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26th Session of Subsidiary Bodies of UNFCCC Side Event
Lessons Learned from CDM Capacity Building: Is There a Need to Reform International and Domestic Rules? |
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This side event was held to discuss the experiences gained so far from the IGES CDM capacity building programme and lessons learned from operation of the Designated National Authorities (DNAs), in order to examine the issues and constraints relating to the current CDM rules and to consider practical suggestions for possible future CDM reform. The panelists were DNA representatives from Indonesia, the Philippines and Thailand as well as a CDM expert from China. They reported on the current CDM status in each country and identified issues and barriers faced during the operation of CDM projects. |
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| Summary |
Mr. Taka Hiraishi noted at the opening of the side event that CDM has already achieved significant emissions reductions. However, some concerns have been expressed, including concerns that the distribution of implemented projects is uneven between sectors and geographical locations. He further mentioned that some have expressed concerns regarding CDM's contribution to the promotion of sustainable development (SD) in the host countries.
Mr. Kazuhisa Koakutsu, Researcher and member of IGES CDM Programme, presented an overview of IGES capacity building (CB) for CDM, which has been implemented since 2003 with financial assistance from Ministry of the Environment, Japan. He emphasised that this CB initiative has been one of the longest programmes focusing on Asia, covering DNA assistance, CDM project development and technical assistance among others.
Mr. Yuji Mizuno, Senior Expert and IGES CDM Programme Leader, pointed out in his presentation that DNA only assesses SD contribution from CDM projects during the host country's approval process and, therefore, it will be difficult to monitor how the project actually benefited the country's SD during the monitoring and verification stages. He explained that there has been increased interest in levy and tax systems for certified emission reductions (CER) in order to support DNA's activities and to address this deficiency. He suggested that the monitoring and reporting of SD in the project operation process would be one effective option to address this issue.
Ms. Joyceline Goco, CDM Secretariat of DNA, the Department of Environment and Natural Resources, the Philippines, stated that the DNA has approved 26 projects and 10 of these projects have been registered by the United Nations CDM Executive Board (EB). She emphasised that the establishment of DNA approval procedures was not so difficult due to effective assistance from several capacity building initiatives. As for important issues and obstacles during the approval process, however, she pointed out the incompleteness of submitted documents and the difficulty of convening DNA Steering Committee meetings. Regarding barriers due to CDM rules and procedures, she attributed these to the frequent changes in the rules and complexity of getting approval for new methodologies. As for future improvements, she suggested the creation of a fast- track CDM methodology approval process for small-scale projects and further elaboration on the concept of programmatic CDM.
Dr. Natarika Vayuparb Cooper, Office of Natural Resources and Environmental Policy and Planning (ONEP), reported that the Cabinet had issued a gLetter of Agreement (LOA)h for 7 projects and that the Thai DNA (where ONEP was designated as DNA secretariat) had revised SD criteria, which were subsequently approved by the National Environmental Board (NEB) in March 2007. As for important issues and obstacles during the approval process, she pointed out the lengthy process of gaining Cabinet approval for issuance of LOA and the lack of understanding among stakeholders of CDM. Regarding barriers due to CDM rules and procedures, she noted the frequent change in rules and lack of methodologies in the agriculture and transport sectors. As for future improvements, she suggested that the sorting out of CDM-related decisions and implementation of programmatic CDM be done at international level, and that simplification of domestic approval procedures and strategic planning of CDM capacity building activity be carried out.
Mr. Haneda Sri Mulyanto, State Ministry of the Environment, Indonesia, stated that the DNA has approved 13 projects and 8 projects have been registered under the CDM EB. He pointed out the issues facing Indonesia, which are limited data access issues such as grid emission factors and waste contents, the limited capacity of designated operational entities (DOE), and uncertainly over the post-2012 regime. Referring to the deficiencies in the review of SD contribution during the domestic approval process, he emphasised that DNA should monitor SD contribution as part of the verification process.
Dr. Fei Teng, Tsinghua University, reported that there are 77 registered CDM projects from China and that almost two thirds of its provinces host registered projects. As for the important issues and obstacles during the approval process, he pointed out that the following activities contributed significantly to the development and promotion of CDM projects, that is, agreement on bilateral Minutes of Understanding (MOU) regarding capacity building, training for project developers by the Chinese government, development of guidelines for methodology and development of emissions data from the grid. On the other hand, he mentioned in China that the lack of capacity among local project developers and lack of qualified CDM consultants were a major handicap. Regarding barriers due to CDM rules and procedures, he noted that very few methodologies are currently available for energy efficiency and construction sectors and also that there is a lack of incentives for new methodology development and inadequate recognition of new environmental standards.
Followed by subsequent discussions, the Chair summarised some of the important points which were raised during the course of discussions, specifically that it will be particularly effective if DNAs can share experience and relevant information among themselves, and, if this kind of exchange opportunities can be explored, that capacity building should be further extended to cover the approval process for DNAs. The Chair further stated that it would be useful for DNAs and experts to discuss the issues together, particularly about support for the DNA approval system, capacity building for different stakeholders, further elaboration on the concept of CDM, such as programmatic CDM, monitoring of SD during project operation, and incentive mechanisms for new methodology development, and making outputs available for use during the international negotiation process. |
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Contact
CDM Programme, Climate Change Project
Institute for Global Environmental Strategies (IGES)
cdm-info@iges.or.jp |
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