EXPECTATIONS FOR CDM AR PROJECTS IN

NICARAGUA

Clean Development National Office

ONDL/CDNO

• Facilitate Nicaragua’s entry into the carbon market and use of the CDM to support the country’s sustainable development.

• Support from UNDP-Nicaragua to start the functioning ONDL early 2003; setting up the legal framework for the Executive Board and start a capacity building national process.

• 2003 working and supporting several energy projects

ONDL/CDNO

• Mid 2003 PBCC / FAO did research on:

• Kyoto lands; Institutional and legal barriers for the development of CDM forestry projects.

• PBCC 7 workshops on CDM forestry projects / more than a persons 100 trained.

• New study to facilitate CDM forestry projects being conducted by the National Agrarian University – what species, in what system, depending on ecoregions, should project developers use and what are the economic considerations.

Types of Projects Nicaragua will like to have

• Those that support its sustainable development process• ONDL has set up procedures to ensure that CDM projects support

sustainable development and are in accord with national environmental regulations.

• How do we test the sustainable development criteria? Test to what extent project contributes to:

• National Development strategy for economic recovery and fight against poverty

• Competitive strategy – clusters / forestry/special coffee/dairy/tourism

• National Environmental plan• Strategies or plans to comply with Biodiversity, CCC and

Desertification.

TYPES OF PROJECTS THAT WILL TEND TO EMERGE IN NICARAGUA

• Because of size of country and land tenure patterns no very large one owner plantations.

• Small scale

• Because of high transactions cost – promote associations – CONFOR

• Great potential in cattle areas for CDM projects

WHAT PROJECTS WE WILL LIKE TO SEE EMERGING

• Small scale

• Community based

• Agro forestry and silvo pastoril

• Forest restoration

• Use of native species

NEEDS AT THE INTERNATIONAL LEVEL

• Expedite and clear procedures and metodologies for small projects

• ODA support for community based projects, in the formulation and development of local capacities.

• Buyers with interest in good projects that have more than carbon

National Requirements that can be supported by ODA

• Greater local capacity – general and technical level to reduce transaction costs

• Studies that will facilitate the development of projects.

• Sector baseline

• Institutional strengthening and clear definition of roles.

PROJECTS NICARAGUA IS WORKING ON

• Bosawas Reserve Coffee and forest project – example of a good partnership

• Mombacho Reserve project

• CONAFOR

• Medium size plantation

THANK YOU

GRACIAS