Transcript Mr. Yu Shengmin

Institutional Structure, Procedures
and Sustainable Development
Criteria of CDM in China
Asian Region Workshop on
“Capacity Development for the Clean Development Mechanism”
19-21 October, 2005, AIT, Thailand
YU Shengmin
Energy Research Institute, NDRC, P.R.China
[email protected]
Contents of the Presentation
• Institutional Arrangements for CDM In
China;
• Procedures for CDM Project Development
in China;
• Sustainable Development Criteria and
Priorities Areas for CDM Projects
• Current Project Development Status
• Lessons and Experiences
Institutional Arrangements
For CDM In China
• According to Interim Measures for Operation
and Management of Clean Development
Mechanism Projects in China issued on May 31,
2004, three levels of authorities are involved in
the management of CDM in China.
– National Coordination Committee for Climate
Change (“the Committee”)
– National CDM Project Board (“the Board”)
– Designated National Authority for the CDM (DNA)
National Climate Change
Coordination Committee
• An inter-ministerial body established in 1998 responsible
for the formulation and coordination of China’s
important climate change-related policies and measures at
the strategic level.
• With respect to CDM, the committee is responsible for
the review and coordination of important CDM policies
and measures, including:
– Review of China’s national policies, criteria, and
standards on CDM project activity
– Approval of members of the National CDM Project
Board (see below)
– Review of other issues, when necessary
National CDM Board
• Board Members:
– National Development and Reform Commission (NDRC, CoChair)
– Ministry of Science and Technology (MOST, Co-Chair)
– Ministry of Foreign Affairs (MOFA, Vice Chair)
– State Environmental Protection Administration (SEPA)
– China Meteorological Administration (CMA)
– Ministry of Finance (MOF)
– Ministry of Agriculture (MOA)
• Under the authority of the Committee, the Board has the
following main responsibilities:
– Review CDM project proposals and approve CDM projects
– To report to the Committee on the overall progress of CDM
project activities, issues emerged and further recommendations;
– To make recommendations on the amendments to the CDM
interim measures
Designated National Authority
(DNA) for CDM in China
• Focal Point: National Development and Reform
Commission (NDRC), a macroeconomic
management agency under the State Council
• Responsibilities in CDM:
– To accept CDM project application;
– To approve CDM project activities jointly with MOST and MFA,
on the basis of the review conclusion made by the Board;
– To issue written approval letter on behalf of the Government of
China;
– To supervise the implementation of CDM project activities;
– Addressing other related foreign affairs.
Procedures for Application and
Approval of CDM Projects
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Step 1. Project owner, or together with its foreign partner, submits
application for approval of proposed CDM project activity to NDRC, directly
or through related agencies and local governments, with CDM PDD and
other required materials.
Step 2. NDRC entrusts independent organizations for expert review of the
applied project, which shall be concluded within 30 days;
Step 3. NDRC submits project proposals and expert review comments to the
Board for approval;
Step 4. The National CDM Board reviews CDM project proposals and
informs NDRC of eligible projects.
Step 5. NDRC, jointly with MOST and MOFA, approves or rejects project
proposals in accordance with the decision made by the National CDM Board,
and issues approval letters accordingly on behalf of the Chinese Government;
Step 6. The project developer proceeds with the COP validation and
registration procedures
Step 7. Within 10 days as of the date of receiving the registration notice
from the Executive Board, the project owner shall notify NDRC for recordkeeping purpose.
National Approval Cycle
Project development
Submission of CDM
application to NDRC
Preliminary evaluation
by NDRC
May be reconsidered
subject to further
improvement
National CDM Board
Meeting
Letter of Rejection
Letter issued by NDRC
Letter of Approval
Letter of No-objection
General Requirements for
CDM Projects in China
– They shall conform to China’s sustainable development strategy
and policies, as well as the general requirements of economic
and social development programs;
– They shall conform to the requirements of the Climate Change
Convention, the Kyoto Protocol and relevant decisions by the
Conference of the Parties;
– The implementation of CDM project activities in China shall
result in no new obligations for China other than those under the
Convention and the Protocol;
– Funds used in CDM project activities from developed country
Parties shall be additional to the current ODA and other financial
obligations under the Convention;
– They shall promote the transfer of environmentally friendly
technology to China;
– Implementation shall ensure transparency, efficiency, and
traceable responsibilities.
Sustainable Development Criteria
of CDM
• Complement national economic and
environmental strategy;
• Transfer of technology and financial resources;
• Sustainable ways of energy production;
• Increasing energy efficiency and conservation;
• Poverty alleviation through income and
employment generation;
• Local environmental co-benefits
Priority Areas for CDM
Projects
• Energy efficiency improvement
• Development and utilization of new and
renewable energy, and
• Methane recovery and utilization
CDM Capacity Building
Activities in China
• MOST/WB/GTZ(Germany): Country Study on
CDM Methodology and its Application;
• NDRC/CIDA(Canada): China-Canada Cooperation Project on Climate Change
• ERI/NIRA: Feasibility study of the CDM in
China’s electricity sector
• NDRC/UNDP/UNF: Capacity Building of China
on CDM Management
• MOST/ADB: Opportunities for Chinese Energy
Sector to Implement CDM
• EU/China: EU-China Partnership in CDM
Implementation
Current Project Development
Status (As of August 31, 2005)
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Projects registered with UNFCCC: 1;
Projects approved in China : 6;
Projects issued Letter of No-objection: 8;
Projects under consideration: 2;
Projects under development: 100+
Barriers
• Institutional Capacity and Awareness: involving
many players, stakeholders knowledge and
understanding of the institutional, financial,
technical and legislative aspects of CDM;
• Information: lack of capability to collect, analyze
and disseminate CDM information
• Buyer’s market: difficult for developers to find
proper buyers because of unsymmetrical
information;
• COP rules and procedures of CDM: The COP
CDM procedure and methodology are
complicated and time consuming process
Lessons and Experiences
• Eligibility requirement for CDM project
developer;
• Requirement for funding from developed
Countries;
• Possible methodological requirements;
• CERs purchase agreement;
• Revenue sharing between the government
and project developers.
Capacity Building Needs for
CDM in China
• Capacity building for different
stakeholders
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Policy makers and government officials
Industrialists
Financial sector
Consultancy
• Capacity needs in various sectors and
industries
• Capacity needs for Operational Entity
Thank You!
YU Shengmin
[email protected]