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Clean Development Mechanism and Poverty Reduction Developing a Regional Strategy for the CDM in Asia

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Title: Clean Development Mechanism and Poverty Reduction Developing a Regional Strategy for the CDM in Asia


1
Clean Development Mechanism and Poverty
ReductionDeveloping a Regional Strategy for the
CDM in Asia and the Pacific Region30-31 March
2006Bangkok
  • Batu Krishna Uprety
  • Chief, Environment Assessment Section
  • Ministry of Environment, Science and Technology
  • Kathmandu, NEPAL
  • 30 March 2006, Thursday

2
Background UNFCCC and KP
  • UNFCCC
  • Signature 12 June 1992
  • Ratification 2 May 1994
  • Entry into force in Nepal 31 July 1994
  • First INC Report prepared with GEF/UNEP
    assistance July 2004 and shared with Parties
  • Kyoto Protocol
  • Entry into force (global) 16 February 2005
  • Deposition of instrument of Accession 16 Sept.
    2005
  • Entry into force in Nepal 14 December 2005
  • CDM
  • Ministry of Environment, Science and Technology
    (MoEST) designated as DNA 22 December 2005
  • Structure of DNA in progress

3
Policy Focus
  • Tenth Plan (2002-07)
  • Poverty reduction from 38 to 30 percent by 2007
  • Main focus on high, sustainable and widened
    economic growth, development of social sector and
    rural infrastructures, targeted programmes, and
    good governance
  • Carbon trade for resource management and for
    poverty reduction
  • Implementation of sustainable development agenda
    for Nepal
  • Promotion of the use of environment-friendly
    technologies, CP, energy efficiency, clean energy
    and EMS, adoption of PPP and pollution fees
  • Promotion of clean and alternative energy in
    rural areas
  • Implementation of MEAs including UNFCCC

4
Priority Areas (2002-07)
  • Agriculture, sustainable management of natural
    resource and biodiversity
  • Development of rural infrastructures and rural
    energy (alternative/renewable energy)
  • Population management, social service and basic
    social security
  • Development of tourism, water resources,
    information technology and industries with
    private sectors involvement
  • Human resources development and women empowerment
  • Strengthening of local bodies, NGOs and CBOs
  • Environment conservation and promotion etc.

5
Responsibilities of Two Institutions
  • Ministry of Environment, Science and Technology
  • Formulation and implementation of environmental
    policies, plans, programmes, laws, and standards
  • Study and research on environment
  • Environmental management and pollution control
  • Dissemination of environmental information,
    awareness creation, and HRD
  • Monitoring of environment-related activities
  • Focal point for MEAs including CDM activities and
    international organisations
  • Alternative Energy Promotion Centre
  • Promotion of clean and environment-friendly
    energy (biogas, micro-hydro, solar, wind)
  • Improvement of rural people through energy supply
    social transformation, economic activities and
    poverty reduction - GHT abatement

6
GHG Inventory of Anthropogenic Emissions
(1994/95) in Gg
7
Possible Impacts of CC
  • Western Nepal might receive more precipitation
    than Eastern Nepal due to climate change (reverse
    in the existing trend)
  • About 20 of the glaciated area above 5000m will
    likely be snow and glacier free due to increase
    of air temperature by 10C
  • About 70 of area above 5,000m will be affected
    due to about 40C rise in temperature
  • Change in glacier areas development of glacier
    lakes resulting to increase in potentials of GLOF

8
Possible Impacts of CC ..
  • 50 increase in annual precipitation may lead to
    20 increase in sediment yield, land use
    remaining the same
  • Warming effect will be significant in the
    sub-alpine and alpine regions, and vegetation
    could be pushed up to 500m.
  • By the increase of 20C and 20 precipitation,
    possible extension of tropical and sub-tropical
    moist forest, change of sub-tropical and warm
    temperate dry forest to warm temperate moist
    forest, cool temperate moist forest to warm
    temperate moist forest etc.

9
Development of Tso Rolpa Glacier Lake
10
Recommendations in First INC Report
  • Increase and conserve vegetative coverage to
    capture CO2
  • Expand carbon sinks through afforestation,
    reforestation, enhanced regeneration and
    agro-forestry with community participation
  • Upgrade technologies and promote use of efficient
    cooking stoves and lighting devices
  • Introduce stringent emission control mechanisms
    for vehicles to reduce about 35 percent of GHG
    reduction by the year 2030
  • Promote mass transportation (electric), and use
    less GHG intensive fuels
  • Develop hydropower a clean energy as
    substitution for fossil fuels etc. etc.

