1. Capacity Development Work plan for the Clean Development Mechanism in Uganda ROLES AND COMPOSITION OF THE DESIGNATED NATIONAL AUTHORITY (DNA) Presented by: Enock Mugyenyi- Uganda Management Institute

2. RoleActivitySkills required 1. Approval Registration Check on :  Sustainable development  Validity of baseline i.e will project meet the reduction indicated  Credibility of project developers  Financial reliability of the Projected CER Value  Advantages to government vis-à-vis project developer (CER Shares)  Monitoring proposal  Reporting proposal  Overall credibility of the underlying assumptions  Evaluation of baselines or at least basic understanding of how this is done  Basic Financial analysis skills  Negotiation Skills with Project financiers  Project Monitoring and reporting tools and dynamics ROLES, ACTIVITIES & SKILLS REQUIRED OF THE (DNA)

3. 2. Reporting to EB on CDM Activities Validity of project (Based on approach)  Evaluation of baselines or at least basic understanding of how this is done  Project Monitoring and reporting tools and dynamics

4. 3. Promoting CDM  Understanding potential in Country  Negotiating with potential developers (mainly government)  Keeping in- Country Stakeholders interested  Linking CDM to development  Updating itself on international developments relating to CDM or affecting CDM  Negotiation  Marketing  Awareness raising

5. RATIONALE FOR INSTITUTIONAL ANALYSIS CDM is about investments with different Institutions having a role to play according to their expertise. However, in an environment of scarce resources there is need to situate CDM in the existing Institutional framework rather than creating a completely new Institutional framework. The intention is to have a cost-effective Institutional framework which is sustainable.

6. GENERIC MODELS FOR DNA Theoretically, there are five models for DNA. They include: A single government department model A two-unit model Inter-departmental government model Foreign Direct Investment - Piggyback and Outsourcing model

7. CHARACTERISTICS AND FUNCTIONS OF A SINGLE GOVERNMENT DEPARTMENT MODEL One department or Ministry undertakes all the activities of the DNA - most likely the environment department/climate change unit. The department or Ministry acts as a secretariat and would invite technical experts from other government agencies/ministries upon demand to evaluate/analyse and validate CDM projects/investments.

8. The secretariat would then prepare a project design document (PDD) and report to the EB (refer to CDM cycle). The secretariat (the environment agency) would ultimately be responsible for approval of the CDM projects. The secretariat would be responsible for marketing and promoting CDM by designing CDM promotion material and furnish the FDI office and other relevant stakeholders.

9. Structure Executive Board Environment Ministry/Agency DNA Secretariat TECH experts (Energy) TECH experts (Agriculture) TECH expert (forestry)

10. CHARACTERISTICS AND FUNCTIONS OF A TWO-UNIT MODEL Activities of the DNA are split into two. Part 2 Capacity Building Out reach promotion Technical and economic assessments Part 1 Evaluation Approval Registration Development of Projects Policy development

11. The first part could be located in department responsible for climate change and second part in many places as an independent unit. The separation into two parts helps to avoid possible conflicts of interest in the process of project formulation and approval.

12. CHARACTERISTICS AND FUNCTIONS OF INTER-DEPARTMENTAL MODEL Entails establishing a structure which allows all the relevant government departments to be integrated into DNA as permanent members. The ministry of Environment would act as co-ordinator but approval of projects would be undertaken by all departments. A committee to operationalise the approval of projects would be set up.

13. The co-ordinating Institution would act as the registration office and would receive proposals on behalf of DNA. The co-ordinating Institution would communicate with other DNA members and also with the EB but upon agreement within DNA

14. Structure Energy Ministry Environment Agency/ Ministry AgricultureForestry EB DNADNA

15. FOREIGN DIRECT INVESTMENT (FDI) PIGGYBACK MODEL Most countries have a FDI Institutional framework which promotes foreign investment and typically comprises of a promotion office and an approval or implementation office. This Institution receives projects from foreign investors and using a pre-structured criteria evaluates and approves projects.

16. The criteria for approving projects largely reflects the national development priorities. The FDI framework could be adapted for CDM and used as the DNA. The investment office would thus receive and approve projects from various areas using its established system. Given the special aspect of CDM, concerning GHG emission reduction, the relevant technical experts would be sourced by the investment office when a CDM project is submitted to assist in validating the GHG reductions.

17. The FDI office would then prepare the project design document (PDD) and communicate with the EB. Naturally, the FDI office would promote CDM along with its other investment promotion activities.

18. Structure FDI Office GHG tech experts DNA EB

19. CHARACTERISTICS AND FUNCTIONS OF OUTSOURCING MODEL Host countries may choose to outsource the bulk of DNA services to a private agency. The agency would evaluate the projects and validate them. The agency would report to a government environment agency which would then communicate approval to the EB.

20. THE ROLES AND COMPOSITION OF DNA InstitutionRoleActivitySkills required NEMA Ministry of Water, Lands & Environme nt Ministry of Trade, Tourism & Industry U I A 1. Appro val Registr ation Check on :  Sustainable development  Validity of baseline i.e will project meet the reduction indicated  Credibility of project developers  Evaluation of baselines or at least basic understanding of how this is done  Basic Financial analysis skills  Negotiation Skills with Project financiers  Project Monitoring and reporting tools and dynamics

21. InstitutionRoleActivitySkills required Uganda National Bureau of Standards Uganda Cleaner Production Centre Ministry of Finance, Planning & Economic Dev't Ministry of Energy & Mineral Dev't Forest Department Department of Meteorology  Financial reliability of the Projected CER Value  Advantages to government vis-à- vis project developer (CER Shares)  Monitoring proposal  Reporting proposal  Overall credibility of the underlying assumptions

22. DNA coordinatin g Institution 2. Reportin g to EB on CDM Activities Validity of project (Based on approach)  Evaluation of baselines or at least basic understanding of how this is done  Project Monitoring and reporting tools and dynamics

23. NEMA Ministry of Water, Lands & Environment Ministry of Trade, Tourism & Industry U I A URA PSF Uganda National Chambers of Commerce Ministry of Finance, Planning & Economic Dev't Ministry of Energy & Mineral Dev't Forest Department 3. Promot ing CDM  Understanding potential in Country  Negotiating with potential developers (mainly government)  Keeping in- Country Stakeholders interested  Linking CDM to development  Updating itself on international developments relating to CDM or affecting CDM  Negotiation  Marketing  Awareness raising

24. ACTIVITIES FOR ESTABLISHING A DNA Hold a consultative workshop to identify DNA coordinating Institution and composition Identify legal and regulatory implications of the DNA Develop operational guidelines for functioning of the DNA In depth review of DNA members to identify capacity gaps and develop specific implementation plan to capacitate them Organise targeted series of sensitisation and training workshops for DNA members

25. Develop CDM promotion manuals and other aids Conduct periodic reviews of DNA to strengthen capacity Develop guidelines for approval/registration of CDM projects Establish a list serve for the DNA members