“Establishment of the Clean Development Mechanism (CDM) National Authority, Operational Framework and Support Systems for the Philippines”

Scope of the Project The Project shall cover 2 specific areas, namely: I.Establishment of the CDM National Authority -the national shall endorse to the Executive Board and proposed CDM projects that support national sustainable goals II.Development of the Operational Framework of the NA - will include definition of the legal and administrative requirements and the prescribed systems and procedures for securing the NA endorsement, among others.

Long Term Objectives Achievement of the country’s sustainable development goals through economic growth anchored on a healthy and vibrant environment and the reduction of greenhouse gas, globally, resulting in the climate change mitigation Poverty alleviation through the enhancement of capacity of sectors (ie. energy, agriculture and forestry) to increase their contribution to the country’s economy through a mechanism like the CDM

Immediate Objectives  To secure the official designation of a national government entity as the National Authority for CDM  To formulate the CDM Operational Framework

Project Benefits  Will usher the entry of an emerging global industry spearheaded by the private sector through the transformation of GHG mitigation into investment opportunities in support of the country’s sustainable development aspirations  Potential investors will recognize the advantages and benefits of transacting CDM business in the Philippines, resulting to more investments coming in, in the future.

Project Beneficiaries  National government agencies who will be involved in the CDM implementation process in the Philippines  Industries/private sector and other CDM project proponents – recipients of additional capacity building, new technologies and project funding  Consuming public – intended users of the resulting products and services generated by the CDM process.

Project Implementation A1 Establishment of the National Authority Immediate Objective: To secure the official designation of the appropriate governmental entity as the National Authority for CDM in the Philippines Output: A legal Issuance Designating the National Authority for the CDM process in the Philippines

PROPOSE CDM NATIONAL INSTITUTIONAL ARRANGEMENT DENR IACCC EXECUTIVE BOARD CDM SECRETARIAT TECHNICAL EVLUATION COM. ENERGY TECHNICAL EVLUATION COM. SOLID WASTE TECHNICAL EVLUATION COM. LULUCF APPLICATION FOR PROJECTS

Activity A1.1 Consultations with stakeholders, the IACCC, and legal experts in the designation of the CDM NA 3 Selection options: -a legal opinion from the Office of the President on the extent of coverage of the existing mandate of the contemplated entity - revision of the Administrative Order on the existing legal issuance to cover the additional functions as NA. -issuance of the President of a Memorandum Order for this additional task Work through formal mechanisms and concerned institutions to issue the legal document during the initial phase of the project Draw the appropriate and necessary organizational structure and its institutionalization Project Implementation

A2 Development of the National CDM Operational Framework Immediate Objective: To enable the optimum and efficient functioning of the NA through the provision of a clear National CDM Operational Framework Output: National Authority’s Management System

Activities for A2 Review past and available literature on the existing policies and identify gaps and constraints, and provide recommendations to address these gaps to facilitate entry and implementation of CDM projects Craft new/supplementary policies and legal issuances to address the identified gaps and constraints Adopt national sustainable development criteria and indicators for use in the CDM assessment process. Develop Systems and Procedures, with clear accountabilities and timeframes within the NA system –A business “process map” Project Implementation

Activities for A2 (Continued) Develop protocols and supplementary tools to implement the systems and procedures Develop the documentary requirements of the NA to enable it to assess the CDM proposal and issues the necessary endorsement to the CDM Executive Board Pilot test the designated management system Prepare and issue the necessary legal and administrative issuances to operationalize the management system Project Implementation

Risks and Conditions Delay in the Creation of the National Authority resulting from the current administration’s priority for 2004 election-related preparatory activities -however, all other activities relating to the development of the operational framework can proceed even while the NA designation is being worked out. -an Administrative Order was already drafted and under review by the DENR Legal Affairs Office.

0. Institutional Strengthening of DNA (will be assisted by Netherlands Govt..) Establishment of the CDM National Authority CDM operational framework (will be assisted by Netherlands Govt..) 1. National authority’s management system 1. CDM Project Promotion Information Collection CDM project promotion policy Output 1 Case Studies on small scale CDM projects Streamlined standard baseline and Monitoring methodologies for small scale CDM Projects 1. Development of streamlined standard methodologies 2. Development of emission factors specific to the Philippines 1. Survey on legal framework 2. Collect related data necessary for CDM-PDD preparation 3. Survey on situations of ASEAN countries etc. 1. Priorities of CDM projects criteria (sectors, area, technology needs) 2. CDM project promotion measures Output 2 Financial development for local CDM participants Output 3 Web-based CDM information clearinghouse Output 4 2. Training workshops on CDM Preparing training materials Organizing CDM workshops (JICA)

Thank you. Joyceline A. Goco Head, Inter-Agency Committee on Climate Change Secretariat DENR -- EMB 2nd Flr. HRD Bldg. DENR Compound Visayas Avenue, Diliman Quezon City, Philippines Tel # (632) / loc. 2 Fax (632) to 52 address: