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UNFCCC COP13 & COP/MOP3 side event
Lessons Learned from CDM capacity building:
Is there a need to reform international and domestic rules?
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The objective of this side event was to identify issues related to current CDM rules and discussed ways to further improve based on experience provided by the designated national authorities (DNAs) of Asian countries. The event invited representatives from Cambodia, Indonesia, the Philippines and Thailand as well as a CDM expert from China. They updated the current status of CDM implementation in each country, summarized several barriers for CDM project implementation, and suggested some options for CDM reform.
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10 December 2007 (Mon.) 16:00-18:00 |
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Inna Putri Bali Hotel (Bale Banjar room) |
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Summary
Prof. Akio Morishima, Special Research Advisor of IGES, in his opening remarks introduced the objective of side event. He noted that while CDM is expected to contribute to sustainable development (SD) of the host countries, several concerns have been raised to the extent that CDM has promoted SD. With this background, IGES held a side event of the 26th UNFCCC subsidiary body meeting in May 2007 where possible reforming of current CDM was discussed with members of DNAs and experts.
Mr. Yuji Mizuno, Senior Expert and CDM Programme Leader of IGES, in his presentation explained two challenges of CDM that became clear through the capacity building experience. He pointed out that the current CDM rule does not have mechanism to assess SD contribution during the monitoring and verification stages. He suggested the necessity to monitor SD contribution and emphasized the role of DNA after they issued a letter of approval (LOA). He also mentioned expanding incentives for "micro-scale" CDM projects, whose potential certified emission reductions (CERs) are very few. He stressed that there are many potentially "micro-scale" CDM projects and many of such projects may have high SD contribution. He noted that even if such projects were approved as CDM projects, it would generate merely thousands of tons of CERs annually, thus, not creating distortion to the current CER market.
Mr. Tomoya Motoda, Programme Officer at the Research and Coordination Section, Project Division Global Environmental Centre Foundation (GEC), presented the experience of CDM feasibility study programme. He introduced a biomass-based electrification project in Laos to identify challenges of CDM in Least Developing Countries (LDCs). He emphasized that many projects in LDCs are small-scale projects, which face a number of challenges during the project development stage, which includes lack of local capacity, infrastructures and financial resources. In order to address such issues, he suggested favourable treatments for LDCs by reducing registration fees, simplifying registration process, introducing baseline settings exclusively applied to LDCs. He also mentioned about the strengthening of co-benefits approach by putting an additional value to the CDM projects with higher SD contribution while quantitatively evaluating environmental benefits associated with implementing CDM project.
Mr. Sum Thy, Chief of Climate Change Office, Ministry of Environment, Cambodia, reported that the country has approved three projects and one project has been registered by the United Nations CDM Executive Board (EB). Mr. Thy agreed to the points raised by IGES and GEC presentation that project implementation in LDCs may generate only a small number of CERs in spite of high initial project costs and risks, but many of the small-scale projects have a high potential in terms of contributing to SD in Cambodia through poverty alleviation and technology transfer. He, therefore, emphasized a need to promote "micro-scale" projects that can bring high benefits to local communities and suggested additional favourable treatments for LDCs. He mentioned a joint proposal submitted to EB by Ministry of Environment, Cambodia together with IGES, which proposes special treatments to LDCs including reducing the registration fees and simplifying the registration process.
Ms. Joyceline Goco, Head Inter-Agency Committee on Climate Change (IACCC) Secretariat and the CDM Secretariat, Environmental Management Bureau, Department of Environment and Natural Resources, the Philippines, stated that Philippines DNA has approved 36 projects and 14 of these have been registered by EB. She mentioned that CERs has been issued to one of the registered projects. She explained that the establishment of DNA approval procedures have been completed in a relatively smooth manner and currently the CDM Helpdesk and the CDM clearinghouse is operating. In addition, DNA has developed a manual on GHG Emission Reduction Monitoring and Reporting Guideline as well as the Emission Reduction Purchase Agreements (ERPA). Regarding barriers to CDM in domestic rules, she pointed out a lack of functional evaluation methodology for SD criteria, frequent changes in leadership of Department, which delays in DNA approval procedures, and lack of experience in bundling and programmatic CDM.
