The Clean Development Mechanism sub-component

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1 Downloaded from orbit.dtu.dk on: Dec 20, 2017 The Clean Development Mechanism sub-component Olsen, Karen Holm Publication date: 2012 Link back to DTU Orbit Citation (APA): Olsen, K. H. (2012). The Clean Development Mechanism sub-component [Sound/Visual production (digital)]. ACP-EU Joint Parliamentary Assembly, Horsens, Denmark, 29/05/2012 General rights Copyright and moral rights for the publications made accessible in the public portal are retained by the authors and/or other copyright owners and it is a condition of accessing publications that users recognise and abide by the legal requirements associated with these rights. Users may download and print one copy of any publication from the public portal for the purpose of private study or research. You may not further distribute the material or use it for any profit-making activity or commercial gain You may freely distribute the URL identifying the publication in the public portal If you believe that this document breaches copyright please contact us providing details, and we will remove access to the work immediately and investigate your claim.

2 The Clean Development Mechanism sub-component Karen Holm Olsen UNEP Risoe Centre ACP-EU Joint Parliamentary Assembly Horsens, 29 May 2012 UNEP Side Event

3 Outline: What is UNEP Risø Centre? Capacity development for CDM in ACP countries An overview Expected results CDM project example: Malawi and Botswana Analytical support from ACP MEA and URC in kind contribution Priority needs for a Phase 2

4 UNEP Risø Centre Energy, Climate and Sustainable Development International research team of over 40 economists and scientists. Based on agreement between DTU, UNEP and Danida. Located at Roskilde, Denmark since Mandate is to support and promote UNEP activities in the areas of energy and climate change, with a special emphasis on developing countries.

5 UNEP Risø structure Head of Centre Project Management and Communication Unit Resilient Development Program Carbon Finance Program Cleaner Energy Development Program

6 Capacity Development for CDM - the URC sub-component

7 UNEP/URC capacity development activities in Africa CD4CDM Green Facility UNDP-UNEP CASCADE CD4CDM in ACP in 7 countries. 28 COUNTRIES; 11 LDC

8 Result 7: A web-based multi-lingual (English, French, Portuguese and Spanish) Knowledge Management Platform is established: 100%

9 Expected Results of the project An operational DNA capable of approving projects consistent with the host country s sustainable development priorities. Technical capacity of national experts and consultants in CDM project identification, design, and implementation built. An improved CDM regulatory and investment environment through awareness raising and policy advisory activities for government CDM project appraisal skills and capacity of local financial institutions built Host country promoted as a CDM destination through producing a national portfolio of potential CDM projects. Pilot CDM project opportunities have been identified and promoted among companies from Kyoto Protocol Annex I countries interested in investing in CDM projects in ACP countries and / or purchase of CERs from these projects. A free, web-based Knowledge Management Platform established to share CDM experiences and knowledge among ACP countries.

10 Example: Rural electrification in Malawi - using suppressed demand micro-scale CDM methodology The programme uses RE sources (e.g. solar and hydro) and will include electricity supply to health centres, dispensaries, households, grinding mills, street lighting, water supply and developing local business in the agricultural sector. Only 6% of the Malawi population has access to electricity. Many who are connected can only afford minimal use. This means there is an unfulfilled demand for electricity known as 'suppressed demand'. Reference:

11 Example: Energy Efficiency in buildings, Botswana The project activity will apply reflective ceramic insulating roof coatings (Ceratech Thermal Barrier Roof Coating) on roofs of commercial, residential and institutional buildings Botswana is naturally a hot country (40 to -4 C). Steel building materials are widely used for roofing houses, factories, warehouses, school buildings and even farm houses. The Ceratech passive cooling system dramatically cuts air-conditioning usage by up to 66% and cooling costs by up to 77% thereby saving on energy and hence greenhouse gas emissions. Reference:

12 Analytical Activities & Publications Support the informational and educational objectives of our capacity development activities Guidebooks on specific issues of the CDM Introduction to the CDM: 2002 CDM Information and Guidebook: Dec. 2003; 2 nd ed Institutional strategy to promote the CDM in Peru: Feb CDM legal issues Guidebook: May 2004 Institutional issues in CDM implementation: May 2004 CDM and Sustainable Development: Feb Guidebook on developing baselines for CDM projects: June 2004 PDD Guidebook: Navigating the Pitfalls 2 nd, ed., 2008; 3 rd ed.,2011) Guidebook to Finance CDM projects: May 2007 Implementing CDM Projects: Guidebook to Host Country Legal Issues: August 2009 A Primer on CDM Programme of Activities: November 2009 provide targeted audiences with reference manuals containing clear operational instructions on concrete topics for which public information is already available.

