CD4CDM project overview

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Capacity Development for the Clean Development
Mechanism Myung-Kyoon Lee mk.lee_at_risoe.dk www.uc
cee.org www.cd4cdm.org

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Contents

• UNEPs Role in Climate Change
• Capacity Building
• Inventory of Capacity Building Activities
• What the CDM is and how it works
• Capacity Development for the CDM

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UNEPs Role in Climate Change

• Scientific Assessments
• Analytical Tools and Guidelines
• Public Awareness and Information
• Capacity Building

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Capacity Building

Agenda 21, UN 1992 Capacity building
encompasses the countrys human, scientific,
technological, organizational, institutional and
resource capabilities. A fundamental goal of
capacity building is to enhance the ability to
evaluate and address the crucial questions
related to policy choices and modes of
implementation among development options, based
on an understanding of environmental potentials
and limits and of needs as perceived by the
people of the country concerned. Art. 5 (b)
(c) of UNFCCC Art. 10 (e) of the Kyoto Protocol
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Key Principles of CDM Capacity Building

• Focus should be broad
• Active participation of the private sector
• Country-specificity
• National ownership/sharing of benefits local
  incentives should be created.
• A long time horizon is needed to build up human
  and institutional capacity in a wide range of
  areas including development, economic policies,
  environmental policies, social issues.
• Build on earlier experiences from climate change
  studies in developing countries.

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General Areas for Capacity Building

• Scientific aspects of climate change
• Estimating emissions of GHGs
• Measurement techniques for methane and other GHGs
• Economic analysis of projects including
  cost-benefit analysis
• Environmental assessment of projects and policies
• Social assessment of projects and policies
• Risk and vulnerability assessment
• Coastal zone planning
• Development and implementation of adaptation
  technique
• Development and implementation of mitigation
  technique
• Analysis of the Kyoto Protocol instruments
• Assessment of technology transfer options

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Capacity Building Needs specific to the CDM

• Developing eligible projects project design and
  formulation
• Assessment of projects based on national
  sustainable development criteria
• Preparation of baselines
• Financing
• Monitoring
• Requirements for verification and certification

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Inventory of Capacity Building Activities (1)

• National Strategy Studies (NSS)
• - Launched in 1997 by the support from
  Switzerland, Australia, Germany and Finland in
  conjunction with the WB.
• - the purpose is to provide assistance to host
  countries to develop their national approach to
  the utilization of the CDM and JI within their
  own particular set of opportunities and
  constraint.
• - http//www-esd.worldbank.org/cc/
• UNIDO capacity building for Industrial CDM
  projects
• - two independent programmes one in Africa and
  the other in Asia
• - the common objectives are to increase the full
  range of national capacity and supportive
  policies required to provide an enabling
  environment for industrial CDM projects.
• - http//www.unido.org/doc/451673.htmls
• UNEP/RISØ Economics of GHG Limitations
• - the main objective was to provide a
  methodology, an implementing framework and a
  reporting system for CC mitigation analysis,
  which countries can follow in meeting their
  reporting obligations under the UNFCCC.

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Inventory of Capacity Building Activities (2)

• PREGA
• - implemented by the ADB from 2001 with funding
  from the Netherlands and ADB
• - the objective is to promote investments in
  renewable energy and energy efficiency
  technologies that will increase access to energy
  services by poor residents, as well as reduce GHG
  emissions
• - http//oesd.adb.org/prega/
• CDM Susac (Start-up CDM in ACP-Countries)
• - funded by EU and co-funded by UKs Foreign and
  Commonwealth Office.
• - coordinated by the Institute of Energy
  Economics and the Rational Use of Energy.
• - the main objective is to identify, develop,
  and promote 2-3 CDM projects in the energy sector
  in each of participating countries Senegal,
  Uganda, Zambia
• - http//cdmsusac.energyprojects.net/
• UNEP/RISØ capacity building programme for the
  CDM
• - four African countries are participating
  Gambia, Ghana, Uganda, Zimbabwe
• - the programme will analyze how identified
  projects could be organized, assessed, marketed,
  and implemented under the CDM.

