Capacity Development Work plan for the Clean Development Mechanism in Uganda

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Capacity Development Work plan for the Clean
Development Mechanism in Uganda

• ROLES AND COMPOSITION OF THE DESIGNATED NATIONAL
  AUTHORITY (DNA)

Presented by Enock Mugyenyi- Uganda Management
Institute
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ROLES, ACTIVITIES SKILLS REQUIRED OF THE (DNA)
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RATIONALE FOR INSTITUTIONAL ANALYSIS

• CDM is about investments with different
  Institutions having a role to play according to
  their expertise.
• However, in an environment of scarce resources
  there is need to situate CDM in the existing
  Institutional framework rather than creating a
  completely new Institutional framework. The
  intention is to have a cost-effective
  Institutional framework which is sustainable.

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GENERIC MODELS FOR DNA

• Theoretically, there are five models for DNA.
  They include
• A single government department model
• A two-unit model
• Inter-departmental government model
• Foreign Direct Investment - Piggyback and
• Outsourcing model

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CHARACTERISTICS AND FUNCTIONS OF A SINGLE
GOVERNMENT DEPARTMENT MODEL

• One department or Ministry undertakes all the
  activities of the DNA - most likely the
  environment department/climate change unit.
• The department or Ministry acts as a secretariat
  and would invite technical experts from other
  government agencies/ministries upon demand to
  evaluate/analyse and validate CDM
  projects/investments.

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• The secretariat would then prepare a project
  design document (PDD) and report to the EB (refer
  to CDM cycle).
• The secretariat (the environment agency) would
  ultimately be responsible for approval of the CDM
  projects.
• The secretariat would be responsible for
  marketing and promoting CDM by designing CDM
  promotion material and furnish the FDI office and
  other relevant stakeholders.

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Structure
Executive Board
Environment Ministry/Agency
DNA Secretariat
TECH experts (Energy)
TECH experts (Agriculture)
TECH expert (forestry)
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CHARACTERISTICS AND FUNCTIONS OF A TWO-UNIT MODEL

• Activities of the DNA are split into two.

Development of Projects
Part 2 Capacity Building Out reach promotion
Technical and economic assessments
Part 1 Evaluation Approval Registration
Policy development
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• The first part could be located in department
  responsible for climate change and second part in
  many places as an independent unit.
• The separation into two parts helps to avoid
  possible conflicts of interest in the process of
  project formulation and approval.

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CHARACTERISTICS AND FUNCTIONS OF
INTER-DEPARTMENTAL MODEL

• Entails establishing a structure which allows all
  the relevant government departments to be
  integrated into DNA as permanent members.
• The ministry of Environment would act as
  co-ordinator but approval of projects would be
  undertaken by all departments.
• A committee to operationalise the approval of
  projects would be set up.

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• The co-ordinating Institution would act as the
  registration office and would receive proposals
  on behalf of DNA.
• The co-ordinating Institution would communicate
  with other DNA members and also with the EB but
  upon agreement within DNA

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Structure
EB
Environment Agency/ Ministry
DNA
Energy Ministry
Agriculture
Forestry
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FOREIGN DIRECT INVESTMENT (FDI) PIGGYBACK MODEL

• Most countries have a FDI Institutional framework
  which promotes foreign investment and typically
  comprises of a promotion office and an approval
  or implementation office.
• This Institution receives projects from foreign
  investors and using a pre-structured criteria
  evaluates and approves projects.

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• The criteria for approving projects largely
  reflects the national development priorities.
• The FDI framework could be adapted for CDM and
  used as the DNA.
• The investment office would thus receive and
  approve projects from various areas using its
  established system.
• Given the special aspect of CDM, concerning GHG
  emission reduction, the relevant technical
  experts would be sourced by the investment office
  when a CDM project is submitted to assist in
  validating the GHG reductions.

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• The FDI office would then prepare the project
  design document (PDD) and communicate with the
  EB.
• Naturally, the FDI office would promote CDM along
  with its other investment promotion activities.

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Structure
EB
FDI Office
DNA
GHG tech experts
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CHARACTERISTICS AND FUNCTIONS OF OUTSOURCING MODEL

• Host countries may choose to outsource the bulk
  of DNA services to a private agency.
• The agency would evaluate the projects and
  validate them.
• The agency would report to a government
  environment agency which would then communicate
  approval to the EB.

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THE ROLES AND COMPOSITION OF DNA
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ACTIVITIES FOR ESTABLISHING A DNA

• Hold a consultative workshop to identify DNA
  coordinating Institution and composition
• Identify legal and regulatory implications of the
  DNA
• Develop operational guidelines for functioning of
  the DNA
• In depth review of DNA members to identify
  capacity gaps and develop specific implementation
  plan to capacitate them
• Organise targeted series of sensitisation and
  training workshops for DNA members

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• Develop CDM promotion manuals and other aids
• Conduct periodic reviews of DNA to strengthen
  capacity
• Develop guidelines for approval/registration of
  CDM projects
• Establish a list serve for the DNA members

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Thank You!