1. CDM in Africa: Top 3 Myths & Realities Glenn Stuart Hodes Energy Economist, UNEP-Risoe Center

2. Myth #1 Africa’s CDM project potential is low.

3. Reality Fine theoretical potential, but - risks higher (CER price compensate?) - generally smaller - need elbow grease - existing methodologies poorly suited to sectors and projects that characterize Africa’s best potential

4. Myth #2 Africa is very far behind; the CDM is by-passing Africa.

5. Host country imbalance (1)

6. Host country imbalance (2)

7. Reality Early days yet… - Most non-Annex I countries behind and lacking capacity - many projects in pipeline, but getting ‘stuck’ for various reasons pre-validation - some countries had ‘wait-and-see’ strategy

8. Myth #3 No one is doing anything to promote CDM in Africa.

9. Reality Many activities underway already but more resources and long-term view required UNEP Risoe working in 15+ countries, in partnership with other agencies/donors

10. Capacity Development for the CDM (CD4CDM) Activities Donor: Netherlands Ministry of Foreign Affairs $15 million, multi-year program with local partners Africa: Côte d’Ivoire, Mozambique, Uganda, Ghana, Egypt, Morocco, Tanzania, Mauritius, Algeria – Formalized approval process, regs. – Training of national experts – Promotional publications & brochures – Pipelines of CDM projects Example: Kakira Sugar Co-gen – National CDM website – Regional Investment Forums

11. Carbon Finance for Sustainable Energy in Africa Donor: United Nations Foundation, World Bank $1 million MALI CAMEROON GHANA MOZAMBIQUE ZAMBIA Countries Accomplishments Assist with Kyoto process and set-up of national institutions for regulation and promotion of CDM projects At least 3 national stakeholders workshops, development of national action plans Pipeline of projects (8-10 per country), some already invested by CDCF or other buyers Example: -Félou Regional Hydropower project, will generate substantial low-cost clean power and promote energy security in Mali, Senegal, and Mauritania

12. New UNEP Project Forestry/Bioenergy CDM in Africa Meet short and long-term capacity needs and pilot existing and future eligible CDM projects in sector 3 Years, simultaneous execution targeting: – Benin, Cameroon, Democratic Republic of Congo, Gabon, Madagascar, Mali, Senegal Implementation Agencies – UNEP-DTIE / UNEP Risoe Center – Local Partners – ONF-International – CIRAD – BioCarbon Fund, other carbon buyers

13. Conclusion UNEP is responding to call to expand cooperation under “Nairobi framework” - scale-up of Africa activities - new UNDP-UNEP partnership - new initiatives planned with UNFCCC Secretariat and World Bank