1. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to be studied during the project Gordon Mackenzie UNEP Collaborating Centre on Energy and Environment Risø National Laboratory Denmark

2. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 2 Methodological work development of documents which address the need for popular guidance material to national decision makers detailed technical material to support national and internal experts and project developers. development of general project material as well as material that specifically target regional or national issues and needs. All areas in addition will be covered by training material

3. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 3 first phase of the methodological work - 2003 CDM project guidance material Baseline scenarios Sustainable development impacts Legal, institutional, and financial framework for project implementation

4. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 4 CDM Project Guidance Material develop general guidance documents to establish an overview on internationally available best practice as well as providing a framework for the development of more specific material on regional and national issues. Several international CDM project guidelines and manuals already exist These cover similar issues of relevance to the CDM project cycle, with specific attention to specific sub-issues. A review of available materials concluded that none of these in themselves offer a comprehensive coverage of all relevant issues in proper detail but seen as a whole they offer very valuable and generally applicable information.

5. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 5 CDM Project Guidance Material Current methodological work will develop CDM project guidance material to combine the “best elements” of existing material and expanding on sub-issues that are considered to be less developed in other guidelines. special attention to background material to enhance national capacities for designing CDM projects consistent with national development priorities and supporting sustainable development. outline of a national decision making framework that can govern CDM supply to facilitate broad stakeholder participation integrated evaluation of CDM project finance and how projects can support major development priorities

6. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 6 Baseline Scenarios Develop a generic baseline approach that countries can use as a back-drop for the establishment of their own baseline. Generic baseline approach will suggest a simplified procedure for developing a project specific baseline consistent with sectoral forecasts and/or official plans. Key background default assumptions that can be used to calculate emissions, energy conversion factors etc. will also be provided.

7. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 7 Sustainable Development Impacts Sustainable development impact of CDM projects will be one of the important measurement points for assessing how the projects can support national development priorities. The methodological work will aim at – providing a basis for facilitating a national decision making process on which development priorities a country will assign to CDM projects, and – giving a technical background for assessing SD impacts of specific projects.

8. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 8 Legal and Institutional Framework for Project Implementation The legal and institutional issues of project implementation include a broad range of sub-issues that can be clustered in the following three sub-areas: Institutional structure of national CDM project management Legal issues Project financing

9. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 9 Legal issues TECHNICAL BACKGROUND PAPER ON A LEGAL FRAMEWORK FOR CLEAN DEVELOPMENT MECHANISM IN DEVELOPING COUNTRIES Being prepared by a team of lawyers based in South Africa Draft to be submitted by March 2003 To provide countries, DNAs with inspiration and starting material for formulating specific national legal framework

10. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 10 The central underpinning role of law in CDM The role of law in CDM Problem Statement Legal Barriers The Need for a Legal Framework Capacity Building: Legal Legal Capacity Development for CDM Optimization of the Legislative Framework/law reform Designated National Authority Inter-governmental structures and levels of government Business The financial sector Industry Civil society/the NGO sector

11. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 11 A country-specific legal overview (for all regions and countries in the project) Basic legal system Checks and balances/Rule of Law Legislative Branch Energy Policies and Sectoral Reform Sustainable Development Policies

12. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 12 Optimising the legislative framework for CDM: a marriage of two distinct regimes, with reference to examples emerging from the country-specific legal overview Ascertaining what legal norms rule CDM – a combination of municipal and international law International Law (Law of Nations) National Law (Municipal Law) Law of Nations vs Municipal Law

13. UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 13 Optimising municipal energy-sector legislation for CDM, with reference to examples from the country-specific overview The Sustainable Development clause and CDM Anticipating legal issues to emerge from the CDM project cycle A brief discussion of the legal issues in small-scale CDM Case Studies within the Eligible CDM Projects