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Capacity Development for the CDM (CD4CDM)First National Workshop - SURINAM

Sustainable Development Impact Evaluation

Miriam HinostrozaUNEP Risø Centre (URC)

Paramaribo, April - 2008

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Sustainable development (SD) and the CDM• Two-fold objective of the CDM:

– assist Annex I parties in achieving compliance with their quantified emission limitation and reduction commitments…

• helping to reduce compliance costs

– and… assist developing countries parties in achieving sustainable development and in contributing to the ultimate objective of the Convention

• involving clean technology transfer• investments flows from north to south• decarbonization of economies

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What is SD about?• SD definition – many alternatives

– Brundtland Report (1987): 'development that meets the needs for the present without compromising the ability of future generations to meet their own needs'

• A commonality: – the definitions focus on three dimensions: the economic,

environmental, and social dimensions and on integrating them in the short and long term

– SD means recognising that our economy, environment and social well-being are interdependent.

– the three dimensions should be given similar weight

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SD most common indicatorsEconomic Dimension:

• Reduce economic burden of energy imports, provide financial returns to local entities,

• Positive impact on balance of payments,

• Technology transfer, • Generate employment,• Sound financial

Costs/cost-effectiveness

Social Dimension: • Increase equity • Reduce poverty • Improve quality of living • Increase energy access

gender issues • Health• Education and training• Legal framework• Governance• Information sharing

Environmental Dimension: • GHG emission reductions, • Local environmental

benefits, related to e.G. Air pollution, water, soil, waste

• Use of exhaustible resources

• Use of renewable resources

• Biodiversity

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SD: What to sustain?• SD is about shifting carbon based economies to be more

dependent on renewable energy sources– Changes in people’s VALUES– Changes in ECONOMIC STRUCTURES– Changes in TECHNOLOGIES and implementation

• CDM is an instrument that promotes technology innovation– Increment of EE in productive uses and final consumption– Changes in consumption structures– Introduction of new processes and energy transformation

equipments– Alteration in agricultural practices and LU patterns

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SD criteria• The most challenging issue for DNAs – to define SD

criteria

– When a DNA certifies that a potential CDM project contributes to the country’s SD, it means that the project is compatible with and supportive of national environmental and development priorities and strategies.

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SD criteria

• Most DNAs in Latin American countries adopted the checklist approach to evaluate a CDM project. They check:– Principles

• Accomplishment of national/sectoral legislation

• Contribution, relevance and coherence with national development policy

• Contribution to improve long term social and economic wellbeing of local communities

• Implementation of cleaner production systems

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SD criteria– Requirements

• Certification of non-environmental sectoral legislation accomplishment applicable to the project

– labour legislation

• Environmental Permits according to current legislation• Criteria for SD

• Description on how the project contributes to long term development objectives and coherency with national, regional, local and sectoral policies and strategies

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The SD potential of the CDM

• What kind of projects should CDM be financing?– projects that help in the long-term transition of developing

country energy sectors towards RETs,

• SD not merely a requirement of the CDM. It should be seen as a main driver:– SD criteria are a sovereign matter to be determined by host

countries– National authorities can use SD assessment of CDM projects to

evaluate key linkages between national development goals and CDM with the aim to select and design projects in a way, where they exploit, create and maximise local development synergies.

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Challenges & opportunities for DNAs

• Host party’s prerogative to ‘confirm whether a CDM project activity assists it in achieving sustainable development’

• DNA has a key role in securing local development benefits of CDM projects.

• SD assessment of CDM projects is an opportunity for DNA to evaluate key linkages between national development goals and CDM project interventions

• Credibility of the CDM system & the host country

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Conclusive remarks

• The development of effective institutions is crucial to reap benefits from the carbon market.

• Investors prefer host countries with an established legal and political system which clearly recognise and support CDM investment.

• The host country DNA are assisting investors to understand the nature and extent of country political system by:– providing country investment guidelines;

– explaining CDM policy and relevant legal frameworks.

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For more information visit:www.cd4cdm.org

http://cdmpipeline.org/

www.uneprisoe.org

http://cdmbazaar.net/

Thank You !!