cdm issues and capacity building program of japan regional workshop and training on “capacity...

CDM Issues and Capacity Building CDM Issues and Capacity Building Program of JapanProgram of Japan

Regional Workshop and Training on Regional Workshop and Training on “Capacity Development for the Clean “Capacity Development for the Clean

Development Mechanism”Development Mechanism”

November 16 - 19, 2003November 16 - 19, 2003

Tae Yong JungTae Yong JungInstitute for Global Environmental Strategies (IGES), JapanInstitute for Global Environmental Strategies (IGES), Japan

CClean Development Mechanism (CDM)lean Development Mechanism (CDM)Issues*Issues*

CDM: DefinitionA Cooperative Mechanism established under the

Kyoto ProtocolTo promote environmentally friendly investment from

industrialized countries for the sustainable development of hosting countries

* :Introduction to CDM, UNEP/URC, RISOE, 2002

CClean Development Mechanism (CDM)lean Development Mechanism (CDM)IssuesIssues

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”.

CClean Development Mechanism (CDM)lean Development Mechanism (CDM)IssuesIssues

Eligible ProjectsEnd-use Energy Efficiency ImprovementSupply-side Energy Efficiency ImprovementRenewable EnergyFuel SwitchingAgriculture (Reduction of CH4 and N2O)

Industrial Process (CO2 from Cement,…)

Sinks Projects

CClean Development Mechanism (CDM)lean Development Mechanism (CDM)IssuesIssues 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*Establishment of the DNA*(Case of Peru)(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 CigaránPatricia Iturregui, 2003

Establishment of the DNAEstablishment of the DNA(Case of Peru)(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 DNAEstablishment of the DNA(Case of Peru)(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 DNAEstablishment of the DNA(Case of Peru)(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 DNAEstablishment of the DNA(Case of Peru)(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 DNAEstablishment of the DNA(Case of Peru)(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 DNAEstablishment of the DNA(Case of Peru)(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 DNAEstablishment of the DNA(Case of Peru)(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 Integrated Capacity Strengthening for the the CClean Development Mechanism lean Development Mechanism (ICS-CDM)(ICS-CDM)

GoalTo enable developing countries in Asia and investors

from Japan fully participate in CDM projects that contribute to sustainable development of host countries


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 CDMSupporting CDM project identification, development

and implementation activities


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)


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.


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


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


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 in-charge-of CDM in host countries and Japan


Target Countries: Emission reduction potential and population increase

potential countries: China and IndiaCarbon 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.


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


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).


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


CDM Potential AssessmentThe 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


Joint Research between IGES and Local Research InstitutionsEnhancing 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.

cdm issues and capacity building program of japan regional workshop and training on “capacity...

Documents

dna slide

ruling cdm

cdm activities

cdm information

cdm supreme decree

dna head

development of national

capacity development