Handson Capacity Building Needs Experiences from past and ongoing projects CDM Roundtable, 1112 Apri

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Hands-on Capacity Building NeedsExperiences from
past and ongoing projects CDM Roundtable, 11-12
April 2002, Amsterdam

• Sascha van Rooijen
• Energy research Centre of the Netherlands
• Unit Policy Studies

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Contents
JI Capacity Building programme in brief
Experiences and Lessons Learned on Capacity
Building
Suggested core elements of CDM Learning by Doing
Capacity Building Programme
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Who are we? Energy research Centre of the
Netherlands

• 650 employees
• Policy Studies, Energy Efficiency, Solar Energy,
  Renewable Energy in the Built Environment, Wind
  Energy, Biomass and Clean Fossil Fuels
• Units policy studies 50 researchers 5,5 M E
  turnover core business policy research and
  advice main clients Dutch government, EU, IEA,
  MB, local governments, energy companies

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Our experiences lessons learned

• 1. Climate change policy research and advice
• 2. Implementation of the Kyoto Protocol
• Capacity Building
• Baseline guidelines and procedures
• 3. Technical assistance in non-OECD countries,
  f.e.
• climate change action plans
• mitigation scenarios
• emission inventories
• energy efficiency strategies

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JI Capacity Building Programme in Brief
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Background

• Rational
• MoU signed, JI co-operation, potential transfer
  Mton, TA, mid-2000, two-year programme
• Objectives CB programme
• 1. Immediate/specific support Bulgarian and
  Romanian governments with implementation of the
  ERUPT tender
• 2. Longer-term/continuity/more generic
  contribute to sustainable capacity in Joint
  Implementation and climate change

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Overview topics for CCcapacity building
JI/ET strategy/policy
Implementation JI/ET
Background analysis (scenarios)
National CC strategy and policy
Domestic CC policy
Implementation domestic policy
National System Kyoto Protocol
GHG inventories
National Communications Reporting obligations
Accounting modalities and national registries
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Dutch JI CB Programme - Bulgaria and Romania

Financial Support by Dutch Government Technical
Assistance by ECN/Novem
Other domestic and/or international funding
Year 1
Year 2
Year 3
Establishment JI-Unit

• Tasks
• Implementation
• ERUPT
• Promotion
• Awareness

• Tasks
• ERUPT, e.o.
• Input CC Policy
• Project broker
• Promotion
• .

Independent Unit co-operating with several buyers
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Main activities year 1

• Needs assessment
• Advise on institutional framework, procedures and
  criteria for decision making
• Assistance in establishment of JI unit
• Training programmes and briefings for JI expert
  groups, JI units, NCCC and consultants
• General workshops for public and private sector
• Coaching on the job ERUPT, selection/evaluation
  criteria, LoA, evaluation, credit sharing,
  promotion activities (website, brochures,
  workshops etc.) etc.

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Main activities year 2

• Assistance
• Broadening of tasks all stages ERUPT, support
  other buyers, active promotion,
  intermediary/broker in JI project development,
  support in climate change policy development,
  outreach activities, press releases etc.
• Improving national international embedding
  stronger contacts with international investors,
  embassies, multilateral banks, other donor
  countries, NGOs, etc.
• Securing long term finance for a self sustaining
  JI unit (preparation of business plan)

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Experiences and Lessons Learned on Capacity
Building
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Experiences and LL

• Learning by doing works
• Effective and convincing to combine CB with
  something real.
• Self sustaining operational institutions can be
  set up. Institutional framework for CC/JI
  activities can be enhanced. JI projects can be
  identified and developed. Procedures can be
  established. Awareness among private and public
  sector can be improved.

