Transcript CDM Project Cycle

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-Raising
Some 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 PolicyMakers
• 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 PolicyMakers
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 PolicyMakers
Some proposed activities:
• Executive briefings for cabinet-level officials
• Executive summaries of CDM benefits
• Workshops on CDM Framework for cabinetlevel 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 PolicyMakers
• Objective: Develop the capacity among midlevel 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 PolicyMakers
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 PolicyMakers
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 Validated
Project Financing and
Financial Closure
Project Financed
Project Implementation and Operation
ER Monitoring/Reporting
ER Verification
ER Certification
CER
Project identification and formulation
Key Actors/Stakeholders
Decisions
Project developers
ER Prospectors
Project identification
Green companies
Green .NGOs
Project formulation
National Development
Agencies
Bilaterial/Multilateral
Development Agencies
Proposed CDM Project
Relevant Issues
Rules for CDM
Country participation?
Project acceptance
Cost effectiveness
Risks / ER benefits
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 Developers
Some proposed activities:
• Public briefings on CDM Benefits
• Seminars/Workshops:
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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
Relevant Issues
Proposed
CDM Project
CDM Executive Board
Technical/Emissions/Financial
National Planning
Agency
Sectoral Planning
Agencies
Emissions
additionality
Financial
additionality
Baseline Definition
Project Developers
Baseline
definition
approach
Project Investors
-Project specific
CDM Validation
ER Buyers
-Technology
matrix
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 Institutions
Some proposed activities:
• Consultations with local communities on
Cleaner Technologies
• Seminars/Workshops on:
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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
Validation of CDM Projects
Key
Actors/Stakeholders
Defined Baseline
Meets National Objectives
Host Country National
CDM Board
Validation Agents
CDM Project
Validation
Project Financing
ER Buyers
Contributes to Sustainable
Development
Real, Measurable and
Long-Term Benefits
Project Developers
Project Investors
Relevant Issues
Meets Additionality
Criteria
Acceptable Process for
MRV
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 CDMeligible 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
Financing and Implementation
of CDM Project
Key
Actors/Stakeholders
Project Validated
Project Developers
Equity Holders
Investors
Relevant Issues
ER Purchase
Agreements
Financial Recourse
Project Financing
and
Financial Closure
Banks
Legal Recourse
Project Risks
Flow of
Funds/Revenues
Buyers of Project Outputs
Project Owners/Operators
Project Implementation
and
Operation
Generation of ERs
Auditing/Monitoring
Operational
Data/Records
Reporting
Requirements
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 Financiers
Some 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 Financiers
Examples 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
Monitoring, Verification and Certification of
Emission Reductions
Relevant Issues
Key Actors/Stakeholders
Project Owners
Host Countries
Monitoring Agents
ER Sellers
Verification Agents
Annex 1 Parties
ER Buyers
Certification Agents
CDM Executive Board
CER Registry
CER Marketing
Participants
UNFCCC-COP
ER
Monitoring/Reporting
ER Verification
ER Certification
CER
Monitoring
Rules/ Guidelines
Approval of Agents
Changes in Baselines
Verification
Rules/ Guidelines
Approval of Agents
Verification of Baselines
Certification Rules/ Guidelines
Costs of MRVC
Registration and Tracking of
CERs
CDM Administrative Costs
Key Actors
Decisions
Project Developers
ER Prospectors
Green Companies/NGOs
ER Funds
National Agencies
Bilateral/Multilateral
Development Agencies
Project Identification
Project Formulation
Baseline Definition
CDM Validation
Host Country CDM
Agency
Validation Agents
Project Developers and
Equity Holders
Investors and Banks
Project Owners/Operators
Project Validated
Project Financing and
Financial Closure
Project Financed
Project Implementation
and Operation
Host Countries
Monitoring Agents
ER Sellers
ER Monitoring/Reporting
Verification Agents
Annex I Parties
ER Buyers
ER Verification
Certification Agents
CDM Executive Board
CER Registry
ER Certification
CER Market
Participants
CER
Relevant Issues
Rules for CDM ?
Country Participation?
Project Acceptance
Cost Effectiveness
Risks / ER Benefits
Emissions additionality
Financial additionality
Technology matrix
Benchmarks
Project Specific
National Objectives
Sustainable Development
Additionality Criteria
Registration of Validation
Estimate of ERs
ER Purchase Agreement
Legal Recourse
Project Risks
Flow of Funds
Monitoring Rules/Guidelines
Approval of Agents
Changes in Baseline
Conditions
Verification Rules/
Guidelines
Approval of Agents
Certification
Rules/Guidelines
Costs of MRVC
Other Costs
Capacity Development Tasks
1. Information campaign & awareness
raising
2. Capacity development for senior policymakers
3. Capacity development for mid-level policymakers
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 projects
10. Creating a pipeline of CDM-eligible projects
Capacity Development Tasks
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Multi-year (2003-2005) Work Plan for
Capacity Development for CDM in the
Philippines
Work Plan to be implemented by the InterAgency 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 Economist
Climate Change Information Center
Manila Observatory
Ateneo de Manila University
Loyola Heights, Q.C.
Tel +63 2 426-6144
Fax +63 2 426-6070
[email protected]