IGES-URC Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism March 2004 Siem Reap, Cambodia CDM Capacity Building Program in Cambodia Presented by Thy SUM, Climate Change Office Ministry of Environment, Cambodia

Outline 1. Background Information 2. Overview of CDM Capacity Building Projects 3. Major Achievements 4. Planned Activities for CD4CDM Project 5. Proposed Activities for ICS-CDM Project 6. Lessons Learned

I. Background Information  Cambodia ratified the UNFCCC on 18 December  Cambodia acceded to the Kyoto Protocol on 4 July 2002, which entered into force on 22 August  Cambodia submitted its First National Communication to the CoP-8 at New Delhi in late  The Ministry of Environment (MoE) is the National Focal Point for the UNFCCC and the Kyoto Protocol.  The Cambodian Climate Change Office (CCCO) of MoE was established on 23 June 2003 by Ministerial Declaration, serve as interim DNA.

II. Overview of CDM Capacity Building Project in Cambodia (1) CD4CDM ProjectICS-CDM Project The Ministry of Environment signed an agreement with UNEP- RISØ Centre on Energy, Climate, and Sustainable Development to implement the CD4CDM Phase 1 project in November IGES conducted initial visit to Cambodia on 13 August The Ministry of Environment and IGES signed an agreement to implement ICS-CDM project phase 1 in January 2004.

II. Overview of CDM Capacity Building Project in Cambodia (2) CD4CDM ProjectICS-CDM Project The overall development objective of this project is to: generate, in selected developing countries, a broad understanding develop institutional capability and human capacity to fully participate as equal partners with developed countries in the formulation and implementation of the Clean Development Mechanism" The overall development objective of this project is to: enabling potential CDM host countries and Japanese investors to participate in CDM projects that contribute to sustainable development.

II. Overview of CDM Capacity Building Project in Cambodia (3) CD4CDM ProjectICS-CDM Project Specific objectives: (1) Conduct information campaigns and awareness raising about the benefits of the CDM for relevant target groups and generate support of the government for participating in the CDM; (2) Develop CDM-related capacity for national policy makers; Specific objectives: (1) Information dissemination and awareness raising about CDM (2) Network building among entities interested in CDM in host countries and Japan (3) Training of personnel to implement CDM (4) Support the finding, development and implementation of CDM projects

II. Overview of CDM Capacity Building Project in Cambodia (4) CD4CDM ProjectICS-CDM Project (3) Assist the Government in establishing and building capacity of the CDM National Authority; (4) Facilitate capacity development for public and private sector players to identify, formulate and secure financing for CDM project; and (5) Create a pipeline of CDM- eligible projects.

III. Achievement (1) CD4CDM Project  Project office and staff recruitment/selection fully completed  Two-week intensive CDM training for project staff and on-going on-the-job training for them  Required CDM materials downloaded from internet for training use  Conducted more than 25 CDM awareness raising meetings/mini workshops with relevant target groups: government, private sector, NGOs, academe, donor projects, multilateral agencies.

III. Major Achievement (2) CD4CDM Project  Organized the 2nd National Workshop on CDM  Developed a CDM brochure and a CDM briefing kit CD  Developed an interim CDM section on the climate change website ( and a draft structure of the full CDM section  Analysis of information on SD criteria from other countries and of Cambodian SD-related documents  Developed draft SD criteria for assessing proposed CDM project  Assisted the Government in establishing an interim DNA  Established Inter-Ministerial Working Group for preparing SD-Criteria and DNA.

III. Major Achievement (3) ICS-CDM Project  Organized Project Initiation Workshop in December 2003  Organized a Workshop on the Clean Development Mechanism for the Energy Sector (9 Feb 2004 in Phnom Penh)  Organized Provincial Workshop on the Clean Development Mechanism (11-12 Feb 2004, in Siem Reap)  A Climate Change Booklet (Khmer version) is being prepared  Assessment Report of CDM Opportunities in Cambodia’s Energy Sector is on going.

