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UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Worksh op, Tunis 25-26 January 2003 1 Cross-cutting issues to be studied during the project Gordon Mackenzie UNEP Collaborating Centre on Energy and Environment Risø National Laboratory Denmark

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Page 1: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

1

Cross-cutting issues

to be studied during the project

Gordon Mackenzie

UNEP Collaborating Centre on Energy and Environment

Risø National Laboratory

Denmark

Page 2: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

2

Methodological work

• development of documents which address the need for popular

guidance material to national decision makers

• detailed technical material to support national and internal experts and

project developers.

• development of general project material as well as material that

specifically target regional or national issues and needs.

• All areas in addition will be covered by training material  

        

Page 3: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

3

first phase of the methodological work - 2003

• CDM project guidance material

• Baseline scenarios

• Sustainable development impacts

• Legal, institutional, and financial framework for project implementation

Page 4: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

4

CDM Project Guidance Material • develop general guidance documents to establish an overview on

internationally available best practice as well as providing a framework for the development of more specific material on regional and national issues.  

• Several international CDM project guidelines and manuals already exist

• These cover similar issues of relevance to the CDM project cycle, with specific attention to specific sub-issues.

• A review of available materials concluded that none of these in themselves offer a comprehensive coverage of all relevant issues in proper detail

• but seen as a whole they offer very valuable and generally applicable information.

Page 5: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

5

CDM Project Guidance Material

• Current methodological work will develop CDM project guidance material to combine the “best elements” of existing material and expanding on sub-issues that are considered to be less developed in other guidelines.

• special attention to background material to enhance national capacities for designing CDM projects consistent with national development priorities and supporting sustainable development.

• outline of a national decision making framework that can govern CDM supply to facilitate broad stakeholder participation

• integrated evaluation of CDM project finance and how projects can support major development priorities

Page 6: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

6

Baseline Scenarios

• Develop a generic baseline approach that countries can use as a back-drop for the establishment of their own baseline.

• Generic baseline approach will suggest a simplified procedure for developing a project specific baseline consistent with sectoral forecasts and/or official plans.

• Key background default assumptions that can be used to calculate emissions, energy conversion factors etc. will also be provided.

Page 7: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

7

Sustainable Development Impacts

• Sustainable development impact of CDM projects will be one of the important measurement points for assessing how the projects can support national development priorities.

• The methodological work will aim at– providing a basis for facilitating a national decision making

process on which development priorities a country will assign to CDM projects , and

– giving a technical background for assessing SD impacts of specific projects.

Page 8: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

8

Legal and Institutional Framework for Project Implementation

The legal and institutional issues of project implementation include a broad range of sub-issues that can be clustered in the following three sub-areas:

 

• Institutional structure of national CDM project management

• Legal issues

• Project financing

Page 9: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

9

Legal issues

• TECHNICAL BACKGROUND PAPER ON A LEGAL FRAMEWORK FOR CLEAN DEVELOPMENT MECHANISM IN DEVELOPING COUNTRIES

• Being prepared by a team of lawyers based in South Africa

• Draft to be submitted by March 2003

• To provide countries, DNAs with inspiration and starting material for formulating specific national legal framework

Page 10: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

10

The central underpinning role of law in CDM • The role of law in CDM• Problem Statement• Legal Barriers• The Need for a Legal Framework• Capacity Building: Legal Legal Capacity Development for CDM • Optimization of the Legislative Framework/law reform • Designated National Authority • Inter-governmental structures and levels of government• Business• The financial sector• Industry• Civil society/the NGO sector

Page 11: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

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A country-specific legal overview (for all regions and countries in the project) 

•Basic legal system

•Checks and balances/Rule of Law

•Legislative Branch

•Energy Policies and Sectoral Reform

•Sustainable Development Policies

Page 12: UNEP Collaborating Centre on Energy and Environment CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003 1 Cross-cutting issues to

UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

12

Optimising the legislative framework for CDM: a marriage of two distinct regimes, with reference to examples emerging from the country-specific legal overview  

•Ascertaining what legal norms rule CDM – a combination of municipal and international law

• International Law (Law of Nations)

•National Law (Municipal Law)

•Law of Nations vs Municipal Law

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UNEP Collaborating Centre on Energy and Environment

CD for CDM - Phase 1 - First Regional Workshop, Tunis 25-26 January 2003

13

•Optimising municipal energy-sector legislation for CDM, with

reference to examples from the country-specific overview

•The Sustainable Development clause and CDM

•Anticipating legal issues to emerge from the CDM project cycle

•A brief discussion of the legal issues in small-scale CDM

•Case Studies within the Eligible CDM Projects