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CDM National Authorities : an Example

CDM National Authorities : an Example . Prepared for the National Workshop on Capacity Development for Clean Development Mechanism (CD4CDM) 26-27 March 2003, Sunway Hotel, Phnom Penh by Mr. Sum Thy, Project Assistant. Content . 1. Introduction 2. Role of CDM National Authorities (CNA)

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CDM National Authorities : an Example

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  1. CDM National Authorities : an Example • Prepared for the National Workshop on • Capacity Development for Clean Development Mechanism (CD4CDM) • 26-27 March 2003, Sunway Hotel, Phnom Penh • by Mr. Sum Thy, Project Assistant

  2. Content 1. Introduction 2. Role of CDM National Authorities (CNA) 3. Steps in Establishing CNA 4. Country Assessment for Establishing CNA 5. Example of CNA Establishment in selected countries 6. Some points for discussion toward establishment of CNA in Cambodia

  3. I. Introduction (1) • CDM was established under Article 12 of the Kyoto Protocol adopted by the CoP-3 to the UNFCCC on December 11, 1997. • CDM has 2 goals: (1) to assist Non-Annex I Parties (developing countries) in achieving sustainable development and in contributing to ultimate objective of the convention and (2) to assist Annex I Parties (developed countries) in achieving their quantifies emission limitation and reduction target. • In order to participate in CDM, all parties must meet three basic requirements: (i) voluntary participation in the CDM, (ii) establishment of a CDM National Authority, and (iii) ratification of the Kyoto Protocol.

  4. I. Introduction (2) • National Authority for CDM is a host country entity or body that evaluates potential CDM projects and provides written approval confirming that the project activities is voluntary, complies with national criteria and assists in achieving sustainable development for the host country.

  5. II. Role of CDM National Authority (CNA) (1) • The legal nature and and structure chosen for CNA will vary from one country to another, due to national circumstances. • National Authority needs to have open communication the government agencies of the sector relevant to CDM Projects (energy, natural resources, environment, etc.). • The functions of CNA include: (1) Regulatory (mandatory): centres on the evaluation and approval process and include annual reporting activities (2) Promotional (optional): marketing, (3) Capacity building (optional).

  6. II. Role of National Authority (2) Regulatory: 1. Assess projects against CDM rules and criteria, outlined in the Kyoto Protocol, Bonn Agreement and Marrakech Accords • project type eligibility • Additionality • Measurable • Leakage and risks • Monitoring plan • Verification

  7. II. Role of National Authority (3) Regulatory: 2. Assess projects against national criteria: • Confirm that the project assists in achieving sustainable development • Financial viability and not ODA diversion • Technology transfer in mitigation, labor and technical expertise • Other social, environment, technology and infrastructure. 3. Approve, request revision or reject proposal • Provide written approval from the host country.

  8. II. Role of CDM National Authority (4) Promotion of CDM: • Work with local stakeholders to identify and develop concepts of CDM projects • Promote and publicise these concepts to attract developers • Create links with local and international project developers, financiers, governments and inter-government agencies.

  9. II. Role of CDM National Authority (5) Capacity building for CDM project development: • Capacity of project developers in developing countries needs to be strengthened in order to promote technically feasible CDM projects that produce certified emission reductions (CERs) on a competitive basic. • CNA may offer capacity building opportunities in the following areas: • Project identification/formulation • Baseline definition • Quantification of emission reductions and • Monitoring project performance.

  10. III. Steps in Establishing CNA • Define the CNA’s mission and objectives • Obtain official status • Review and establish national legal frameworks • Align program strategies with national sustainable development priorities • Establish and publish procedures for evaluating and approval of project • Attain broad stakeholder participation • Obtain financial and non-financial resources • Staff of CNA • Establish relationships with the national focal point for climate change and other ministries.

  11. IV. Country Assessment for Establishing CNA (1) • The assessment can be based on two broad elements: (1) Political environment and (2) Technical expertise. • Political environment includes: • Ratification of the Kyoto Protocol • Political stability • Institutional rivalries • Level of inter-sectoral communication

  12. IV. Country Assessment for Establishing CNA (2) • Technical expertise includes: • General level of interest and understanding • Level of technical/scientific expertise in project development and evaluation • Availability of resources.

  13. NATIONAL STEERING COMMITTEE ON CLIMATE CHANGE (NSCCC) OF MALAYSIA • Set up in 1994 by Cabinet • Chaired by Secretary General, MOSTE • Members from Government, private sector and NGOs • Function as Designated National Authority (DNA) for CDM • Secretariat: Division of Conservation and Environment Management (CEMD) • NATIONAL COMMITTEE ON CDM (NCCDM) • Set up in May 2002 • Chaired by Deputy Secretary General, (MOSTE) • Members from Ministries • Secretariat: CEMD Technical Committee ENERGY Technical Committee FORESTRY CDM Energy Secretariat CDM Forestry Secretariat V. Example of CNA Establishment in Selected Countries (1) Source: Japan-ASEAN CDM Seminar, Jakarta, Jan 15, 03, Ministry of Energy, Communications and Multimedia Malaysia.

  14. Ministry of Water, Lands and Environment Climate Change Policy Committee Department of Meteorology National Climate Change Secretariat Convention Protocols Support services V. Example of CNA Establishment in Selected Countries (2) Diagram of Proposed CDM Institutional Framework - Uganda

  15. VI. Some Points for Discussion toward Establishment of CNA in Cambodia • Who will chair the CNA? • Where will it be located? • UNFCCC focal point? will the Cambodia National Authority for CDM chaired by and located in the MoE? • Can the National Committee on Climate Change (NCCC), with is to be established, assume the role of the CNA? • Staff of CAN: full time or part time? What level? • CDM Focal Point Agency: should the Climate Change National Technical Team assume its role? • Other questions?

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