Philippine DNA for CDM Institutional Structure, Procedures and Sustainable Development Criteria

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Philippine DNA for CDMInstitutional Structure,
Procedures and Sustainable Development Criteria
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• 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

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• Developments
• 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
• 0507 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

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Philosophy of design

• Holistic approach through cooperative efforts
• Multi-sectoralism
• Regulatory stability
• Designation by executive issuance
• Participatory and transparent selection of sector
  representatives
• 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 experience
• 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 growth

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DNA Structure
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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 2004-2010
• 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
  technologies

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• 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

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• 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
• measures
• 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
• standards

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• 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 Governments priority
  development strategies, plans and programs

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• 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

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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

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Sustainable Development Benefits of the Project

• Economic Dimension
• Serves as the model for the advancement of other
  indigenous renewable energy sources in the
  country and the greater ASEAN region
• 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 itself
• 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

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Sustainable Development Benefits of the Project

• 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
  profitability
• Improves employment opportunities by prioritizing
  the hiring of local labor
• Use of sustainable/renewable energy contributes
  to energy independence/self-sufficiency thereby
  supporting the countrys transition to a low
  carbon economy that limits emissions intensity of
  future economic growth

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Sustainable Development Benefits of the Project

• Environmental Dimension
• Broadens the countrys 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

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Sustainable Development Benefits of the Project

• 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

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Challenges

• Technical gaps in baseline determination,
  monitoring methodologies, et al. stalls the
  development of priority sectors such as energy
  efficiency, transport and afforestation/reforestat
  ion, 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 process

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Challenges

• 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 services
• -Mabuhay at Maraming Salamat!