Capacity Development for the CDM (CD4CDM) First National Workshop - SURINAM

1. Capacity Development for the CDM (CD4CDM) First National Workshop - SURINAM Sustainable Development Impact Evaluation Miriam Hinostroza UNEP Risø Centre (URC) Paramaribo, April - 2008

2. Sustainable development (SD) and the CDM • Two-fold objective of the CDM: • assist Annex I parties in achieving compliance with their quantified emission limitation and reduction commitments… • helping to reduce compliance costs • and… assist developing countries parties in achieving sustainable development and in contributing to the ultimate objective of the Convention • involving clean technology transfer • investments flows from north to south • decarbonization of economies

3. What is SD about? • SD definition – many alternatives • Brundtland Report (1987): 'development that meets the needs for the present without compromising the ability of future generations to meet their own needs' • A commonality: • the definitions focus on three dimensions: the economic, environmental, and social dimensions and on integrating them in the short and long term • SD means recognising that our economy, environment and social well-being are interdependent. • the three dimensions should be given similar weight

4. SD most common indicators Social Dimension: • Increase equity • Reduce poverty • Improve quality of living • Increase energy access gender issues • Health • Education and training • Legal framework • Governance • Information sharing Environmental Dimension: • GHG emission reductions, • Local environmental benefits, related to e.G. Air pollution, water, soil, waste • Use of exhaustible resources • Use of renewable resources • Biodiversity Economic Dimension: • Reduce economic burden of energy imports, provide financial returns to local entities, • Positive impact on balance of payments, • Technology transfer, • Generate employment, • Sound financial Costs/cost-effectiveness

5. SD: What to sustain? • SD is about shifting carbon based economies to be more dependent on renewable energy sources • Changes in people’s VALUES • Changes in ECONOMIC STRUCTURES • Changes in TECHNOLOGIES and implementation • CDM is an instrument that promotes technology innovation • Increment of EE in productive uses and final consumption • Changes in consumption structures • Introduction of new processes and energy transformation equipments • Alteration in agricultural practices and LU patterns

6. SD criteria • The most challenging issue for DNAs – to define SD criteria • When a DNA certifies that a potential CDM project contributes to the country’s SD, it means that the project is compatible with and supportive of national environmental and development priorities and strategies.

7. SD criteria • Most DNAs in Latin American countries adopted the checklist approach to evaluate a CDM project. They check: • Principles • Accomplishment of national/sectoral legislation • Contribution, relevance and coherence with national development policy • Contribution to improve long term social and economic wellbeing of local communities • Implementation of cleaner production systems

8. SD criteria • Requirements • Certification of non-environmental sectoral legislation accomplishment applicable to the project • labour legislation • Environmental Permits according to current legislation • Criteria for SD • Description on how the project contributes to long term development objectives and coherency with national, regional, local and sectoral policies and strategies

9. The SD potential of the CDM • What kind of projects should CDM be financing? • projects that help in the long-term transition of developing country energy sectors towards RETs, • SD not merely a requirement of the CDM. It should be seen as a main driver: • SD criteria are a sovereign matter to be determined by host countries • National authorities can use SD assessment of CDM projects to evaluate key linkages between national development goals and CDM with the aim to select and design projects in a way, where they exploit, create and maximise local development synergies.

10. Challenges & opportunities for DNAs • Host party’s prerogative to ‘confirm whether a CDM project activity assists it in achieving sustainable development’ • DNA has a key role in securing local development benefits of CDM projects. • SD assessment of CDM projects is an opportunity for DNA to evaluate key linkages between national development goals and CDM project interventions • Credibility of the CDM system & the host country

11. Conclusive remarks • The development of effective institutions is crucial to reap benefits from the carbon market. • Investors prefer host countries with an established legal and political system which clearly recognise and support CDM investment. • The host country DNA are assisting investors to understand the nature and extent of country political system by: • providing country investment guidelines; • explaining CDM policy and relevant legal frameworks.