Download Designated National Authority for Clean Development Mechanism of

Government of Nepal
Ministry of Science, Technology and Environment
Designated National Authority
for
Clean Development Mechanism
of The
Kyoto Protocol
April 2013
Background
Nepal signed the The United Nations Framework Convention on Climate Change (UNFCCC) on 12 June
1992 during the UN conference on Environment and Development in Rio de Janerio, Brazil. The
Instrument of Ratification was submitted to the Convention Depository on 2 May 1994 and the UNFCCC
entered into force in Nepal from 31 July 1994.
The parties to the Convention adopted the Kyoto Protocol (KP) on 11 December 1997 in order to pursue
the ultimate objective of mitigating climate change. Article 12 of the Protocol established the Clean
Development Mechanism (CDM) to assist parties not included in Annex 1 in achieving sustainable
development goal by trading Certified Emission Reduction (CER).
Nepal submitted the Instrument of Accession to the Kyoto Protocol to its depository on 16 September
2005. The Protocol entered into force in Nepal from 14 December 2005.
Establishment of DNA
To facilitate and expedite the process of registration and to get maximum benefits from CDM projects,
the Government of Nepal (GoN) decided on 22 December 2005 that the than Ministry of Population and
Environment (now Ministry of Science, Technology and Environment (MoSTE)) would function as
Designated National Authority (DNA) to CDM projects related to the Kyoto Protocol. Further, the
Ministry authorized the Climate Change Management Division to function as DNA secretariat. To
enhance the coordination in project approval, an eleven member Steering Committee (SC) under the
chairmanship of Secretary MoSTE was formed in April 2006. A six member Technical Advisory
Committee (TAC) under the coordination of Joint Secretary (Tech.) Climate Change Management
Division (CCMD), MoSTE was also formed. The CDM Section was made responsible for administrative
support to the DNA secretariat.
Functions and responsibilities of the DNA
1. Increasing participation of the private sector in CDM projects.
2. Supporting and facilitating project developers in promoting CDM projects.
3. Managing and coordinating CDM project activities.
4. Providing CDM related information to stakeholders
5. Formulation and implementation of strategies and policies to propagate CDM projects.
6. Organizing capacity building and promotional activities to inform people about CDM.
7. Supporting the preparation of standard baselines.
8. Providing comments, suggestions and inputs from TAC and SC members for project developers
to incorporate in their project report.
9. Issuing No Objection Letter (NOL) for approved Project Idea Note (PIN) and Letter of Approval
(LoA) for approved Project Design Document (PDD).
10. Monitoring and evaluation of the CDM Projects.
11. Achieving sustainable development goal through CDM and preparing a status paper on it.
12. Coordinating capacity building, technology transfer and knowledge management for CDM.
CDM Project Review
The DNA will approve and produce NOL for PIN and LoA for PDD of CDM Projects. NOL will be
produced for PIN after acceptance by TAC. LoA will be produced for PDD after acceptance by
TAC and SC.
The SC will advise the DNA on whether or not to approve the submitted PDD. It also has the
authority to provide methodologies and guidelines on preparation of CDM projects.
The TAC will evaluate the PIN and PDD of CDM projects for technical feasibility and sustainable
development criteria. It can reject or propose improvements on PINs and PDDs of CDM projects.
The CDM Section will screen and conduct an initial evaluation of PIN and PDDs taking into
account the sustainable development criteria, national policies, strategies, laws and guidelines.
The project developer (PD) will be responsible for holding stakeholder consultation. The PD
should make power point presentation and explain PIN and PDD documents to TAC and SC
meetings. The PD is also accountable for incorporating all the comments and suggestion
obtained from stakeholder consultation, TAC and SC on PIN and PDD documents.
Requirements for submission of PIN and PDD
1. In joint venture projects, Nepalese enterprises should lead the implementation of the
project and it should be the contact point for notification by the government
2. The CER price should be converted to Nepalese rupees on exchange rate on the date when
application is filled.
3. The PIN should follow World Bank format and PDD should follow UNFCCC format.
Documents to be submitted
1. Seven copies of PIN and 12 copies of PDD including soft copy to DNA secretariat
2. Letter of intent from the contact point
If applicable
3. EIA or IEE Report
4. Stakeholder Consultation report
5. Joint Venture agreement between parties indicating leading party and contact point
including responsibilities, liabilities, investment ratios and arbitration process etc.
6. Approval Letter for project investment
7. Other necessary documents
CDM Projects status
As for 15 April 2013 DNA has approved 17 CDM projects of which 6 projects have received CER. Four of
them are Bio-gas projects, one Improved Cook Stove project and one Micro-hydro project.
CDM Project Review Process
Steering Committee
Stakeholder
Consultation
Proponent
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Government of Nepal
Ministry of Science, Technology and Environment
(MoSTE)
Designated National Authority (DNA) for
CDM Project
DNA Secretariat
JS(Tech), Chief CCMD- MoSTE
Administrative Support
CDM Section
Secretary, MoSTE
Rep. JS level, MoF
Rep. JS level, MoFSC
Rep. JS level, Mol
Rep. JS level, MoLE
Rep. JS level, MoFALD
Rep. JS level, MoE
Rep. JS level, MoAD
Experts (two)
JS, CCMD- MoSTE
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
MS
Technical Advisory Committee
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JS (Tech),CCMD- MoSTE
Rep. Concerned Ministries
Experts (three)
Chief, CDM Section, MoSTE
Coordinator
Member
Member
MS
Acronyms
MS- Member Secretary
MoLE- Ministry of Labour and Employment
JS- Joint Secretary,
MoAD- Ministry of Agriculture Development
Rep.- Representative
CCMD- Climate Change Management Division,
MoF- Ministry of Finance
MoFSC- Ministry
Conservation
MoE- Ministry of Energy
of
Forestry
Soil
MoFALD- Minstry of Federal Affairs Local
Development,
MoI- Ministry of Industry
Potential Sectors for CDM Projects

