Monitoring, Reporting, and Verification Manual for Clean Development Mechanism Projects

By Asian Development Bank

The Clean Development Mechanism (CDM), a market mechanism under the Kyoto Protocol, has been successful in supporting mitigation actions through carbon inance. With nearly 7,700 projects and 290 Program of Activities registered by the CDM Executive Board, the CDM allows GHG emission reduction projects in developing countries to generate Certiied Emission Reductions which can be used to ofset mandatory or voluntary emission reduction targets. It however requires a robust monitoring, reporting, and veriication (MRV) to ensure social and environmental integrity of such projects and the emissions reductions thereof. This MRV manual is intended to assist CDM project developers in understanding and managing the MRV requirements and process of their CDM projects in a simple step-by-step manner with the help of real examples and practical tips. While this MRV manual has been developed primarily to assist CDM project developers, it also aspires to be of help for projects participating in other existing and emerging market mechanisms. These may include bilateral mechanisms; voluntary carbon markets; regional, national, and subnational carbon markets; and any of the cooperative approaches and new market mechanism for the post-2020 carbon markets consequent to the Paris Agreement adopted at COP21 in December 2015. As carbon markets in the region evolve beyond CDM, there is a strong need to maintain and further build institutional capacities to ensure growth and enhanced efectivity of carbon markets---and this MRV manual is an efort in that direction.

• Language: English
• Publisher: Asian Development Bank
• Release date: Jun 1, 2016
• ISBN: 9789292574000

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MONITORING, REPORTING, AND VERIFICATION MANUAL FOR CLEAN DEVELOPMENT MECHANISM PROJECTS

Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO)

© 2016 Asian Development Bank

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Cataloging-In-Publication Data

Asian Development Bank.

Monitoring, reporting, and verification manual for clean development mechanism projects. Mandaluyong City, Philippines: Asian Development Bank, 2016.

1. Clean development mechanism. 2. Monitoring, reporting, and verification. I. Asian Development Bank.

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CONTENTS

TABLES, FIGURES, AND EXAMPLES

FOREWORD

Asia and the Pacific region, hosting more than half of the world’s population, is highly vulnerable to the impacts of climate change. With rapid economic expansion in the recent years, the region has also become a major source of greenhouse gas (GHG) emissions and therefore must play its part in cutting GHG emissions. The Paris Agreement adopted in December 2015 at the United Nations Framework Convention on Climate Change COP21 aims to restrict global warming to well below 2°C above pre-industrial levels and to pursue efforts to reach 1.5°C – which is especially relevant to Asia and the Pacific region given its vulnerability.

Enormous amount of investment is required to help developing countries transit to a low-carbon path. According to the International Energy Agency, the mitigation costs for developing countries are expected to be $140 billion–$175 billion per year by 2030. It is critical that all possible channels of financing including policy instruments such as carbon market mechanisms are utilized to meet this requirement. Given that the Clean Development Mechanism (CDM) has been successful in mobilizing carbon finance to support mitigation actions, there is a need to maintain and further build institutional capacities for ensuring growth and enhanced effectivity of carbon markets.

Action on climate change is central to the Asian Development Bank (ADB) vision of an Asia and the Pacific free of poverty and its mission to help developing member countries (DMCs) improve the living conditions and quality of life of their people. Realizing that much work is ahead of us, ADB is continuously mobilizing and facilitating climate finance and knowledge support for its DMCs. Recently, ADB announced to double its annual climate