Incorporating and Monitoring of SD Goals in CDM Projects

1. Incorporating and Monitoring of SD Goals in CDM Projects An Orientation Workshop on CDM Opportunities in the Small Scale Sector India Habitat Centre, New Delhi Kalipada ChatterjeeClimate Change Centre March 25-26, 2004

2. INTRODUCTION • Rapid industrialistion since the last century has led to an alarming rise in the concentrations of greenhouse gases in the atmosphere. • The resultant global warming leading to climate change has many adverse impacts on our life supporting systems, such as water, agriculture, health. This may also increase the frequency of extreme events such as droughts, floods and cyclones. • Global leaders have largely accepted the fact that climate change is one of the most pressing and dangerous threat to our life on earth today. (Contd...)

3. INTRODUCTION (Contd...) • As a response to climate change the United Nations Framework Convention on Climate Change (UNFCCC) was adopted in June 1992 at Rio • The Climate Convention was further strengthened by the Kyoto Protocol that has drawn precise ground rules to combat and mitigate climate change.

4. CLEAN DEVELOPMENT MECHANISM OF THE KYOTO PROTOCOL • The Clean Development Mechanism (CDM) is one of the three flexibility mechanisms of the Kyoto Protocol to the Convention on Climate Change • The purpose of CDM is to : • assist developing countries in achieving sustainable development • contribute to the ultimate objective of the Convention i.e. stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, and • assist developed countries in achieving compliance with their Quantified Emission Limitation and Reduction Commitments (QELRCs) (Contd...)

5. CLEAN DEVELOPMENT MECHANISM OF THE KYOTO PROTOCOL (Contd...) • The CDM was established to explore cost effective options to mitigate climate change by the industrialised countries • Opportunities to reduce emissions through CDM project activities in developing countries are enormous at a fairly low cost particularly in the energy, transport, building materials (brick, cement and steel), municipal waste, animal husbandry sectors

6. SD GOALS AND CDM PROJECTS • It is the perogative of the host country (e.g. India) to ensure that a CDM project activity addresses the SD goals of the country (Marrakech Accord) • The Ninth Five Year Plan (1997-2002) of India has set the sustainable development goals of the country such as : • agriculture and food security • rural development • adequate employment • poverty eradication • accelerating economic growth • safe drinking water • primary health care (Contd...)

7. SD GOALS AND CDM PROJECTS (Contd...) • universal primary education • population control • environmental sustainability of the development process • women empowerment • national security • building self reliance • strengthening participatory institutions

8. WHAT IS SUSTAINABLE DEVELOPMENT • The concept of sustainable development was first introduced by the International Union for Conservation of Nature (IUCN) in 1950. • A definition of sustainable development was first given by the World Commission of Environment and Development, popularly known as Brundtland Commission in 1987 as a development process that “meets the needs of the present without compromising the ability of the future generations to meet their own needs”. (Contd...)

9. WHAT IS SUSTAINABLE DEVELOPMENT (Contd...) • Brundtland Commission considered population control, food security, energy supply as critical components of sustainability. • Since the Rio Summit in June 1992, and adaptation of Agenda 21 by the global community, many nations have set sustainability as a key goal of their development • Concept of Sustainable Development is quite distinct from economic growth and recognises the limitations of economic indicators like GNP in measuring the true well being of nations.

10. MESURING PROGRESS TOWARD SUSTAINABILITY • Measuring sustainability is not an easy task. Therefore a concept of sustainable development indicator (SDI) has been introduced to assess, measure and monitor sustainability of a development process • For measuring sustainability of a development process, a useful way is to select and organise indicators in a pressure (cause), state (linking effects), impacts and response (policy action) framework. (Contd...)

11. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT Example of Pressure-State-Impacts Response Framework (Contd...)

12. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...)

13. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) CDM Projects have to have a sustainability screening. Development Alternatives have identified a six stage sustainability screening process. This is as follows : First Step : Setting the Sustainability Criteria Set a criteria for SDIs - for a CDM project the criteria has to be project based (Such criteria must be based on the four pillars of Sustainable Development and the criteria laid down under the Article 12 of the Protocol). The four pillars are economic / social /environmental and technological well beings

14. Candidate CDM Projects economic screen social screen environmental screen technological screen projects qualifying as sustainable national screen projects selected by host country MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...)

15. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) • Second Step : Methodologies for SDIs • Choose a proven methodology for developing indicators • Participatory : Involve the Stakeholders [Tell me and I will forget ; show me and I may remember; involve me and I shall understand - Andrew Campbell] • A careful scrutiny of the Climate Change Mitigation Project proposal to develop indicators • A Ready Reckoner (RR) on SDIs under preparation in DA. Such a RR will be useful for the business sector. Otherwise developing SDIs for each individual Project may increase transaction costs

16. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) • SDIs must be : • Driven by host country’s development priorities • User friendly • Simple & robust • A few in number, but as many as required

17. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) • Third Step : Monitoring and Verification of SDIs • Emission reductions • Improvement in air and water quality / local environment • Employment generation and rise in per capita income, etc. • Other social benefits • Lack of database in developing countries for setting up baselines and monitoring net changes is a major hurdle

18. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) • Fourth Step : Measuring Sustainability • Choose eight SDIs : two from each pillar of sustainability • Construct baselines : compare the benefits offered by the project against baselines • Evaluate SDIs for net changes against baselines

19. -1 The goal 0 The worst -1 0 0 -1 1 0 The baseline -1 MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) +ve changes indicate sustainable development ; -ve changes indicate an unsustainable project

20. MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...) Fifth Step : Certification of Sustainability An approved independent sector organisation, like a national NGO with necessary expertise, may take up such certification, based on monitoring and verification of sustainability through SDIs Sixth Step : A time Dimension, that is required to meet the SD criteria

21. MONITORING AND VARIFICATION OF SUSTAINABILITY • Conclusion • Since it is the prerogative of the host country to ensure (e.g. India) if a CDM project has addressed to the sustainable development priorities of India before endorsement by the DNA such process can be facilitated by e.g. the Climate Change Centre, Development Alternatives in view of their considerable work done in this field. • CDM is a golden opportunity for country like India to choose a green development path and make our development process sustainable, which is also one of the objectives of the UNFCCC

22. Thank you