Philippine DNA for CDM Institutional Structure, Procedures and Sustainable Development Criteria

1. Philippine DNA for CDMInstitutional Structure, Procedures and Sustainable Development Criteria Ms. Joyceline A. Goco Head, IACCC Secretariat Environmental Management Bureau-DENR Telefax (632) 9202251 and 9284674 joygoco@yahoo.com

2. Start of Project Unsustainable growth and development at the expense of ENR sector; socio-economic development and poverty alleviation are top priorities Climate Change Initiatives: 08 May ‘91: Philippine Inter-Agency Committee on Climate Change 15 Apr ‘98: RP signed KP Dec ‘99: Initial National Communication on CC CDM as an opportunity to achieve investment targets in priority sectors: project explored ways to expedite designation of a CDM NA and country ratification of KP 2002:Establishment of CDM NA Operational Framework and Support Systems was conceptualized; supported by the Dutch Government through UNDP Developments 20 Nov ’03: RP ratified KP 25 Jun ’04: DENR designated as the National Authority for CDM in the Philippines (Executive Order No. 320) 31 Aug ’05: DENR as the DNA issued DENR Administrative Order (DAO) No. 2005-17 on the rules and regulations governing the implementation of EO 320 05&07 Sept ’05: publication of DAO 2005-17 Present steps: DNA support systems SD indices Pilot testing Manual of Procedures Supplementary guidelines/ issuances

3. Philosophy of design • Holistic approach through cooperative efforts • Multisectoralism • Regulatory stability • Designation by executive issuance • Participatory and transparent selection of sector representatives • Balancing administrative feasibility and competitiveness in creating a system that is conducive to investment • Continuing examination of links between the CDM system and other domestic processes relevant to CDM as guided by experience

4. CDM NATIONAL APPROVAL PROCESS BASIC STEPS Step 1 Project Application Step 2 Project Evaluation Step 3 Project Endorsement Step 4 Project Approval/ Non-Approval Project Proponent TEC CDM Steering Committee DNA (Secretary of DENR) Project Application Monitoring CDM Secretariat

5. DENR Secretary TEC for Energy-Related Project Activities DOE CDM Steering Committee Chairperson – DENR USec and an alternate Members and alternates: DOE, DOST, Private Sector, NGO TEC for Afforestation & Reforestation Project Activities FMB-DENR TEC for Waste Management Project Activities EMB-DENR CDM Secretariat EMB-DENR DNA Structure

6. Sustainable Development • Enhanced Philippine Agenda 21: • harmonious integration of a sound and viable economy, responsible governance, social cohesion and ecological integrity • Medium Term Philippine Development Plan (MTPDP) for 2004-2010: • Overcome poverty with promotion of livelihood, strengthening of education, attainment of fiscal stability, decentralized development and arriving at sustained national harmony • ENR sector to pursue sustainable and more productive utilization of natural resources to promote investments and entrepreneurship • Create a climate conducive to investments and production by • Liberalizing/streamlining and refocusing the EIS System • Linking community-based programs and small/medium scale projects to sources of finance and markets • Implementing at least 10 CDM project activities • Shifting from technology generation to technology transfer as well as providing technical assistance, best suitable practices and technologies

7. Philippine CDM approval process will: • enrich practical & holistic development interventions • enhance the policy environment • Emplace transparent, credible and efficient procedures conducive to investments and consequently, socio-economic growth • Sustainable development criteria for CDM: • Adheres to the antipoverty goals articulated in the PA21 and MTPDP by upholding project activities that: - provide livelihood and economic opportunities - provide new financial resources for GHG reducing activities - promote use of cleaner, more efficient and environment-friendly technologies - provide proper safety nets and compensatory measures • Recognizes that ecological integrity is a key pillar of Philippine SD by pushing CDM project activities that: - promote sustainable use of natural resources - improve local environmental quality - comply with national environmental policies and standards • Works toward instituting social order based on fairness and provision of support systems that look after the welfare of every Filipino by supporting CDM project activities that: - provide education & training to build capacities of local stakeholders - enhance access to local resources and services for vulnerable grps - promote local participation in the project

8. Allowing only CDM project activities that have an overall positive impact on the national sustainable development ensures that the CDM process is aligned with Government’s priority development strategies, plans and programs • DNA’s multisectoral character assists in • Fostering better coordination between and among a diverse set of stakeholders • Effecting sectoral plans with proper regard for each other • Documentary requirements and processing time for small scale CDM project activities were simplified and reduced to encourage wide implementation across communities, gender, social classes, and geographical units to benefit more Filipinos

9. CDM Project Activities in the Philippines • Total of 27 project activities: • 19 on waste management / waste-to-energy – methane recovery and electricity generation from piggery waste, landfill gas capture, bagasse cogeneration power plant • 1 island-based wind-biogas • 3 wind power energy • 2 hydro power energy • 1 geothermal energy • 1 reforestation – streambank rehabilitation • To date, no Letter of Approval has been issued by the DNA • DENR issued Letters of No Objection to 3 project activities in accordance with the requirements of the World Bank under the Prototype Carbon Fund

10. CDM in the Philippines • Potential for CDM has yet to be fully tapped and its potential to support national development programs has not been fully explored, particularly for the Visayas and Mindanao regions • Essential to provide assistance to potential Philippine project proponents and developers in addressing proportionately higher business costs, limited access to information and skills and bigger risks, particularly for small scale CDM project activities • Prospects for developing Small Scale CDM project activities across the country are high • Vast natural resources • sizeable rural population that presents a large trade and investment potential • Nature of small scale project activities provide huge potential for benefiting the poor sectors of society

11. Issues • Need for regular updating in accordance with international rules and recent developments in national policies, laws, rules and regulations requires continuous capacity building to manage the complex CDM process • Clearly defining mandates of national and local agencies relevant to climate change and CDM toward enhancing inter-agency cooperation mechanisms • Technical gaps in CDM project negotiation, baselining, monitoring, etc. to ensure the climate effectiveness of CDM

12. Lesson Learned • Collaborative efforts of sectors are crucial in implementing the Project and the continuing development of linkages and partnerships for CDM • Multisectoral involvement through continuous and extensive consultations is vital to the formulation of rules and regulations that is responsive to the needs and demands of key players • Sensitization of high level Government officials and various stakeholders on the CDM is essential • Future engagements call for an interdisciplinary approach with proper grounding in the international rules, high familiarity with Philippine policies, laws, rules and regulations and sensitivity to the institutional dynamics within the Philippine Government -Mabuhay at Maraming Salamat!