Mr. Gunardi, Climate Change Division, Ministry of Environment, the republic of Indonesia, reported that DNA has approved 24 projects and 11 projects have been registered by EB. He emphasized that it is essential to provide continuous assistances to local governments as there is a great potential in small-scale projects, making it necessary to advance project development by utilising measures such as programmatic CDM.
Dr. Natarika Vayuparb Cooper, Senior Environmental Officer, Office of Natural Resources and Environmental Policy and Planning (ONEP), Ministry of Natural Resources and Environment, Thailand, reported that the Cabinet has issued a gLetter of Agreement" for 17 projects, among which 5 projects have been registered by EB. She introduced Thailand Greenhouse-gases (GHG) Management Office, which is currently in charge of CDM in the country and also works on carbon footprint and GHG inventories. With regard to the challenges of CDM, she stressed a need for capacity building of local companies and financial institutions. She also emphasized that it is imperative to promote CDM in the sectors such as energy efficiency, transport sector, and Carbon Capture and Storage, and further suggested simplifying procedures for small-scale projects. She introduced a plan of Thai government to require SD monitoring to assess SD contribution of the CDM projects.
Dr. Zhou Sheng, Tsinghua University, Institute of Nuclear & New Energy Technology, Global Climate Change Institute, China, reported that Chinese DNA has approved more than 1,000 projects, and 130 projects have been registered by the EB. He introduced that the government had established a climate change fund in October 2007, which manages revenues from levies on CERs. The fund will be used for CDM capacity building especially in the western region of China. As to the challenges of CDM in China, he emphasized that projects in the sectors, such as energy efficiency, have not fully developed yet. He also noted a shortage of designated operational entities (DOE) in the country due to a rapid increase in the number of CDM projects.
In the discussion session, participants discussed ways to reform CDM rule, which includes further clarification of investment analysis used to prove additionality of the CDM project; the possibility of internationally recognised standardization of SD indicators and methodological approach was raised; and more access and transparency of the grid emission factors was pointed out.
In the closing remarks, Prof. Hironori Hamanaka, Chair, IGES Board of Directors, mentioned that IGES CDM capacity building programme is going to propose concrete and practical recommendations in corporation with partner countries to EB for further improvement of the current CDM rules, and sought inputs and supports from each country.
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Chair: Dr. Shuzo Nishioka, Senior Research Advisor, IGES |
| 16:00 - 16:10 |
Opening Remarks |
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- Prof. Akio Morishima, Special Research Advisor, IGES |
| 16:10 - 16:20 |
Need to Reform International and Domestic Rules? |
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- Mr. Yuji Mizuno, IGES 36.9KB |
| 16:20 - 16:30 |
CDM Feasibility Study Programme - Toward CDM Development in Least Developed Countries |
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- Mr. Tomoya Motoda, Global Environment Centre Foundation (GEC)469KB |
| 16:30 - 17:20 |
Comments from Representatives of the Designated National Authority (DNA) |
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Cambodia |
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- Mr. Sum Thy, Ministry of Environment |
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Philippines |
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- Ms. Joyceline Goco, Environmental Management Bureau,
the Department of Environment and Natural Resources
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Indonesia |
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- Mr. Gunardi, Ministry of Environment |
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Thailand |
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- Dr. Natarika Vayuparb Cooper, Office of the Natural Resources
and Environmental Policy and Planning
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China |
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- Dr. Zhou Sheng, Tsinghua University |
| 17:20 - 17:55 |
Discussion: |
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- "Where and How to Reform Current CDM Rule and its Future Implications?" |
| 17:55-18:00 |
Closing Remarks |
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- Prof. Hironori Hamanaka, Chair of the Board of Directors, IGES |
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Contact
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IGES Climate Policy Project
CDM programme
E-mail
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