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1 Completion Report Project Title: Capacity Building related to Multilateral Environmental Agreements (MEA) in African, Caribbean and Pacific (ACP) Countries

2 Content Project Overview Rwanda DNA back Ground DNA Structure DNA Steering Committee CDM Projects in pipeline. Project Outcomes achievement Lessons Learned Milestones CDM-DNA Project Phase out plan Recommendation:

3 Project Overview UNEP Risoe Centre have assisted African countries to support their full engagement in the global carbon market. The program was expected to commence in July 2009 and end in early Due to some delays from many countries, the project has been extended up to December The implementation strategy for the CDM Program focused on transfer of CDM knowledge and experience from UNEP Risoe Centre and its partners (i.e. regional CDM centres of excellence as well as national consultancy firms) to national CDM stakeholders and segmenting the target groups for capacity building activities and training workshops.

4 Rwanda DNA background Non-Annex I country eligible for CDM Projects The GoR ratified Kyoto protocol on 22nd July 2004 DNA is established by Governmental Decision The transfer of DNA took place after REMA establishment in 2005 With mission of promoting Projects under the Clean Development Mechanism (CDM) of the Kyoto Protocol. DNA Capacity Reinforcement started in September 2009

5 DNA Structure The Designated National Authority is composed by: A DNA permanent Secretariat hosted in REMA A DNA steering committee A DNA Technical Committee

6 DNA Steering Committee Ministry of Natural Resources (MINIRENA) Ministry of Finance and Economic Planning (MINECOFIN) Ministry of Infrastructure (MININFRA) Ministry of Justice (MINIJUST) Ministry of Trade and Industry (MINICOM) Ministry of Agriculture and Animal Resources (MINAGRI) Rwanda Environment Management Authority (REMA) Private Sector Federation (PSF) University of Rwanda (CASS &CST) Rwanda Agriculture Board (RAB) Rwanda Development Board (RDB) Rwanda Utilities and Regulatory Agency (RURA) Rwanda Bureau of Standard(RBS)

7 CDM Projects in pipeline. As per December 2013, N Project status Number of projects 1 Project at initial stage (PIN) 2 2 Total Letter of Approval issued by REMA 22 3 Registered stand alone CDM 4 4 Registered PoAs 7 5 Total CDM project in pipeline 24

8 Project Outcomes d project Target Activities Achievement anda has received istance towards ablishing an erational DNA pable of approving ojects that are nsistent with the st country stainable velopment priorities National Project team prepare an introduction brochure and the planned technical assistance and activities to be done Operationalizing the DNA of Rwanda A brochure on CDM in Rwanda has been printed out and published. This brochure contains brief explanation on CDM and Rwanda Approval procedure. By the Support of UNEP RIso, two interns have been hired in accordance to capacity building.

9 Project achievement A brochure on CDM in Rwanda has been printed out and published. This brochure contains brief explanation on CDM and Rwanda Approval procedures By the Support of UNEP RIso, two interns have been hired in accordance to capacity building. In 2012, the DNA technical committee reviewed and updated the sustainable development matrix. The DNA technical committee updated in 2012 the DNA approval procedure, where they included certificate from RBS from some specific projects.. Currently the DNA has two websites. /dna and those webpages are regularelu updated and bear useful informnation regarding CDM in rwanda

10 Ctd Trainings were carried out for project developers: Private Sector members: 50 people in Western Province, 50 people in Northern Province and 70 people in Kigali City 120 people from Private Sector, NGOs and public official were trained 20 Local business consultant was trained on PDD development and the whole CDM Project cycle 50 Journalist was trained on CDM and carbon market in General

11 Ctd Various consultation have been made in odder to stimulate stakeholders to participate in CDM Meetings with RDB Meeting with Banks Meeting with MINEDUC Meeting with Kigali city Officers Project approved: more than 22 have been granted a letter of approval.

