Capacity Building Workshop on CDM

1. Capacity Building Workshop on CDM Mirza Shawkat Ali Deputy Director General Department of Environment 8 April 2008

2. Background • United Nations Framework Convention on Climate Change (UNFCCC) 1992 • Non binding commitments for the industrialized countries to reduce their emission to 1990 level by 2000 • Kyoto Protocol 1997 • Binding Commitments for the industrialized countries to reduce their emissions 5% below 1990 level by the first commitment period (2008-2012).

3. Kyoto Mechanism • Joint Implementation (JI) • Emission Trading (ET) • Clean Development Mechanism (CDM)

4. Clean Development Mechanism (CDM) • The Kyoto Protocol allows Annex-B countries to reach their emission reduction targets in different ways through Flexibility Mechanisms. • CDM is the only flexible mechanism that involves developing countries (Non-Annex B). • It allows developed countries (Annex B) to achieve part of their reduction obligations through investment in projects in developing countries that reduce GHG emissions or fix or sequester CO2 from the atmosphere.

5. CDM • Green house gas reduction of any CDM project is measured according to internationally agreed methods and are quantified in standard units called Certified Emission Reductions (CERs). • CERs are expressed in tons of CO2 equivalent.

6. Salient Features of CDM • Industrialized (Annex B) countries’ state or private companies can invest in projects in developing (Non-Annex B) countries that contribute to reduction of GHG emission; • Developing (Non-annex B) countries’ state or private companies are allowed to implement such projects;

7. Salient Features of CDM (Cont.) • Through CDM projects industries in developing countries can be technologically upgraded and made environment friendly thus contributing to global climate protection as well as promoting sustainable development in the host country. • The industrialized countries’ investing entities can earn credit for emission reductions achieved through its investment in developing country towards its own emission commitment.

8. CDM Project Implementation Process • CDM project proposals are to be prepared following the format and guidelines as prescribed by CDM Executive Board under UNFCCC. • Projects must be endorsed by the Designated National Authority (DNA) of the host country. • It has to meet the Sustainable Development Criteria of the host country. • The project is to be validated by the Certified agency, which is accredited by the CDM Executive Board under UNFCCC.

9. Designated National Authority (DNA) for Bangladesh Structure of DNA National CDM Board National CDM Committee

10. National CDM Board Chairman of the Board Principal Secretary to the Prime Minister • Members • Secretary, Ministry of Environment & Forests • Member, Planning Commission • Secretary/Secretaries of the Relevant Ministry Member-Secretary DG, Department of Environment

11. National CDM Committee Chairman of the Committee Secretary, Ministry of Environment & Forests Members Members from Govt. Sectors Planning Commission, Ministry of Environment and Forests, Industries, Agriculture, Foreign Affairs, Communications, Science information and Communication Technology, Power, Energy & Mineral Resources, ERD, LGED, BOI, Bangladesh Bank, Department of Environment. Members from NGO Sectors FBCCI, BIDS, BUET, Waste Concern, BCAS. Member-Secretary Director (Tech.), Department of Environment

12. CDM Strategy • Participation in CDM projects shall be in line with existing national and sectoral strategies and policies, including poverty reduction strategies. • CDM projects shall have tangible national impacts and will contribute to the national sustainable development agenda. • CDM projects shall take into consideration of Efficient and economic utilization of natural resources of the country.

13. CDM Strategy (Cont.) • CDM will be used to encourage private sector investments in climate-friendly development activities. • CDM projects shall be designed so as to contribute to the improvement of the environment and the welfare of the society as a whole. • CDM Projects shall promote and encourage the transfer of new, proven, affordable and relevant technologies.

14. CDM Strategy (Cont.) • CDM Projects that address national environmental issues including improvement of hygienic living condition of the people will be especially encouraged. • CDM projects having adaptation and vulnerability co-benefits shall be encouraged. • CDM projects shall be approved through a participatory and transparent process that involves detailed assessment of their economic, social and environmental benefits and their relevance to local needs and priorities.

15. Proposed Sustainable Development Indicators Potential CDM Projects Meet International Screening Criteria Meet National Sustainable Development Criteria of CDM Projects Environmental Economic Poverty R./Social Technology Potential CDM Projects

16. Decision Tree for Evaluating CDM Projects YES Does the CDM project aggravate any existing environmental problem Rejected NO Does the CDM project violate any Development Objectives YES Rejected NO YES Does the CDM project Strongly address any development and environmental goal Accepted NO Evaluate Project Using SD Criteria

17. Sustainable Development Matrix

18. Sustainable Development Matrix Note: the categorization of broader and sub-issues are generic. Extension of sub-issues will have to be accommodated within the maximum number for the broader parameter.

19. Potential Sectors for CDM Projects in Bangladesh • Energy • Energy efficiency, Co-generation, Renewable energy, Efficient lamps and Fuel Substitution • Waste • Methane Recovery from landfill, Biogas and composting of urban solid waste • Forestry • Aforestation and Reforestation

20. DNA Approved projects

21. DNA Approved projects

23. Thank You