***Apologies for cross-posting!
Hi CAN,
We need your support! As you all know the supply and use of offset credits needs to be urgently restricted and flexible mechanisms need to move beyond offsetting. The use of non-additional offset credits for compliance with climate targets seriously undermines climate protection efforts. Also, there is still no recourse against CDM projects once registered and even if human rights are violated a project can earn carbon credits. Despite the uncertain future of the CDM, these issues need to be addressed as a matter of priority, to avoid further undermining already weak emission reduction targets, set an example for future mechanisms and minimize negative impacts of emission reduction projects.
We prepared a sign-on letter for COP18 (see attached and below) to build civil society pressure for the need to close loopholes and move beyond offsetting and would like to ask for your support. If you have any comments don’t hesitate to share as well. We hope many of you can support.
Sign on until Monday 26 November 22h00 (GMT+3) here: https://docs.google.com/spreadsheet/viewform?formkey=dExtcGVBc19DRF9XOEJHc3lOdDBHNmc6MA
Please also share with your networks.
Kind regards,
Antonia
To: Environment Ministers and delegates of all UNFCCC Parties
Subject: Increase ambition and close loopholes at COP18
We [amount] civil society organisations and concerned citizens from [amount] countries call on Parties to urgently and significantly increase their emission reduction commitments and close all loopholes. Without doing so, we will not stand a chance to prevent catastrophic effects of climate change.
Experience with flexible mechanisms under the Kyoto Protocol has shown that the use of non-additional offset credits for compliance with weak targets seriously undermines climate protection efforts. Given the urgency to reduce global greenhouse gas emissions, the future of market mechanisms must go beyond offsetting and achieve net emissions reductions. We call on Environment Ministers to significantly raise ambition and close loopholes by taking action against hot air (surplus AAUs) and significantly restrict the issuance and use of non-additional Joint Implementation (JI) and Clean Development Mechanism (CDM) credits.
Get rid of hot air now! The gigantic surplus of emissions permits under the Kyoto Protocol threatens the viability of a second commitment period and any future climate deal. We urge Parties to agree to a solution that ensures the use of the surplus is severely restricted and limited to domestic compliance. No new “hot air” surplus must accumulate in the second commitment period and all surplus must be cancelled permanently by the end of the second commitment.
Under Joint Implementation (JI) hundreds of millions of non-additional credits have been issued by countries with very weak pledges and large AAU surpluses. Such “hot air” laundering must be stopped immediately. JI baseline and additionality criteria must be strengthened and only countries that have taken emission reduction pledges below their 2012 emissions should be allowed to host JI projects.
The Clean Development Mechanism (CDM) has not delivered on its two goals of delivering emission reductions and bringing sustainable development to non-Annex 1 countries. Research commissioned by the CDM Policy Dialogue estimates that until 2020 up to 3.6 billion CERs could come from non-additional CDM projects. When used to comply with emission reduction targets, such credits will increase global emissions. Additionality rules need to be fundamentally reformed and significantly strengthened to limit the number of non-additional credits which further undermine already weak targets.
Large-scale power projects, such as large hydro and coal power projects, are expected to generate the majority of offset credits between now and 2020. New research shows that these project types are highly unlikely to be additional and therefore undermine the environmental integrity of the CDM. New large-scale power supply projects should be banned and the issuance of offset credits from existing projects should be ceased. Countries should use other mechanisms than project-based offsetting to promote lower-carbon power production.
The CDM currently does not ensure that no-harm is caused when projects are implemented and accountability is weak. To ensure access to justice for all and address social and environmental impacts before disputes escalate we urge Parties to set up a grievance mechanism for stakeholders if negative impacts of a CDM projects occur during its implementation. As required by International law, including the UN Charter, human rights standards for carbon markets must be set up and imposed on investors, so that projects that violate or risk violating human rights are made ineligible.

Antonia Vorner
Network Coordinator
Nature Code – Carbon Market Watch (formerly CDM Watch)
Rue d'Albanie 117, B-1060 Brussels
Office: +32 2 335 3663
Mobile: +32 483 072 063
Email: antonia...@carbonmarketwatch.org
Web: www.carbonmarketwatch.org
Guess what?! CDM Watch has become Carbon Market Watch
Join our expanding Network!