12 Lessons Learned CDM participation of Government institutions is very low, it have been noticed that many project which are eligible to CDM (Eg. Hydro power plant; Biogas at national level, ICS) are owned by government institutions, there is a need od deep mobilization of those institution to benefit from CDM Financial and technical barrier for Project developers. Lack of qualified consultant who can help in Designing CDM project, lack of willing for project developer to commit in investing in the CDM part of a project

13 Success Stories 1. In 2010, the Rwanda DNA was awarded by the UNFCCC as the best communicator of the year. 2. In collaboration with the BMU, the DNA of Rwanda organized a two days workshop training for the member of the DNA technical committee regarding the Standardized baseline. The Germany Ministry of Environment (BMU) international Climate Initiative (ICI) has agreed to fund capacity building activities for 2 DNAs in sub- Sahara Africa. This activities focused on Standardized baseline in the Clean Development Mechanism, as well as the applicability of standardized baseline to future mechanism such as Nationally Appropriate Mitigation Actions NAMAs and New MarKet Mechanisms NMMs. Currently, PERSPECTIVE Gmbh a consultant hired by BMU is developing the feasibility study of Improved Cook stove and Grid connected electricity standardized baseline.

14 Ctd, Success story 3. Through the CDM Capacity building Project the DNA of Rwanda has signed a Collaboration agreement with The Gold Standard Foundation, this agreement consist of harmonizinf the gold standard approval procedure with the Rwanda DNA procedure, Rwanda has been the second country worldwide to sign this kind of agreement, Furthermore, partnering with such a well-known and reputable international organization, helps highlight Rwanda at an international level, potentially attracting more projects to the country 4. Grid Emission Factor, the project succeeded to calculate the Rwanda grid emission factor for three times, first was in 2009,2010 and recently the feasibility study is ongoing to calculate the 2013 grid emission factor, The GEF is very important for project developers as is the core factor to determine the emission reduction of a renewable energy project connected to the Grid. The DNA did this to facilitate project developers reducing time taken to collect data and the cost associated.

15 Ctd, Success story 5. Fraction of Non renewable Biomass (fnrb), in collaboration with the UNFCCC, the DNA published the Rwanda fnrb as this is a core factor when quantifying emission reduction from project related to biomass.

16 CDM-DNA Project Phase out plan Activity Time frame 1. 1 Follow up with UNEP RIso on the project proposal, regarding scaling up CDM and NAMA implementation Feb 2014 March 2014 April 2014 May 2014 June Assist in Hiring the consultant who will develop CDM document for PEI Biogas Program. Prepare ToRs and publish the Tender. 3 Finalize the CDM-DNA project Completion Report 4 Assist in CDM financial audit (This activity will be combined with DEMP financial Audit) 5 Assist METEO Rwanda in the General maintenance of AWS 6 Prepare the report of the Steering committee meeting 7 Handover of project assets

17 Recommendation Legally, Apart from the law establishing the Designated National Authority, there is no other legal instrument governing the carbon finance in Rwanda, It is very important to put in place policies and strategies which will clearly govern the carbon market. A carbon Finance legal and regulatory framework is needed. There is a big barrier for investors in the energy sector regarding the ownership of carbon credit generated from renewable system connected to the Grid. In the REFIT (Renewable Energy Feed in Tariff), it is stated that all CERs belong to the government. This is a barrier for private investors, so the need to review the REFIT and make it more explicit.

18 Ctd recommendation The CDM capacity building should continue because we have noticed lack of capacity, even many people are not yet aware of the existence of this market. Promotion voluntary carbon market, especially in forest sector. We would recommend the extension of the contract for a CDM officer, who is in charge of day to day CDM project activities to allow him to complete the above mentioned pending activities. We suggest the extension to start from 15th February 2014 up to 15 th June There is a need to develop various Standardized baseline in different sectors (eg. Agriculture, forestry, cement manufacture, brick manufacture etc ), this will boost investment in those sectoirs and will reduce time taken to collect data and cost related

19 Thank you!