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Inventory of Capacity Building Activities (3)

• The SSN (South-South-North) Project
• - four countries Bangladesh, Brazil, Indonesia,
  and South Africa.
• - This project is seen as a capacity building
  exercise for the project participants.
• - www.southsouthnorth.org
• PLANER planning and strategies for
  implementation of the CDM of the KP in Latin
  America
• - funded by EC
• - participants all from LA
• - the objective is to co-operate with Central
  America Andean Community to strengthen the
  energy planning and policies for electricity
  generation with renewables through the
  application of the CDM.
• UNDPs pilot programme for CDM capacity building
• - includes Peru, the Philippines, and South
  Africa and is financed by Norway
• - analyze possible areas for future CDM
  co-operation based on the national development
  plan identify and formulate possible CDM
  projects convene stakeholder consultations at
  the local level
• - http//www.undp.org/seed/eap/Climate_Change/CDM
  .html

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What the CDM is How It Works (1)

• Art. 12 of the KP
• - the CDM is to assist Non-Annex I Parties in
  achieving SD, and to assist Annex I Parties in
  achieving compliance under Art. 3.
• - the CDM could stimulate international
  investment and provide the essential resources
  for cleaner economic growth.
• - the basic principle is developed countries
  can invest in low-cost abatement opportunities in
  developing countries and receive credit for the
  resulting emissions reductions, thus reducing the
  cutbacks needed within their borders.
• Eligibility Criteria for Participation
• - voluntary
• - the establishment of a national CDM authority
• - the ratification of the Kyoto Protocol
• - additional criteria for Annex I countries
  establishment of assigned amount under Art. 3 of
  the KP a national system for the estimation of
  GHGs a national registry, an annual inventory,
  and an accounting system for the sale and
  purchase of emission reductions.

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What the CDM is How It Works (2)

• Eligible Projects
• - energy efficiency (both end-use and supply
  side)
• - renewable energy
• - fuel switching
• - agriculture (reduction of CH4 and N2O)
• - industrial processes
• - sinks project (only afforestation and
  reforestation)
• A Fast Track for Small Scale Projects
• - renewables up to 15MW
• - energy efficiency with a reduction of
  consumption either on the supply or the demand
  side of up to 15 GWh/year
• - other projects that both reduce emissions and
  emit less then 15kt of CO2 equivalent annually

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Source Introduction to the CDM, UCCEE, August
2002.
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What the CDM is How It Works (3)

• The Executive Board
• - the supervisory board for the CDM (operated
  under the COP)
• - accrediting Operational Entities
• - maintenance of a CDM registry
• - setting rules and modalities of the CDM
• - manage account for CERs levied for adaptation
  and administrative expenses
• - maintain a CER account for each non-Annex I
  Party hosting a CDM project.
• Finance
• - no diversion from ODA
• - subject to share of proceeds 2 of CERs for
  adaptation fund
• - levy for the CDMs administrative costs
• - projects in LDCs are exempted from the levy
  for adaptation and administrative costs

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What the CDM is How It Works (4)

• Project Identification and Formulation
• - the first step is to identify and formulate
  potential CDM projects which will bring real,
  measurable, additional emission reduction.
• - a monitoring plan by either a project
  developer or a specialized agent
• National Approval
• - DNA screening by SD goals and policies
• Validation Registration
• - OE validates the project as a CDM.
• - once validated, OE forward it to the EB for
  formal registration
• Monitoring, Verification Certification
• - a monitoring report by a project developer
• - verification certification by OE
• - issuance of CERs by the CDM registry

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National Value and Benefits from the CDM

• Benefits from the CDM
• - for developed countries reducing abatement
  costs
• - for developing countries contributing to SD
  through new investments and TT
• - global benefits contributing to slowing down
  global warming and changing the development path
  in a more environment-friendly way
• The CDM will contribute to a developing countrys
  SD through
• - transfer of technology and financial resources
• - sustainable ways of energy production
• - increasing energy efficiency conservation
• - poverty alleviation through income and
  employment generation
• - local environmental ancillary benefits
• Therefore, carbon abatement and sustainable
  development goals can be simultaneously pursued.

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Capacity Development for the CDM (1)

• Overview
• Donor the Netherlands Ministry of Foreign
  Affairs
• Implementing Agency UNEP Collaborating Centre on
  Energy Environment
• Period Feb. 2002 Dec. 2005

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Capacity Development for the CDM (2)

• Main goals
• generating a broad understanding of the CDM in
  the developing countries
• developing institutional capability and human
  capacity of the developing countries to fully
  participate as equal partners with developed
  countries in the formulation and implementation
  of the Clean Development Mechanism (CDM).

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Capacity Development for the CDM (3)

• Participating countries
• three countries each from four regions
• Asia Cambodia, the Philippines, Viet Nam
• Latin America Bolivia, Ecuador, Guatemala
• ME NA Egypt, Jordan, Morocco
• Sub-Saharan Africa Côte dIvoire, Mozambique,
  Uganda

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Capacity Development for the CDM (4)

• Country Selection Criteria
• Ratification of the UNFCCC
• Ratification/Signature of the KP
• Existence of focal agency to the CC and KP
• Existence of national policies to promote RE EE
• GHG emission reduction potential
• On-going activities of the CDM/AIJ
• Existence of FDI framework
• Political stability
• Existing institutional and analytical capacity
• Eagerness to participate in the CDM

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Capacity Development for the CDM (5)

• Main tasks
• sensitizing government supports for the CDM
• developing capacity of policy makers
• establishing institutional framework for the CDM
  projects
• strengthening capabilities of the public and
  private sectors
• creating a pipeline of the CDM projects

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Capacity Development for the CDM (6)

• Implementation Strategy
• UCCEE together with Regional Centres of
  Excellence and national institutions
• Phase I (early 2003) completion of national work
  plans
• Phase II (early 2003 Dec. 2005) implementation
  of national work plans
• By means of studies, surveys, training courses,
  workshops, seminars, consultations, development
  of training materials and information
  dissemination.

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Capacity Development for the CDM (7)

• Progress
• Phase 1 is finishing 7 work plans
• A CDM information booklet is being distributed
  and translated into relevant local languages
  including Korean and Japanese.
• A project information folder will be finished.
• National and Regional workshops
• Analytical works such as background papers and
  training manuals are under development.
• Advisory group invited (NL, WB, ADB, UNFCCC,.)
• COP8 special event made
• www.cd4cdm.org

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Capacity Development for the CDM (8)

• Analytical works under development
• CDM project guidance material
• Baseline scenarios
• Sustainable development impacts
• Legal and institutional framework
• Financial Aspect of the CDM

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Capacity Development for the CDM (8)

• Current Status
• Asia two national workshops and a regional
  workshop completed
• Africa two national and a regional workshop
  completed, Cote dIvoire to be decided
• LA three national and one regional workshops
  completed
• ME NA two national workhsops and a regional
  workshop completed, Jordan to be decided

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Coordination with Other Institutions

• Advisory Body
• Invites other institutions working on capacity
  building for climate change UNFCCC, UNDP, UNIDO,
  WB, ADB
• CF Assist-WB has shown a strong interest in the
  coordination of NSS program and ours use their
  outputs, inviting each other to workshops, share
  materials and tool kits
• ADB is also ready to cooperate but need a little
  more concrete discussion

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Observations Concluding Remarks

• Different countries at different stages
• All countries are keen on taking advantage of CDM
  opportunities
• Synergies among participating countries desirable
• Academic and practical approaches together
• An opportunity not just for the CDM but for the
  long-term sustainable development of the nation