UNFCCC initiatives: CDM and DNA Help Desks, the CDM Loan Scheme, Regional Collaboration Centres

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1 UNFCCC initiatives: CDM and DNA Help Desks, the CDM Loan Scheme, Regional Collaboration Centres Africa Carbon Forum 03 July Abidjan, Côte d Ivoire Ms. Flordeliza Andres Programme Officer, UNFCCC secretariat Team Lead, RCC Kampala

2 Presentation outline Background CMP mandate CDM Loan Scheme CDM & DNA Help desks Regional Collaboration Centres a) Purpose and work areas b) CDM situation in supported countries c) Current outcomes and achievements 2

3 Background- CMP mandate The Conference of the Parties serving as the meeting of the Parties (CMP), through decision 8/CMP.7, requested the CDM Executive Board to continue promoting the equitable distribution of CDM project activities. In Decision 5/CMP.8, section VI, the CMP a) Welcomed the launch and operationalization of the CDM loan scheme and invited Parties and institutions wishing to do so to make voluntary contributions to the CDM loan scheme; b) Welcomed the establishment by the secretariat of regional collaboration centres to promote the CDM in regions underrepresented in the CDM and to support stakeholders at the regional and national levels; c) Noted with appreciation the further activities undertaken by the Executive Board and the secretariat to promote the equitable distribution of project activities and programmes of activities, including the help desk and training for the DNAs of Parties underrepresented in the clean development mechanism. 3

4 Background Response to CMP mandate UNFCCC initiatives to improve regional distribution of the CDM Modification of regulatory requirements to suit a broader range of national and regional circumstances a) PoAs b) Automatic additionality of small-scale and micro-scale projects c) Suppressed demand d) Standardized baselines Assistance to stakeholders in understanding and applying the regulatory requirements a) Training activities and workshops b) CDM and DNA help desks c) CDM Loan Scheme d) Regional Collaboration Centres 4

5 CDM Loan Scheme

6 CDM Loan Scheme - Background The CMP adopted the Guidelines and modalities for the operationalization of a loan scheme at CMP.6 in Cancun, Mexico, in December Conditions: Available to countries with fewer than 10 registered project activities (as of 01 Jan. of the year of application) To cover for the costs of: Development of PDDs Validation (and registration) First verification Interest-free Potential to benefit approximately 85 countries (42 in Africa) Funds from the interest accrued on the CDM Trust Fund, and voluntary contributions (USD 6,8 million available incl. admin costs) 6

7 CDM loan scheme Implementing agency selected October 2011: United Nations Office for Project Services (UNOPS) Memorandum of Understanding signed March 2012 Official launch during African Carbon Forum in April 2012 First window for application: 20 loans signed, representing all geographical regions Second window for application: 6 loans signed Third window: 9 loans approved Total funds committed: USD 3,22 million for 35 projects 7

8 Current status of Loan Scheme approvals After closure of the third application period (March 2013): 104 applications received 35 loans implemented 58% in Africa 67% LDCs 56% PoAs 13 different project types (RE, EE, methane, transport, AR/RE) CDM Regional Collaboration Centre, Kampala

9 CDM Loan Scheme applications Fourth window for application OPEN until 31 July

10 CDM and DNA Help Desks

11 CDM and DNA help desks The CDM and DNA Help Desks provide support for: Africa; least developed countries (LDCs); small island developing States (SIDS); and countries with 10 or fewer registered CDM projects as of 31 Dec DNA Help Desk DNAs Grid emission factor Standardized baselines Microscale additionality Other requests CDM Help Desk Project developers, DOEs, and DNAs All enquiries related to CDM project development 11

12 Regional Collaboration Centres

13 The RCC initiative purpose and work areas Purpose: The RCCs aim to help regions underrepresented in the CDM increase their attractiveness and potential for CDM, by helping to build their capacity and reduce the risk for investors. RCC Core activities: Direct support to the identification and development of potential CDM Project Activities and Programme of Activities (PoAs) and to projects requesting registration and issuance of CERs Direct support to the development and submission of proposals for standardized baselines, including development of projects that could benefit from such standardized baselines 13

14 RCCs to be established globally RCC Lomé, Togo: Operational since mid-january 2013; local partner- Banque Ouest Africaine de Développement (BOAD) RCC Kampala, Uganda: Operational since early May 2013; local partner- East African Development Bank (EADB) RCC St. George s, Grenada: to be operational by July; local partner- Windward Islands Research & Education Foundation (WINDREF) RCC Bogotá, Colombia: to be operational by July; local partner - Corporation Andina de Fomento (CAF) RCC Manila, Philippines: proposed local partner - Asian Development Bank (ADB) as local partner; 14

15 RCC-supported countries in Africa RCC Lomé RCC Kampala 1 Algeria Angola 2 Benin Botswana 3 Burkina Faso Burundi* 4 Cameroon Comoros* 5 Cap Verde Egypt 6 Central African Republic (CAR) Equatorial Guinea 7 Chad Eritrea 8 Congo (Republic of) Ethiopia 9 Democratic Republic of Congo (DRC) Kenya 10 Djibouti Lesotho 11 Gabon Libya 12 Ghana Malawi 13 Guinea Mauritius 14 Guinea-Bissau Mozambique 15 Ivory Coast Namibia 16 Liberia Rwanda 17 Madagascar Seychelles 18 Mali South Africa 19 Mauritania South Sudan 20 Morocco Sudan 21 Niger Swaziland 22 Nigeria Tanzania 23 Sao Tome & Principe Uganda 24 Senegal Zambia 25 Sierra Leone Zimbabwe 26 The Gambia 27 Togo 28 Tunisia * currently supported by RCC Lomé

