1. The Climate Negotiations and the
Future of the CDM
Friedel Sehlleier
GIZ Climate Change Task Force
Tunis - 29. April 2011
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2. Accomplisments of the CDM
 CDM as Kyoto surprise
 Key ingredient for agreement on KP in 1997
 Unexpectedly rapid development of the CDM
6000 projects;
3000 registered;
60% RE projects
14 % EE projects
~ €2 billion transacted 2009
 EU: 73% of credit demand, JAP: 24%, others: 3%
 Carbon has become a multibillion dollar market
 But the outlook beyond 2012 is uncertain…
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3. CDM in the Climate Negotiations I
 EU, AGF & others: Market mechanisms are an important
part of future climate finance
 CDM complemented by new, scaled-up market mex
 Broad agreement on need for CDM continuity post 2012
 Cancun made important steps towards CDM
improvement and signals CDM will go on
“Emissions trading and the project-based mechanisms under
the Kyoto Protocol shall continue to be available to Annex I
Parties as means to meet their quantified emission limitation
and reduction objectives“ FCCC/KP/AWG/2010/L.8/Add.1
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4. CDM in the Climate Negotiations II
 Still, the legal future of CDM is in a grey area
 Difficult outlook for a new agreement
 Does CDM‘s future depend on achieving a new
agreement?
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5. CDM credit demand after 2012
 Int‘l agreement beneficial, but not essential for
continuing demand for CDM credits
 EU will buy credits after 2012, even in the absence
of an int‘l agreement
 Post2012 demand from other countries less visible
 EU limits on eligibility of CDM projects registered
after 2012!
 Ok, if registered before end of 2012
 If later, only projects allowed from LDCs and
countries which have signed a bilateral agreement
with EU
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6. Opportunities
Short term:
 Support project proposals
 with a realistic chance of registration until end 2012
 already registered, but barriers prohibiting
implementation
 Go for high quality projects, e.g. with Gold Standard
 Go beyond project-based approaches, i.e. PoA
Medium to long term:
 Utilise new market mechanism opportunities
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7. Do you know GIZ‘s
CDM Highlights
Newsletter?
 Subscribe at:
http://www.gtz.de/en/th
emen/14317.htm
 For french
version, send an
email to
valeria.troudi@giz.de
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8. Thank you!
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