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Kyoto-institutionalframework Powered By Docstoc
					 International experience
   on implementation of
Kyoto flexible mechanisms:
  Eastern Europe and CIS

         Marina Olshanskaya
   UNDP Regional Center for Eastern
          Europe and CIS
National institutional framework for CDM

   Designated National Authority
   Rules and procedures for review and
    approval CDM projects
   Sustainable Development Criteria
   Other legal and regulatory issues
               DNA: Core functions

   Establish and enforce national rules for project
    eligibility, submission, and approval
   Confirm compliance with national sustainable
    development goals by evaluating whether the CDM
    project meets the host Party’s sustainable development
   Certify compliance with other country-specific
    regulations and criteria, such as Environmental Impact
    Assessment (EIA).
   Issue host country approval letter, including
    confirmation that the Party has ratified the Kyoto Protocol
    and certification that the project meets national
    sustainable development goals and is undertaken on a
    voluntary basis.
         DNA: Additional functions

   Outreach to potential project developers
   Technical assistance to project developers
    for the preparation of project proposals
   Outreach to financial lending institutions to
    facilitate investment in CDM projects
   Advise project proponents during contract
    negotiations with investors
   Attract donors for capacity building for CDM
    projects and financing
   Promotional activities targeting
    international carbon investors and funds
                         DNAs at practice
Ministry of Environment (most of the existing DNAs):
“+” experience and knowledge on climate change issues;
“-” better integration of CDM in sustainable development and environment;

Other ministries (e.g. Ministry of Energy, Ministry of
“+” access to sector-specific knowledge and expertise;
“-” risk to overlook CDM opportunities in other sectors (e.g. waste)

Inter-ministerial Committee on Climate Change:
“+” participation by a wide range of entities thus spreading the word regarding
     the CDM potential;
“-” difficult to ensure full and timely participation by all appointed members,
      and if not managed properly, it could slow down the approval process
               DNAs at practice
New Governmental Body:
“+” allows focusing specifically only on CDM;
“-” significant human, technical, financial
    resources are required

Independent DNA, outside the Government:
“+” avoidance of governmental bureaucracy
“-” not sustainable in the long-run
              Other issues about DNA
   Financial:
    –   Regular budget to cover cost of staff and operational
    –   Resources to cover external experts to assist DNA in CDM
        project rewiew
    –   Capacity building activities for project developers
        (meetings, seminars, publications)
    –   Outreach to carbon investors
   Potential sources of funding:
    –   Government;
    –   External technical assistance (through bilateral and
        multilateral agreements)
    –   Percentage of CERs (risk to distract potential investors)
   Human and technical:
    –   At least one full-time staff member (ideally 2-3);
    –   Office, IT equipment, Internet connection
    National CDM project review process
Project review cycle:
-    Review of PIN: preliminary approval (non-mandatory step);
-    Review of PDD: letter of approval (mandatory);
Time frame for review of PIN/PDDs and feedback
   (varies, but normally does not exceed 30
List of documentation for submission to DNA;
Specific guidelines on project development
   (format of PIN, checklist of issues to be
   reviewed by DNA, etc)
                  Letter of Approval
   Confirmation that the Party has ratified the Kyoto Protocol;
   Approval of voluntary participation in CDM project activity;
   A statement that the proposed CDM project activity
    contributes to the sustainable development of the host Party
Additionally, the Letter may contain:
   Authorization of project participants
    [The CDM guidelines require that at least one of the Parties
    involved in the project must authorize all private and public
    entity participants in the projects]
   No objection to current and/or future allocation of CERs.
    Many DNAs include a statement approving the proposed
    transfer and/or allocation of CERs. Some DNAs have also
    started including a statement that the Party will not object to
    future allocations of credits generated, thereby honoring any
    commercial arrangement between the project developer and
    its investors after the project registration.
    Sustainable Development criteria
   In order to fulfill CDM eligibility criteria, the
    project must assist developing countries in
    achieving sustainable development;
   Selection of the sustainable development
    criteria is a sovereign matter of the host
   In the absence of universally accepted
    definition of sustainable development, most of
    the countries focused on immediate
    development objectives such as poverty
    reduction, local environmental health benefits,
    employment generation, economic growth
    Sustainable Development indicators
   Once general development goals are identified, the
    countries normally choose specific indicators to
    measure adherence with each goal:
   Economic:
    –   Change in the rate of unemployment in the project area;
    –   Changes in energy demand or supply, energy consumption
        per unit of output;
   Environmental:
    –   Emissions of SC2, NOx and particulates;
    –   Generation of waste;
   Social:
    –   tax value and revenue
    –   Increased affordability and/or quality of public services
        Other legal and regulatory issues
   Linkages/amendments to existing legislation:
    –    Energy Law
    –    Law on environmental protection
    –    Investment and fiscal regulation
    –    Environmental Impact Assessment
    –    Sectoral regulation (agriculture, waste, forestry)
   Stakeholder participation:
    – Provision for public access/comments to CDM
Thank you !

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