ESTABLISHING THE DESIGNATED NATIONAL AUTHORITY for CDM IMPLEMENTATION

1. ESTABLISHING THE DESIGNATED NATIONAL AUTHORITY for CDM IMPLEMENTATION By ALBERTO JÚLIO TSAMBA Member of CDM National Team (Mozambique) Universidade Eduardo Mondlane

2. Definition • National Entity with authority (both legal and technical) for CDM project assessment: • Evaluation and approval (written), • Confirming compliance with national and international criteria, • Confirming support to Sustainable Development and national development priorities African CDM Training Wshp, AA-Oct 21, 2003

3. Why DNA? • CoP 7 • To participate in CDM, parties must designate a NA (Annex Decision 17/CP7) African CDM Training Wshp, AA-Oct 21, 2003

4. DNA FUNCTIONS • 2 main functions: • REGULATORY AND PROMOTIONAL • Regulatory function is mandatory: • Evaluation & approval of CDM projects, • Annual reporting to the EB Regulatory function is under international regulation and constitutes a prerequisite for project validation and certification African CDM Training Wshp, AA-Oct 21, 2003

5. Regulatory function • Evaluation and approval (E&A): • Whether a CDM project • ContributeS to SD in the host country; • Complies with national & international criteria • Purposes • Increase probability of success • Create incentive for specific projects/ priorities • Reduce risks for national and foreign investors African CDM Training Wshp, AA-Oct 21, 2003

6. Regulatory function • 4 steps for E&A: • Adopt international criteria; • Develop national criteria; • Establish national procedures for E&A, and • Establish guidelines for project presentation African CDM Training Wshp, AA-Oct 21, 2003

7. Regulatory function • International Criteria • A CDM project must: • Assist NA-I parties in achieving both SD and the ultimate objective of the UNFCCC; • Result in real, measurable and long-term benefits related to mitigation of CC; • Result in reduction of emissions that are additional African CDM Training Wshp, AA-Oct 21, 2003

8. Regulatory function • National Criteria • A CDM project must: • Contribute to national sustainable development (host country perspective); • Be congruent with national climate policy and/or carbon offset strategy; African CDM Training Wshp, AA-Oct 21, 2003

9. Regulatory function • Guidelines for project presentation • PDD format: • International criteria; • DNA may add sections/another document: • To assess national criteria compliance; • Transparent and consistent guidelines to be followed by the project developers African CDM Training Wshp, AA-Oct 21, 2003

10. Regulatory function • National Procedures • Standardized system to screen, evaluate and approve CDM projects • Tracking and Reporting to Secretariat: • DNA must develop a system for registering and tracking the holding and transfer of CERs of the projects African CDM Training Wshp, AA-Oct 21, 2003

11. PROMOTIONAL • OPTIONAL AND NOT INT’LY REGULATED: to assist specific needs under specific and local circumstances: • Capacity Building • Project Identification and Formulation , • Baselines Definition, • Quantification of Emissions Reductions, • Project Monitoring • Marketing • Restrictive and very competitive market African CDM Training Wshp, AA-Oct 21, 2003

12. Basic Elements • Assessment of political and institutional feasibility of establishing a DNA: political environment and technical expertise • Basic Elements • KP ratifying, • Political stability, • Institutional rivalries, • Level of inter-institutional and inter-sectoral communications African CDM Training Wshp, AA-Oct 21, 2003

13. Technical Expertise • General level of Interest and Understanding: • How much general awareness raising is needed to build the institutional capacity • Level of technical/scientific expertise for project devpt and evaluation: • It determines the level of external capacity bldg needed for developing, appraising and approving CDM projects • Availability of Resources: • Through identification of stakeholders and institutional analysis (whether there’s a critical mass of support to establish a DNA) African CDM Training Wshp, AA-Oct 21, 2003

