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The CDM and Local Sustainable Development. The CDM Point of Departure.

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The cdm and local sustainable development

The CDM and LocalSustainable Development

The cdm point of departure
The CDM Point of Departure

  • CDM is the first multi-lateral trade mechanism insisting on Sustainable Development in article 12 of KP “…assist Parties not included in Annex 1 in achieving Sustainable Development and contributing to the ultimate objective of the Convention….”

  • CDM assists Annex 1 countries in meeting their emissions reduction targets in return for income for credits derived from projects that contribute to sustainable development

Assessment of cdm objectives
Assessment of CDM objectives

  • An accredited DOE verifies the reduction in emissions resulting from a CDM project activity

  • The determination of the SD contribution is left to the host country government.

Is the cdm delivering on sd
Is the CDM delivering on SD?

  • Slack SD rules to attract CDM related FDI

  • Current CDM pipeline dominated by high yield (HFC, CH4,N2O) low abatement cost projects, with low SD contribution.

  • Renewable energy, energy efficiency, etc. are marginalised as uncompetitive in CDM market.

The cdm and local sustainable development

Kuyasa Thermal Efficiency in Low-income Housing:Project Scope

Retrofit 2309 low-cost houses in Kuyasa, Khayelitsha with:

  • Insulated ceilings,

  • solar water heaters and

  • CFL’s (energy efficient lighting)

Thermal efficiency upgrade
Thermal Efficiency Upgrade

  • The Kuyasa project pre-empts a rise in domestic electricity use in low income urban areas in South Africa through the installation of renewable energy and energy efficiency interventions

  • This required the establishing of a baseline that takes into account the suppressed demand for energy services as a result of energy poverty and lack of energy infrastructure

  • The registerstration of the project as a CDM project will enable it to access carbon revenues to subsidise the capital expenditure. Its Gold Standard rating ensures a premium ito the price it is able to command.

  • The project has numerous benefits including reduced expenditure on space heating, water heating and lighting, a reduction in respiratory health impacts, and the creation of employment opportunities

The cdm and local sustainable development

Project Benefits


  • Alleviates energy poverty through access to affordable, renewable energy and energy efficiency measures

  • Saves R600/hh/annum in energy costs: reduced expenditure on space heating, water heating and lighting,

  • Creates over 100 person years employment

  • Improves health conditions

  • Improves local air quality

  • Reduces peak energy demand

  • reduction in respiratory health impacts

  • Benchmark for replication internationally

South Africa

Western Cape

City of CT


The cdm and local sustainable development

The Public Sector and CDM

  • Financial barriers: the need for bridging finance and working with public mony in a speculative environment

  • Legal & institutional: legislation, bureaucracy, inflexibility, lack of capacity to manage risk

  • Dedicated Resources: climate change action vs. development objectives

  • Policy vacuum: NCCRS not translated to the local level.

Ensuring sd in cdm
Ensuring SD in CDM

  • Project Developers: Maximise southern benefits through selection of projects, choice of investors (CER buyers), and timing transactions.

  • DNA: Establish robust SD criteria, in line with country dev. priorities for project appraisal. Provide effective and enabling framework for project approval.

  • Public Sector and Public Sector Partnership: How do we incentivise the private sector to undertake emissions reductions in renewable energy and energy efficiency in sectors crucial to SD

  • Civil Society: Vigilance in appraisal of DNA decisions

Thank you shirene@southsouthnorth org website www southsouthnorth org www cdmguide com

Thank you,