Operationalising the Article 6.4 mechanism: options and implications of CDM activity transition and

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COM/ENV/EPOC/IEA/SLT(2021)2

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2 Overview of functions and

relationships of actors involved in the possible transition

This section highlights the different actors that could be involved in the possible transition of eligible CDM activities to the Article 6.4 mechanism (hereinafter referred to as “the possible transition”), and the possible roles and interactions of these actors. A sound understanding of the governance of the CDM and of the Article 6.4 mechanism will be fundamental for Parties to adopt decisions that would explicitly allow for potentially eligible CDM project activities as well as Programme of Activities (PoAs) to transition to the Article 6.4 mechanism. The content of such possible decisions may determine the role of different actors in the possible transition, and may also influence whether a possible transition can be implemented efficiently and in a manner compatible with the relevant provisions of the Paris Agreement and accompanying decisions. Several actors could be involved in the possible transition. These are listed below, and described in the Glossary. Details about the functions, characteristics and role in the possible transition of these actors are summarised in Table 2. The current functional relationships among these actors – spread across different UN climate regimes - are quite complex; a simplified overview of these is illustrated in Figure 9 in Annex A. 

Actors currently involved in the CDM: o

the Conference of the Parties serving as the meeting of the Parties to the Kyoto Protocol (CMP)

o

the Clean Development Mechanism Executive Board (CDM EB)

o

host Parties (in the CDM)

o

the Designated National Authorities for the CDM (DNAs for the CDM)7

o

the Designated Operational Entities for the CDM (DOEs for the CDM)

o

project participants in the CDM (PPs) and co-ordinating / managing entities for PoAs;

Actors of the Article 6.4 mechanism: o

the Conference of the Parties serving as the meeting of the Parties to the Paris Agreement (CMA)

o

the Article 6.4 Supervisory Body (6.4SB)

o

host Parties (in the Article 6.4 mechanism)

o

the Designated National Authorities for the Article 6.4 mechanism (DNAs for A6.4)

o

the Designated Operational Entities for the Article 6.4 mechanism (DOEs for A6.4)

7

In the context of the possible transition, discussions in this paper focus on DNAs of the host Party, recognising that there are also non-host Party DNAs.

Unclassified


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