CDM contribution to sustainable development Bolivia case study

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					Contribution of CDM projects
to sustainable development
    Case Study - Bolivia

                Sergio Jáuregui
        Santa Cruz, Bolivia, August 2004
                 Presentation Index

1. Institutional and policy framework
2. Procedures for Host-Country Approval for
   CDM project activities
3. Criteria for host country approval
4. Criteria for the characterization of the
   contribution of project activities to sustainable
5. Case studies
6. Conclusions
7. Recommendations
           Institutional and policy framework
                         Ministry for

Inter-institutional                           Commission for
                      Viceministry for the
 Commission on                               Project Evaluation
                      Environment (DNA)
 Climate Change


        Institutional and policy framework
1.   Environmental policy integrated into National
     Development Plan (1994) - SD
2.   Ratification of UNFCCC - 1994
3.   CC Action Plan – UNFCCC Implementation Plan –
4.   Integration of CC policies, NDP, 1999
5.   First National Communication - 2000
6.   NSS - 2001
7.   DNA Designation, 2002
8.   Establishment of NCDO, 2002
9.   Overall, nominally, sustainable development policies
Procedures for Host-Country
       Approval (1)
           Criteria for host country
1. Conformity with CDM rules – EB
2. Conformity with national regulation on benefit
3. Clearly defined additionality case
4. Baseline scenario conforms with real trends
5. Sectoral authority approval (written)
6. Clearly      defined   contribution   to    SD
7. Stakeholder consultation implemented
           Approval Procedures (1) - If you
            have a PIN or Project Profile
Project proponent        NCDO               DNA

   Develop PIN

     Obtains         Technical advice –
                                          Issues Letter of
     sectoral       Recommendation to
   endorsement             DNA

 Continues to
         Approval Procedures (2) – Submission
            of a PDD or Developed Project

Project proponent        NCDO               DNA

  Develop PDD

     Obtains         Technical advice –
     sectoral       Recommendation to     Convenes CEP
   endorsement             CEP

                                          Issues Letter
  Submits to
                                           of Approval
              Overall mitigation potentials
                Sector / activity   MM tCO2
Electricity in the grid               5.6
Rural Electricity                     7.6
Transport                             2.5
Other energy uses                     1.2
Landfill management                   1.0
TOTAL ENERGY SECTOR                   17.7
(LULUCF Sector)                       80.0
(Total National Potential)            97.7
       Criteria for definition of SD
             contribution (1)
1. Based on broad criteria and regulatory
2. SD criteria (only guidelines): social,
   environmental and economic
3. Environmental criteria
  a. Reductions of emissions from particulates          –
     improvement of local air quality
  b. Sustainable use of local resources
  c. Reduction of the local environmental pressures
  d. Effects of environmental impacts on local health
        Criteria for definition of SD
              contribution (2)
4. Social criteria
  a.   Improved quality of life at the local level
  b.   Effects on poverty levels
  c.   Increase of equity levels
  d.   Respect of local cultures
5. Economic criteria
  a.   Effects on the local level of income
  b.   Effects on the levels of local production
  c.   Generation of new investment
  d.   Effective transfer of technology
       Criteria for definition of SD
             contribution (3)
6. Regulatory requirements
  a. Contribution to and compatibility with Government
     policies (local, sectoral, regional) and compliance
     with international commitments
  b. Fulfillment of regulations and sectoral development
     plans: property rights; rights over use of natural
     resources, certificates and licenses; rights of local
     and indigenous communities
  c. Environmental Impact Assessment (EIA)
  d. Distribution of benefits derived from the generation
     of CERs
            Cases for analysis

6. Santa Cruz Landfill Gas Project
7. Central Santa Rosa (Reconstruction
   of a run-of-the-river hydro central)
8. CETEFOR          (Afforestation      and
   reforestation in the Chapare region)
1. Contributions to SD defined by broad criteria
2. Criteria recommended / non-mandatory
3. No methodological references for indicators
4. No monitoring process for SD impacts required
5. A framework needed without compromising
   competitiveness nor generating a perception of
   regulatory barriers
6. Methodologies exist to develop cost-effective
7. Need to tackle issues of potential conflict of
              Recommendations (1)
1.   Establish an operative instrument for fast, cost-
     effective assessment of SD contribution (verifiers) -
2.   Generate a perception among investors that this is a
     cost-saving tool
3.   Devise a standardized methodology to self-define or
     construct alternative verifiers
4.   Develop a cost – effective, random monitoring
     protocol, based on RIA
5.   Finalize development of regulatory framework
     (including law and technical instruments)
6.   Avoid conflict of interests – further detach NCDO from
            Recommendations (2) - RIA
                                                        Mitigation /
     Area                  Verifier                     supervision
1. Environment Verifier 1.1.
                 Verifier 1.2
                 Others (self – developed)
2. Social        Verifier 2.1.
                 Verifier 2.2
                 Others (self – developed)
3. Economic      Verifier 3.1.
                 Verifier 3.2
                 Others (self – developed)

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