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