11
Potential Areas for CDM Projects in Nepal
  • Prospects for clean energy investments
  • Decentralized renewable energy micro-hydro,
    biogas, solar PV
  • Hydropower
  • Agriculture
  • Forestry
  • Solid Waste
  • Cement, Brick and other Industries
  • Fuel substitution from fossil fuels to clean
    electricity in transportation, industrial sector,
    residential sector, agriculture

12
Ongoing CDM projects in Nepal
  • Project CERs in 10 years Status
  • Biogas Sector Partnership 6,200,000 PDD being
    Validated
  • AEPC/REDP MHP Project 270,000 PDD being
    revised
  • Improved Water Mil 136,000 PIN completed
  • Solar Tuki 82,000 PIN being prepared
  • Improved Cooking Stove 1,200,000 PIN being
    prepared
  • Safa Tempo transportation 61,000 PIN being
    prepared
  • Landfill Solid Waste Mgmt 174,000 PIN being
    prepared
  • Vertical Shaft Brick Kiln 1,400,000 PIN being
    prepared
  • Trolley Bus 131,000 Pre-feasibility completed
  • Hydropower for export (WS) Pre-feasibility study
  • Electric Train (E-W highway) Pre-feasibility
    study
  • Community Forestry Studies ongoing

13
Prospective Industries for CDM
  • Brick Industries
  • Cement industries
  • Hotels
  • Noodles factories
  • Dyeing industries
  • Dairy industries
  • Metal steel industries
  • Others

14
Example Brick Industry
Bull Trench Brick Kiln
Vertical Shaft Brick Kiln
15
CDM Status in Nepal
  • Registered projects 2
  • The biogas CDM projects
  • Registered on 27 December 2005
  • Net emission reductions over the first 7 year
    crediting period is 657,000 tons
  • Project developer Alternative Energy Promotion
    Center (AEPC)
  • Buyer Community Development Carbon Fund of World
    Bank at 7/t CO2

16
Tentative costs of developing a CDM project
  • Project Idea Note US 1,000
  • Project Design Document US 20,000
  • DNA Approval - ?
  • Validation US 10,000
  • Registration US 5,000 30,000
  • Verification US 5,000 annually

17
Proposed structure for DNA
Ministry of Environment, Science and Technology
(MoEST)
Steering Committee Chairman Secretary,
MoEST Members MOF, MFSC, MOLTM, MOAC, MOWR,
MOTCA, MLD Experts (2) (NGO, private, academic
and banking sectors) Member-Secretary
Joint-Secretary, MoEST
Secretariat of DNA Member-Secretary
(Joint-Secretary)
Desk Officer
Technical Advisory Committee
Environment Assessment Section
Environmental Standards and Monitoring Section
Environment Promotion and Awareness Section
18
Proposed CDM Project Approval Process
19
Areas of Concerns
  • International Level
  • Bringing GHG emitters under the umbrella of KP
  • Defining commitment targets beyond 2012
  • Minimising costs accrued from CC effects in low
    income countries/low GHG emitters
  • Commitment of high GHG emitters for additional
    assistance to low income countries to bridge the
    resource gap
  • Refining CDM investment procedures
  • Making transparent and easy validation and
    approval process on CDM projects
  • Preparatory costs for PIN and PDD and
    requirements for advance payment

20
Areas of Concerns
  • Regional Level
  • Developing and implementing joint projects
  • Replacing thermal power by clean energy
    (hydro-power)
  • Generating data and information, and sharing
  • Transferring clean technologies
  • Developing regional voice with common
    understanding on regional issues
  • National Level
  • Awareness raising - opportunities
  • Policy and strategy formulation and
    implementation
  • Institutional set-up and strengthening
  • HRD and support to resource gap

21
Areas of Concerns
  • Capacity building of
  • Project developers negotiation skill
  • Consultants, NGOs (Technical skill providers)
    developing Project Idea Note (PIN) and Project
    Design Document (PDD), cost vs. benefits
  • Academic institutions
  • Government (DNA, other ministries and
    departments) evaluation of PIN/PDD, decision
    time, and negotiation
  • Transaction cost for CDM projects preparation and
    documentation
  • Mainstreaming CDM in development planning

22
Areas of Concerns
  • Pre-investment to bridge resource gap
    (transferring costs after delivery of CER), and
    benefit sharing
  • Funding large/small scale projects
  • Targeting CDM projects in rural areas
  • Promoting CDM projects in following sectors for
    poverty reduction
  • Natural Resources
  • Transportation
  • Industries

Thank you very much
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