1 Second Regional Workshop Capacity Development for the Clean Development Mechanism (CD4CDM) 23 March 2004 Siem Reap, Cambodia Review and Future Plan of Task 3: Establishment of Capacity Development for CDM National Authority Prepared by Heng Chan Thoeun, Team Leader Ministry of Environment, Cambodia

2 Outline I. I.Assessment of percentage of task completed against planned activities II. Identify factors for success/slackness of implementation III. Specific barriers to effective implementation and possible options for addressing it IV. Activities for the next six months

3 2.1 Status of DNA Establishment: MoE was appointed as the Interim Designated National Authority (DNA) for CDM by the Prime Minister’s Declaration No 1, dated 15 July 2003.MoE was appointed as the Interim Designated National Authority (DNA) for CDM by the Prime Minister’s Declaration No 1, dated 15 July MoE has full legal authority to assess, approve or reject proposed CDM projects. The UNFCCC has been notified that MoE acts as the Cambodian DNA.MoE has full legal authority to assess, approve or reject proposed CDM projects. The UNFCCC has been notified that MoE acts as the Cambodian DNA. I. I. Assessment of percentage of task completed against planned activities (1/7)

4 I. I. Assessment of percentage of task completed against planned activities (2/7) Understanding of CDM processes and modalities is very limited in Cambodia.Understanding of CDM processes and modalities is very limited in Cambodia. Capacity development activities have been conducted to increase general understanding of CDM rules and modalities, including:Capacity development activities have been conducted to increase general understanding of CDM rules and modalities, including: (1) Process of DNA establishment (2) Preparing sustainable development criteria (3) Methodologies for evaluating proposed project (4) Establishment of baseline (5) PDD, PIN development (for project developers) (6) Identification of potential CDM projects (7) Legal aspects in support of DNA operations.

5 Two inter-ministerial technical working groups have been set up in support of the DNA establishment. Completed Two inter-ministerial technical working groups have been set up in support of the DNA establishment. Completed Energy sector: MoE and Ministry of Industry, Mines and Energy (MIME)Energy sector: MoE and Ministry of Industry, Mines and Energy (MIME) Forestry sector: MoE and Ministry of Agriculture, Forestry and Fisheries (MAFF)Forestry sector: MoE and Ministry of Agriculture, Forestry and Fisheries (MAFF) I. I. Assessment of percentage of task completed against planned activities (3/7)

6 The working groups are developing sustainable development criteria for CDM projects based on existing Cambodian regulations. Ongoing The working groups are developing sustainable development criteria for CDM projects based on existing Cambodian regulations. Ongoing The working groups, in consultation with other stakeholders, are reviewing alternative options for DNA structures and approval processes of proposed CDM projects. Ongoing The working groups, in consultation with other stakeholders, are reviewing alternative options for DNA structures and approval processes of proposed CDM projects. Ongoing I. I. Assessment of percentage of task completed against planned activities (4/7)

7 Analysis of information on sustainable development (SD) criteria from other countries (Annex 1, Non- Annex 1 and international organizations. Completed Analysis of information on sustainable development (SD) criteria from other countries (Annex 1, Non- Annex 1 and international organizations. Completed Analysis of Cambodian legislation, national & sectoral action plans and programs, and conventions related to sustainable development. Completed Analysis of Cambodian legislation, national & sectoral action plans and programs, and conventions related to sustainable development. Completed I. I. Assessment of percentage of task completed against planned activities (5/7)

8 Compilation of information into summary tables to provide a basis for the development of Cambodia’s national sustainable development guidelines. Completed Compilation of information into summary tables to provide a basis for the development of Cambodia’s national sustainable development guidelines. Completed Developed draft sustainable development criteria for assessing proposed CDM projects in Cambodia. On-going Developed draft sustainable development criteria for assessing proposed CDM projects in Cambodia. On-going I. I. Assessment of percentage of task completed against planned activities (6/7)

9 Preliminary Assessment of Renewable Energy Pilot projects. On-going Preliminary Assessment of Renewable Energy Pilot projects. On-going 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): 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): Combined power generation using biomass (cattle excrement – 60 kW) and solar photovoltaics (50 kW) Combined power generation using biomass (cattle excrement – 60 kW) and solar photovoltaics (50 kW) Combined power generation using mini-hydro (40 kW) and solar photovoltaics (80 kW) Combined power generation using mini-hydro (40 kW) and solar photovoltaics (80 kW) I. I. Assessment of percentage of task completed against planned activities (7/7)

Factors for success The Royal Government of Cambodia strongly supports the CDM as a sustainable development tool. Financial support from UNEP/Riso Coordination among agencies is well established (Energy and Forestry) Complimentary support from other donors and governments in the area of CDM (Japan, EC) II. Identify factors for success/ slackness of implementation (1/2)

Factor for slackness Human resources (lack of international level technical expertise and skills) Financing support inadequate for broad stakeholder consultations and in-depth technical training Technical support limited to general CDM understanding Delay in providing generic CDM-related materials II. Identify factors for success/ slackness of implementation (2/2)

Specific barriers to effective implementation 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. III. Specific barriers to effective implementation and possible options (1/3)

13 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. III. Specific barriers to effective implementation and possible options (2/3)

Possible options Advanced technical capacity building for CD4CDM staff and technical working groups (such as the one provided by the Philippines team). External technical assistance to set up or improve the assessment process. Seek technical and financial support from other donors III. Specific barriers to effective implementation and possible options (3/3)

15 Finalise sustainable development indicators for assessing CDM projects. Review suitable options with regards to structure and approval process for establishing the DNA. Finalise proposal for DNA structure and approval process in collaboration with relevant stakeholders. Disseminate the proposed DNA structure and sustainable development guidelines for CDM projects among relevant stakeholders. IV. Activities for the next six months (1/2)

16 National consultation workshop on proposed DNA structure and technical guidelines. Integrate stakeholder feedback in the proposed DNA structure and sustainable development guidelines for CDM projects. Identify the human and technical needs of the DNA. Submission of the DNA proposal to Council of Ministers. V. Activities for the next six months (2/2)

17 Thank you for your attention!