Download CD4CDM project

First National Workshop
On
Capacity Building On CDM Under CD4CDM Project
Enhancing Developing Countries Participation On The Carbon
Market
Overview of URC’s CDM Capacity Development Activities
Moinul I Sharif
Senior Scientist
UNEP RISOE Centre
April 2008
• International and Danish,
interdisciplinary staff.
• Based on agreement between Risø,
UNEP and Danida. Located at Risø
since 1990.
• Mandate: support UNEP in its
activities to incorporate climate and
environmental aspects into
development and energy planning and
policy worldwide, with a special
emphasis to assist developing
countries.
Three Thematic Areas
Activity Areas
• Energy & Poverty
• Energy and Development
• Energy Efficiency & Renewable
Energy
• Energy and Carbon Finance
• Energy Sector Reform
• Sustainable Development
• CDM & Carbon markets
Development & Climate
and Climate Change
• National and International Policy
Instruments
• Transport
• Capacity Development
Carbon Finance & CDM
Major Activity Areas
• Individual and Institutional Capacity Development (CD)
• One of largest and most known CD programs in field
• Global reach, but core focus on least developed countries
• Generally investor-neutral, i.e., not connected to actual credit purchases
• Development/Piloting of Demonstration CDM Projects
• Methodologies, Guidebooks, and Policy Analyses
• Series of ‘how-to’ manuals for CDM project development
• Discussion papers, analytical contribution to UNFCCC process
• Market Surveillance & Information Dissemination
• CDM Pipeline tool has become one the key ‘open source’ information tools for
monitoring developments and evolution of the market
Carbon Finance & CDM
CDM Challenges
• Complex CDM Modalities & Procedures
• Transaction cost to hire service providers.
• Heavy institutional requirements for project cycle (DNA, DOE
Validation, DOE Verification, etc.).
• Knowledge gap between CER buyers & sellers.
• Limited access to finance by potential developers:
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Financial intermediaries lack of knowledge about CDM.
Lack of trained national CDM experts.
Investment climate in host countries (e.g. SS Africa).
Limited budgets for operations of DNAs.
Need for national entities capable of bundling projects.
Carbon Finance & CDM
Strategy for Capacity Development
• Design of interventions based on:
• Continuous barriers analysis process.
• Monitoring global market.
• Consultations with in-country stakeholders.
• Core objectives:
• Minimize transaction cost.
• Remove CDM-related barriers.
• Facilitate efficient & effective completion of CDM project cycle.
• Key issues to achieve objectives:
• A combination of targeted, hands-on sectoral workshops, guidebook materials,
market analysis & research, host country participation in global carbon events,
& web-based tools.
•support design of new methodologies
(e.g. in LULUCF in Sub-Saharan Africa)
•Sector specific workshops (e.g RE;
landfill; EE, etc) for sector experts;
practitioners; project developers
•Executive briefings for ministries and
key officials
•Support national experts to produce
portfolio PINs & PDDs including
programmatic activities
•Guidebooks on specific issues of the
CDM (CDM procedures; baselines;
Institutional; legal; financing; PDD
guidebook; CDM SD impacts;
•Working Paper Series (CDM forestry and
biomass; SD&CDM; EE & pCDM; bioenergy & CDM)
•Perspective Series (determining a fair
Price for carbon)
•Overview of JI & CDM Pipeline
On going CDM Capacity Development Activities
• Capacity Development for CDM (CD4CDM): $12.5 million budget, 12 countries Phase I +
7 countries Phase II. Completion 2009.
• Using Carbon Finance for Sustainable Energy in Africa (CF-SEA) Project: five countries,
jointly with World Bank’s CDCF, $1 million.
• GTZ Energy-Sector CDM CD for francophone SS Africa, $500,000.
• European Commission CD for MEA, APC countries, $4 million.
• French-funded francophone CASCADe Project (Carbon Finance for Agriculture,
Sylviculture, Conservation and Action against Deforestation), $3 million.
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Danida CDM Green Facility in Africa (6 countries), $3 million.
UNDP-UNEP East Africa CDM Capacity Building, $1.7 million.
Programmatic CDM in China + Bioenergy CDM CB in China.
UNFCCC CDM Bazaar hosting & management.
UNEP SBCI CDM and the building sector
Production of a series of CDM manuals, guidebooks, working papers, etc.
Target Countries
(completed, on-going & forthcoming)
Latin America
• Cuba
• Nicaragua
• Peru
• Bolivia
• Ecuador
• Guatemala
• Suriname
• Caribbean
Islands Region.
SS Africa
North Africa
• Ghana
• Algeria
• Cameroon
• Egypt
• Mali
• Morocco
• Uganda
• Cote d’Ivoire
• Zambia
• Mozambique
• Mauritius
• Tanzania
• Benin
• Gabon
• Madagascar
• Congo
• Senegal
South Asia
• China
• Cambodia
• Bangladesh
• Sri Lanka
• Philippines
• Vietnam
• Thailand
• Pacific Islands
Region.
CD for CDM - Results Achieved
• Core business & regulatory frameworks for CDM investment
• Operationalization of DNAs in a number of countries:
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DNA infrastructure support; DNA CDM web site.
Modalities & Procedures for CDM projects approval are in place
National CDM Investors’ Guide.
Participation of DNAs in Carbon Expo.
• Preparation of pipeline of PINs/PDDs by national consultants.
• Organized capacity building workshops
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Skills and Knowledge provided to local experts to prepare good quality PINs/PDD.
Local experts able to deal with the complete cycle of CDM projects
Local relevant institutions have good understanding of CDM and Climate Change
Inter-institutional networks and coordination have been generated and enhanced
through country team activities and the DNAs.
Regional CDM projects
Promotion Activities
CD Success Indicators
• Key contribution is reduction in projects’ transaction costs
• Number of days DNA review/approve a CDM project.
• Local experts capable of preparing good qualityPIN/PDD.
• Local financial institutions have good understanding of CDM,
possibly willing provide underlying project financing.
• Validation/Verification processes conducted in a timely manner.
• Number of signed Emission Reduction Purchase Agreements
(ERPAs).
URC CD Value to Carbon Market
• Not a buyer. Not a seller:
• Unbiased advisory services & research products
• Trusted by both buyers & sellers.
• In-country CDM CD activities in more than 30 developing countries:
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Cross-fertilization of experiences from different regions and sectors.
Intimate knowledge of host countries’ situation
Access to valuable field information
Institutional, financial & market barriers facing them.
• Ability to invest time & effort in activities unattractive to private
sector:
• Research products (CDM Pipeline database).
• Operate & pave way in high sovereignty risk countries (e.g. Sub-Saharan Africa).
• Diversified experiences (geographic & sectoral) among carbon finance team in UNEP.
Thank You !!
For more information visit:
www.cd4cdm.org
www.uneprisoe.org