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Published byMyra Cox Modified over 8 years ago
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UNDP Clean Development Mechanism (CDM) Experience Brian Dawson Climate Change Adviser BDP, New York October 2004
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Overview of Presentation CDM and UNDP’s Climate Change Strategy Lessons Learnt State of the CDM market Future Activities and Issues
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UNDP and CDM UNDP has been active in CDM capacity development in recent years Field experience in 11 countries Many lessons learnt Time to reassess and clearly define UNDPs role
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UNDP & CDM: Focus Foussed on creating an ‘Enabling Environment’ DNA, DOE and public-private partnerships ‘Learning by Doing’ capacity development using real projects to build capacity CDM manual provides guidance
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UNDP & CDM: Creating an Enabling Environment Designated National Authorities Establishing an efficient CDM approval process important Sustainable Development criteria Efficient processes and procedures Legal frameworks
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UNDP & CDM: Creating an Enabling Environment Designated Operational Entities and public-private partnerships Largely ignored to date Vital role in CDM process Transaction costs Engaging industry stakeholders
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Overview of UNDP Learning by Doing Capacity Development Countries South Africa, Morocco, India, Bangladesh, China, Philippines, Brazil, Peru, Nicaragua, Trinidad &Tobago, Malaysia Partners National Governments, private sector, UNF, World Bank, WBCSD, UNIDO, UNCTAD, DANIDA
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Lessons Learnt from CDM Activities CDM is a complex process High demand and expectations in many developing countries to undertake CDM activities Identified need for human and institutional capacity building Significant knowledge and information gap on the CDM Good host country enabling environment is critical for CDM Clear and transparent approval criteria important
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State of the CDM Market Only a few sectors have approved CDM projects Landfill gas, biomethanation, some renewables Transport, small scale projects, forestry and energy efficiency projects face major hurdles Most projects unlikely to be viable in current CDM market High transaction costs constrain CDM opportunities Time consuming approvals process
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State of the CDM Market Low carbon prices constrain economic attractiveness Prices $5-7/tonne but may increase Market is maturing slowly Kyoto ratification may improve this Lack of standardised methodologies and project templates CDM Board reactive and not proactive
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CDM Issues and Barriers Is CDM a real development mechanism? Not so far Limited technology transfer Limited FDI Minimal impact on MDGs Is it a cost?
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What needs to change? Revisit CDM rules and guidelines ODA Regulatory/sectoral approaches Standard procedures/methodologies Reduce transaction costs Provisions for small scale projects Development dividend and MDGs
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Future Activities on CDM Phase II of UNF project Country-level capacity development: South Africa, Brazil, Morocco, India, Philippines Building linkages between relevant stakeholders Develop a portfolio of projects Assess CDM potential of different sectors Possibly start in 2005
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Future Activities on CDM Information Dissemination and Knowledge Transfer Document Best Practices and what works Advocacy and analysis Provide realistic guidance and advice to COs and host countries Clearly define UNDP’s strategy and role
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Conclusions CDM has not yet lived up to expectations Offers much potential as a development mechanism but things need to change Kyoto ratification a positive impact UNDP role needs to be cautious but supportive in capacity development
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