Summary of Key Points in the "Considerations for CDM Methodology Concepts to Article 6.2 Mechanism" Approach Paper
1. Introduction & Objectives
The paper aims to guide the operationalization of Article 6 of the Paris Agreement, focusing on the Clean Development Mechanism (CDM) methodologies.
It addresses the transition from the Kyoto Protocol to the Paris Agreement, highlighting the need for updated baseline-setting methods to ensure environmental integrity and increased mitigation ambition.
2. Considerations for Article 6.2 Baselines
Risks: The paper identifies risks such as over-crediting and the risk of perverse incentives in baseline setting, emphasizing the need for robust mechanisms to avoid these issues.
Key Elements: It stresses the importance of considering Nationally Determined Contributions (NDCs), sector targets, policies, and regulations in baseline considerations to ensure alignment with Paris Agreement objectives.
3. Managing Risks with Article 6.2 Baselines
The paper discusses strategies to mitigate identified risks, focusing on ensuring environmental integrity and promoting sustainable development through cooperative efforts.
4. Testing Article 6.2 Concepts with CDM Methodologies
It analyzes specific CDM methodologies like on-grid renewable energy, landfill gas activities, grid extension, and emission factors for electricity systems, evaluating their relevance under the Paris Agreement’s Article 6.2.
Recommendations for adjustments to these methodologies are provided to align them with new requirements.
5. Conclusions
While the CDM portfolio serves as a reference, the paper concludes that baseline setting under Article 6 must evolve to incorporate forward-looking approaches that consider NDC targets, trajectories, and ambition raising.
It underscores the importance of adapting and adjusting CDM methodologies to better fit the Paris Agreement’s context and objectives.
Additional Information
The paper was authored by a team including Jessica Wade-Murphy and Sandeep Kanda, with significant input from Harikumar Gadde and Seoyi Kim, among others.
It was developed for the Climate Warehouse Program at the World Bank and acknowledges contributions from the Climate Market Club, which represents member entities from various countries and non-sovereign entities.
The work was prepared within the broader context of facilitating the operationalization of Article 6 through pilot activities and aligning with the Paris Agreement's goals.
