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UNDP & CDM: Strategy for Efficient Implementation

UNDP & CDM: Strategy for Efficient Implementation. Forum MDP Maroc Project de Renforcement des Capacités sur le Mécanisme de Développement Propre Arun Kashyap Climate Change & CDM Adviser UNDP 21-22 April 2004. Underlying Principle. Millennium Development Goal

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UNDP & CDM: Strategy for Efficient Implementation

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  1. UNDP & CDM: Strategy for Efficient Implementation Forum MDP Maroc Project de Renforcement des Capacités sur le Mécanisme de Développement Propre Arun Kashyap Climate Change & CDM Adviser UNDP 21-22 April 2004

  2. Underlying Principle Millennium Development Goal Halve the proportion of people living in extreme poverty by 2015 Water, Energy, Health, Agriculture & Biodiversity (WEHAB) Climate Change - a cross cutting issue

  3. Efficient CDM Process Obtaining high value investments New investments to catalyze reduced carbon development Divert existing investments to areas that would reduce GHG emissions Host country approval – Designated National Authority Sustainable development criteria – host country responsibility Lead to high quality CERs Obtaining optimum price for CERs

  4. Learning by Doing: UNDP’s Experience - Findings Existence of win-win project opportunities Large proportion of small size projects Good rate of return on a project is a necessary but not a sufficient condition Demand for transparent government infrastructure and clarity on institutional responsibilities Critical need for human, institutional and systemic capacity and enabling environment

  5. Designated National Authorities (DNAs): Learning Project promotion and Project over- sight represent inherent conflict Inputs from diverse stake holders can be beneficial Efficient administrative structures reduce transaction costs Clarity in implementation guidelines Sustainable Development Criteria

  6. Sustainable Development Criteria Equity, Efficiency and Sustainability and Defined by national priorities Microeconomic and Project based Ability to Measure and Monitor Operational Transparent Participatory Minimal – Keep it Simple

  7. Sustainable Development Vs. MDG Indicators Can MDG Indicators provide guidance for development of the Sustainable Development Indicators?

  8. Other Lessons Need to start now! CER price is a concern Need to understand the market Reduce transaction costs Long term and equity perspective ⇓ Capacity Development

  9. Spectrum of Needs Human, Institutional & System-wide Capacity Geographical and Project Equity Small size projects Efficient and Participatory Policy Environment & Innovative Macroeconomic Instruments Long term perspective Obtaining optimum terms of trade

  10. CDM Strategy Capacity Development to Implement CDM Human Institutional System-wide Learning by Doing Small Size Projects

  11. UNF CDM Project: Phase 1 UNDP (coordinator) WBCSD, UNIDO, UNCTAD Host Government • Project Entrepreneurs • Brazil: Bioenergia, BP • South Africa: PIKITUP, Mondi Civil Society (Universities, NGO) Bilateral support DANIDA PDDs Developed Potential Buyers: Danish Gov’t, PCF Learning-by-Sharing for other Entrepreneurs

  12. UNF CDM Project: Phase II UNDP (coordinator) UNIDO, UNCTAD, WBCSD, Natsource Secondary Partners (donors, industry, civil society) Host Governments Project Entrepreneurs Network of South-South Knowledge Sharing Support to DNA ENABLING ENVIRONMENT FOR EFFICIENT CDM Advisory Services for Projects and GHG Market Sustainable Development Criteria Pipeline of Bankable CDM projects

  13. UNDP-CDCF Collaboration CDCF UNDP • CDCF • CDCF Plus • UNDP • GEF SGP • Entrepreneurs • UNDP COs Develop Portfolio of Viable Projects UNDP Energy Projects (TTF) Non-SGP GEF Projects GEF SGP Projects Small-Scale CDM Projects

  14. UNDP-Canada CDM Efforts DFAIT UNDP • Private Sector • Civil Society • Other donors (DANIDA, WB) • Host Government • South Africa • -Brazil • CDM Institutional Capacity Development • Progress towards SD criteria • Progress towards effective DNA

  15. UNDP CDM User’s Guide http://www.undp.org/seed/eap/html/climate.htm

  16. Country Level Activities Ongoing Bangladesh, Brazil, China, India, Malaysia, Morocco, Nicaragua, Peru, Philippines, Trinidad & Tobago, South Africa Planned Cambodia, Indonesia, Thailand, Vietnam, African Region, SIDS In house capacity building Best practices

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