Page 1 Regional Institutional Capacity Building in the Implementation of Clean Development Mechanism in ASEAN Countries March 2004 Jakarta, Indonesia CDM Capacity Building and the DNA Facilitation Process Presented by Navann OUK, Clean Development Mechanism Project, Ministry of Environment, Cambodia

Page 2 I. Introduction II. Institutional and Legal Frameworks III.Status of the DNA Creation IV. Issues and Constraints Outline

Page 3 I. Introduction UNEP-Collaborating Center for Energy and Environment (UCCEE) selected Cambodia as a candidate for participating in the CD4CDM project in late September The Ministry of Environment (MoE) signed an agreement to implement Phase 1 of CD4CDM in mid November CD4CDM Phase 2 started in May 2003.

Page 4 II. Institutional and Legal Frameworks (1/3) 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.

Page 5  The Cambodian Climate Change Office (CCCO) of the Ministry of Environment was established on 23 June 2003 by Ministerial Declaration No 195.  CCCO works closely with all relevant Government agencies, NGOs, the private sector, local communities, donors and international organization to coordinate and implement national climate change policies, greenhouse gas mitigation and inventory, and climate change adaptation projects. II. Institutional and Legal Frameworks (2/3)

Page 6 The Royal Government of Cambodia strongly supports the concept of building innovative partnerships between the government, the private sector and civil society for financing development, including the CDM. II. Institutional and Legal Frameworks (3/3)

Page 7 III. Status of DNA Creation (1/8)  Understanding of CDM processes and modalities is very limited in Cambodia.  Target group for CDM awareness raising:  Policy makers of relevant government ministries/agencies (environment, energy, agriculture, forestry, transport, waste management, water resources, etc.);  Private sector and NGOs working in the fields of development, finance, environment, energy, agriculture, forestry, transport, waste management, water resources, etc.);  Academic institutions (Royal University of Agriculture, Royal University of Phnom Penh, Institute of Technology of Cambodia, etc.);  Financiers.

Page 8 III. Status of DNA Creation (2/8)  Understanding of CDM requirements:  General information on CDM (rules and modality)  In depth capacity development: (1) Process of DNA establishment (2) Preparing sustainable development criteria (3) Method for evaluating proposed project (4) Establishment of baseline (5) PDD, PIN development (for project developer) (6) Identification of CDM potential project (7) Regulation and other important legal to support the operation of DNA.

Page 9  Analysis of information on sustainable development (SD) criteria from other countries (Annex 1, Non- Annex 1 and international organizations): Bangladesh, Indonesia, Malaysia, Sri Lanka, South Africa, Argentina, Costa Rica, Panama, WWF Gold Standard, South-South, Green Peace, etc.  Analysis of Cambodian legislation, national & sectoral action plans and programs, and conventions relates to sustainable development to extract relevant information related to national sustainable development objectives and commitments. III. Status of DNA Creation (3/8)

Page 10  Compilation of information into summary tables to provide a basis for the development of Cambodia’s national sustainable development guidelines.  Developed draft sustainable development criteria for assessing proposed CDM projects in the energy sector in Cambodia (guidelines developed in economic development, social development, environmental sustainability and technological development). III. Status of DNA Creation (4/8)

Page 11  MoE was appointed as the Interim Designated National Authority (DNA) for CDM by the Prime Minister’s Declaration No 1, dated 15 July III. Status of DNA Creation (5/8)

Page 12 Assessment of Renewable Energy Pilot projects  In July 2003, the Ministry of Industry, Mines and Energy (MIME) requested MoE to consider two proposed renewable energy projects funded by NEDO (Japan New Energy and Industrial Technology Development Organization): 1.Combined power generation using biomass (cattle excrement – 60 kW) and solar photovoltaics (50 kW) 2.Combined power generation using mini-hydro (40 kW) and solar photovoltaics (80 kW) III. Status of DNA Creation (6/8)

Page 13  MIME and MoE established a technical working group to evaluate the two NEDO projects.  The working group is working together to develop and review sustainable development criteria for assessing energy projects based on existing Cambodian regulations and experience from other countries’ DNA. III. Status of DNA Creation (7/8)

Page 14  On October 2003, a field trip to the biomass/PV site (Southern Cambodia) was organized by CD4CDM in collaboration with MIME.  Major activities included informal discussion with local people and the Japanese contractors.  The field trip provided an opportunity for the staff to understand how to apply the SD criteria in practice and what information is required from the project developers. III. Status of DNA Creation (8/8)

Page 15  Stakeholders’ understanding of CDM rules and knowledge of national sustainable development objectives is limited in Cambodia.  Limited technical capacity of CD4CDM staff in: (1) CDM technical issues such as baseline determination, and (2) in- depth multi-disciplinary expertise in economics, law, renewable energy technologies and forestry science.  Insufficient guidance materials available to support DNA establishment process.  Lack of basic CDM awareness among stakeholders means that CDM capacity building/DNA establishment will require more time and effort. IV. Issues and Constraints

Page 16 Questions/Comments?