SB 17

Discussion relating to the CDM at SB 17 focused on modalities for the inclusion of afforestation and reforestation projects under the CDM.

The Subsidiary Body for Scientific and Technological Advice (SBSTA) made some progress in its consideration of definitions and modalities for including afforestation and reforestation project activities under the CDM in the first commitment period. There was ongoing disagreement over a proposal by the Canadian delegation to change the starting year for reforestation activities (the current definition sets this at 1990). The Canadian proposal moves this forward to December 31, 1999. Due to this ongoing definitional problem, it was decided to focus discussions on modalities. An informal group established during the SBSTA allowed Parties to exchange views on matters relating to modalities. During this discussion, a number of countries proposed accounting systems for dealing with the issue of non-permanence (the fact that trees do not sequester carbon indefinitely).

In conclusion, the SBSTA requested the Secretariat, under the guidance of the Chair of the SBSTA, to prepare option papers on definitions and modalities, based on submissions and inputs from Parties. SBSTA requested the Secretariat to organize a workshop in early February 2003 to facilitate an exchange of views on modalities for including afforestation and reforestation project activities under the CDM in the first commitment period. The SBSTA also noted the work of the UN Food and Agriculture Organization is harmonizing forest definitions.

COP-8

The Eighth Conference of Parties heard a report from the Executive Board of the Clean Development Mechanism and decided to adopt the rules of procedure for the Executive Board. The Executive Board is entrusted with responsibility for supervising the Clean Development Mechanism, under the authority and guidance of the Conference of the Parties serving as the Meeting of Parties to the Kyoto Protocol (COP/MOP). The roles of the Executive Board include: approving new methodologies related to baselines, monitoring plans, project boundaries and reviewing simplified procedures for small scale projects. The Board is also responsible for accrediting operational entities. Operational entities are legal bodies that are responsible for validating CDM project proposals. The draft rules of procedure adopted by the COP define the rules for the nomination, election and re-election of the Board members and their alternates. The rules also set out requirements for such issues as conflicts of interest and confidentiality, transparency, attendance (by observers), committees, panels and working groups, and the role of the Secretariat.

Joint Implementation

Joint Implementation was not directly discussed at either SB 17 or COP-8, however there were discussions and decisions relating to reporting requirements for Emission Reduction Units (ERUs) generated through Joint Implementation projects. (This is discussed in the section on Inventories.)

Kyoto Protocol Article 17 - Emissions Trading

Emissions Trading was not directly discussed at either SB17 or COP-8, however there were discussions and decisions relating to reporting requirements for Assigned Amount Units (AAUs), which may be traded under the concept of Emissions Trading. (This is discussed in the section on Inventories).