13 Analytical Activities & Publications Carbon Market Perspective Series o 2011 Progressing towards post-2012 carbon markets o 2010 Pathways for implementing REDD+: Experiences from carbon markets and communities o 2009 NAMAS and the Carbon Market o 2008 A Reformed CDM - Including New Mechanisms For Sustainable Development o 2007 Equal Exchange: Determining a Fair Price for Carbon Aims at comprising an annual special feature on a topic of pivotal importance to all developing countries in the global carbon market

14 analytical in nature and are designed to address critical policy issues and methodological barriers constraining the CDM through cutting-edge independent research. Analytical activities & publications CD4CDM Working Paper Series 1. Facing Destruction without Representation? Low-Power Groups in Climate Negotiations on Post-Kyoto CDM 2. PoA CDM Manual - Mini Biogas Plants for Households 3. Electricity sector crediting mechanism based on a power plant emission standard: A clear signal to power generation companies and utilities planning new power plants in developing countries post Electricity sector no-lose targets in developing countries for post-2012: Assessment of emissions reduction and reduction credits 5. Technology and knowledge transfer from Annex 1 countries to Non Annex 1 countries under the CDM - An empirical case study of CDM projects implemented in Malaysia 6. A quantitative analysis of the cost-effectiveness of project types in the CDM Pipeline 7. Potentials and barriers for end-use energy efficiency under programmatic CDM 8. Sustainable Development Benefits of Clean Development Projects 9. Risks and Chances of Combined Forestry and Biomass Projects under the Clean Development Mechanism 10. Indexing CDM distribution: Levelling the playing Field, 2011

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16 Insert your logo here using the Slide Master SAPP GEF Objective: To enhance access to the carbon market in Africa Rationale: Study commissioned by URC, UNEP and ACAD with support from BMU to facilitate investments in RE in the SAPP region Several SAPP countries depend on hydropower and have zero or low GEFs, hence CDM does not offset anything A regional GEF can cater for countries with zero or low GEFs on their own when they export/import to CO 2 intensive countries Results: The study has been validated and is in the process of being endorsed by SAPP and member countries

17 Insert your logo here using the Slide Master CDM Loan Scheme Objective To improve access to CDM for countries with less than 10 registered CDM activities Rationale Decisions at CMP5 and CMP6 specifically requested the UNFCCC Secretariat to set up a loan scheme for the financing of CDM development costs. Access to funding will help CDM project owners to trade CERs at higher prices through unilateral registration Result The Loan Scheme was launched by UNFCCC at the Africa Carbon Forum 2012 in partnership with UNOPS and URC

18 Assessment of Results Overall, expected results under the CDM sub-component have been met: use local experts sustainability & ownership Participatory approach increase inter-institutional coordination Learning by doing approach Delays in activities schedules for the period: slow communications due to understaffed country teams Disputes for the leadership of national climate change actitivites delays decision making Lessons learnt Selecting the local counterpart remains an issue

19 Priority needs for a Phase 2

20 Challenges faced in year 3 Counterparts' understaffed - Slow response and follow ups to communications Political turmoil and lack of stability Multi-stakeholder coordination; time consuming and not an easy task Economic crisis End of the Kyoto Protocol s first commitment period in 2012 Uncertainties regarding the second commitment period of the Kyoto protocol Uncertainties in the CERs demand for non-ldcs due to EU-ETS directive to buy CERs from LDCs in KP2

21 Focus priorities for Phase 2 Continue supporting selected CDM projects to go through registration in LDCs (Malawi, Angola, São Tome and Principe, Rwanda and Vanuatu) Expand CB for CDM to additional ACP-LDCs Expand Capacity Building for CDM POA in additional ACP- LDCs Support LCDS and NAMAs process in selected ACP countries

22 Thank you! More information: