Publication: Considerations for CDM Methodology Concepts to Article 6.2
Loading...
Date
2024-08-01
ISSN
Published
2024-08-01
Author(s)
Editor(s)
Abstract
The Clean Development Mechanism (CDM) under the Kyoto Protocol has seen the development of over 250 project-based methodologies for establishing baseline emissions, assessing additionality, monitoring project activities, and measuring & verifying emission reductions. The implementation of these methodologies over the years has provided valuable experiences and lessons that could inform baseline-setting methods under Article 6 of the Paris Agreement (PA) to ensure environmental integrity, increased mitigation ambition, and the achievement of Nationally Determined Contributions (NDCs). In this context, this approach paper delves into components of CDM methodologies that require reassessment for the transition from the Kyoto to the Paris regime. It draws from past CDM experiences to identify useful insights that can be applied to the new toolkit. It identifies the key risks (over-crediting/overselling and risk of perverse incentives) that need to be addressed, and crucial elements (ratcheting up of ambition) that need to be considered for robust Article 6 baseline-setting that aligns with new requirements under the Paris Agreement. Overall, the paper concludes that while the portfolio of CDM methodologies can serve as a reference, baseline setting under Article 6 must go beyond the CDM baseline determination method that relies on historical practices and take a forward-looking approach that considers NDC targets and trajectories and ambition-raising.
Link to Data Set
Citation
“World Bank. 2024. Considerations for CDM Methodology Concepts to Article 6.2. Article 6 Approach Paper Series;. © World Bank. http://hdl.handle.net/10986/41988 License: CC BY-NC 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Adapting to Climate Change in Europe and Central Asia : Lessons from Recent Experiences and Suggested Future Directions(Washington, DC, 2012-06-28)Like other regions, Eastern Europe and Central Asia is vulnerable to climate change and its potential socioeconomic impacts. While all countries are facing warmer temperatures, a changing hydrology, and more extreme events (for example, floods and droughts) and are concerned about the level of greenhouse gases in the atmosphere, they differ in their financial and institutional capacities to respond. Therefore, especially for the most vulnerable countries in the region (for example, those in Central Asia and southern Europe), adapting to climate risk adds a new dimension to the challenges of development, but also provides an opportunity to revisit priorities and accelerate reforms. The Europe and Central Asia (ECA) Region of the World Bank has been actively working on climate-related projects and has advanced a number of initiatives in response to climate change since the 1990s. Nevertheless, up until a few years ago the region's focus was mainly on emissions reduction (mitigation), rather than on helping countries respond to existing or expected impacts from climate change through adjustments in natural or human systems. But more recently, adding focus on climate adaptation had led ECA to initiate a program of analytical work and pilot investment projects to help develop the information and knowledge base necessary to help build staff skills as well as better respond to client needs.Publication Considerations for Additionality Concepts to Article 6.2 Approaches(Washington, DC: World Bank, 2024-08-20)This approach paper examines the role of additionality for environmental integrity under Article 6.2 approaches. It analyzes the relevance of additionality determination methods from market mechanisms including Joint Implementation (JI), Clean Development Mechanism (CDM), and voluntary offset mechanisms, wherein additionality has been judged as a yes/no dichotomy, albeit with inherent uncertainty. It also reviews other performance-based market mechanisms such as emission trading systems, wherein no additionality demonstration was needed. A6.2 has more similarities with JI and International Emission Trading (IET), including the capping of emissions of all participants and performing corresponding adjustments (CA). It is noted that A6.2 differs from former project-based mechanisms, where the additionality demonstration has been linked to the absence of the project activity and relied on business-as-usual (BAU) scenario for baseline. The A6.2 guidance state that the impact of mitigation activities should be evaluated compared to a country’s commitment and to future-looking performance of a below-BAU scenario. In the A6.2 context, the host country must assess and decide how much and which MO it wishes to sell, or not, to ensure it achieves its own NDC commitments, without overselling or underachieving by not engaging sufficiently in international markets. Additionality may become a risk management tool, rather than a yes/no decision tool, to determine the quantity of MO from an activity that may be authorized by the host country for international transfer. This approach paper provides scenarios of when and how activity-based additionality could be evaluated to mitigate risks to the host and buyer.Publication Climate and Disaster Resilience : The Role for Community-Driven Development(World Bank, Washington, DC, 2014-02-01)This paper is part of a larger effort to document, assess, and promote scalable models and approaches to empower poor communities to manage a climate and disaster risk agenda in support of their development goals and to identify practical ways of getting climate and disaster risk financing directly to the ground level where impacts are felt. Social funds, social protection systems and safety nets, community-driven development (CDD) projects, livelihoods-support and related operational platforms can serve as useful vehicles for promoting community-level resilience to disaster and climate risk. This paper examines the World Bank's Community-Driven Development (CDD) portfolio to assess experience to date and to explore the potential for building the resilience of vulnerable communities to climate and disaster risk through CDD programs. It aims to be useful to both the Climate Change Adaptation and Disaster Risk Management practitioner as well as the CDD practitioner. The paper assesses the scale of climate and disaster resilience support provided through CDD projects from 2001-11 and characterizes the forms of support provided. For the climate change adaption and disaster risk management (DRM) practitioner, it discusses the characteristics of a CDD approach and how they lend themselves to building local-level climate resilience. For the CDD practitioner, the paper describes the types of activities that support resilience building and explores future directions for CDD to become a more effective vehicle for reducing climate and disaster risk.Publication Development and Climate Change : A Strategic Framework for the World Bank Group(Washington, DC, 2012-06)The framework provided a road map for climate action for the World Bank Group (WBG) over fiscal years 2009-11, setting out the WBG's objectives, principles, areas of focus, and major initiatives in the field of climate change. The framework was organized around six action areas: 1) supporting climate actions in country-led development processes; 2) mobilizing additional concessional and innovative finance; 3) facilitating the development of market-based financing mechanisms; 4) leveraging private sector resources; 5) supporting accelerated development and deployment of new technologies; and 6) stepping