Climate Change

1
Climate Change UNDP

• Clean Development Mechanism (CDM) Roundtable
• 11-12 April 2002
• Victoria Hotel
• Amsterdam, The Netherlands

2
Why Are We Here?

• Validate UNDPs evolving Climate Change CDM
  strategy
• Seek partners/partnerships in achieving
  strategic CDM objectives efficiently
• Look for synergy and coordination with other
  bilateral and multilateral efforts

3
Learning by Doing UNDPs Experience - I

• Pilot Programme for CDM/JI capacity Building
  1999-2000
• Peru
• Philippines
• South Africa
• Bulgaria (JI)

4
Learning by Doing UNDPs Experience - Findings

• Existence of win-win project opportunities
• Significant proportion of small-sized projects
• Good rate of return on a project is a necessary
  but not a sufficient condition
• Critical need for human and institutional
  capacity

5
Learning by Doing UNDPs Experience - II

• Engaging the Private Sector in CDM Project
  Activities (2000-2002)
• Collaboration with WBCSD UNDP
• Identify synergies and coordinate efforts among
  UN agencies
• Brazil South Africa

6
Learning by Doing UNDPs Experience - Findings

• A lot of enthusiasm to move the process forward
• Significantly greater than expected knowledge
  and information gap on the CDM
• Demand for transparent government
  infrastructure and clarity on institutional
  responsibilities

7
Learning by Doing UNDPs Experience III

• Joint meeting of the African, Latin American and
  Caribbean Negotiators to discuss prominent CDM
  issues (2000)
• Understanding of CDM issues in the national as
  well as regional context
• Learning from each other South-South Partnership

8
Learning by Doing UNDPs Experience IV

• Analysis of selected UNDP Projects as potential
  CDM Projects (2001)
• Determine UNDPs comparative advantage, role
  and ability to make small scale projects
  CDM-viable
• Identify specific capacity building,
  institutional strengthening and innovative
  governance needs

9
Spectrum of Needs

• Human and Institutional Capacity
• Innovative Macroeconomic Policy Environment
  Instruments
• Geographical and Project Equity

10
Where Are We Going!

• Design and Develop hands-on, on the ground CDM
  capacity in developing countries
• Learning by doing activities for all phases of
  CDM project cycle
• Small sized rural development projects
  including renewable energy projects
• Emphasis on LDCs and SIDS

11
Where Are We Going!

• Explore and Promote innovative mechanisms,
  policies and instruments to make small scale
  projects CDM viable
• Mechanisms to reduce transaction costs
• Instruments to fund CDM preparatory costs
• Bundling of small sized projects
• CDM premium fund
• Policy mechanisms and instruments in host
  countries

12
Where Are We Going!

• Developing Public Private Partnerships to
  mobilize CDM investment requirements
• Building skills in creating functioning Public
  Private Partnerships
• Risk mitigation and/or guarantee schemes
• Creative macroeconomic policies and sources of
  public funds

13
Agenda for the Day

• Brainstorming
• Brief presentations
• Interventions - Agencies and Multilateral
  Institutions
• Interventions - Bilateral Agencies

14
Agenda for the Day

• Presentations
• Raise issues
• Potential role of UNDP
• Possible next Steps

15
Expected Output

• As a Development agency, has UNDP got its
  strategy right?
• What, if anything is missing?
• What are the next steps?