DENR Philippine DNA for CDM

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					Philippine DNA for CDM
Institutional Structure, Procedures and
  Sustainable Development Criteria
Start of Project
 Addressing unsustainable growth and development at the
 expense of ENR sector; socio-economic development and
 poverty alleviation are top priorities
 Climate Change Initiatives:
 08 May ‘91: Creation of the Philippine Inter-Agency Committee on
 Climate Change (IACCC)
 15 Apr ‘98: Philippines signed the Kyoto Protocol
 Dec ‘99: Initial National Communication on CC
 CDM seen as an opportunity to achieve investment targets in
 priority sectors: the project explored ways to expedite designation
 of a CDM NA and country ratification of Kyoto Protocol
 2002: Project on the Establishment of CDM NA Operational
 Framework and Support Systems was conceptualized; supported
 by the Dutch Government through UNDP
 20 Nov ’03: Philippines ratified the Kyoto Protocol
 25 Jun ’04: DENR designated as the National Authority for CDM
 in the Philippines (Presidential Executive Order No. 320)
 31 Aug ’05: DENR as the DNA issued Departmental
 Administrative Order (DAO) No. 2005-17 on the rules and
 regulations governing the implementation of EO 320
 05&07 Sept ’05: publication of DAO 2005-17
 16 Dec ’05: Issuance of First Letter of Approval by the Philippine
 DNA for CDM

 Present steps:
   DNA support mechanisms
   Manual of Procedures
   Supplementary guidelines/ issuances
Philosophy of design
   Holistic approach through cooperative efforts
   Multi-sectoralism
   Regulatory stability
   Designation by executive issuance
   Participatory and transparent selection of sector
   Balancing administrative feasibility and competitiveness in
    creating a system that is conducive to investment
   Continuing examination of links between the CDM system
    and other domestic processes relevant to CDM as guided by
   Philippine CDM approval process will:
       enrich practical & holistic development interventions
       enhance the policy environment
       Emplace transparent, credible and efficient procedures
        conducive to investments and consequently, socio-economic
DNA Structure
                                  TEC for Energy-Related
                                     Project Activities     DOE
CDM Steering
     Chairperson – DENR USec
     and an alternate
                                  TEC for Afforestation &   FMB-
     Members and alternates:
                                   Reforestation Project    DENR
     DOE, DOST, Private Sector,

                                     TEC for Waste          EMB-
    CDM               EMB-         Management Project       DENR
 Secretariat          DENR             Activities
              BASIC STEPS

                                                  Step 4
  Step 1            Step 2         Step 3
 Project            Project        Project
Application        Evaluation    Endorsement

 Project             TEC        CDM Steering       DNA
Proponent                        Committee     (Secretary
                                                of DENR)

              Project Application Monitoring

                       CDM Secretariat
Sustainable Development
   Enhanced Philippine Agenda 21:
       harmonious integration of a sound and viable economy, responsible
        governance, social cohesion and ecological integrity
   Medium Term Philippine Development Plan (MTPDP) for 2004-
     Overcome poverty with promotion of livelihood, strengthening of
      education, attainment of fiscal stability, decentralized development and
      arriving at sustained national harmony
     ENR sector to pursue sustainable and more productive utilization of
      natural resources to promote investments and entrepreneurship
         Create a climate conducive to investments and production by
             •   Liberalizing/streamlining and refocusing the EIS System
             •   Linking community-based programs and small/medium scale projects
                 to sources of finance and markets
             •   Implementing at least 10 CDM project activities
             •   Shifting from technology generation to technology transfer as well as
                 providing technical assistance, best suitable practices and
Basic Policy of the DNA
   Facilitate and promote CDM project activities that:

       contribute to the UNFCCC objective of stabilization of GHG
        concentrations in the atmosphere at a level that would prevent
        dangerous anthropogenic interference with the climate system
       lead to the transfer of environmentally safe and sound
        technology and know-how
       contribute to the conservation of biological diversity and
        sustainable use of natural resources
       comply with all other pertinent laws and regulations
       provide measures to alleviate poverty

                                           as part of their contribution to
                                             sustainable development
   Sustainable development criteria for CDM:

       Adhere to the antipoverty goals articulated in the PA21 and
        MTPDP by upholding project activities that:
        - provide livelihood and economic opportunities
        - provide new financial resources
        - promote use of cleaner, more efficient and
          environment-friendly technologies
        - provide proper safety nets and compensatory

