Mauricio Zaballa Romero Energy & Carbon Finance UNEP RISØ CENTRE

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1 INTERNATIONAL WORKSHOP ON CARBON MARKETS IN EMERGING ECONOMIES University f Sã Paul, 22 Nvember 2010 Capacity Building fr CDM prcess and the UNEP Rise Centre cntributins Maurici Zaballa Rmer Energy & Carbn Finance UNEP RISØ CENTRE 1

2 The carbn markets a cst efficient ptin t reduce GHG emissins The prblem Glbal Warming Internatinal Answer UNFCCC Kyt Prtcl Cmmn but differentiated respnsibilities Annex I cuntries Cnstraint n Emissins Nn-Annex I cuntries N Cnstraint Measures at Natinal Level Measure at Sectrial And single level Transprt Residential Bifuels Prjects Public plicies EU-ETS Other Trade Schemes Internatinal Emissins Trading Mechanisms based n prjects CDM Certified Emissin Reductins (CER) Different assets EU ETS trades EUA Eurpean Unin Allwances CDM (Clean develpment mechanism) generated CER (Certified Emissin Reductins) IET (Internatinal Emissin Trading Scheme trades AAU (Assigned Amunt Units) 2

3 Capacity Building under the CDM 3

4 Capacity Building A need t implement the UNFCCCC Multi and bilateral cperatin develpment agencies priritize the CB fr the Envirnment in their wn cperatin Agenda and endrse at plitical level the necessity t adpt a systematic apprach in this prcess 4

5 Capacity Building in the CDM what fr? An initiative f capacity building is a gd starting pint fr an efficient use f CDM 5

6 Capacity Building fr CDM why? CDM asymmetries in the carbn markets High transactin csts service prviders Prject scale & annual issuance f CERs Knwledge gaps between buyers and sellers Lack f CDM experts at natinal level Limited r reduced budget fr the DNAs peratinal The need t have a natinal entities culd grup r play the rle f Crdinating Entities fr Prgrammatic CDM The different institutinal requirements fr the prject CDM lifecycle (DNA, DOEs fr validatin and fr verificatin) Limited access t finance Sme brkers have limited CDM knwledge The cuntry risk t attract investments 6

7 Capacity Building frm wh and what fr? CDM Prject lifecycle Prject identificatin and PIN and PDD elabratin Natinal Apprval Validatin and Register Prject Finance and ERPAs Prject Mnitring Verificatin and Certificatin Issuance f CERs Needs f knwledge Training fr lcal cnsultants Diffusin and CDM prmtin Elabratin f natinal CDM prtfli Apprpriate natinal and institutinal framewrk Apprval prcedures Apprpriate regulatin fr the cuntry SD criteria fr CDM prjects Prcedures fr the DOEs Requirements and institutinal arrangements EB T reduce the time fr validatin and registratin f CDM prject CB fr lcal brkers r financing institutins The rle f differentiate players in the CDM prcess T supprt the participatin at different events and carbn trading cnferences r frums Design tls and strategies frprmtin f CDM prject prtfli Natinal Investment Guide fr CDM CB r training fr specilists in law (attrneys) Mnitring methdlgies Prcedures Prcedures and requirements 7

8 Capacity Building Dne by whm? 8

9 Capacity Building in CDM fr abilities and prcedures 9

10 Capacity building fr CDM It has reach its end? 10

11 Expanded Flexible Mechanisms will require better and imprved capacities 11

12 Future challenges fr capacity building prcess 12

13 URC s energy and carbn finance prgram plicy analysis and capacity develpment t t facilitate the transitin twards lw carbn scieties 13

14 URC s energy and carbn finance prgram 14

15 UNEP CDM capacity develpment prgram Institutinal Capacity Individual Capacity Develpment Develpment Cre business & CDM wrkshps and regulatry framewrks training sessins fr fr CDM investment selected target audience Mdalities & Guidance and Prcedures fr Identify, assess and guidebks (CDM CDM prjects frmulate CDM investr apprval prjects guidebk) secure financing and Prmte implement CDM cmmitment f prjects plicy makers Creates a natinal CDM CDM prject prtflis and and the the institutinal capability t t attract attract CDM CDM investments prject apprval prject riginatin Prmtin f natinal CDM prtflis in Reginal Carbn Frums and Exp 15

16 UNEP Rise Center capacity develpment activities in Latin America & Caribbean CD4CDM UNDP & UNEP Carbn 2012 CB fr MEAs CDM fr the Caribbean 16

17 UNEP Rise Centre capacity develpment activities in Africa CD4CDM Green Facility UNDP UNEP CASCADE CB fr ACP MEAs (CDM) in 8 cuntries 20 COUNTRIES; 11 LDC 17

18 Strategic Research Areas Mitigatin plicy analysis: Pledge tracker: pst-cpenhagen update IPCC AR5 Indirect benefits f CDM in cuntries, e.g. fr plicies, institutins etc. Perspectives 2010/11 Interfacing and integratin f NAMA and NAPA by sectr CDM capacity develpment impact assessment phase II f CD4CDM The rle f capacity develpment in making the CDM peratinal in develping cuntries. Lessns learned frm the prject n CD4CDM phase I Carbn finance and sustainable develpment: PA analysis new sheet in the Pipeline Jurnal articles frm Master and PhD students Carbn finance and clean energy: Analysis f investments in CDM prjects by sub-type, cuntry etc Analysis f reasns fr issuance delay Nrdjysk Elhandel: Risks, delays, issuance success, registered prjects CER price analysis Large hydr prblems Articles n hydr/wave/gethermal energy PA ptential and feasibility study fr slar technlgies in Indnesia CDM technlgy fact sheets and Methdlgical Tl 18

19 Facilitación de infrmación y análisis del mercad glbal del carbn 19

20 Virtual platfrm fr matchmaking r inf exchange 20

21 21

22 Analytical Activities & Publicatins Supprt the infrmatinal and educatinal bjectives f f ur capacity develpment activities Guidebks n specific issues f the CDM Carbn Market Perspective Series CD4CDM Wrking Paper Series CDM data & analysis - CDM&JI Pipeline Web based CDM Technlgy and Methdlgy Selectin Tl CDM Bazaar 22

23 Analytical activities & publicatins Up cming publicatins: Studies n CDM Ptentials fr cuntries with less that 5 prjects in the pipeline (tgether with UNFCCC and UNDP) A study n the impact f mre standardised crss-brder electric pwer baseline methdlgies fr African cuntries cnnected thrugh the Suthern African Pwer Pl (SAPP). Update f manuals: CDM PDD guidebk: Navigating the pitfalls Financing CDM prjects CDM infrmatin guidebk 23

24 Outreach and prmtin activities Investment mbilizatin and engaging the finance sectr African Bankers Carbn Finance Investment Frum. May 2007, Jhannesburg Dakar, Senegal: Carbn finance perspectives fr the banking sectr. Feb 12-14, 2008 Training finance sectr staff Reginal Financial Sectr CDM Frum, Lima, Nv 2008 Finance guidebk African Banker s Frum. Nvember Suth Africa Reginal Carbn Frums Africa Carbn Frum, Senegal, Sep. 2008; Kenya, March 2010 Latin America Carbn Frums, Quit 2006, Lima 2007, Santiag 2008, Panama 2009, DR 2010 Knwledge and infrmatin sharing platfrms Bring tgether CDM stakehlders t benefit frm: Updates n Carbn markets; technical knwledge sharing n cnferences; trade fair and capacity-develpment sessins, Organizers: IETA, UNEP/Risø, WB, OLADE, UNDP, and UNFCCC 24

25 Thank yu!! Mre infrmatin: