Clean Development Mechanism

1. At its sixty-ninth meeting, the Executive Board (hereinafter referred to as the Board) of the clean development mechanism (CDM) considered the draft " Guidelines for determination of baseline and additionality thresholds for standardized baselines using the performance-penetration approach " (the guidelines) prepared by the secretariat. The Board provided comments and requested the secretariat, in its preparation of a final draft for the Board's consideration at its seventieth meeting, to revise the guidelines taking into account the relevant comments to the annotated agenda to this meeting received from stakeholders and Board members' comments during the meeting and to launch a call for public inputs on the revised draft guidelines. 2. The Board further requested the secretariat to consult with the Methodologies Panel and Small-Scale Working Group on the guidelines. 5. Key issues and proposed solutions 6. The Methodologies Panel provided comments on the draft guidelines and in the meantime, listed a number of issues associated with the approach proposed therein, for example validity of the major assumption behind the approach, the way of plotting the curves, the appropriateness of the quantitative parameters (50%, 20%), the vintage of technologies and scale of economies and its impact on sector. As a conclusion, the Methodologies Panel recommends continuing the work on the robustness of the guidelines on threshold setting. In doing so, other approaches should be explored, which may have to take into account more than just the shape of the performance-penetration curve. Also, the determination of thresholds should be seen in the context of the current work towards the revision of the standardized baseline guidelines. In addition, the Methodologies Panel recommended that, before their adoption, further methodological developments in the area of standardized baseline should systematically road tested on the basis of real world data and not solely developed on the basis of " idealized data ". 8. Impacts 9. In order to address all the issues raised by the Methodologies Panel as well as other stakeholders, more time is needed before recommending to the Board for final approval (according to the workplan, the draft guidelines was originally planned to recommend to the Board at its seventieth meeting). CDM-MP58-A20 Information note on proposed draft guidelines for determination of baseline and additionality thresholds for standardized baselines using the performance-penetration approach The Meth Panel recommended that the Board take note that it provided feedback to the secretariat on the "Guidelines for determination of baseline …