IV. Planned Activities for CD4CDM Project (1) 1: Raising awareness of CDM + generate government support Activities:  Continue to collect, adapt/prepare CDM information materials relevant to Cambodia (brochures, booklets, video spots, etc.)  Organise CDM workshops/round table discussions  Assist participation in regional/international CDM forums  Establish CDM section on existing website  Continue to disseminate material to policy makers  Development of case studies to demonstrate benefits of CDM

IV. Planned Activities for CD4CDM Project (2) 2: Development of CDM capacity for policy makers Activities:  Define capacity needs of government ministries and agencies to formulate the legal and regulatory frameworks for CDM  Carry out capacity assessments and identify capacity needs within key government ministries and agencies  Develop training materials relevant to these capacity needs  Conduct training for policy makers

IV. Planned Activities for CD4CDM Project (3) 3: Establishment/building capacity for CDM Designated National Authority (1) Activities:  Review existing models for DNA from other countries  Consult ministries/agencies to develop suitable options  Identify and develop mechanism for establishing DNA (legislation, regulation, rule, decree, etc.)  Develop the mandate, roles, responsibilities, organisational structure, etc. of the DNA  Identify the staffing and infrastructure needs of the DNA  Set up DNA with it's functions and responsibilities

IV. Planned Activities for CD4CDM Project (4) 3: Establishment/building capacity for CDM Designated National Authority (2)  Collect and review related sustainable development laws/regulations  Develop specific guidelines for approval process of projects  Prepare evaluation criteria and procedures  Conduct national workshops to discuss guidelines, criteria, procedures  Finalise and issue operational guidelines, criteria and procedures  Periodically review and improve operation of DNA  Conduct national workshops for DNA staff to share knowledge  Participate in regional workshops to share experiences

IV. Planned Activities for CD4CDM Project (5) 4: Capacity development for public/private sector Activities:  Identify target groups (project developers, project financiers, NGOs, research institutions and academe) and levels of understanding  Prepare information materials based on specific needs for each group  Organise targeted workshops for each group

IV. Planned Activities for CD4CDM Project (6) 5: Pipeline of CDM Eligible Projects Activities:  Provide project cycle assistance to project developers  Collate a list of potential CDM projects  Help project developers secure finances and develop proposals  Identify barriers to encouraging CDM project investments  Create contacts through regional and international CDM forums

V. Proposed Activities for ICS-CDM Project (1) 1: Awareness raising and information outreach Activities:  Focus on provincial awareness raising using material developed under all CDM CB projects.  Use private sector associations and NGOs to identify current provincial activities; and work to raise awareness and identify links with potential CDM projects  Conduct provincial workshops and face-to-face meetings with private sector, government staff and NGOs.

V. Proposed Activities for ICS-CDM Project (2) 2: Strengthening capacity of stakeholders Activities:  Develop generic baseline information to facilitate potential private sector  Link private sector into Phase 1 of ICS-CDM Task 3; work with each private sector participants in each identified sector at the stage of baseline setting and GHG calculation. Undertake broad training workshops based on identified projects – PIN case study development  Pilot Project development – using projects identified in Phase 1 of ICS-CDM Task 3 select 2 appropriate projects to undertake a pilot and ‘learning by doing’ training in PDD formulation  Identify potential monitoring and verification organisations; brief them on CDM  Work with World Bank REF and CD4CDM to identify best way for ICS-CDM to work together to build capacity of financial sector

IV. Proposed Activities for ICS-CDM Project (3) 3:Facilitate the development of CDM-eligible projects in priority sectors Activities:  facilitate 'bottom-up' identification and development of CDM projects through awareness raising meetings and training sessions.  Identify and develop small scale CDM project pipeline in the following sectors: Stage 1  agricultural waste (rice husk, nut shells, bagasse, coconut shells)  hotel energy efficiency  brick and tile energy efficiency  waste management Stage 2  energy cropping/community forestry  water/waste water treatment (methane or water supply pipelines)  small scale industrial biogas  irrigation/micro hydro potential

IV. Proposed Activities for ICS-CDM Project (4) 4: CDM Investment promotion activities Activities:  Develop an Investor guide for Cambodia and CDM projects. Summarise investment laws; status of policies.  Based on ICS-CDM Task 3, promote identified CDM projects to Japanese companies, investors CDM funds.  Facilitate partnership with local investors /developers private sector actors.  Promote co-financing ICS-CDM for pilot projects.  Promote seminars to Japanese investors and or Japanese regional /local partnerships

IV. Proposed Activities for ICS-CDM Project (5) 5: Research on policy development Activities:  Analysis of CDM and sustainable development for Cambodia  Prepare national policy for climate change/CDM

VI. Lesson learned  Most of relevant stakeholders have limited knowledge about CDM;  Larger meeting prevent interaction and in-depth discussion on CDM issues;  Face-to-face meetings are good solution but takes more time to introduce CDM concept;  Language barrier (translation of terminology) has some impact on capacity building and understanding CDM processes;  Investment and finance is limited in Cambodia, therefore number of project developers contemplating CDM-eligible projects is limited, but growing slowly; interest in CDM higher when potential projects are more ‘top-of-mind’.  Availability of international information related to DNA establishment, SD criteria, identification of potential CDM project, etc. is relatively limited.

QUESTIONS?