Standardized Baselines in the CDM: Decisions
and Way Forward
7th. CDM Joint Coordination Workshop
Bonn, 13 March 2011
Verónica Colerio, Standard Setting Unit
UNFCCC secretariat, Sustainable Development Mechanisms
BACKGROUND I
CMP5 requested SBSTA to recommend
modalities and procedures for the
development of standardized baselines under
the CDM that are broadly applicable, that
provide a high level of environmental integrity
and that take into account specific national
circumstances.
BACKGROUND II
 After two calls for submissions, a technical paper that
took into account all submissions was prepared for
CMP6 including the discussion on the following issues:
 Scope;
 Mandatory vs. optional;
 Procedures;
 Priorities;
 Access to CDM;
 The level of aggregation and the boundaries;
 Data quality, availability, collection and
confidentiality;
 Financing;
 Accounting for developments over time, including
past efforts.
WHY STANDARDIZED BASELINES?
Standardized baselines may:
Improve efficiency by reducing transaction costs,
complexity and uncertainty for project participants;
Enhance transparency and objectivity;
Facilitate access to the CDM;
Contribute to the streamlining of CDM procedures;
Promote the scaling-up of mitigation actions while
ensuring environmental integrity.
DECISION
CMP6
 Decided that Parties, PPs, as well as international
industry organizations or admitted observer
organizations through the host country’s DNA, may
submit proposals for standardized baselines to the EB.
 Requested the EB to develop standardized baselines,
in consultation with relevant DNAs, prioritizing
methodologies that are applicable to underrepresented
regions and project activity types.
WHAT IS A STANDARDIZED BASELINE?
CMP6 definition: baseline established for a Party or a
group of Parties to facilitate the calculation of
emission reduction and removals and/or the
determination of additionality for clean development
mechanism project activities, while providing assistance
for assuring environmental integrity.
SCOPE
“… baseline established for a Party or a group of Parties
to facilitate the calculation of emission reduction
and removals and/or the determination of
additionality…”
 Establishment of the Baseline Scenario;
 Determination of Baseline Emissions;
 Demonstration of Additionality.
GEOGRAPHICAL AGGREGATION LEVEL
“… baseline established for a Party or a group of Parties
to facilitate the calculation of emission reduction and
removals and/or the determination of additionality…”
“… standardized baselines under the CDM should be broadly
applicable, provide a high level of environmental integrity
and take into account specific national, subnational or
international circumstances, as appropriate, “
 Subnational (e.g. several grids in a country)
 Party
 Group of Parties
 International: NAI Parties, all Parties, etc. Example:
– Benchmark for PFC emissions from aluminium
METHODOLOGIES AND SBs
Recognizing that baseline and monitoring methodologies
using standardized baselines can be developed, proposed by
project participants and approved by the Board ...
Baseline and monitoring methodologies are required;
Framework - Principles
Qualitative
Algorithm
Quantitative - Value
SUBMISSION OF SBs
Decided that Parties, PPs, as well as international industry
organizations or admitted observer organizations
through the host country’s DNA, may submit proposals
for standardized baselines to the EB
 Existing procedures for PPs;
 Procedures needed for DNAs to sumit proposal for
standardized baselines.
TOP DOWN DEVELOPMENT OF SBs
Requested the EB to develop standardized baselines, in
consultation with relevant DNAs, prioritizing
methodologies that are applicable to underrepresented
regions and project activity types (energy generation in
isolate systems, transport and agriculture).
 DNA consultation;
 LDCs, SIDS, underrepresented project types / countries;
 Specific sector requests.
ROLE OF THE DNAs
 Standardized baselines provide an excellent opportunity
to enhance the role of DNA’s in the wider CDM process:
 Proposals for standardized baselines can allow DNAs to
better align the use of carbon financing with wider public
policy goals (e.g. energy policies, sustainable agriculture
policies);
 The data gathering process can be facilitated by DNAs;
 The baseline requirements can be better tailored to
address the data availability issues of the Host Party, while
maintaining environmental integrity;
 The enhanced capacity developed during this process
can also contribute to enhanced use of carbon financing in
underrepresented regions.
WEB PAGE
http://cdm.unfccc.int/about/standardized_baseline
s/index.html