Welcome to this technical dialogue concerning "Online tool for voluntary cancellation of CERs" for the UNFCCC.
We would like to thank you for your participation in the technical dialogue. Your feedback is much appreciated!
The purpose of the dialogue is to explain the requirements of the UNFCCC secretariat and to seek information and suggestions to help identify possible solutions. The UNFCCC also hopes to gain insights concerning market characteristics and service options.
We would also be thankful if you could indicate how your company could contribute to delivering a solution and in what time frames.
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The United Nations Framework Convention on Climate Change (UNFCCC) is the focus of the political process to address climate change. The Convention secretariat supports the Convention and its Kyoto Protocol by a range of activities, including substantive and organizational support to meetings of the Parties and implementation of its mandates.
The Clean Development Mechanism (CDM) allows greenhouse gas emission-reduction projects in developing countries to earn certified emission reduction (CERs) credits, each equivalent to one ton of CO2 avoided. These CERs can be sold by the project participants (PPs) to be used by developed countries to meet a part of their emission reduction targets under the Kyoto Protocol or to be voluntarily cancelled by any entity or individual to offset their climate footprint.
The project: Online tool for voluntary cancellation of CERs
The secretariat has been mandated to explore options to develop an online tool that allows any member of the public to purchase the cancellation of CERs available to PPs in the CDM registry (CDM-R). This online tool would provide a marketplace-type system to put buyers and PPs in contact. Buyers will pay PPs to cancel selected CERs on their behalf.
Voluntary cancellation puts the CERs permanently out of circulation and the process is not reversible. Voluntary cancellation can be used to voluntarily offset greenhouse gas emissions by individuals, companies, governments and others.
The following are the logical components of the system (please refer to the solution diagram in the section document on the left-hand side of the screen):
• Market place – the platform where CERs are made available for voluntary cancellation. PPs offer CERs available to them in the CDM R to buyers. Buyers make payments to PPs for the cancellation of the selected CERs.;
• Payment system – a system that manages the payment transactions;
• CDM Registry – a system that holds CERs according to Kyoto Protocol regulations.