UNDP & CDM: Strategy for Efficient Implementation
Forum MDP MarocProject de Renforcement des
Capacités sur le Mécanisme de Développement Propre
Arun KashyapClimate Change & CDM Adviser
UNDP
21-22 April 2004
Underlying Principle
Millennium Development Goal Halve the proportion of people living
in extreme poverty by 2015
Water, Energy, Health, Agriculture & Biodiversity (WEHAB)
Climate Change - a cross cutting issue
Efficient CDM Process Obtaining high value investments
New investments to catalyze reduced carbon development Divert existing investments to areas that would reduce GHG emissions
Host country approval – Designated National Authority Sustainable development criteria – host country responsibility Lead to high quality CERs
Obtaining optimum price for CERs
Learning by Doing: UNDP’s Experience - Findings
Existence of win-win project opportunities Large proportion of small size projects
Good rate of return on a project is a necessary but not a sufficient condition
Demand for transparent government infrastructure and clarity on institutional responsibilities
Critical need for human, institutional and systemic capacity and enabling environment
Designated National Authorities (DNAs): Learning
Project promotion and Project over-sight represent inherent conflict
Inputs from diverse stake holders can be beneficial
Efficient administrative structures reduce transaction costs
Clarity in implementation guidelines Sustainable Development Criteria
Sustainable Development Criteria
Equity, Efficiency and Sustainability and Defined by national priorities
Microeconomic and Project based
Ability to Measure and Monitor Operational
Transparent
Participatory
Minimal – Keep it Simple
Sustainable Development Vs. MDG Indicators
Can MDG Indicators provide guidance for development of the Sustainable Development
Indicators?
Other Lessons
Need to start now!
CER price is a concern
Need to understand the market Reduce transaction costs Long term and equity perspective
⇓Capacity Development
Spectrum of Needs Human, Institutional & System-wide
Capacity
Geographical and Project Equity Small size projects
Efficient and Participatory Policy Environment & Innovative Macroeconomic Instruments
Long term perspective Obtaining optimum terms of trade
CDM Strategy
Capacity Development to Implement CDM
HumanInstitutionalSystem-wide
Learning by DoingSmall Size Projects
UNF CDM Project: Phase 1
Project Entrepreneurs-Brazil: Bioenergia, BP
-South Africa: PIKITUP, Mondi
UNDP (coordinator)WBCSD, UNIDO, UNCTAD Host
Government
Bilateral support DANIDA
Learning-by-Sharing for other
Entrepreneurs
PDDs Developed
Civil Society (Universities,
NGO)
Potential Buyers:
Danish Gov’t, PCF
UNF CDM Project: Phase IIUNDP (coordinator)
UNIDO, UNCTAD, WBCSD, Natsource
Host Governments
Secondary
Partners (donors, industry,
civil society)Project
Entrepreneurs
Pipeline of Bankable CDM
projects
Sustainable Development
Criteria
Support to DNA
Advisory Services for Projects and
GHG Market
Network of South-South Knowledge
SharingENABLING ENVIRONMENT FOR EFFICIENT CDM
UNDP-CDCF CollaborationCDCFUNDP
GEF SGP Projects
Non-SGP GEF Projects
UNDP Energy Projects
(TTF)
Develop Portfolio of Viable Projects
UNDP- GEF SGP
-Entrepreneurs- UNDP COs
Small-Scale CDM Projects
CDCF- CDCF Plus
UNDP-Canada CDM EffortsUNDPDFAIT
CDM Institutional Capacity Development
- Progress towards SD criteria- Progress towards effective DNA
Host Government-South Africa
-Brazil
Private Sector-Civil Society-Other donors (DANIDA, WB)
UNDP CDM User’s Guide
http://www.undp.org/seed/eap/html/climate.htm
Country Level Activities
Ongoing Bangladesh, Brazil, China, India, Malaysia, Morocco, Nicaragua, Peru, Philippines, Trinidad & Tobago, South Africa
Planned Cambodia, Indonesia, Thailand, Vietnam, African Region, SIDS
In house capacity building Best practices