Progress of and Lessons from
CD4CDM
COP 10
Buenos Aires
11 December 2004
Myung-Kyoon Lee
UNEP Risø Centre
Brief of CD4CDM
– Donor: the Netherlands Ministry of Foreign Affairs
– Implemented in 12 developing countries by UNEP
through its UNEP RISØ Centre on Energy, Climate
& Sustainable Development
– Phase I: Feb. 2002 – 2nd quarter of 2003,
preparation of national work plans
– Phase II: 3rd quarter of 2003 – end of 2005,
implementation of national work plans
– Investment-neutral and not connected to the actual
purchase of carbon credits: a pure CB initiative
Aim and Objectives
– Generating a broad understanding of the CDM and
creating an enabling business & regulatory
environment for CDM investment in target countries
through
– Developing institutional capability & human capacity
in selected public & private entities
– Helping host countries to be equal partners with
developed countries and fully participate in the
formulation and implementation of the CDM
– Assisting countries in getting benefit from the CDM
Implementation Strategies (1)
– On-site implementation: identification of target
groups; capacity building for different groups by
means of workshops, training sessions, and
technical assistance and consultations, etc.
– Background materials: internal expertise,
involving regional centres and hiring external
experts
Implementation Strategy (2)
Project manager
URC
Regional
Coordinator
for Asia
Regional
Coordinator
for LA
RCs
Regional
Coordinator
for ME&NA
Regional
Analytical
Coordinator Work
for SSA
Coordinator
CTs
inter-regional and intra-regional sharing of information and experiences
Key Outputs
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Establishment and/or consolidation of DNA
Formalized national project approval procedures
CDM promotional publications & brochures
Pipelines of CDM projects: PINs, PDDs
A national CDM website
Side-events at COP & SB and information dissemination
National experts capable of CDM project design
Current Progress
Asia
Latin
America
ME & NA
SSA
completed
completed
completed
completed
KP
ratification
Cambodia,
Philippines,
Viet Nam
Bolivia,
Ecuador,
Guatemala
Morocco
Egypt
Uganda
Mozambique
DNA
Viet Nam,
Cambodia,
Philippines
Bolivia,
Ecuador
Morocco,
Egypt
Mozambique
(unofficial)
Project
portfolio
Cambodia,
Viet Nam,
Philippines
Bolivia,
Ecuador
Morocco,
Egypt
Uganda
Phase I
Development of Guidebooks (1)
http://cd4cdm.org/publications.htm
Development of Guidebooks (2)
– A guidebook to baseline methodologies for
CDM projects
– Bundling of small-scale CDM projects
– Bio-energy and Forestry
These three will be ready in early 2005.
Investors Forum (1)
Two regional investors forum: Tunisia and the Philippines
Objectives
– Marketing of CDM project portfolio in participating countries and
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their neighbors.
Informed the sellers on Terms & Conditions of some of the
existing Emission Reductions purchase programs.
Informed the buyers on CDM institutional preparedness of
countries in the region (DNA & KP ratification).
Discussions between buyers and sellers regarding CDM project
details.
Participants: around 100 in each forum
– CDM investors, National carbon funds, Carbon brokers, VER
brokers
Investors Forum (2)
Potential projects
– Egypt
: two grid-connected wind, five EE, two landfill gas capture and
flaring projects
– Morocco
: seven RE, two EE, two landfill projects
– Cambodia
: one biocogen, one methane recovery
– Philippines
: one bioenergy, one waste-to-energy, one forestry, two wind
projects
– Viet Nam
: one biomass, one forestry, one wind-diesel hybrid project
Why Capacity Building for the CDM?
– A new concept and a new market: Complex M&P require
clarifications and training on how to conceptualize and desgin
CDM projects
– Legal prerequisites and eligibility criteria
– To assist host countries in having
- a well-established institutional set-up, e.g. one-stop shopping
- clear and transparent rules and approval procedure
- mimimum uncertainty and low transaction costs
Experiences from Previous CDM CB Activities
vs. CD4CDM
– Donor competiton in certain countries: difficult to avoid but try to
coordinate different donors by organizing Advisory Body meeting
– Uncoordinated workshops and activities without follow-up and
coordination: organize co-workshops with other donors to maximize
synergies, e.g. collaborate with IGES in Asia and e7&UNDESA in LA
– Flow back of a high share of project budgets into investor country or
international consultants: 60% for in-country activities
– No funding for real institution buildings: budget to set up DNA but need
to ensure its financial sustainability after the project
Source: Axel Michaelowa, CDM Host country institution building, 2003
Lessons and Recommendations from CD4CDM
– Clear objectives and targets with visible/quantitative milestones
– Understand differences in target areas and sectors
: historic, cultural, socio-economic, political, insitutitonal, etc.
: no one-size-fits-all methodology
– The progress depends on various factors
- a high level political commitment
- identificaition of right partners: including their domestic networks
- initial capacity of local partners
- incentives for local participants: let incentives talk
– Coordination among and participation of relevant ministries important
- particularly ministries in charge of energy, industry, economy, transportation
and agro-forestry
– Trust among key players: mutual understanding through close
communications
– Try to think from the partner’s perspective
Lessons and Recommendations from CD4CDM
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Country driven, needs-based approaches
Bilateral relationship: give first
Confidence-building: make local partners feel ownership; serve as
assisstants, do not act as instructors
Exercise flexibility: both in work plans and budget
mobilizing the existing expertise and capacity: building upon the
current institutional framework as much as possible rather than
making a whole new structure, particularly in small and poor countries
Stability of local staff: institutional memory
Maximize transparency and minimize bureaucracy
Learning by doing through real cases
Taking advantage of the process to build your own capacity and
expertise: you will also learn a lot from your partners
Lessons and Recommendations from CD4CDM
Summary of key success factors
1.
2.
3.
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5.
Understand differences
Identify right partners
Build trust by showing your trust
Help your partners build self-confidence
Exercise flexibility but keep the bottom line
www.cd4cdm.org