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Clean Development Mechanism The Dutch Approach

Clean Development Mechanism The Dutch Approach. Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment. Objective of the presentation (1). Provide insight into : -The “over all” Dutch climate change policy

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Clean Development Mechanism The Dutch Approach

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  1. Clean Development Mechanism The Dutch Approach Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment

  2. Objective of the presentation (1) • Provide insight into: • -The “over all” Dutch climate change policy • -The international legal framework: UN FCCC and the Kyoto Protocol • -Clean Development Mechanism • -The Dutch CDM Purchase Programme

  3. Objective of the presentation (2) • -The role of “VROM” and the host countries • -Memoranda of Understanding • -Letters of Approval • -Declarations of Approval • -Impact of the Dutch CDM Programme on Central and Latin America • -Challenges

  4. The “over all” Dutch Climate Change policy • -Full commitment vis-a-vis UN FCCC and the Kyoto Protocol • -Reduction target for the emissions of greenhouse gases: -6% (2008-2012) • -200 Million Tonne of CO2 equivalent • -”50% domestically and 50% internationally”

  5. The international legal framework • -UN Framework Convention on Climate Change (UN FCCC, 1992) • -Kyoto Protocol (1997) • -Bonn Agreement (2001) • -Marrakech Accords and Executive Board (2001) • -COP-9: afforestation and reforestation (2003)

  6. Clean Development Mechanism • -Triple objective of Article 12 of the Kyoto Protocol: • Achieving sustainable development • Contributing to the ultimate objective of the UN FCCC • Achieving compliance with reduction commitments

  7. The Dutch CDM Purchase Programme • -Multi-track approach: • -Carboncredits.nl (CERUPT) • -International Multilateral Financial Institutions (IFC, IBRD and CAF) • -Private Financial Institutions (Rabobank International) • -Bilateral CER Purchase Agreements (BCPAs) with host countries (under consideration)

  8. The role of “VROM” and the host countries (1) • -Participation requirements under UN FCCC and Kyoto protocol • -”Participation in a CDM project activity is voluntarily” (this implies: on an equal basis) • -CDM project cycle stipulates the involvement of the Governments (LoA, DoA)

  9. The role of “VROM” and the host countries (2) • -Pro-active: “VROM” may facilitate the submissions of LoAs by means of bilateral talks or a MoU! • Features of a MoU: • -Intension for a long standing cooperation • -Not legally binding • -A quantified insight into the potential for CDM cooperation with VROM • -Support underlying activities, willingness to purchase CERs, if projects qualify

  10. The role of “VROM”and the host countries (3) • -MoU: No prerequisite for CDM cooperation! • -Results so far: • -Panama, Costa Rica, Colombia, El an Salvador, Guatemala, Uruguay, Nicaragua and Bolivia • Amount of Mton CO2 eq vary per MoU: 5- 30 Mton

  11. Impact of the Dutch CDM Programme on Central and Latin America • -CCAD/Prosiga workshop: “How to develop CDM projects in Central America?” San Salvador, El Salvador, March 27-28, 2003 • -CDM Project activities: • - CERUPT: “pending”: Panama (3), Costa Rica (3), El Salvador (1), Bolivia (1), Brazil (2), Jamaica (1): CERUPT: 11 out of 18! • -IBRD, IFC: pending: Brazil,Belize,Chile Colombia,Guyana,Peru • -CAF: pending: Bolivia,Colombia,Nicaragua

  12. Challenges (1) • -Entry into force of the Kyoto protocol! • -“Stirr up” the carbon market! • -Need to “promote equitable geographic distribution at regional and subregional level”!: • -C(osta Rica) or C(hina) Development Mechanism? • -C(ameroon) Development Mechanism?

  13. Challenges (2) • -New Dutch Government underway! (Impact for the Dutch CDM Purchase Programme?) • -Executive Board Ruling available and in development! • -The baseline methodolog(y)(ies), as applied under CERUPT, accepted by the Executive Board will be key!!

  14. Challenges (3) • -”It takes two to tango” • -A need for institutional CDM capacity in host countries • -Identification of the (interim) Designated National Authority (DNA) for the CDM • -Role of the host countries acquired in order to keep the CDM “clean”

  15. CDM a living issue! • For the latest developments: • WWW: CDMINFO.NL • For any remarks and/or questions: • e-mail: CDM.DNA@minvrom.nl

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