16 Distribution of CDM registered projects By Region: Asia & Pacific: 85.0% Latin America & Caribbean: 12.3% Africa: 2.1% Economies in transition: 0.6% 16

17 Distribution of PoAs by technology and host country PoAs (as of 26 June 2013) South Africa All PoAs: 178 All Africa: 49 (28%) South Africa: 24 (13%) Kenya Uganda Rwanda Ghana Egypt Ethiopia Zambia Tunisia Malawi Mauritius Mozambique Sudan Tanzania Zimbabwe Burundi Cameroon Côte d`ivoire Morocco Senegal 17

18 RCC Lomé-supported countries: Registered PAs/PoAs PAs PoAs

19 RCC Kampala-supported countries: Registered PAs/PoAs PAs PoAs

20 RCC Lomé-supported countries: CDM project pipeline Project Activities PoAs Prior Cons of Validation Registered W/CERS Host at Host at No. Host Party the CDM issued validation Registration 1 Algeria Benin Burkina Faso Burundi Cameroon Cape Verde Central African Republic Chad Comoros Congo (Republic of) Cote d'ivoire Democratic Republic of the Congo Djibouti Gabon Gambia Ghana Guinea Guinea-Bissau Liberia Madagascar Mali Mauritania Morocco Niger Nigeria Sao Tome and Principe Senegal Sierra Leone Togo Tunisia Total Data source: UNFCCC as of 26/06/13 20

21 RCC Kampala-supported countries: CDM Pipeline No. Host Party Prior Cons of the CDM Project Activities Validation Registered W/CERS issued Host at validation PoAs Host at Registration 1 Angola Botswana Egypt Equatorial Guinea Eritrea Ethiopia Kenya Lesotho Libya Malawi Mauritius Mozambique Namibia Rwanda Seychelles South Africa South Sudan Sudan Swaziland Tanzania Uganda Zambia Zimbabwe Total Exc. S. Africa Data source: UNFCCC as of 26/06/13 21

22 Key barriers to CDM project development and implementation in Africa - Stakeholders views Insufficient awareness of the CDM and opportunities in the region; Lack of material and guidance on CDM in French, Portuguese etc. Lack of technical capacity for the preparation of CDM project documentation among project developers and local consultants; Feeling of disconnection between the on-the-ground realities of project development in the region and the UNFCCC in Bonn; Perception that the CDM does not work due to the limited number of success stories, specifically in relation to issued CERs; Technical and procedural complexities of the CDM registration and issuance process; and Financing for investments and funding for CDM transactions costs more difficult to justify due to carbon market situation and low CER prices. 22

23 Role of RCCs in Africa Stakeholders views Bridge the perceived disconnection between the UNFCCC secretariat and on the ground reality in developing CDM projects; Provide dedicated bilingual support to the Francophone African countries through RCC Lomé and Lusophone countries through both RCC Lomé and RCC Kampala Provide direct support to project developers in identifying and developing potential CDM projects, PoAs and standardized baselines, and to projects/poas requesting registration and CER issuance; Serve as a hub for information on CDM opportunities in the region and link project developers, service providers carbon buyers and donor agencies; Work with the donor community to coordinate and optimize the use of available funds for CDM project development and financing of underlying projects; and Tap into existing initiatives of the UNFCCC secretariat in Bonn and those of donor agencies to establish DNAs in countries without DNAs and provide training for local consultants, project developers and the DNAs 23

24 Current outcomes and achievements Establishment of centres - 3 of the 5 planned centres have progressed to full operations Direct support to projects and programmes of activities Lomé Kampala St George s Database of existing and potential Done Done Done projects established Assessment of current status and needs Done Ongoing Commencing Target priority interventions Ongoing Commencing N/A Direct support in the development of standardized baselines Lomé Possibly 4 SBLs to be supported through to submission in 2013; Conducted preliminary analysis of 8 sectors and produced country action plans for 2013 (Ghana, Cape Verde, Burkina Faso, Gambia, Benin, Burundi, Madagascar and DRC) in consultation w/dnas Dialogue with stakeholders (UNEP Risoe ACAD centre, IRENA, KfW, ECOWAS WAPP (West Africa Power Pool) and local utility companies, to investigate the feasibility to establish a GEF SBL for the WAPP grid connected countries. 24

25 Current outcomes and achievements Direct support in the development of standardized baselines (cont.) Kampala Possible collaboration with German Ministry of Environment (BMU) and KfW on: (a) a proposed PoA on efficient charcoal production in Uganda, which builds on the SBL initiative in the charcoal sector of Uganda by the BMU; and (b) assessment of PoA potential and joint development of PoAs in Ethiopia in cooperation with the Ethiopian DNA. Discussion ongoing with potential donors and stakeholders on the development of an SBL for institutional cookstoves Development of a pipeline of future projects and partnerships RCC Lomé and RCC Kampala have established contacts or have ongoing discussions with leading regional institutions to identify project leads, and collaborate in supporting the CDM project pipeline for African countries. RCC Kampala is in discussion with the Uganda DNA, the NEMA (as CME), the World Bank, the Belgian Technical Cooperation and GIZ/KfW to collaborate in supporting the implementation of the Uganda municipal waste composting PoA, (UNFCCC Ref. 2956) in particular, to provide direct support and capacity building to the PoA project team in complying with the CDM requirements for monitoring and issuance of CERs. 25

26 Thank you for your attention

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