up policy research, knowledge, and capacity building. Climate change is one of the multiple stressors that affect the environment and impact on income and welfare. Further, its impact is worsened by other environmental damages. Looking ahead, strategies to combat climate change have to account for the continued need for rapid growth in developing countries. In this context, the World Bank is now looking at climate change in a holistic manner, bringing together climate change efforts with work on growth and broader management of natural resources and pollution. The WBG has successfully worked with clients and partners to mainstream climate considerations into the WBG's core business and strategies to reach impact on the ground. Yet this remains a make-or-break decade for climate action despite escalating levels of engagement within and outside the WBG.Publication The World Bank's GEF Program in the Middle East and North Africa Region : Global Environmental Benefits Contributing to National Development Goals(World Bank, Washington, DC, 2014-01)The report focuses on the two decades of the World Bank - Global Environment Facility (GEF) partnership with the Middle East and North Africa (MENA) countries. This partnership has had a global environmental impact by working both at the local and national level and engaging all relevant partners and stakeholders. In addition, many GEF financed operations stand as examples of what a more holistic approach can achieve in terms of innovation and catalyzing greater investment. These operations have also delivered important social benefits such as job creation, enhanced economic and social inclusion, and strengthened governance capabilities. Presently the region s most pressing environmental challenges stem from rapid urbanization and its resulting infrastructure needs, industrial pollution, overexploitation of scarce water resources, the unsustainable management of fragile ecosystem resources and vulnerability to climate variability and climate change. Decision makers working to address these problems also face many tightly linked and urgent social issues. These issues include meeting the aspirations of a quickly growing urban youth population; giving voice to gender and women s issues; finding ways to spur job growth; and reversing the poor provision of basic services. This publication also points to opportunities for further World Bank - GEF cooperation in support of green growth.
Users also downloaded
Showing related downloaded files
Publication Digital Progress and Trends Report 2023(Washington, DC: World Bank, 2024-03-05)Digitalization is the transformational opportunity of our time. The digital sector has become a powerhouse of innovation, economic growth, and job creation. Value added in the IT services sector grew at 8 percent annually during 2000–22, nearly twice as fast as the global economy. Employment growth in IT services reached 7 percent annually, six times higher than total employment growth. The diffusion and adoption of digital technologies are just as critical as their invention. Digital uptake has accelerated since the COVID-19 pandemic, with 1.5 billion new internet users added from 2018 to 2022. The share of firms investing in digital solutions around the world has more than doubled from 2020 to 2022. Low-income countries, vulnerable populations, and small firms, however, have been falling behind, while transformative digital innovations such as artificial intelligence (AI) have been accelerating in higher-income countries. Although more than 90 percent of the population in high-income countries was online in 2022, only one in four people in low-income countries used the internet, and the speed of their connection was typically only a small fraction of that in wealthier countries. As businesses in technologically advanced countries integrate generative AI into their products and services, less than half of the businesses in many low- and middle-income countries have an internet connection. The growing digital divide is exacerbating the poverty and productivity gaps between richer and poorer economies. The Digital Progress and Trends Report series will track global digitalization progress and highlight policy trends, debates, and implications for low- and middle-income countries. The series adds to the global efforts to study the progress and trends of digitalization in two main ways: · By compiling, curating, and analyzing data from diverse sources to present a comprehensive picture of digitalization in low- and middle-income countries, including in-depth analyses on understudied topics. · By developing insights on policy opportunities, challenges, and debates and reflecting the perspectives of various stakeholders and the World Bank’s operational experiences. This report, the first in the series, aims to inform evidence-based policy making and motivate action among internal and external audiences and stakeholders. The report will bring global attention to high-performing countries that have valuable experience to share as well as to areas where efforts will need to be redoubled.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication World Development Report 2024(Washington, DC: World Bank, 2024-08-01)Middle-income countries are in a race against time. Many of them have done well since the 1990s to escape low-income levels and eradicate extreme poverty, leading to the perception that the last three decades have been great for development. But the ambition of the more than 100 economies with incomes per capita between US$1,100 and US$14,000 is to reach high-income status within the next generation. When assessed against this goal, their record is discouraging. Since the 1970s, income per capita in the median middle-income country has stagnated at less than a tenth of the US level. With aging populations, growing protectionism, and escalating pressures to speed up the energy transition, today’s middle-income economies face ever more daunting odds. To become advanced economies despite the growing headwinds, they will have to make miracles. Drawing on the development experience and advances in economic analysis since the 1950s, World Development Report 2024 identifies pathways for developing economies to avoid the “middle-income trap.” It points to the need for not one but two transitions for those at the middle-income level: the first from investment to infusion and the second from infusion to innovation. Governments in lower-middle-income countries must drop the habit of repeating the same investment-driven strategies and work instead to infuse modern technologies and successful business processes from around the world into their economies. This requires reshaping large swaths of those economies into globally competitive suppliers of goods and services. Upper-middle-income countries that have mastered infusion can accelerate the shift to innovation—not just borrowing ideas from the global frontiers of technology but also beginning to push the frontiers outward. This requires restructuring enterprise, work, and energy use once again, with an even greater emphasis on economic freedom, social mobility, and political contestability. Neither transition is automatic. The handful of economies that made speedy transitions from middle- to high-income status have encouraged enterprise by disciplining powerful incumbents, developed talent by rewarding merit, and capitalized on crises to alter policies and institutions that no longer suit the purposes they were once designed to serve. Today’s middle-income countries will have to do the same.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.