Title: SUSTAINABLE DEVELOPMENT INDICATORS for CDM Projects DENR Training Course November 4-6, 2003 Climate Change Information Center Manila Observatory Ateneo de Manila University
1SUSTAINABLE DEVELOPMENT INDICATORS for CDM
ProjectsDENR Training CourseNovember 4-6,
2003Climate Change Information CenterManila
ObservatoryAteneo de Manila University
2CDM Project
- Achieves Sustainable Development objectives for
the host developing country - Reduces GHG Emissions
3Sustainable development indicators
- We need indicators to evaluate the sustainable
development impacts of a CDM project - Possible source of SDI
- Philippine Agenda 21
4Philippine Agenda 21Action Agenda
- Per Ecosystem
- Forest/Upland Ecosystem
- Lowland/Agricultural Ecosystem
- Urban Ecosystem
- Coastal/Marine Ecosystem
- Freshwater Ecosystem
- Critical Resources
- Minerals/Mines
- Biodiversity
5Philippine Agenda 21Action Agenda
- Example Loss of Biodiversity
- Conduct an inventory of plant, animal and
microbial resource - Unification of the DOE Energy Plan with the NIPAS
Program - Establish and improve in-situ conservation
facilities for wetland habitats
6Philippine Agenda 21Action Agenda
- Policy Agenda for Governance for Sustainable
Development - Ecosystems
- National and regional
7Contents
- What is meant by sustainable development
- How a CDM project can contribute to sustainable
development - Economic impacts
- Environmental impacts
- Impacts on disadvantaged groups
- Summary of CDM project impacts on sustainable
development
8I. What is meant bysustainable development
9Bruntland Commission(World Commission on
Environment and Development, 1987)
- Source of the working definition to evaluate
sustainable development impacts of CDM projects - Bruntland Commission definition
- Much more focused and applicable to CDM projects
- Consistent with Philippine Agenda 21 definition
10Bruntland Commission(World Commission on
Environment and Development, 1987)
- Sustainable development is development that
meets the needs of the present without
compromising the ability of future generations to
meet their own needs.
11Bruntland Commission(World Commission on
Environment and Development, 1987)
- It contains within it two key concepts
- the concept of needs, in particular of the
worlds poor, to which overriding priority should
be given, and - the idea of limitations imposed by the state of
technology and social organization on the
environments ability to meet present and future
needs.
12Bruntland Commission(World Commission on
Environment and Development, 1987)
- Sustainable development involves two obligations
- Obligation to the future
- Sustainability
- Obligation to the present
- Poverty alleviation
13Achieving Sustainable Development
- Sustainable development is about creating
capacities for raising per capita well being,
living standards, quality of life - Capacities determined by the stocks of assets
which can be converted to goods and services
which contributes to well being
14Process of Development
Well Being Standard of Living Quality of Life
Goods Services
Assets
15Capital Assets
- K KM KN KH KS
- K ? Total Capital
- KM ? Manufactured Capital
- KN ? Natural Capital
- KH ? Human Capital
- KS ? Social Capital
16KM Manufactured Capital
- Equipment, machinery, factories, technology,
infrastructure - More capital equipment will, typically, raise the
productive capacity of the population and hence
their real incomes
17KN Natural Capital
- Environmental assets such as clean water and air,
soil, forests, etc. - More environmental assets in the form of clean
water, clean air, biomass resources and improved
soil will help to reduce the incidence of
disease, raise agricultural productivity and
ensure fuel supplies.