and
Decentralized Renewable Energy –
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Solid Waste
Micro Hydro, Bio Gas, Solar PV, Improved
Cook Stoves
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Transportation
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Tourism
Improved Water mill
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Clean Energy technology
Hydropower
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Fuel Switch in Industries
Agriculture
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Modification of Production system
Forestry
CDM Projects Approval Cycle
Public Consultation
(PD or proponent)
1st Phase PIN
No
2nd Phase PDD
Review & Evaluation
(TAC meeting)
Improvement
/ Rejection
No
Improvement
/ Rejection
Ye
s
NOL
Evaluation
(SC meeting)
Ye
No
Rejection/
Resubmit
s
LoA
Sustainable Development Criteria and other requirements for approval
(i) General Criteria
The proposed CDM project should comply with existing Law, strategies and policies such as:

National as well as sectoral plan and policies (such as Sustainable Development Agenda,
Periodic Plan and policies etc.)
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Development and conservation strategies (such as Biodiversity Strategy, Water Resources
Strategy etc)

National and sectoral acts and laws (such as Environment Protection Act and Law and
Forest Protection Act etc)
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Other requirements of the government
(ii) Specific Criteria
The proposed CDM project should be consistent with following Criteria and Indicators
1. Environment
1.1 Environmental sustainability by practicing natural resource conservation or diversification
1.1.1 Maintain sustainability of local ecological functions
1.1.2
Maintain the threshold of existing national, sectoral as well as local, environmental
standards (not increasing air, water and/or soil pollution and noise level)
1.1.3 Maintain genetic, species, and ecosystem diversity and not increasing any genetic
erosion
1.1.4 Comply with existing land use practice and planning (if exist)
1.1.5 Reduce pressure on exploitation of local and national environmental resources
1.1.6 Rational use of mineral recourse
1.1.7 Sustainable use of forest resources
1.1.8 No impact on existing archeological, cultural, historical and traditional heritage
1.1.9 Minimal/ no impact on existing infrastructure.
1.2 Health and safety
1.2.1 No health risk posed
1.2.2 Provide improved safety measures
1.2.3 Provide improved health condition
1.2.4 Comply with national occupational health and safety acts, policies and laws
1.2.5 Document procedure of actions to prevent possible accidents and health hazards
1.3 GHG emissions reduction
1.3.1 Reduce use of fossil fuels and bio mass
1.3.2 Promote clean energy generation and use
1.3.3 Improve hygiene of surrounding (Management of solid, liquid and gaseous waste)
2. Economic
2.1 Poverty reduction and local community wellbeing
2.1.1 Maintain or increase household or local community income
2.1.2 Provide financial returns to local communities during project period
2.1.3 Increase national or rural employment
2.1.4 Not hamper or lowering national and local public services
2.1.5 Build agreement /concurrence among conflicting parties
2.1.6 Use local materials for construction
2.1.7 Employ local people for construction
3. Social
3.1 Community participation in the project
3.1.1 Consult local community and stakeholders and seek their agreement for the project
3.1.2 Incorporate comments, inputs and complaints from local communities into the project
3.1.3 Avoid triggering conflicts among local communities
3.1.4 Improve social harmony among communities
3.1.5 Promote gender equity and women empowerment
4. Technology & Capacity building
4.1 Technology transfer/capacity building
4.1.1 Promote technology transfer
4.1.2 Not use experimental or obsolete technology
4.1.3 Enhance the capacity of local people
4.1.4 Utilize local technologies
4.1.5 Raise technological know-how
4.1.6 Transfer skills and increase maintenance capacity
4.1.7 Include training and capacity building of local people
Note: Proofs of consultations, and comments and complaints, if any, of the local community should be
submitted by the project developer while submitting the proposal for CDM.
For more Information
Government of Nepal
Ministry of Science, Technology and Environment
Secretariat of Designated National Authority for Clean Development Mechanism
Singdurbar, Kathmandu
Telephone: +977-1-4211641/4211586
Fax: +977-1-4211954
Email: [email protected]
Website: www.moste.gov.np