The CDM and LocalThe CDM and LocalSustainable DevelopmentSustainable Development

The CDM Point of DepartureThe CDM Point of Departure CDM is the first multi-lateral trade CDM is the first multi-lateral trade

mechanism insisting on Sustainable mechanism insisting on Sustainable Development in article 12 of KP “…assist Development in article 12 of KP “…assist Parties not included in Annex 1 in achieving Parties not included in Annex 1 in achieving Sustainable Development and contributing Sustainable Development and contributing to the ultimate objective of the to the ultimate objective of the Convention….”Convention….”

CDM assists Annex 1 countries in meeting CDM assists Annex 1 countries in meeting their emissions reduction targets in return their emissions reduction targets in return for income for credits derived from projects for income for credits derived from projects that contribute to sustainable developmentthat contribute to sustainable development

Assessment of CDM Assessment of CDM objectives objectives

An accredited DOE verifies the An accredited DOE verifies the reduction in emissions resulting reduction in emissions resulting from a CDM project activityfrom a CDM project activity

The determination of the SD The determination of the SD contribution is left to the host contribution is left to the host country government.country government.

Is the CDM delivering on Is the CDM delivering on SD?SD?

Slack SD rules to attract CDM related FDISlack SD rules to attract CDM related FDI Current CDM pipeline dominated by high Current CDM pipeline dominated by high

yield (HFC, CHyield (HFC, CH44,N,N22O) low abatement cost O) low abatement cost projects, with low SD contribution.projects, with low SD contribution.

Renewable energy, energy efficiency, Renewable energy, energy efficiency, etc. are marginalised as uncompetitive etc. are marginalised as uncompetitive in CDM market.in CDM market.

Current overview Current overview

Project Status Tonnes CO2e

Landfill Gas PDD 3,204,032

Hydro-electric Power PIN 215,512

Fuel Switching PIN 203,064

Landfill Gas PDD 1,009,200

Industrial Energy Efficiency PIN 12,400,000

N2O Reduction PIN 4,360,000

Fuel Switching PDD 518,840

Thermally Efficient Housing PDD 44,024

Total Tonnes CO2e reduced between 2005 & 2012 21,954,672

Retrofit 2309 low-cost houses in Retrofit 2309 low-cost houses in Kuyasa, Khayelitsha with:Kuyasa, Khayelitsha with:

Insulated ceilings,Insulated ceilings, solar water heaters and solar water heaters and CFL’s (energy efficient CFL’s (energy efficient

lighting)lighting)

Kuyasa Thermal Efficiency in Kuyasa Thermal Efficiency in Low-income Housing:Low-income Housing: Project Project ScopeScope

Thermal Efficiency UpgradeThermal Efficiency Upgrade

The Kuyasa project pre-empts a rise in domestic electricity use in low The Kuyasa project pre-empts a rise in domestic electricity use in low income urban areas in South Africa through the installation of income urban areas in South Africa through the installation of renewable energy and energy efficiency interventions renewable energy and energy efficiency interventions

This required the establishing of a baseline that takes into account This required the establishing of a baseline that takes into account the suppressed demand for energy services as a result of energy the suppressed demand for energy services as a result of energy poverty and lack of energy infrastructurepoverty and lack of energy infrastructure

The registerstration of the project as a CDM project will enable it to The registerstration of the project as a CDM project will enable it to access carbon revenues to access carbon revenues to subsidisesubsidise the capital expenditure. Its the capital expenditure. Its Gold Standard rating ensures a premium ito the price it is able to Gold Standard rating ensures a premium ito the price it is able to command. command.

The project has numerous benefits including reduced expenditure on The project has numerous benefits including reduced expenditure on space heating, water heating and lighting, a reduction in respiratory space heating, water heating and lighting, a reduction in respiratory health impacts, and the creation of employment opportunities health impacts, and the creation of employment opportunities

Project Project BenefitsBenefits

Kuyasa

City of CT

Western Cape

South Africa

BENEFITSBENEFITS Alleviates energy poverty through Alleviates energy poverty through

access to affordable, renewable energy access to affordable, renewable energy and energy efficiency measuresand energy efficiency measures

Saves R600/hh/annum in energy costs: Saves R600/hh/annum in energy costs: reduced expenditure on space heating, reduced expenditure on space heating, water heating and lighting,water heating and lighting,

Creates over 100 person years Creates over 100 person years employmentemployment

Improves health conditionsImproves health conditions

Improves local air qualityImproves local air quality

Reduces peak energy demandReduces peak energy demand

reduction in respiratory health impactsreduction in respiratory health impacts

Benchmark for replication Benchmark for replication internationallyinternationally

The Public Sector and CDM The Public Sector and CDM

Financial barriersFinancial barriers: the need for bridging : the need for bridging finance and working with public mony in a finance and working with public mony in a speculative environmentspeculative environment

Legal & institutionalLegal & institutional: legislation, : legislation, bureaucracy, inflexibility, lack of capacity bureaucracy, inflexibility, lack of capacity to manage riskto manage risk

Dedicated ResourcesDedicated Resources: climate change : climate change action vs. development objectivesaction vs. development objectives

Policy vacuumPolicy vacuum: NCCRS not translated to : NCCRS not translated to the local level. the local level.

Ensuring SD in CDMEnsuring SD in CDM

Project DevelopersProject Developers: Maximise southern benefits : Maximise southern benefits through selection of projects, choice of investors (CER through selection of projects, choice of investors (CER buyers), and timing transactions.buyers), and timing transactions.

DNADNA: Establish robust SD criteria, in line with country : Establish robust SD criteria, in line with country dev. priorities for project appraisal. Provide effective dev. priorities for project appraisal. Provide effective and enabling framework for project approval. and enabling framework for project approval.

Public Sector and Public Sector PartnershipPublic Sector and Public Sector Partnership: How : How do we incentivise the private sector to undertake do we incentivise the private sector to undertake emissions reductions in renewable energy and energy emissions reductions in renewable energy and energy efficiency in sectors crucial to SD efficiency in sectors crucial to SD

Civil SocietyCivil Society: Vigilance in appraisal of DNA decisions: Vigilance in appraisal of DNA decisions

Thank you,Thank you,shirene@southsouthnorth.orgshirene@southsouthnorth.org

Website: Website: www.southsouthnorth.orgwww.southsouthnorth.org

www.cdmguide.comwww.cdmguide.com