace "the validated" with "an approved."
Paragraph 67. Please replace "the validated project" and "the validated baseline" with "the registered project" and "the approved baseline".
Paragraph 68. Please bracket.
Paragraphs 69-90. We are continuing to review these paragraphs and may submit further views. In order to improve the clarity of the text, substantive (as opposed to procedural) requirements relating to determining additionality in accordance with Article 12 may be best placed in an Appendix.
Paragraph 69 (b). Please bracket the entire second sentence.
Paragraph 73 Please bracket " and the UNFCCC CDM reference".
Paragraphs 79 - 80. Please bracket.
Paragraphs 87 - 88. Please bracket.
Paragraph 90. Please replace "validated" with "approved". Please bracket "UNFCCC".
Paragraph 94. Please replace "decision" with "determination".
Paragraph 95. Please replace the term "decision" with "determination" in the first sentence. In the second sentence, please make the following changes: "The registration determination shall be deemed final after [60] days from the date of receipt by the Executive Board of the determination unless a Party involved..."
Subparagraph 95 (a). Please amend this subparagraph to read: (a) Requests for reviews shall be limited to issues associated with the applicability of the baseline methodology or [multi-project][standardized] baseline to the project; the adequacy of the monitoring plan; in the case of sequestration projects, adequacy of methodologies pursuant to paragraph 57.c, or other issues relating to environmental additionality.
Paragraph 97. Please bracket the last sentence. And add the following: [The first-of-a-type monitoring methodology and its relationship with the generation of CERs will be approved by the executive board. This approved methodology will subsequently be used by project participants in thier project proposal document. Project proponents that choose not to use the approved methodology must provide sufficient information to support the use of an alternative monitoring methodology which will be subject to the executive board approval.]
Paragraph 101. Please bracket "UNFCCC".
Paragraph 106 to 115. We are considering how to address possible comments at the stage of certification and issuance of CERs.
Paragraph 121(b), (f)(ii) and (g), and paragraph 122 (c). Change "validation" to "registration" or set them out as options.
Paragraph 122(a) (ii) Please bracket entire section. We are still considering whether this is appropriate.
Paragraph 123. Please bracket "UNFCCC" and bracket "UNFCCC" prior to any reference to the reference manual. Also change "reflect" to "contain."
Paragraph 124. Please bracket "UNFCCC."
Subparagraph 124 (b). after baseline, add "or baseline methodology"
Subparagraph 124 (b) I) add "as appropriate" at end of sentence.
Subparagraph 124 (b) iv) Change to read: " How the baseline methodology addresses potential project boundary issues, including if applicable, provision for measuring, addressing and/or accounting for changes to projected emissions reductions as a result of leakage."
Subparagraph 124 (e) (bis): After Subparagraph 124 e) add the following:
Approved methodologies for determining project duration and for modalities to address the possibility that some or all of the carbon sequestered through a project is released, pursuant to paragraph 57(c).
Sub-paragraph 124 (h) and 127 (e) (x): Please bracket entire sub-paragraphs
Paragraph 125. Please include as an option to the term "validation" or "validated" the term "registration" or "registered" wherever it appears in this section.
Please bracket 127 (c)(ii),(vii), (h).
Paragraph 127 e viii. Add "as appropriate" at end of the sentence.
Paragraph 127 e x. Please bracket .
Paragraph 127 e xi. Please bracket "in a quantitative manner"
Please add a new 127 (e)(xii bis) : How the baseline methodology addresses potential project boundary issues.
Paragraph 127 (h). Please bracket.
Please add a new (fbis).
| For projects involving sequestration, a description of how the project participants will ensure crediting for a sinks projects reflects real, measurable and long-term benefits in enhancement of removals and/or avoidance of emissions of greenhouse gases. For this purpose, the project design document shall include: | ||
|
| (i) | a proposed period of time during which carbon would remain sequestered; and |
| (ii) | modalities to address the possibility that some or all carbon sequestered through the project is released before the time specified in subparagraph(i) has elapsed, for example through modalities for ensuring that any carbon released before the specified time period has elapsed will be made up, or modalities regarding the rate at which CERs are issued over the duration of the project. | |
Paragraph 130. Please bracket this paragraph.
Appendix D. Paragraph 132 (bis). Need a chapeau to introduce the issue. Please add the following:
The amount of the share of proceeds to be used to cover administrative expenses shall be retained by the executive board for this purpose. The remaining amount of the share of proceeds to be allocated to the Adaptation Fund defined in Appendix D to the Annex, to be used to assist developing country Parties that are particularly vulnerable to the adverse affects of climate change in meeting the costs of adaptation.