Part 1: Transition of activities from Clean Development Mechanism to the mechanism established by Article 6, paragraph 4 of the Paris Agreement
Some remarkable issues that have been decided at COP 27 in relation to the transition of activities from Clean Development Mechanism (CDM) to Article 6.4 mechanism include the following:
Crediting period
The crediting period of the CDM projects that may transition to Article 6.4 mechanism shall have been active as of 1 January 2021. The crediting period type (i.e. renewable or fixed) shall not change at the time or after the transition. The current crediting period shall end, whichever is earlier:
For CDM projects with a renewable crediting period, once renewed under Article 6.4 mechanism, the length of the crediting period shall be consistent with the relevant rules of the mechanism.
Activity design
Activity types (project activities or programme of activities) that have been registered or under temporary measures shall remain when transition to Article 6.4 mechanism. These projects shall meet requirements related to methodologies and global warming potential values as applicable under the Article 6.4 mechanism.
Transition process
Project participants that would like to apply for the transition shall submit a request to the secretariate and to the designated national authority (DNA) for the Article 6.4 mechanism by no later than 31 December 2023 in accordance with the procedure to be developed by the Supervisory Body.
If it approves the transition, the DNA shall provide the approval to the Supervisory Body by no later than 31 December 2025.
Request for renewal or issuance under the temporary measures shall be processed only after the respective underlying CDM activities have successfully transitioned to the Article 6.4 mechanism.
For requests for transition that are approved, the effective date of transition may be deemed as 1 January 2021 at the earliest. The project activities shall then be deregistered from the CDM automatically.
Loan Nguyen (summarized)
