1. CDM: ISSUES FOR CMP 2 AND THEIR IMPLICATIONS TO LDCS Presentation made to the LDC Negotiators Workshop, Nairobi, 3 November, 2006 Richard Muyungi United Republic of Tanzania

2. ISSUES  CDM Equitable Regional and Sub regional Distribution  Outcome of DNA Forum 27-28 October, 2006  Carbon dioxide Capture and storage  CDM MAP 2007 -2008

3. CDM Equitable geographic Distribution  Dec 3/CMP1, 4/CMP1 - and 7/CMP 1 which requested parties to submit to the Secretariat their views on barrier to equitable distribution of CDM and options to address the problem for Consideration at CMP 2  Decision 29/CMP 1 on Capacity Building for the KP presents 6 priority areas specifically for improving the implementation of the KP. Item e of the decision concerns the need to improve geographical distribution.  The board as per 7/CMP 1 ( para 33) and taking into account 29CMP 1has prepared recommendations for the consideration of the CMP 2 to address barriers to equitable regional distribution.

4. Recommendations  Annex 1 parties to establish CDM financial facilities to help Africa, LDCs and SIDS to –Cover start up costs relating to development of CDM projects: -providing seed funding for project devpt; develop methodologies relevant to those countries; hands on training for DNAs, Local experts and Project Developers; Support to develop PDDs –Costs could be re reimbursed for CERs from such projects

5. Recommendations  Regional cooperation to share experiences  Does to establish offices and partnerships in those group of countries  Involvement of local financial institutions and regional banks  Secretariat to develop Public awareness programme including CDM Bazaar

6. Outcome of DNA Forum 27-28 October, 2006  Clarification on the modalities of communication within the EB and secretariat  Funds for the DNA forum budgeted for two meetings a year  Establishment of DNA extranet possible; plus a CDM Bazaar  Clarifications on CCS projects and other issues  Possible DNA/DOE Forum

7. Carbon dioxide capture and storage  The CDM EB 26, in view of the request by CMP 1 to consider proposals for new methodologies for carbon dioxide capture and storage (CCS) as clean development mechanism project activities with a view to making recommendations to CMP 2, on methodological issues, in particular with regards to project boundary, leakage and permanence, considered the qualitative assessments prepared by its Meth Panel and SSC Working Group.

8. Carbon dioxide capture and storage  The Board decided to recommend to the CMP 2 that current knowledge and issues identified posed considerable difficulties in approving the proposed methodologies as CDM methodologies in their current form.  The application of CCS as a CDM project activity is questionable. In summary, an assessment of the proposed new methodologies for CCS project activities (NM0167 - (CDM-PDD: “The White Tiger Oil Field Carbon Capture and Storage (CCS) project in Vietnam”); NM0169- (CDM-PDD: “The capture of the CO2 from the Liquefied Natural Gas (LNG) complex and its geological storage in the aquifer located in Malaysia” ; and SSC_038 - SSC_038 ("Anthropogenic ocean sequestration by changing the alkalinity of ocean surface water (alkalinity shift") ) identifies a number of issues related to CCS project activities under the CDM.

9. CCS Conclusions  The approaches and procedures suggested by the submitted methodologies do not address the methodological and accounting issues in an appropriate and adequate fashion. This would therefore pose considerable difficulties in approving these proposed methodologies as CDM methodologies in their current form. In addition, it is questionable whether some issues can be resolved without further guidance from COP/MOP and/or a technical body on CCS. The proposed methodologies were therefore rejected.

10. CDM MAP 2007-2008  Strengthening the Secretariat to undertake Methodological and analytical work  Enhancing interaction with DNAs, DOES and PPs – 2 DNA for per year funded  Dedicated legal support  Increased number of Staff – LDCs, Africa encouraged to apply