Download CDM Issues and Capacity Building Program of Japan

CDM Issues and Capacity Building
Program of Japan
Regional Workshop and Training on
“Capacity Development for the Clean
Development Mechanism”
November 16 - 19, 2003
Tae Yong Jung
Institute for Global Environmental Strategies (IGES), Japan
Clean Development Mechanism (CDM)
Issues*

CDM: Definition
 A Cooperative Mechanism established under the
Kyoto Protocol
 To promote environmentally friendly investment from
industrialized countries for the sustainable
development of hosting countries
* :Introduction to CDM, UNEP/URC, RISOE, 2002
Clean Development Mechanism (CDM)
Issues

Kyoto Protocol: Article 12
 “The purpose of Clean Development Mechanism shall
be to assist Parties not included in Annex I in
achieving sustainable development and in
contributing to the ultimate objective of the
Convention, and to assist Parties included in Annex I
in achieving compliance with their quantified
emission limitation and reduction commitments
under Article 3”.
Clean Development Mechanism (CDM)
Issues

Eligible Projects
 End-use Energy Efficiency Improvement
 Supply-side Energy Efficiency Improvement
 Renewable Energy
 Fuel Switching
 Agriculture (Reduction of CH4 and N2O)
 Industrial Process (CO2 from Cement,…)
 Sinks Projects
Clean Development Mechanism (CDM)
Issues

Project Cycle for the CDM
1. Project Design and Formulation
2. National Approval
3. Validation/Registration
4. Project Financing
5. Monitoring
6. Verification/Certification
7. Issuance of CERs
Establishment of the DNA*
(Case of Peru)

Composition of the DNA
 the National Council for the Environment (CONAM) :
Designated National Authority for CDM (Supreme
Decree 095-PCM-2002)
 The composition of the DNA: simple and flat and
takes advantage of the national environmental
management system, which is based on the
performance of multisectoral and multidisciplinary
teams conformed by CONAM and other institutions.
* :INSTITUTIONAL STRATEGY TO PROMOTE CDM IN PERU, Maria Paz Cigarán
Patricia Iturregui, 2003
Establishment of the DNA
(Case of Peru)

CONAM
 General Roles
• Designated National Authority (DNA)
• Leads and coordinates CDM project evaluation and approval
• Presides National Climate Change Commission
Establishment of the DNA
(Case of Peru)

CONAM
 Specific roles related to CDM
• To Follow up on CDM National Strategy implementation
• To promote and regulate national and international
regulation related to CDM
• To implement CDM Project approval procedure – ISO P-34 and its continuous improvement.
• To register CDM activities in the country (CER transference
and property of every project)
• To support spreading of CDM information to create local
capacity for the development of national DOE and to
improve Project portfolio.
• To participate in international negotiations and to comply
with ruling CDM related international procedures
• To coordinate the necessary actions to overcome barriers
for the implementation of CDM Composition of the DNA
Establishment of the DNA
(Case of Peru)

Structure of the DNA
 Head of the DNA: the Head of the Climate Change
Unit
 The Climate Change Unit is composed;
 Head of the Climate Change Unit
 An environmental Expert
Establishment of the DNA
(Case of Peru)

Ad hoc Committee (interministerial and
multisectoral) : evaluation and approval
 A representative from the governmental sector to
which the project belongs
 A representative from the National Environmental
Fund – FONAM
 A representative from the private sector
 A representative from the NGOs
Establishment of the DNA
(Case of Peru)

Ad hoc Committee (interministerial and
multisectoral) : (Continued)
 A representative from the Peruvian International
Cooperation Agency - APCI
 A representative from the Ministry of Foreign Affairs
 A representative from Proinversion
 Head of the Climate Change Unit – CONAM
 One or two EIA sectoral expert (a max of 2, as
required)
 Other experts (a max of 2, as required)
Establishment of the DNA
(Case of Peru)

