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Incorporating and Monitoring of SD
Goals in CDM Projects
Workshop on
Clean Development Mechanism: Opportunities
in Rajasthan
Hotel Clarks Amer, Jaipur
Kalipada Chatterjee
Climate Change Centre
Development Alternatives
January 28-29, 2005
Introduction

Rapid industrialistion since the last century has led
to an alarming rise in the concentrations of
greenhouse gases in the atmosphere.

The resultant global warming leading to climate
change has many adverse impacts on our life
supporting systems, such as water, agriculture,
health. This may also increase the frequency of
extreme events such as droughts, floods and
cyclones.

Global leaders have largely accepted the fact that
climate change is one of the most pressing and
dangerous threat to our life on earth today.
Development Alternatives
Introduction

As a response to climate change the United
Nations Framework Convention on Climate
Change (UNFCCC) was adopted in June
1992 at Rio

The Climate Convention was further
strengthened by the Kyoto Protocol that has
drawn precise ground rules to combat and
mitigate climate change.
Development Alternatives
Clean Development Mechanism of
the Kyoto Protocol
 The Clean Development Mechanism (CDM) is one of
the three flexibility mechanisms of the Kyoto Protocol
to the Convention on Climate Change
 The purpose of CDM is to :

assist developing countries in achieving sustainable development

contribute to the ultimate objective of the Convention i.e.
stabilisation of greenhouse gas concentrations in the atmosphere
at a level that would prevent dangerous anthropogenic
interference with the climate system, and

assist developed countries in achieving compliance with their
Quantified Emission Limitation and Reduction Commitments
(QELRCs)
Development Alternatives
Clean Development Mechanism…..
Contd../
The CDM was established to explore cost
effective options to mitigate climate change by
the industrialised countries

Opportunities to reduce emissions through
CDM project activities in developing countries
are enormous at a fairly low cost particularly in
the energy, transport, building materials (brick,
cement and steel), municipal waste, animal
husbandry sectors
Development Alternatives
SD Goals & CDM Projects

It is the perogative of the host country (e.g. India) to
ensure that a CDM project activity addresses the SD
goals of the country (Marrakech Accord)

India has set the sustainable development goals of
the country such as :







agriculture and food security
rural development
adequate employment
poverty eradication
accelerating economic growth
safe drinking water
primary health care
Development Alternatives
SD Goals & CDM…. Contd../
universal primary education

population control

environmental sustainability of the
development process

women empowerment

national security

building self reliance

strengthening participatory institutions
Development Alternatives
What is Sustainable Development

The concept of sustainable development was first
introduced by the International Union for Conservation
of Nature (IUCN) in 1950.

A definition of sustainable development was first given
by the World Commission of Environment and
Development, popularly known as Brundtland
Commission in 1987 as a development process that
“meets the needs of the present without compromising
the ability of the future generations to meet their own
needs”.
Development Alternatives
What is Sustainable
Development… Contd../
Brundtland Commission considered population
control, food security, energy supply as critical
components of sustainability.

Since the Rio Summit in June 1992, and adaptation
of Agenda 21 by the global community, many
nations have set sustainability as a key goal of their
development

Concept of Sustainable Development is quite
distinct from economic growth and recognises the
limitations of economic indicators like GNP in
measuring the true well being of nations.
Development Alternatives
Measuring Progress toward
Sustainability

Measuring sustainability is not an easy task.
Therefore a concept of sustainable
development indicator (SDI) has been
introduced to assess, measure and monitor
sustainability of a development process

For measuring sustainability of a development
process, a useful way is to select and
organise indicators in a pressure (cause),
state (linking effects), impacts and response
(policy action) framework.
Development Alternatives
Measuring Sustainability of a
Development Project
Example of Pressure-State-Impacts Response Framework
Issue
Climate
Change
Pressure
GHG
Emissions
State
Impact
Response
Atmospheric
Sea Level Rise Climate Change
conc. of GHGs
Mitigation
Projects,
UNFCCC & KP
Ozone
Use of
Chlorine in the Human Immune Phasing out of
Depletion CFCs/HFCs stratosphere; system, Food CFCs
UV-B
Production,
Cataracts
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/Sustainability
Dimension
Goal
Driving
Force/Pressure
Indicators
State Indicators
Response
Indicators
Economic
Poverty
alleviation
Inadequate means
of livelihood
Poverty Index
(long and healthy
life, knowledge,
decent standard of
leaving)
Employment
generation
Social
Access to basic
services
Inadequate public
infrastructure
Electricity
consumption per
capita
Electricity services
from Renewable
energy sources
Environmental
Reduction in
health effects
from indoor air
pollution
Inadequate access
to clean cooking
fuel
Morbidity from
particulate
concentrations
Provision of fuel
with lower
emissions and
efficient chullas
Technological
Capacity to
improve
technological
base
Inefficient
production
technologies
Energy use per unit
of output
Training and
investment to
adopt improved
technologies
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/CDM Projects have to have a sustainability screening.
Development Alternatives have identified a six stage
sustainability screening process. This is as follows :
First Step : Setting the Sustainability Criteria
Set a criteria for SDIs - for a CDM project the criteria has to
be project based (Such criteria must be based on the four pillars
of Sustainable Development and the criteria laid down under the
Article 12 of the Protocol).
The four pillars are economic / social /environmental &
technological well beings
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/Candidate CDM
Projects
economic screen
social screen
environmental screen
technological screen
projects qualifying as
sustainable
projects selected by host
country
Development Alternatives
national screen
Measuring Sustainability of a
Development Project…. Contd…/Second Step : Methodologies for SDIs
Choose a proven methodology for developing indicators

Participatory : Involve the Stakeholders [Tell me and I will
forget ; show me and I may remember; involve me and I shall
understand - Andrew Campbell]

A careful scrutiny of the Climate Change Mitigation
Project proposal to develop indicators

A Ready Reckoner (RR) on SDIs under preparation in
DA. Such a RR will be useful for the business sector.
Otherwise developing SDIs for each individual Project
may increase transaction costs
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/-
SDIs must be :

Driven by host country’s development
priorities
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User friendly
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Simple & robust
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A few in number, but as many as
required
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/Third Step : Monitoring and Verification of SDIs




Emission reductions
Improvement in air and water quality / local
environment
Employment generation and rise in per capita
income, etc.
Other social benefits
Lack of database in developing countries for setting up baselines
and monitoring net changes is a major hurdle
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/Fourth Step : Measuring Sustainability

Choose eight SDIs : two from each pillar of
sustainability

Construct baselines : compare the benefits
offered by the project against baselines

Evaluate SDIs for net changes against baselines
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/-1
The goal
0
The worst
-1
0
1
0
0
-1
The baseline
-1
+ve changes indicate sustainable development ;
-ve changes indicate an unsustainable project
Development Alternatives
Measuring Sustainability of a
Development Project…. Contd…/Fifth Step : Certification of Sustainability

An approved independent sector organisation,
like a national NGO with necessary expertise,
may take up such certification, based on
monitoring and verification of sustainability
through SDIs
Sixth Step : A time Dimension, that is required
to meet the SD criteria
Development Alternatives
Monitoring & Verification of
Sustainability
Conclusion

Since it is the prerogative of the host country to ensure
(e.g. India) if a CDM project has addressed to the
sustainable development priorities of India before
endorsement by the DNA such process can be facilitated
by e.g. the Climate Change Centre, Development
Alternatives in view of their considerable work done in
this field.

CDM is a golden opportunity for country like India to
choose a green development path and make our
development process sustainable, which is also one of
the objectives of the UNFCCC
Development Alternatives
Development Alternatives