CAPACITY DEVELOPMENT FOR THE CLEAN DEVELOPMENT MECHANISM PROJECT CYCLE IN THE PHILIPPINES
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Transcript of CAPACITY DEVELOPMENT FOR THE CLEAN DEVELOPMENT MECHANISM PROJECT CYCLE IN THE PHILIPPINES
CAPACITY DEVELOPMENT FOR THE
CLEAN DEVELOPMENT MECHANISM PROJECT CYCLE
IN THE PHILIPPINES
Roberto C. Yap, S.J., Ph.D.
Climate Change Information Center
Ateneo de Manila
Benefits of CDM• Assists developing countries (non-Annex
I) in meeting their sustainable development objectives.Host countries benefit in the form of
investment, access to cleaner technology, and local sustainable development.
• Enables developed countries (Annex I) to meet their emission reduction commitments in a flexible and cost-effective manner.Investors benefit by obtaining GHG
emission reduction credits (Certificate of Emission Reductions -- CER).
Capacity Development
Task: Information Campaign and
Awareness-Raising• Objective: Sensitize relevant
stakeholders on the benefits of CDM and encourage their participation.
• Indicator: Agreement by relevant stakeholders to participate in a CDM capacity building program.
Capacity Development
Task: Information Campaign and
Awareness-RaisingSome proposed activities:• Information materials (e.g. primers,
brochures, guidebooks)• Public briefings, roundtable discussions• Philippine CDM website
Capacity Development
Task: Information Campaign and Awareness-Raising
Examples of activities:• Orientation seminar on the Clean
Development Mechanism, organized by the Inter-Agency Committee on Climate Change, 9th October 2002
• CDM Conference, sponsored by AIM Policy Center, DoE, DENR, 4th December 2002
Capacity Development
Task: Capacity Development for Senior National Policy-Makers
• Objective: Sensitize senior level policy makers on the benefits of CDM and generate their support for Philippine participation.
• Indicators: Agreement by senior level government officials to participate in a CDM capacity building program; CDM Champions; existence of senior-level cross-departmental coordinating body.
Capacity Development
Task: Capacity Development for Senior National Policy-Makers
Need cabinet-level CDM Champions:• For Philippine ratification of Kyoto Protocol• For setting up CDM Operational
Framework• For establishing CDM National Authority• For establishing CDM National
Investments Promotion Office
Capacity Development
Task: Capacity Development for Senior National Policy-Makers
Some proposed activities:• Executive briefings for cabinet-level
officials• Executive summaries of CDM benefits• Workshops on CDM Framework for
cabinet-level officials
Capacity Development
Task: Capacity Development for
Senior National Policy-Makers
Example of activity:• Executive briefing on CDM for
Department of Energy senior officials, 11th October 2002
Capacity Development
Task: Capacity Development for Mid-Level Policy-Makers
• Objective: Develop the capacity among mid-level policy makers to formulate a regulatory (legal, financial, technical) framework for CDM.
• Indicator: Existence of a cadre of mid-level policy makers and government representatives to support the CDM framework.
Capacity Development
Task: Capacity Development for Mid-Level Policy-Makers
Some proposed activities:• Capacity assessments of key
departments & agencies• Training materials on regulatory,
technical & legal requirements• Workshops for formulating CDM
Operational Framework which is transparent, streamlined, fast-track, cost-effective
Capacity Development
Task: Capacity Development for Mid-Level Policy-Makers
Example of activities• Meetings of the Inter-Agency Committee
on Climate Change (composed of DENR, PAGASA, DoE, DFA, DPWH, DTI-BOI, DoTC, NEDA, Phil. Network for Climate Change)
CDM Project Cycle Project Identification Project Formulation
Baseline Definition
CDM Validation
Project Financing andFinancial Closure
Project FinancedProject Implementation and Operation
ER Monitoring/Reporting
ER Verification
ER Certification
CER
Project Validated
Project developers
ER Prospectors
Green companies
Green .NGOs
National Development Agencies
Bilaterial/Multilateral Development Agencies
Project identification
Project formulation
Rules for CDMCountry participation?Project acceptanceCost effectivenessRisks / ER benefits
Project identification and formulation
Proposed CDM Project
DecisionsKey Actors/Stakeholders Relevant Issues
Capacity Development
Task: Capacity Development for Project
Developers• Objective: Strengthen the capabilities of
private and public sector, big and small scale project developers to identify, formulate, develop and implement CDM projects.