       Recognize that ecological integrity is a key pillar of Philippine
        SD by pushing CDM project activities that:
        - promote sustainable use of natural resources
        - improve local environmental quality
        - comply with national environmental policies and
   Sustainable development criteria for CDM:
       Work toward instituting social order based on fairness
        and provision of support systems that look after the
        welfare of every Filipino by supporting CDM project
        activities that:
        - provide education & training to build capacities of
          local stakeholders
        - enhance access to local resources and services for
          vulnerable groups
        - promote local participation in the project

    Allowing only CDM project activities that have an overall
       positive impact on the national sustainable development
       ensures that the CDM process is aligned with
       Government’s priority development strategies, plans and
   Sustainable Development Benefits Description (SDBD)

       A document presenting the sustainable development impacts
        of the proposed CDM project activity

       Item IX of PAD; minimum content shall follow the outline
        below per Annexes III and IV of DAO 2005-17:
          Small Scale Project Activities:  Project Activities Not
        _________________________          Considered Small Scale:
        I.   General Project Information          -same-
        II. Economic Dimension                     -same-
        III. Environmental Dimension               -same-
        IV. Social Dimension                       -same-
                                           V.     Monitoring Measures
                                           VI.    Mitigating Measures
        V.   Overall Sustainable Development       -same- (Item VII)
             Impact of the Project
First Proposed CDM Project Issued with a
Letter of Approval by the Philippine DNA
   The NorthWind Bangui Bay Project
           Regular Scale: 33MW wind turbine power plant by the
            NorthWind Power Development Corporation
           Region I: Bangui Bay, Ilocos Norte

           est. 51,855 tCO2-e/yr by displacement of grid power
            generated from fossil fuels
   First commercial wind power project in Southeast Asia
   First of its kind to be connected to the Philippine main grid
Sustainable Development Benefits of the
Economic Dimension

   Serves as the model for the advancement of other indigenous
    renewable energy sources in the country and the greater ASEAN
   Provides training assistance for government personnel of the
    Department Energy, making the project an effective medium of
    transfer of wind power technology and know-how
   Contributes to tourism growth as it has become a prime attraction in
   Opens economic opportunities by attracting investors as a result of the
    dramatic improvement in the power supply, and by drawing tourism-
    related industries to set up in the area
   Provides discounted power rates to beneficiary residents as the
    project will sell electricity at about 7% lower than the NPC rate
Sustainable Development Benefits of the
Economic Dimension

   Commits 1 centavo/kWh of total electricity sales as financial benefit to
    host community
   Provides additional tax revenues for the local government even as this
    pioneer project did not obtain subsidy from the State to improve its
   Improves employment opportunities by prioritizing the hiring of local
   Use of sustainable/renewable energy contributes to energy
    independence/self-sufficiency thereby supporting the country’s
    transition to a low carbon economy that limits emissions intensity of
    future economic growth
Sustainable Development Benefits of the
Environmental Dimension

   Broadens the country’s resource base by utilizing an indigenous,
    inexhaustible and more environmentally sound energy source
   Complies with the Philippine Environmental Impact Assessment
    System and has been issued an Environmental Compliance
    Certificate (ECC)
   Construction mirrors the curvature of the shoreline to blend with the
    natural terrain
   Use of the natural resource, i.e. wind energy, is sustained through
    the 20-year Electricity Sales Agreement with the local electric
    cooperative for the provincial consumption of the power to be
    generated by the wind plant
Sustainable Development Benefits of the
Social Dimension

   Maintains open access to the beach or sea for the local fishermen
    and the pebble pickers
   Provides an access road to the shore area, making it convenient for
    the local population to get around as they go about their usual
    business in the shoreline area
   Allocates funds for the social development programs benefiting the
    host villages
   Technical gaps in baseline determination, monitoring methodologies,
    et al. stalls the development of priority sectors such as energy
    efficiency, transport and afforestation/reforestation, which have high
    CDM potential

   Sizeable rural population presents a large trade and investment
    potential but CDM-eligible project activities in the Visayas and
    Mindanao regions remain untapped

   Nature of small scale CDM project activities provides huge potential
    for benefiting poor sectors of society but the associated
    proportionately higher risks prevent these from taking off; lacks the
    capacity to develop bundled projects for various sectoral scopes

   Timely updating in light of the quickly evolving international rules as
    well as developments in national policies, laws, rules and regulations
    requires continuous capacity building to manage the complex CDM
   The evaluation of sustainable development (SD) benefits needs to be
    further refined; conduct of case studies per sector on how CDM
    projects have actually contributed to national and local sustainability
    is crucial

   Limited capacity of relevant groups such as sector-specific/ industry
    associations, rural cooperatives and NGOs to develop CDM projects
    across the country

   Limited pool of locally based qualified CDM advisors to assist in CDM
    project development and the absence of locally based operational
    entities that can provide competitive validation and verification

                                  -Mabuhay at Maraming Salamat!