UN Envoys Mull Baseline Crediting to Boost CDM, Draft Shows
United Nations envoys considered emission-trader requests for the Clean Development Mechanism Executive Board to introduce crediting using so-called baselines, according to a UN draft text published yesterday.
“Standardized baselines” should make it easier to determine which projects are eligible for credits, according to the draft published at climate talks in Cancun, Mexico. Factories and power stations my get credits for activities that emit below such baselines. Currently, projects are approved on a case-by-case basis, and must show they need credits in order to go ahead. That approval process has caused delays.
The proposal, deferred last year at climate talks in Copenhagen, potentially would add to supply, Gareth Phillips, chief climate change officer at Sindicatum Carbon Capital Ltd., said last night at a briefing in Cancun organized by the Carbon Markets & Investors Association.
The baselines may include so-called “positive lists” of projects that would more easily win tradable credits, such as installation of equipment that boosts the energy efficiency of houses, Phillips said. That would curb transaction costs of obtaining credits, he said.
One option in the draft is for nations to decide at this month’s climate talks to allow project developers to “submit proposals for the use of standardized approaches in new or existing methodologies to the executive board for its assessment and approval.”
Singapore-based Sindicatum Capital develops emission- reduction projects. CMIA is a lobby group in favor of emissions trading. The Cancun summit continues through Dec. 10.
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