2nd National Workshop on Capacity Development for the Clean Development Mechanism Introduction to the Clean Development Mechanism 4 November 2003, MiCasa Hotel, Phnom Penh

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2nd National Workshop on Capacity Development for
the Clean Development MechanismIntroduction to
the Clean Development Mechanism4 November
2003, MiCasa Hotel, Phnom Penh

• By SUM THY,
• Team Leader, Awareness Raising

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Content

1. CDM basic concepts
2. CDM basic rules and how does it work?
3. CDM project cycle
4. Government CDM involvement
5. Benefits of CDM - what can Cambodia expect?
6. Summary

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1. CDM basic concepts (1)

• The Kyoto Protocol adopted in1997 has committed
  developed countries to legally meet greenhouse
  gase (GHGs) reduction targets
• These countries have to reduce their GHG
  emissions on an average of 5.2 below their 1990
  emission levels in the first commitment period
  2008-2012.
• Six main greenhouse gases are targeted Carbon
  Dioxide, Methane, Nitrous Oxide,
  Hydrofluorocarbons (CFCs), Perfluorocarbons, and
  Sulphur hexafluoride.

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1. CDM basic concepts (2)

• Developed countries can choose to reduce
  emissions
• At home in their own country, or
• In other countries
• Reducing emissions in developing countries is
  eligible known as CDM.
• CDM has two objectives
• Assist developing countries in achieving
  sustainable development
• Assist developed countries in achieving Kyoto
  Protocol compliance.

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2. CDM Basic rules and how does it work? (1)

• All parties must meet 3 basic requirements to
  participate in CDM
• Voluntary participation
• Establishment of Designated National Authority
  (DNA)
• Ratification of the Kyoto Protocol
• CDM projects must
• Be approved by the host country
• Lead to sustainable development in host country
• Rresult in real, measurable and long-term
  benefits in terms of climate change
• CDM projects cannot
• Divert Official Development Assistance (ODA)
• Be nuclear power.

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2. CDM basic rules and how does it work? (2)

• Investment in projects that reduce or avoid or
  sequester greenhouse gas emissions, such as
• Renewable energy (hydro, wind, solar, biomass)
• Energy efficiency (end use and production)
• Fuel switching (bio-diesel, gas)
• Cogeneration (combined heat and power)
• Industrial processes (CO2 from cement
  production)
• Forestry (Afforestation and reforestation for
  carbon sink)
• Transport activities
• Waste management

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2. CDM basic rules and how does it work? (3)

• Investment in GHG reduction project can generate
  Certified Emission Reductions (CERs), which are
  units of carbon that is reduced.
• Developed countries use CERs to meet their legal
  target in 2008-2012, or trade them.
• Many steps to create CERs - project cycle

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3. CDM project cycle
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5. Government CDM involvement

• Ratify the Kyoto Protocol and establish the DNA
• Define criteria for assessing approving
  projects
• Rules of CDM require government to assess against
  their national sustainable development objectives
• Example project contribution to development
  priorities, poverty reduction, environmental
  improvement, etc.
• Government will assess the proposed CDM projects
  against the national sustainable development
  criteria
• Define priority areas and activities for
  investors
• Eg preferred technologies eligible or
  in-eligible projects
• Help facilitate CDM investment projects
• Identify promising projects, promote these
  projects to potential international investors
• Publish investment rules and procedures

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6. Benefits of CDM - what can Cambodia expect?

• Attract additional finance for projects that
  reduce greenhouse gas emissions and lead to
  achieve sustainable development goals.
• note CDM will not cover all investment costs
• Investment of companies and/or Governments in
  sustainable energy projects in Cambodia
• Opportunity to improve energy efficiency
• Opportunity to develop renewable energy
• Provide a tool of technology transfer

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7. Summary

• CDM may be an opportunity for Cambodia
• Interest in less greenhouse intensive projects
• Assist developing sustainable energy
  infrastructure
• Worldwide increased demand for projects that
  reduce emissions
• Win-win situation for both parties
• Cambodia is preparing through UNEP/RISO funded
  project CD4CDM
• Raising awareness of CDM - opportunities
• Developing approval body (DNA) approval process
• Work with private industry to develop a
  pipeline of projects
• Links - www.cd4cdm.org www.prototypecarbonfund.or
  g www.ecosecurities.com www.enda.sn
  www.teriin.org www.natsource.com www.unfccc.int