CDM submissions fall to 7-year low in December
New submitted projects to the clean development mechanism (CDM) programme slumped to a seven-year low in December, said UN research body UNEP Risoe on Thursday, although registrations surged for joint-implementation projects.
May 2007 was the last time submissions were so low, the Denmark-based body said. From 1 January this year, only CDM projects registered before 2013 or those from least-developed countries are still eligible to use CERs as offsets in the EU Emissions Trading System (ETS), according to new rules from the UN.
Only one of the submissions was from a least-developed country, Uganda. The rest comprised 14 from India, and 1 each from Brazil, Mexico and Russia.
The number is in line with the declining trend in recent months. In November, 37 submissions were received, which was down on the 61 in October.
Instead, activity has shifted to the later stages of the CDM cycle, said UNEP Risoe. In December, 547 new requests for registration were received, with 353 registration actions - both figures are monthly records.
The new registrations bring the number of CDM projects in the pipeline to 9,031, with 522 in the registration phase.
A record amount of certified emissions reductions (CERs) were issued as a result, 60.5m CERs, in December. This meant the issuance for 2008-2012 of 1,155m CERs was slightly above the body's forecast in November of 1,119m CERs issued over the five-year period.
During 2013-2020, the current prediction is for 6,856m CERs to be issued.
"Enormous" was how the UNEP researchers described joint implementation (JI) activity in December. Projects from the Ukraine again made up the bulk of the 63 submissions, with 89% or 56 of them.
This is despite the European Commission proposing to change the rules for certain types of emission reduction units (ERUs) to stop "double counting" of ERUs by member states that participate in the ETS in phase II "directly or indirectly".
The uncertainty over the future of ERUs saw the benchmark contract shed €4.75/tCO2e of its value, or 92%, over the course of 2012, ICIS data show (see EDCM 28 December 2012).
A vote is planned for late January by the Commission's Climate Change Committee on some of the changes.
Of the 63 projects, 62 were track-1, while one from Russia was classed as track-2.
This brings the JI pipeline to 737 projects - 531 track-1, 206 track-2.
In December 132.5m ERUs were issued, a massive increase from the 1.1m issued in November. This brings the total issued to 385.7m ERUs, according to the UN Framework Convention on Climate Change's (UNFCCC's) website. However, the real total is much greater, at 628m ERUs.
"The reason is that most JI host countries did not report their ERU issuance to the UNFCCC JI web-site," said the researchers.
PoA and NAMA projects
While the number of submitted programme of activities (PoA) projects was sluggish, the first issuance of CERs to this type of project occurred.
A Mexican project called CUIDEMOS Mexico (Campana De Uso Intelegente De Energia Mexico) - Smart Use of Energy Mexico - received 19,241 CERs.
The only submission in December was from a Bangladeshi project, a country that is in the list of least-developed countries.
After the heady month of November for national appropriate mitigation actions (NAMA), when a record tenm projects were submitted, no new NAMA projects were registered in December. FOR
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