Heikki Granholm Programme Officer MIS Programme

1. Modalities for addressing socio-economic and environmental impacts, including impacts on biodiversity and natural ecosystems Heikki Granholm Programme Officer MIS Programme

2. Overview • Approaches for addressing socio-economic impacts • Possible new modalities and procedures to address socio-economic impacts • Approaches for addressing environmental impacts • Possible new modalities and procedures to address environmental impacts • “Checklist” or an annex to draft decision • A need for further clarifications

3. Approaches for addressing socio-economic impacts • Minor revision to existing modalities and procedures • More extensive revisions • Countries elaborating country-specific guidelines (host and/or investing country) • The CDM Executive Board (EB) developing operational guidelines

4. Possible new modalities and procedures to address socio-economic impacts • Project design • Country specific sustainable development criteria • Consistency with other national and international commitments • Provision of multiple benefits • Project developer to conduct a social assessment (Social Impact Statement, SIS) • A Project Design Document to include a local community agreement, and statements on land, sequestration rights, economic viability, management capacity

5. . • Validation / registration • Assessment of socio-economic impacts as a validation criterion • A designated operational entity to validate a SIS • DEA and CDM EB to have the right to reject a project • Monitoring and implementation • Project developer to monitor implementation of a Social Impact Statement • Verification / certification • DOE to verify implementation of SIS • CDM EB to have a right to invalidate a project and cancel any credit

6. Approaches for addressing environmental impacts • Minor revision to existing modalities and procedures • More extensive revisions, possibly including a “checklist” • Countries elaborating country-specific guidelines (host and/or investing country) • The CDM Executive Board (EB) developing operational guidelines

7. Possible new modalities and procedures to address environmental impacts • Project design • Country specific sustainable development criteria covering environmental priorities and assurance of stakeholders’ participation • Provision of multiple benefits • The Project Design Document to include a baseline study on biodiversity ”with” and “without” a project • Project developer to conduct an environmental impact assessment (Environmental Impact Statement or Environmental Impact Assessment) and a Strategic Impact Assessment • A “checklist” of issues to be considered

8. . • Validation / registration • Assessment of environmental impacts as a validation criterion • A designated operational entity to validate environmental impacts (EIS, EIA, SIA) • Development of thresholds and eligibility criteria for “with” and “without” a project • DEA and CDM EB to have the right to reject a project • Monitoring and implementation • Project developer to monitor implementation of a Environmental Impact Statement ( EIA and SIA) • Verification / certification • DOE to verify implementation of SIS, (EIA and SIA) • CDM EB to have a right to invalidate a project and cancel any credit

9. “Checklist” or an annex to draft decision • Separate lists or common list for socio-economic and environmental impacts? Status? • Possible issues: • Increase or al least preservation of diversity and of soil fertility • Planting of indigenous, native species and non-GMOs; establishment of multi-species culture (“ecosystem approach”) • Sustainable soil preparation and silviculture • Minimal leakage • Tenure and land-use • Special needs of indigenous people, stakeholder involvement, benefit sharing, definition of responsibilities • Planning and management tools of project • Capacity building, awareness and safety

10. A need for further clarifications • To which phase of the CDM project cycle a proposal refers? • How to follow a proposal throughout the CDM project cycle? • Who are actors, who is responsible? • How does a proposal refer to existing modalities and procedures?