The Clean Development Mechanism (CDM) has been a success in both the number of projects and the amount of emission reductions it has mobilised. On the other hand, an increasing number of stakeholders are calling for a reform of the CDM for further improvement of the mechanism. Of particular concern is the cumbersome procedure of baseline setting and additionality testing. The baseline defines the emission level that would have existed under a business-as-usual (BAU) scenario, while a project is additional if it would not have happened in the absence of the revenue from sales of Certified Emission Reductions (CERs). In order to operationalise these concepts, complex methodologies and procedures have been introduced to the CDM.
In order to facilitate project development, to increase the environmental integrity of the CDM and reduce inconsistency of decisions on project registration, a greater use of performance standards has been proposed. Standardised approaches could address many of the criticisms levelled at the CDM but they also need careful implementation and regulatory oversight in order to ensure the environmental integrity of the CDM is maintained.
This report discusses how standardised approaches could be used within the CDM. It analyses the current status of the CDM in Ch. 2 to examine where standardised approaches could play an important role for the improvement of the mechanism. In Ch. 3, the authors provide an overview of the existing standardised approaches available, both outside and within the CDM, to analyse implications of adopting a CDM based on standardised approaches. Ch. 5 further elaborates on the methodological approach for standardised approaches. In Ch. 5, practical issues related to the implementation of standardised approaches under the CDM are discussed in detail. Based on the above analyses, implications of a greater use of standardised approaches under the CDM are assessed in Ch. 6. Furthermore, detailed case studies are presented for whole-building efficiency projects in Ch. 7 and charcoal production projects in Ch. 8. Finally, Ch. 9 concludes.
Hayashi, D.; Muller, N.; Feige, S.; Michaelowa, A. Towards a more standardised approach tobaselines and additionality under the CDM. Determining nationally appropriateperformance standards and default factors. (2010) 174 pp.