CDM Capacity building: lessons and directions

CDM Capacity building: Lessons
learned and future directions
CD4CDM Workshop
October 19-21, 2005, Bangkok, Thailand
Yukimi Shimura
Institute for Global Environmental Strategies
Contents
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
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Summary of the ICS-CDM/JI
Programme
Lessons learned on the CB approach
Remaining topics to be covered for the
CB
Our future directions
Summary of the
ICS-CDM/JI Programme
Integrated Capacity Strengthening
for CDM/JI (ICS-CDM/JI)

3 year programme under Ministry of the
Environment, Japan

Systemic, institutional and human capacity building
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Targeting countries with different size and level of
capacity
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FY2003: Cambodia, India, Indonesia, the Philippines

FY2004: ++Thailand
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FY2005: ++China, Russia
Started with the “standardized” programme
applied to all countries, which was later developed
into more “country-specific” programmes
Country activities in FY 2004
Russia
Preliminary
Preliminary research
research
•WS for Local
Government
•WS for Financial
Sector
•National
Meeting
•CDM Basic Seminar
•Training WS for PIN,
baseline, and PDD
•National Meeting
•CDM Country Guide
China
India
Thailand
•Small Group
Study for DNA
•CDM Country
Guide
Philippines
Cambodia
Indonesia
•Training WS for
PIN/baseline and PDD
•National Meeting
•CDM Country Guide
Information and awareness raising
on CDM/JI (1)
CDM and JI in CHARTS
provides a comprehensive and
easy-to-understand description
of the CDM and other Kyoto Mechanisms
Download
http://www.iges.or.jp/en/cdm/pdf/charts.pdf
Information and awareness raising
on CDM/JI (2)
CDM Country Guides
(Cambodia, China*, India, Indonesia, the Philippines and Thailand*)
Providing essential
information to develop
CDM projects in each
country, such as the
information on potential
CDM project types,
project approval
procedures, legal issues,
fiscal and financing
issues and government
incentives.
(Electric version soon available)
* Guides for China and Thailand are under development now.
Supporting institutional
framework
ICS-CDM/JI Programme supports the development
and further smoothening of the operation of the
Designated National Authority (DNA) and other CDMrelated government institutions in the host countries.
Cambodia
DNA seminars on the national project approval process
Thailand
CDM seminars for government officials
The Philippines
Training-Workshop on the CDM (for DNA Steering Committee,
Technical Evaluation Committees, Secretariat)
Training human resources
Development of the capacity of human resources is one of the
crucial aspects for the actual implementation of CDM projects.
Various stakeholders need to be equipped with the knowhow on CDM to facilitate the CDM project development.
Regional WS with UNEP-RISOE, UNESCAP, JBIC
 Tokyo Meeting
 CDM basic seminar
 Training WS for PIN, baseline,
and PDD
 National Meeting
 WS for local government
 WS for the financial sector
Documents downloadable @ http://www.iges.or.jp/en/cdm/index.html
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Support for project development
The ICS-CDM/JI Programme supports CDM project identification,
development and implementation activities in the countries
though the Japan Kyoto Mechanism Acceleration Programme (J-KAP).
Different types of support mechanism:
 Financial assistance for feasibility studies (GEC, NEDO);
 Underlying finance (JBIC);
 Upfront payment (MOE and NEDO)
 Carbon finance (JCF)
For more information: http://www.kyomecha.org/jkap/jkap.html
GEC: Global Environment Centre Foundation; NEDO: New Energy and Industrial
Technology Development Organization; JBIC: Japan Bank for International Cooperation;
MOE: Ministry of the Environment; JCF: Japan Carbon Finance, Ltd.
Lessons learned from
the ICS-CDM/JI Programme
Lessons learned: positive
feedbacks

Starting from the broader approach (standardized
programme) to the narrower approach (countryspecific programmes) was quite effective

“Integrated approach” allowed to reduce the gaps
between CDM-advanced and just-started countries
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Still wide perspective for the concerns and the great
needs for the CB in the region, but the next target for
the CB is much clearer and more narrowed down
(moving up the steps together) in the region.
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Partnership with local NGOs to coordinate the CB
activities itself contributed to their capacity building.
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CB as a bridge to smoothen the CDM process
between Annex-I and Non-Annex I countries.
Lessons learned: negative
feedbacks
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Difficult to have solid outputs from the CB for
evaluation
Targets too broad
The “integrated approach” was necessary, but it
was difficult to make the best judgment on when to
move in from the broad to narrow approach and
how to balance the three components of the
programme
Communication with other donors was well
established, but making a next move to avoid the
redundancy in the CB activities was difficult
What’s left for
the CDM capacity building (CB)
CB: Remaining issues
Government
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DNA and approving procedures have been established, but still
lacking the actual experience in approving the projects
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Baseline issues
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Regional governments
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Web sites as new tools for the capacity building?
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CDM registry
Project developers
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How to keep up with the constantly updated rules on the CDM
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CB target: Gaps between forerunners and late comers
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Data accuracy and collection issues
CB: Remaining issues (cont’d)
Project development supports
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Consultants: how to skill up? Competence?
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Banking sector: standardization of loaning process for the
CDM projects and internalization of the CDM-related profits
when considering the financial viability of the projects
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DOEs: Yes, we need a special training programme to have
Non-Annex I DOEs, but who shares the information to
develop the effective programme?
What’s next for
the ICS-CDM/JI?
Current status
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Currently under the negotiation with
Ministry of the Environment, Japan.

Various factors affecting the designing
of the programme
Possible course for the next
ICS-CDM/JI programme

Option 1: Continuation of the current structure
(balanced assistance to both governments
and private sector)
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Option 2: Narrowed-down approach
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Option 3: More regionally-focused approach
(wider perspective)
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Option 4: Hybrid of Option 1 and 2 with specific focus
on certain topics/stakeholders
Great possibility of having the stronger
emphasis on the outputs
A decisive factor for shaping
the next ICS-CDM/JI
Japanese Government’s proposal for the credit
procurement programme (requiring a Diet
approval)
Possibility of having a carbon credit procurement
programme as of FY2006 (April 2006)

Proposed budget (both MOE-J & METI together):
8.8 Billion JPY
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Linking CB with the procurement programme as
a possibility
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Thank you for your attention!
Contact details:
CDM Programme
Institute for Global Environmental Strategies
2108-11 Kamiyamaguchi, Hayama, Kanagawa, 240-0115
Japan
Phone: +81-(0)46-855-3820 Fax: +81-(0)46-855 3809
E-mail: [email protected]
URL: http://www.iges.or.jp/en/cdm/index.html