18KH Human Capital
- Education, health
- The more education there is, the better are the
prospects for raising living standards, including
health
19KS Social Capital
- Set of social relationships that hold communities
together - The more socially cohesive are communities, the
more likely they are to organize themselves for
the collective good
20Obligation to the Future
- Sustainability
- Sustainable development is about future well
being - Leave to future generations the capacity to be as
well off as we are
21Obligation to the Present
- Sustainable development is about well being now
- It is about poverty alleviation
- The poor cannot raise their own well being
without better provision of assets and technology
22II. How a CDM project can contribute to
sustainable development
23Types of CDM project impacts on sustainable
development
- Economic Impacts
- Environmental Impacts
- Impacts on disadvantaged groups
24Economic impacts
- CDM project can contribute to sustainable
development - By providing gains to manufactured capital
- i.e. transfer of technology or building
infrastructure, improving efficiency - By improving social and human capital
- Through the creation of sustainable employment,
the raising of living standards, the transfer of
knowledge
25Economic impacts
- Direct impacts of CDM project
- Gains introduces new technology, builds capacity
- Loses restricts economically productive
activities - Indirect impacts of CDM project
- Gains stimulates greater economic activity or
greater efficiency in other areas of production - Loses other areas dependent on activity
restricted by project
26Environmental impacts
- CDM project can contribute to sustainable
development - By improving on environmental assets
- e.g., by preserving biodiversity, improving local
air quality - By minimizing negative impacts on the environment
27Environmental impacts
- Aside from reduction of GHG emissions, a CDM
project may have accompanying environmental
impacts - Because of the CDM project, environmental quality
may improve or deteriorate - These changes may result directly from the
project or indirectly through the ramifications
of the project elsewhere
28Impacts on disadvantaged groups
- CDM project can be judged consistent with
sustainable development - If the gains from the project be distributed in a
manner which does not disadvantage the poor - If the project helps alleviate poverty
29Impacts on disadvantaged groups
- Maximize the gains and minimize the loses
experienced by the most disadvantaged groups
(e.g., indigenous people, rural poor, landless
farmers, etc) - Impact on employment opportunities and incomes
for the poor and disadvantaged - Impact on traditional rights and social fabric of
local communities
30III. Categorization of Economic Impacts
31Productivity gains
- Increase in productive efficiency
- CDM projects, especially those involving
technology transfer or capacity building, may
increase the efficiency in which the flow of
goods and services can be produced - E.g., supply side energy efficiency projects
- Exploitation of new productive possibilities
- CDM project introduces new productive
possibilities - E.g., waste-to-energy projects ash from rice
husk for cement
32Productivity loses
- Reduced productive efficiency (output forgone)
- Productive processes may be changed or altered to
reduce GHG emissions - Such changes may reduce the productive efficiency
with which output is generated - E.g., changes in type of fertilizer used
- Productive possibilities foregone
- Project may displace or prohibit certain
productive activities - E.g., prohibition of certain land management
practices
33Positive spillovers
- Efficiency gains
- Efficiencies demonstrated in the CDM project may
encourage the adoption of the same new
technologies and/or practices in similar
activities - E.g., end-use energy efficiency projects
- Complementary activities
- CDM project may encourage the expansion of other
complementary activities - E.g., reforestation and eco-tourism
- E.g., geothermal and hot springs spas
34Negative spillovers
- When a CDM project involves the restriction or
prohibition of a productive activity then other
economic activities dependent on the
complementary activity may be adversely affected - E.g., fuel switching from kerosene to solar
technology may depress the demand for kerosene
lamps
35Categorization of Environmental Impacts(Non-GHG)
36Air pollution
- E.g., Fuel switching in transport sector
- Increased use of natural gas will not only reduce
CO2 emissions but also reduce the emission of air
pollutants including NOX, SOX, PM
37Water pollution
- E.g., Fuel switching in rural areas
- A project introducing renewable energy generation
in rural households (e.g. solar electric
technology) will displace the use of dry cell
batteries to run electric appliances - Project may reduce the heavy metal water
contamination associated with the improper
disposal of such batteries
38Soil conservation
- Restriction of production
- A project which seeks to reduce artificial
fertilizer production (a process resulting in CO2
emissions) by encouraging the use of natural
organic fertilizers should at the same time
improve the properties of the soil being treated
39Watershed protection
- E.g. reforestation