14. Staff: Donated staff from govt agencies in part or full-time regime Assistance from NGO’s and/or Private Sector Physical facilities and logistics: Govt’ entities, Industrial associations, Chamber of Commerce, Private sector Research institutions Basic Needs African CDM Training Wshp, AA-Oct 21, 2003

15. DNA Models • 5 models: • Single Government Department; • Two Unit; • Inter-Departmental Government; • FDI-piggy back model; • Outsourcing African CDM Training Wshp, AA-Oct 21, 2003

16. One govt dept undertakes all DNA activities DNA becomes part of organic structure within the CC unit or directorate; The Dept invites technical experts from other govt entities upon demand; DNA act as CDM SECRETARIAT; The secretariat is responsible for reporting to EB; Approval and promotional activities under the Secretariat responsibility The staff is paid from Gov’t budget It’s expensive to maintain SingleGovt’ Dept African CDM Training Wshp, AA-Oct 21, 2003

17. SingleGovt’ Dept Executive Board Ministry of Environmental Affairs (MICOA) DNA Secretariat Technical Experts (Energy) Technical Experts (Sector Agriculture) Technical Experts (Reforest/Afforest) • Permanent staff (secretariat), • Sustainable; • Both functions can be easily undertaken; • Additional resources (from gov’t); • Other stakeholders not compromised with CDM African CDM Training Wshp, AA-Oct 21, 2003

18. Two Unit model • The DNA activities can be divided in two parts: • Part 1: Evaluation, Approval and Registration; • Part 2: Capacity building, outreach, promotion, technical and economic assessments; • Each part can be located in a different department or institution African CDM Training Wshp, AA-Oct 21, 2003

19. Two Unit model Part 2 Capacity Building; Outreach; Promotion; Technical & Economic Assessment Project Development Part 1 Evaluation; Approval & Registration Policy Development African CDM Training Wshp, AA-Oct 21, 2003

20. Two Unit model • Divides technical aspects from administrative ones; • Avoid conflicts of interest; • Communication problems can be serious. African CDM Training Wshp, AA-Oct 21, 2003

21. Interdepartmental Gov’t model EXECUTIVE BOARD DESIGNATED NATIONAL AUTHORITY Energy Sector Environment Sector Agriculture & Forestry Sector • All relevant stakeholders are part of DNA: • Permanent members; • One Dept act as the Coordinator (Secretariat) • Approval is by a Committee African CDM Training Wshp, AA-Oct 21, 2003

22. FDI-Piggyback model EB FDI Office DNA GHG Expertise • Applicable where a FDI exists to promote foreign investment • FDI act as DNA, • Receives and Approve projects; • CC expertise from environmental authorities; • Promotional activities is naturally part of FDI office African CDM Training Wshp, AA-Oct 21, 2003

23. Outsourcing Model EB Gov’t Env. Agency Private Entity (DNA) • All the practical activities are undertaken by a Designated private agency which reports to the government environment agency; • The government agency is responsible for reporting to EB African CDM Training Wshp, AA-Oct 21, 2003

24. How to select a DNA model? • INSTITUTIONALANALYSIS: • 1. WHO… • Does what? • Can do what? • Has potential(s) to do what? • HOW TO OPTIMISE EXISTING POTENTIALITIES… • Expertise? • Resources? • Institutional setup? African CDM Training Wshp, AA-Oct 21, 2003

25. How to select a DNA model? • WHAT ARE THE POTENTIAL… • Conflicts of interest? • Institutional constraints? How to overcome the barriers, avoid negative aspects and take advantage of the positive aspects? African CDM Training Wshp, AA-Oct 21, 2003

26. Mzbq’s model for DNA ComitéExecutivo Unit 1 Ministério para a Coordenação da Acção Ambiental (MICOA) Unit 2 Secretariado da AND UNIVERSIDADE EDUARDO MONDLANE Peritos técnicos (Sector Energia) MIREME Peritos técnicos (Sector Agriculltura) MADER Peritos técnicos (Sector Florestas) MADER African CDM Training Wshp, AA-Oct 21, 2003