tbli asia 2015 - claire dufour - impact measurement
TRANSCRIPT
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Impact Measurement: Lessons from the carbon markets
April 2015
nexus-c4d.org
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Content
•Brief presentation of Nexus
•Overview of the carbon project cycle
•Lessons from the carbon markets
•Certifying the co-benefits of carbon projects
•Measuring co-benefits: case study
•Valuing the co-benefits
•Valuing co-benefits: case study
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Brief presentation of Nexus
• Nexus is a cooperative of development organizations which supports most vulnerable communities to have an improved access and control over energy and sanitation services
• Membership of 23 organizations based in Asia and Africa• Services :
– Capacity building and knowledge sharing on climate and development finance;
– Carbon asset development and management;– Financing for carbon asset development, through two funds;– Fundraising services (grants, crowdfunding) to support the design
and implementation of sustainable market-based models.
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Overview of the carbon project cycle
• Project are monitored to account for carbon savings and sometimes for their sustainable development benefits
• Carbon finance is a results-based mechanism but it helps assess the feasibility of the project itself
Design Validation Registration Monitoring
VerificationIssuance
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Lessons from the carbon marketsA common MRV methodology for CO2 emissions…
•Clean Development Mechanism (CDM): first and largest carbon offset instrument in the world
• Commonly agreed reporting procedures have been decided and implemented.
• These Monitoring, Reporting and Verification (MRV) processes enabled the provision of reliable and comparable information.
• Carbon finance is a rigorous RBF mechanism
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Lessons from the carbon markets … but no common SD criteria
• One of the key goal of the CDM is to assist non-Annex I parties (mostly developing countries) in achieving sustainable development (Kyoto Protocol 1997)
• But most financial flows have benefited industrial projects in emerging countries and CDM does not have a well-defined sustainability analysis framework
•However, carbon projects can have multiple co-benefits: how to account for job creation, health improvement, biodiversity and ecosystem preservation…?
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Certifying the co-benefits of carbon projects
•Project developers that want to take a more rigorous approach to the certification sustainable development co-benefits can use standards
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Measuring co-benefits: case study
• Cambodian SE producing and distributing Ceramic Water Purifiers• Environmental benefits: annual savings:
– 1,5 tCo2 per CWP– 700 kg of firewood /y
• Social benefits: reduced exposure to diarrheal diseases and air pollution, time saving (collecting fuel and boiling water)
• Economic benefits:– Household energy budgets reduced from $56 to $110 during
the first two years (decrease medical expenses, savings on charcoal or wood)
– 67 rural jobs are created, business opportunities arise for rural merchants in CWP distribution and sales.
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Valuing the co-benefits of climate friendly projects• Social Return on Investment (SROI) is a framework for
effectively assessing and accounting for the value of co-benefits• It provides a quantitative approach to understanding
the impacts of a project by placing financial ‘proxy values’ on co-benefits. • It can be used to illustrate the value of non-market
benefits which are attributable to a project intervention• SROI accounts for a range of social, environmental,
health and livelihood benefits and expresses this as a ratio of benefits per dollar of investment.
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Valuing co-benefits: case study (1/3)Breakdown of the value and impacts of the 3 co-benefit types for Hydrologic
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Valuing co-benefits: case study (2/3)Breakdown of total Hydrologic co-benefits by percentage and benefit type
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Valuing co-benefits: case study (3/3)Calculating SROI
*SROI has been calculated by dividing the total net co-benefits
associated with the projects by the total value of the Gold Standard
Voluntary Emission Reductions (GS VER) issued from the Hydrologic project
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Next steps
• Improve the assessment of the sustainable development outcomes of low carbon projects by incorporating different poverty measurement tools into existing monitoring and evaluation frameworks.
• Assuming that projects would increase income, reduce poverty, and have other social benefits is not enough
– Impact investors need to specify the metrics and benchmarks that would demonstrate when that is or isn’t he case.
• By strengthening these frameworks we hope to:– Improve the effectiveness and efficiency of current and future
sustainable development interventions by providing information on how to adjust and redesign them as necessary
– Increase donor, funder and investor return and impact by harnessing synergies between climate change and poverty
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Singapore office: 352 Tanglin Road #0202Singapore 247671 | UEN: 200915559E
Cambodia office: #33 E3, Sothearos BoulevardPhnom Penh | P.O. Box: 956
Thank you!Claire Dufour
Executive Director
nexus-c4d.org