PROINVERSION - Investment Promotion
Agency
 General role

Coordination of CDM Project investment promotion
 Specific roles related to CDM
• To include CDM opportunities in the “National Investment
Plan” and in its national promotion strategy design
• To promote CDM project portfolio nationally and
internationally.
• To facilitate communication within the different actors of
CER production
• To administer a data base with relevant information about
investors, CER buyers, project developers, DOE, capacity
building institutions, status of international negotiations, etc.
Establishment of the DNA
(Case of Peru)
 Specific roles related to CDM
• To lead spreading of information to investors, entrepreneurs,
professionals, general public.
• To strengthen national capacity building through the
coordination of programs to:
– Build capacity to formulate CDM projects
– Create DOEs
– To promote investors participation in the Carbon market.
• To coordinate with other institutions (FONAM,
PROFONAMPE, FONDEBOSQUE, CET, etc) to get funds for
capacity building and awareness activities.
• To implement different activities to overcome barriers
• To represent private sector position in international
negotiations as part of the Peruvian delegation
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Goal
 To enable developing countries in Asia and investors
from Japan fully participate in CDM projects that
contribute to sustainable development of host
countries
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Objective
 Providing information and raising awareness on CDM
 Implementing actions to support institutional
networks for CDM
 Contributing to training and human resource
development to operationalize CDM
 Supporting CDM project identification, development
and implementation activities
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Synergy with other CDM promotion initiatives of
MOE-Japan
 CDM/JI Feasibility Study Support Program (Fiscal
Year [FY] 1999)
 CDM/JI Validation Support Project (FY 2002)
 National Registry System Establishment Project (FY
2002)
 Kyoto Mechanism Support Centre (Newly launched)
 Subsidy Scheme for CDM/JI Project Facilities and
Equipment (Newly launched)
 Kyoto Mechanism Utilization Fund (Newly launched)
 Voluntary Emissions Trading Testing Program (Newly
launched)
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Collaboration with other regional and
international capacity building programmes
 Multilateral and international organizations such as
the World Bank, Asian Development Bank, UNEP and
various bilateral agencies have also been
implementing CDM support programmes in various
Asian countries.
 ICS-CDM will collaborate with such initiatives,
wherever possible, to ensure effectiveness of the
programme and efficient use of resources.
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Outcomes expected in all host countries:
 Diffusion of knowledge and understanding about
opportunities and benefits from CDM to diverse
stakeholders (policy makers, industries, financial
institutions, non-governmental organizations [NGOs],
academia and the general public) thereby leading to
creation of a positive attitude to CDM in host
countries
 Establishment of a strong partnership between Japan
and host countries in relation to CDM and climate
protection based on mutual understanding of needs
and priorities
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Outcomes expected in all host countries:
 Analysis of the realistic potential for CDM projects in
the waste management and renewable energy
sectors and of small-scale integrated projects, to
serve as a basis for devising an effective national
strategy for CDM in these sectors/project types
 Development of human resources necessary for
drafting project design documents (PDDs) and
validation of feasible CDM projects
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Outcomes expected in countries where some
capacity for CDM already exists:
 Further enhancement of understanding of CDM
among ministries and other governmental
institutions thereby leading to creation of a positive
attitude to CDM
 Creation of a common basis for understanding on the
operational procedures of CDM among project
implementing entities, investors, and agencies incharge-of CDM in host countries and Japan
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Target Countries:
 Emission reduction potential and population increase
potential countries: China and India
 Carbon sequestration potential/medium-size
countries: Indonesia, Malaysia, etc.
 Sustainable development in small developing
countries: Bhutan, Cambodia, Lao PDR, Mongolia,
South Pacific Islands, Sri Lanka, etc.
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Targeted stakeholders for training workshops:
 Policy-makers (officials from the national and local
governments）
 Industries, Businesses and Financial agencies
(private companies, project developers, consulting
firms, banks and other financial Institutions, etc.)
 Civil Society (NGOs, local communities, academia
and research
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Support to activities for formulating CDM policy
and strategy
 If the situation warrants and subject to requests from
the host government, a national CDM policy and
strategy formulation support unit, comprising
representatives from the government, private sector,
academia and NGOs, may be established in close
cooperation with counterpart organization(s).
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Support to activities necessary for identification
and/or establishment of Designated National
Authority (DNA)
 Subject to requests from the host government,
support will be given to activities that would facilitate
discussions necessary to identify and/or establish
DNA and formulate the approval and operational
procedures for CDM
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

CDM Potential Assessment
 The need for enhancing capacity of host country’s
institutions to identify, evaluate and implement
potential CDM projects is important to utilize CDM as
one of the tools to achieve sustainable development.
 Training activities that will help in assessment of the
potential of CDM in the selected sectors and of
project type, such as waste management, renewable
energy and small-scale CDM projects will be
supported and implemented jointly with local entities
of the host country.
 Focus is laid upon bottom-up evaluation procedures
of CDM
Integrated Capacity Strengthening for
the Clean Development Mechanism
(ICS-CDM)

Joint Research between IGES and Local
Research Institutions
 Enhancing local capacity to undertake objective and
independent research on CDM issues in host
countries is also important in the long term in order
to retain the knowledge base necessary for further
implementation of CDM in host countries.
 Joint research on CDM issues between various IGES
projects and local research institutions will be
supported through this programme.