- Projects that re-establish forests in upland
areas will improve watershed integrity
40Biodiversity conservation
- E.g. monocultural tree plantations
- would be downgraded because of the potential
damage to biodiversity
41V. Categorization of impacts on disadvantaged
groups
42Increasing productive efficiency
- Through technology transfer, a CDM project may
focus on increasing the efficiency of household
processes and livelihoods. - Projects that provide cheaper energy options or
increase the agricultural output of households of
disadvantaged groups - E.g., fuel switching in rural areas
43Improved employment opportunities or livelihood
options
- New employment opportunities for local people and
disadvantaged groups may arise as a result of CDM
project activities - E.g., construction of new facilities, operation
of new facilities in renewable energy generation - New livelihood options for local people and
disadvantaged groups - E.g., collection of biomass for conversion to
energy
44Reduced livelihood opportunities or livelihood
options
- A CDM project may reduce the employment and
livelihood opportunities to local people and
disadvantaged groups - E.g., closed sanitary landfill for methane
capture may restrict scavenging opportunities
45Land and resource rights
- CDM projects may remove the legal and customary
land and resource use rights of local communities - E.g. Afforestation projects may remove customary
rights of indigenous peoples over forest land - E.g. Building of dams for generation of
hydroelectric power may displace disadvantaged
groups living in local communities
46Environmental impacts
- A CDM project may have a number of environmental
impacts (as outlined in Part IV) some of which
may be specifically incurred by disadvantaged
groups - E.g. Replacement of coal-fired boilers which
cause considerable local air pollution with
cleaner technology will reduce local air pollution
47Positive spillovers
- A CDM project may have a demonstration effect
that encourages similar enterprises in other
areas that will themselves generate employment or
livelihood opportunities for disadvantaged groups - E.g., introduction of pico hydro technology may
provide training and technical assistance in the
technology for certain individuals who can make
the technology available to a much wider community
48Positive spillovers
- Local multipliers Local people and disadvantaged
groups may benefit indirectly from the
improvements in infrastructure and increased
economic activity that results from a CDM
projects investments and activities - E.g. provision of reliable energy in a rural area
could spur economic activity and generate
employment and livelihood opportunities
49Negative spillovers
- Local stagnation CDM projects that prohibit or
restrict some activities may be in danger of
irrevocably undermining local communities. - The employment and income provided by such
activities may be fundamental to the functioning
of the local community. - E.g., afforestation restricting slash-and-burn
farming
50Negative spillovers
- Income effects CDM projects that increase the
prices of goods that form a large part of the
expenditure of disadvantaged groups will impact
directly on their well-being - E.g. CDM project increases the price of energy
(e.g., photovoltaics more expensive than
kerosene) or food stuffs (e.g., organic more
expensive than non-organic)
51VI. Summary of CDM project impacts on sustainable
development
52Categories Types
- Economic
- Environmental
- Impact on disadvantaged groups
- Direct / Indirect
- Positive / Negative
53Economic impacts
- Direct project impacts
- Productivity gains ()
- Increase in productive efficiency
- Exploitation of new productive possibilities
- Productivity losses (opportunity costs) (-)
- Reduced productive efficiency
- Productive possibilities foregone
- Indirect impacts
- Positive spillovers ()
- Efficiency gains
- Complementary activities
- Negative spillovers (-)
54Environmental impacts(Non-GHG)
- Air pollution (/-)
- Water pollution (/-)
- Soil conservation (/-)
- Watershed protection (/-)
- Biodiversity conservation (/-)
- Other environmental services (/-)
- E.g., Local climate regulation
55Impacts for disadvantaged groups
- Direct project impacts
- Increasing productive efficiency ()
- Improved employment opportunities or livelihood
options (-) - Reduced employment opportunities or livelihood
options () - Land and resource rights (-)
- Environmental impacts (/-)
- Indirect impacts
- Positive spillovers ()
- Demonstration effect
- Local Multipliers
- Negative spillovers (-)
- Local stagnation
- Income effects
56Reducing negative impacts
- Measures must be proposed to minimize or to
mitigate the negative impacts of CDM projects - For social acceptability
- For national approval
57Environmental Compliance Certificate
- Procuring the required ECC is a process by which
sustainable development impacts will be
identified through stakeholder consultations - And also identify the measures which will
minimize negative impacts - A potential CDM project is a project with an ECC
58Roberto C. Yap, S.J., Ph.D. Environmental
Economist Climate Change Information
Center Manila Observatory Ateneo de Manila
University Tel 63 2 426-6144 Fax 63 2
426-6070 rcyap_at_ateneo.edu