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Experiences and LL

• Awareness in public sector on JI/CDM is very low
  
• Lack of information leads to many misconceptions,
  overestimation of risks and cautiousness.
• Have open and clear discussions. Broaden the
  basis for climate change action. Increase
  understanding of the opportunities, explain
  risks, sketch different routes priorities, keep
  the discussion going (via local stakeholders).
• Awareness in private sector is almost zero
• The concept is difficult to communicate. Driving
  force once catched up. Translate message into
  business language and keep discussion going (via
  local stakeholders).

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Experiences and LL

• Number of local CC experts is very low
• involve agencies, research institutes, NGOs etc.
  in awareness raising. Increase local consultancy
  base/expertise. Workshops not sufficient.
  Delegate tasks. Secure built capacity by
  widening.
• JI/CDM policy development is crucial
• serious lack of co-ordination among the different
  government departments. Bring stakeholders
  together. Sketch different alternative JI/CDM
  policies and their consequences.
• Carbon price leads to many discussions
• Important issue for HC. Stakeholders differ in
  conception opinion. How established? Why
  indicative (C)Erupt prices?

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Experiences and LL

• Institutional capacity building
• Inadequate institutions and unclear procedures
  hamper JI/CDM implementation
• Decision-making procedures should be practical
  and be established in detail who does what and
  when?
• Time consuming process, political commitment from
  the top is needed, build upon existing structures
  
• Not limited to JI- or CDM-Unit alone (operational
  tasks)
• Consider also (inter-ministerial) decision-making
  bodies (NCCC), JI/CDM working groups and related
  stakeholders

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Experiences and LL

• Project prioritisation, evaluation, selection
• Core elements of CB, own decision making
• Host countries have difficulties developing
  operational criteria.
• Prioritisation type projects (large scale, small
  scale, preferential treatment)
• Price setting ST, LT, competition carbon market,
  credit sharing
• Evaluation project A versus project B
• Balance between restrictive criteria carbon
  market competition
• Pragmatic approach gain practical experience
  with few real projects and further elaborate
  criteria afterwards

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Experiences and LL

• Operational implementation important
• Invest in local expertise i.s.o. long term
  foreign consultancy
• Continuity of built capacity needs to be secured
  -gt durable institutional arrangements
• Co-ordinate CB initiatives between donors
• Consider differences in approaches between
  countries (active versus prudent) when setting CB
  priorities

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Suggested core elements of CDM learning by doing
capacity building programme
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General approach

• Main objectives
• Enable HC to make own decisions, to participate
  in CDM, to integrate CDM into the sustainable
  development priorities
• Three major components for CDM CB
• Providing information and raising awareness
• Support of institutional strengthening
• Support of CDM project development and
  implementation

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1 providing information and raising awareness

• Without basic understanding of issues, no
  projects can be developed and participation in
  policy making is not feasible
• Needs assessment, selection and development of
  information tools (website, brochures, workshops,
  roundtables, establishment networks), active
  dissemination of information and awareness, train
  the trainers concept

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2 Support of institutional strengthening

• Strengthening institutional framework and general
  capacity
• Development of a CDM strategy (what do we want
  and when?, overall role of CDM, main criteria,
  prioritisation, short term policy, longer term
  policy, price policy, linkages with other
  policies (e.g. rural electrification),
  involvement national and regional authorities)
• Institution building and decision-making
  procedures -gt operational procedures to deal with
  CDM (incl. responsibilities, approval,
  co-operation between ministries, timing,
  criteria, etc.)

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3 Support of CDM project development

• Objective establishment of a self-sustaining
  mechanism for CDM project development. Continuous
  pipeline of projects.
• Role for JI unit (f.e. Bulgaria)
• Active in support of project developers but also
  identification of projects. Able to deal with
  whole project cycle. One window approach from
  identification to submission.
• Or via intermediaries such as chambers of
  commerce, embassies, foreign investment
  organisations, branch organisations, NGOs

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Small scale

• Basic framework applicable
• Special attention
• Prioritisation HC? Special treatment?
• Target groups
• Other procedures standardised baselines, MERV
• Bundling of projects
• Intermediaries, funds
• Portfolio mix (buyer)