Fwd: UN Envoys Mull Baseline Crediting to Boost CDM, Draft Shows

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UN Envoys Mull Baseline Crediting to Boost CDM, Draft Shows
2010-12-03 13:25:42.869 GMT

By Mathew Carr
Dec. 3 (Bloomberg) -- 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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--Editors: Rob Verdonck, Raj Rajendran

To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or

To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net