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UNFCCC COP12 & COP/MOP2
side event
CDM for Sustainable Development - Dream or Reality?
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IGES organised a side event entitled "Clean Development Mechanism (CDM) for Sustainable Development: Dream or Reality" on 8 November 2006.
Nearly 240 persons of various academic and cultural backgrounds attended the event. Prof. Akio Morishima, President of IGES, chaired the event. The President of Climate Business Network, Austria and the key representatives from Cambodia, China, India, Indonesia, the Philippines and Tanzania, and participated as panel members. |
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8 November 2006 (Wed.)18:30-20:30 |
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Tsavo Room, Hilton Nairobi Hotel, Nairobi |
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Prof. Akio Morishima, Chair of the Board of Directors, IGES |
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Summary
Akio Morishima, IGES, welcomed the participants and noted that CDM projects in the current climate regime seem to be on track to achieve the first goal in reducing GHG emissions in a cost-effective manner, but doubts prevail over the second goal of enhancing sustainable development (SD) in developing countries. He urged participants to consider ways to achieve the second goal in practical terms.
Ancha Srinivasan, IGES, noted that IGES has been conducting research on CDM since its establishment in 1998, and that the focus of its capacity strengthening programme was to assist in the development of CDM projects, especially in sectors that contribute most to SD in Asia. He explained that despite considerable progress in setting up SD criteria in various Asian countries, wide disparities exist in perspectives of stakeholders regarding the utility of such criteria. It was suggested that projects with high SD benefits but yielding low CERs (Certified Emission Reductions) should be made more competitive with those projects yielding high CERS without many developmental benefits.
Richard Muyungi, Vice-President's Office, Tanzania, pointed out that CDM projects in Africa are very few in number and that a shortage of institutional and technical capacity and a lack of awareness on the part of the private sector, especially in financial institutions, are the key barriers. He noted that CDM cannot solve all of SD problems in Africa but it has the potential to contribute significantly, especially in sectors such as waste management, transport, and LULUCF (Land Use, Land Use Change and Forestry).
Taka Hiraishi, IGES, while moderating the panel discussion, stressed that options for reducing geographic inequity and financially supporting the co-benefits (benefits other than CERs) part of CDM projects must be explored in the future regime.
Sum Thy, Ministry of Environment, Cambodia, noted that the Cambodian DNA established SD criteria successfully but felt that there are very few projects in the pipeline. He emphasized that rules regarding CDM implementation, particularly in LDCs, should be revised in order to improve geographic equity.
Pamposh Bhat, GTZ-CDM India, suggested that CDM should not be allowed to be hijacked by markets alone, and that the host country approval process must be improved in the post-Kyoto regime based on experiences of the current regime. She recommended that the projects with high SD benefits but yielding low CERs should be given preferential treatment to those with high CER volume but low developmental benefits. She opined that industrialized countries should take measures to promote investment in projects with high SD benefits.
Peter Pembleton, Climate Business Network, Austria, noted that the creation of an enabling environment with simple approval procedures and incentives by non-Annex I countries is crucial to enhance SD benefits from CDM projects. He suggested various options for improving geographic equity of CDM including the introduction of distortions to promote CDM projects in specific countries, carbon emission reduction obligations for Annex I countries to favour purchases from LDCs and SIDS, and development of continent-wide emissions trading systems.
Li Liyan, National Development Reform Commission, China, reminded those gathered that CDM is still new to many countries in Asia and that it requires understanding of several disciplines. She felt that the best way to utilise CDM as a tool to achieve SD in developing countries in the future is to send a clear signal for continuity of this mechanism beyond 2012.
Sulistyowati, Ministry of Environment, Indonesia, commented that host countries need to evaluate the proposed projects carefully for their developmental benefits. She suggested that the future regime should simplify methodologies, particularly for projects with high developmental benefits.
Ely Oaano, Department of Environment and Natural Resources, the Philippines, pointed out that appropriate policy interventions are necessary to derive developmental benefits by utilising portions of CER. He explained that SD is defined and understood in many ways depending on national circumstances, and that the development of an operational definition for SD is crucial.
In the ensuing discussion, the audience noted that improving the financial competitiveness of CDM projects is critical. In order to make CDM realistic in Africa, one participant suggested that linking CDM projects with adaptation will be necessary. Others suggested that capacity strengthening is very important for African countries to create an enabling environment. Participants also noted that contributions of CDM to SD are still a dream in many parts of the world and that intense efforts would be necessary to make them real.
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Agenda and presentation materials |
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Opening
remarks
Prof. Akio Morishima, IGES |
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CDM for Sustainable Development: Perspectives from Asia 121KB
Dr. Ancha Srinivasan, IGES |
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CDM for Sustainable Development: Perspectives from Africa367KB
Mr. Richard Muyungi, Vice-President's Office, Tanzania |
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Panel discussion on options for promoting sustainable development benefits from CDM (panel
questions26KB)
Moderator: Mr. Taka Hiraishi, IGES
Panellists:
- Mr. Sum Thy, Ministry of Environment, Cambodia
- Ms. Li Liyan, National Development Reform Commission, China
- Ms. Pamposh Bhat, GTZ-CDM India, India36KB
- Ms. Sulistyowati, Ministry of Environment, Indonesia
- Mr. Ely Oaano, Department of Environment and Natural Resources, the Philippines
- Mr. Richard Muyungi, Vice-President's Office, Tanzania
- Mr. Peter Pembleton, Climate Business Network, Austria133KB
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Q&A session |
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Closing
remarks
Mr. Taka Hiraishi, IGES |
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Contact
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