• Indicators: Existence of private and public sector, big and small scale project developers who are committed to developing and implementing CDM projects; existence of CDM project brokers at the national level.
Capacity Development
Task: Capacity Development for Project
DevelopersSome proposed activities:• Public briefings on CDM Benefits • Seminars/Workshops:
CDM Operational Framework Project Design Document Baseline Formulation GHG Accounting Monitoring Plan Formulation CDM Financial Packaging
Capacity Development
Task: Investment Promotion for CDM
Projects• Objective: Support the establishment of a
national office that will promote investments in CDM projects.
• Indicator: Existence of a functioning National CDM Investment Promotion Office that serves as a link among private, public and the financial sectors in the development and financing of CDM Projects.
Capacity Development
Task: Investment Promotion for CDM Projects
Some proposed activities:• Establish CDM Investment Promotions
Office• CDM Investment Guide• CDM Market Forums (National & Asian)• Assistance for Feasibility Studies• CDM Investment Missions
Baseline Definition
Key Actors/Stakeholders Proposed
CDM Project
Relevant Issues
CDM Executive Board
National Planning Agency
Sectoral Planning Agencies
Project Developers
Project Investors
ER Buyers
Technical/Emissions/Financial
Baseline Definition
Emissions additionality
Financial additionality
Baseline definition approach
-Project specific
-Technology matrix
-Benchmarks
CDM Validation
Capacity Development
Task: Capacity Development for NGOs, Local
Communities, Academe, Research Institutions
• Objective: Strengthen the capabilities of NGOs, local communities, academe and research institutions to identify, formulate, develop and implement CDM projects.
• Indicator: Existence of players who can assist and facilitate the process of identifying, developing and implementing CDM projects.
Capacity Development
Task: Capacity Development for NGOs, Local Communities,
Academe, Research InstitutionsSome proposed activities:
• Consultations with local communities on Cleaner Technologies
• Seminars/Workshops on: Overview of CDM; CDM Project Cycle Project Design Document Baseline Formulation GHG Accounting Monitoring Plans
Capacity Development
Task: Capacity Development for NGOs, Local Communities,
Academe, Research Institutions
Examples of activities:• Roundtable discussion on CDM, sponsored
by the Philippine Network on Climate Change & WWF-Philippines, 17th September 2002
• Consultation on Entities which can validate, monitor, and certify CDM projects, sponsored by Climate Change Information Center, 12th November 2002
Key Actors/Stakeholders
Relevant IssuesDefined Baseline
CDM Project Validation
Project Financing
Host Country National CDM Board
Validation Agents
Project Developers
Project Investors
ER Buyers
Meets National Objectives
Contributes to Sustainable Development
Real, Measurable and Long-Term Benefits
Meets Additionality Criteria
Acceptable Process for MRV
Validation of CDM Projects
Capacity Development
Task: Capacity Development for CDM National Authority
• Objective: Support the establishment of a national and institutional framework to assess and validate CDM projects; that also facilitates monitoring, verification and certification of emission reductions.
• Indicator: Existence of a functioning CDM National Authority that validates CDM projects using national guidelines (e.g. on sustainable development) & international guidelines (e.g. on additionality, baselines).
Capacity Development
Task: Capacity Development for CDM National Authority
• Specific project on developing the institutional, operational and regulatory framework for CDM; including establishment of the CDM National Authority
• Project conducted by the Inter-Agency Committee on Climate Change
• Project sponsored by the UNDP and funded by the Dutch Government
Capacity Development
Task: Capacity Development for CDM National Authority
Some proposed activities:• Assist NA to define regulatory, legal,
technical and financial guidelines for CDM projects
• Assist NA to set clearly defined national, sectoral, project baseline parameters for CDM projects
• Training Workshops for NA staff for validation, monitoring, verification and certification of emission reductions
Capacity Development
Task: Creating a Pipeline of CDM-eligible Projects
• Objective: Create a pipeline of CDM-eligible projects that are attractive to potential CDM investors and that are approved by the CDM National Authority.
• Indicators: List of CDM-eligible projects that have been nationally endorsed and validated; number of investments made in CDM projects.
Capacity Development
Task: Creating a Pipeline of CDM-eligible Projects
Developing an actual CDM project as the best way of building capacity.
