Capacity Development for the CDM (CD4CDM) First National Workshop - SURINAM Host Country Institutional Issues Miriam Hinostroza UNEP Risø Centre (URC) Paramaribo, April

Outline National CDM institutional structure Project approval processes Sustainable development criteria CDM and SD

CDM – Background CDM objectives & benefits Conditions of participation –In accordance with the modalities and procedures for the CDM (Annex decision 17/CP.7 – F) all Parties to the Convention may participate in CDM project activities – Kyoto Protocol Ratification 28. Participation in a CDM project activity is VOLUNTARY 29. Parties participating in the CDM shall designate a National Authority for the CDM

CDM – Background –In accordance with provisions of Annex G - paragraphs 37 (a) and 40 (a) of the CDM M&P, the registration of a proposed CDM project activity can, however, only take place once approval letters are obtained from Parties to the Convention. 40. The DOE shall: –(a) Prior to the submission of the validation report to the EB, have received from the project participants written approval of voluntary participation from the Designated National Authority of each Party involved, including confirmation by the host Party that the project activity assists it in achieving sustainable development

Designated National Authorities - DNAs Mandate of host country DNA (1) The only mandatory role of a DNA is to confirm weather the CDM project contributes to SD –Guarantee the accomplishment of the Marrakech Accords – international modalities and procedures (M&P) for a CDM and associated further decisions –Adopt national M&P for CDM projects evaluation and approval –Policy recommendation and National CDM strategy

Designated National Authorities - DNAs Mandate of host country DNA (2) Regulatory role: –assessment of the GHG aspect of projects, such as baseline and additionality. a favorable assessment might increase the probability of validation and certification – though it is not a required step of the DNA evaluation. Promotion role: –facilitate CDM projects developments in the country –outreach to various sectors of the economy –capacity development and marketing –devise actions to overcome barriers to CDM.

Designated National Authorities - DNAs Challenges in establishing DNAs The nature of DNAs changes regarding to: structure (institutional, legal, etc.,) financing and responsibilities Awareness raising Political support Inter-sectoral coordination Leadership

Designated National Authorities - DNAs Financing/Staffing Public sector DNAs are supported through government appropriations or the operating budget of a Ministry Initial support for institutional set up has been given by multilateral programs – CD4CDM DNA staffing depends on affordability and country priority for the CDM

Designated National Authorities - DNAs Institutional set up - steps Definition of objectives and mission Revision/adjustment of the legal framework Institutional framework establishment Assure financial and other sort of resources Suitability of CDM national strategies with national development priorities –how the synergy between greenhouse gas emission reduction and national development goals can be maximised

Designated National Authorities - DNAs Roles (1) Evaluation and Approval: –Adoption of international eligibility criteria (Marrakech Accords) –Establishment of national criteria Accomplishment of national and sectoral policies and legislation Guarantee national stakeholders participation Special consideration to stakeholders´ comments Technical and economical feasibility of the projects Environmental viability –Issuance of an approval letter declaring voluntary participation and SD contribution

Designated National Authorities - DNAs Roles (2) National CDM Policy and strategy formulation Local capacity development for CDM public/private project proponents Identification of CDM projects and formulation of PDDs Baseline methodologies and additionally criteria Emission reduction calculation Monitoring protocols for project performance (e.g. SD) Carbon market and bilateral agreements

DNAs in Latin America DNAs in LAC are public entities. with some exceptions (Brazil) all climate-related responsibilities are housed in the Ministry of the Environment. DNAs in LAC report to the Ministry of Environment or its equivalent –the DNA is a Unit created within the Ministry with authority over issues related to the environment and/or natural resources. –In some cases the Ministry itself is the DNA. –In Brazil, it is a commission created by and representing several ministries.