Some proposed activities:• Technical assistance to identify and
develop CDM projects• Assistance to identify and source
funding for CDM projects• Published national portfolios of
validated CDM eligible projects
Key Actors/Stakeholders
Relevant Issues
Project Validated
Project Financingand
Financial Closure
Project Implementationand
Operation
Project Developers
Equity Holders
Investors
Banks
Buyers of Project Outputs
Project Owners/Operators
ER Purchase Agreements
Financial Recourse
Legal Recourse
Project Risks
Flow of Funds/Revenues
Auditing/Monitoring
Operational Data/Records
Reporting
RequirementsGeneration of ERs
Financing and Implementation of CDM Project
Capacity Development
Task: Capacity Development for
Project Financiers• Objective: Strengthen the capabilities of
the financial sector to identify and provide financing for CDM projects.
• Indicators: Existence of players from private and public financial institutions who are committed to the process of identifying and financing CDM projects; active market for CDM projects and their CERs; active financial brokers.
Capacity Development
Task: Capacity Development for
Project FinanciersSome proposed activities:• Seminars on CDM opportunities for the
financial sector• Forums on the range of funding sources
for CDM projects• Forums on the range of financial schemes
and packages for CDM projects
Capacity Development
Task: Capacity Development for
Project FinanciersExamples of activities:• Executive briefing on CDM for DBP senior
officials, 7th October 2002• Seminars on CDM for DBP mid-level
officials from head office, regional offices and branches; October - November 2002
Key Actors/Stakeholders Relevant Issues
Project Owners
Host CountriesMonitoring AgentsER Sellers
Verification Agents
Annex 1 PartiesER Buyers
Certification AgentsCDM Executive BoardCER RegistryCER MarketingParticipantsUNFCCC-COP
MonitoringRules/ GuidelinesApproval of AgentsChanges in Baselines
VerificationRules/ GuidelinesApproval of AgentsVerification of Baselines
Certification Rules/ GuidelinesCosts of MRVCRegistration and Tracking of CERsCDM Administrative Costs
ER Monitoring/Reporting
ER Verification
ER Certification
CER
Monitoring, Verification and Certification of Emission Reductions
Decisions Relevant Issues
Project IdentificationProject Formulation
Project Developers
ER ProspectorsGreen Companies/NGOsER FundsNational AgenciesBilateral/Multilateral Development Agencies
Rules for CDM ?Country Participation?Project AcceptanceCost EffectivenessRisks / ER Benefits
Baseline Definition
CDM ValidationHost Country CDM Agency
Validation Agents
Project Developers andEquity Holders
Investors and Banks
National ObjectivesSustainable Development Additionality CriteriaRegistration of ValidationEstimate of ERsER Purchase AgreementLegal RecourseProject RisksFlow of Funds
Project Financing andFinancial Closure
Project Financed
Project Owners/Operators Project Implementationand Operation
ER Monitoring/Reporting
ER Verification
ER Certification
CER
Host CountriesMonitoring AgentsER Sellers
Verification AgentsAnnex I PartiesER Buyers
CER Market Participants
Monitoring Rules/GuidelinesApproval of AgentsChanges in Baseline Conditions
Verification Rules/ GuidelinesApproval of Agents
Key Actors
Certification AgentsCDM Executive BoardCER Registry
Certification Rules/GuidelinesCosts of MRVCOther Costs
Emissions additionalityFinancial additionalityTechnology matrixBenchmarksProject Specific
Project Validated
Capacity Development Tasks
1. Information campaign & awareness raising
2. Capacity development for senior policy-makers
3. Capacity development for mid-level policy-makers
4. Establishment of the CDM National Authority
5. Capacity development for the CDM National Authority
Capacity Development Tasks
6. Capacity development for CDM project developers
7. Capacity development for CDM project financiers
8. Capacity development for NGOs, local communities, academe, research institutions
9. Investment promotion for CDM projects10.Creating a pipeline of CDM-eligible
projects
Capacity Development Tasks Multi-year (2003-2005) Work Plan for
Capacity Development for CDM in the Philippines
Work Plan to be implemented by the Inter-Agency Committee on Climate Change
Implementation of Work Plan to be managed by the Climate Change Information Center, Manila Observatory, Ateneo de Manila
Preparation and Implementation of Work Plan sponsored by the UNEP Collaborating Centre for Energy and Environment
Maraming Salamat!
Roberto C. Yap, S.J., Ph.D.Environmental EconomistClimate Change Information CenterManila ObservatoryAteneo de Manila UniversityLoyola Heights, Q.C.Tel +63 2 426-6144Fax +63 2 [email protected]