Capacity Building Workshop Capacity Building Workshop on CDMon CDM

Mirza Shawkat AliMirza Shawkat AliDeputy Director GeneralDeputy Director General

Department of EnvironmentDepartment of Environment

8 April 20088 April 2008

Background Background United Nations Framework Convention on United Nations Framework Convention on

Climate Change (UNFCCC) 1992Climate Change (UNFCCC) 1992– Non binding commitments for the industrialized Non binding commitments for the industrialized

countries to reduce their emission to 1990 level countries to reduce their emission to 1990 level by 2000by 2000

Kyoto Protocol 1997Kyoto Protocol 1997– Binding Commitments for the industrialized Binding Commitments for the industrialized

countries to reduce their emissions 5% below countries to reduce their emissions 5% below 1990 level by the first commitment period 1990 level by the first commitment period (2008-2012).(2008-2012).

Kyoto MechanismKyoto Mechanism

Joint Implementation (JI)Joint Implementation (JI)

Emission Trading (ET)Emission Trading (ET)

Clean Development Mechanism (CDM)Clean Development Mechanism (CDM)

Clean Development Mechanism (CDM)Clean Development Mechanism (CDM)

The Kyoto Protocol allows Annex-B countries to The Kyoto Protocol allows Annex-B countries to reach their emission reduction targets in different reach their emission reduction targets in different ways through Flexibility Mechanisms.ways through Flexibility Mechanisms.

CDM is the only flexible mechanism that involves CDM is the only flexible mechanism that involves developing countries (Non-Annex B). developing countries (Non-Annex B).

It allows developed countries (Annex B) to achieve It allows developed countries (Annex B) to achieve part of their reduction obligations through part of their reduction obligations through investment in projects in developing countries that investment in projects in developing countries that reduce GHG emissions or fix or sequester COreduce GHG emissions or fix or sequester CO22

from the atmosphere.from the atmosphere.

CDMCDM

Green house gas reduction of any CDM Green house gas reduction of any CDM project is measured according to project is measured according to internationally agreed methods and are internationally agreed methods and are quantified in standard units called Certified quantified in standard units called Certified Emission Reductions (CERs).Emission Reductions (CERs).

CERs are expressed in tons of COCERs are expressed in tons of CO22

equivalent.equivalent.

Salient Features of CDMSalient Features of CDM

Industrialized (Annex B) countries’ state or Industrialized (Annex B) countries’ state or private companies can invest in projects in private companies can invest in projects in developing (Non-Annex B) countries that developing (Non-Annex B) countries that contribute to reduction of GHG emission;contribute to reduction of GHG emission;

Developing (Non-annex B) countries’ state Developing (Non-annex B) countries’ state or private companies are allowed to or private companies are allowed to implement such projects;implement such projects;

Salient Features of CDM Salient Features of CDM (Cont.)(Cont.)

Through CDM projects industries in developing Through CDM projects industries in developing countries can be technologically upgraded and countries can be technologically upgraded and made environment friendly thus contributing to made environment friendly thus contributing to global climate protection as well as promoting global climate protection as well as promoting sustainable development in the host country.sustainable development in the host country.

The industrialized countries’ investing entities can The industrialized countries’ investing entities can earn credit for emission reductions achieved earn credit for emission reductions achieved through its investment in developing country through its investment in developing country towards its own emission commitment.towards its own emission commitment.

CDM Project Implementation ProcessCDM Project Implementation Process

CDM project proposals are to be prepared CDM project proposals are to be prepared following the format and guidelines as prescribed following the format and guidelines as prescribed by CDM Executive Board under UNFCCC.by CDM Executive Board under UNFCCC.

Projects must be endorsed by the Designated Projects must be endorsed by the Designated National Authority (DNA) of the host country.National Authority (DNA) of the host country.

It has to meet the Sustainable Development It has to meet the Sustainable Development Criteria of the host country.Criteria of the host country.

The project is to be validated by the Certified The project is to be validated by the Certified agency, which is accredited by the CDM Executive agency, which is accredited by the CDM Executive Board under UNFCCC.Board under UNFCCC.

Designated National Authority (DNA) for Designated National Authority (DNA) for BangladeshBangladesh

National CDM Board

National CDM Committee

Structure of DNA

National CDM BoardNational CDM BoardChairman of the Board

Principal Secretary to the Prime Minister

Members

•Secretary, Ministry of Environment & Forests

•Member, Planning Commission

•Secretary/Secretaries of the Relevant Ministry

Member-Secretary

DG, Department of Environment

National CDM CommitteeNational CDM CommitteeChairman of the Committee

Secretary, Ministry of Environment & Forests

Members

Member-Secretary

Director (Tech.), Department of Environment

Members from Govt. Sectors

Planning Commission, Ministry of Environment and Forests, Industries, Agriculture, Foreign Affairs, Communications, Science information and Communication Technology, Power, Energy & Mineral Resources, ERD, LGED, BOI, Bangladesh Bank, Department of Environment.

Members from NGO Sectors

FBCCI, BIDS, BUET, Waste Concern, BCAS.

CDM StrategyCDM Strategy

Participation in CDM projects shall be in Participation in CDM projects shall be in line with existing national and sectoral line with existing national and sectoral strategies and policies, including poverty strategies and policies, including poverty reduction strategies.reduction strategies.

CDM projects shall have tangible national CDM projects shall have tangible national impacts and will contribute to the national impacts and will contribute to the national sustainable development agenda.sustainable development agenda.

CDM projects shall take into consideration CDM projects shall take into consideration of Efficient and economic utilization of of Efficient and economic utilization of natural resources of the country.natural resources of the country.

CDM will be used to encourage private CDM will be used to encourage private sector investments in climate-friendly sector investments in climate-friendly development activities.development activities.

CDM projects shall be designed so as to CDM projects shall be designed so as to contribute to the improvement of the contribute to the improvement of the environment and the welfare of the society environment and the welfare of the society as a whole.as a whole.

CDM Projects shall promote and encourage CDM Projects shall promote and encourage the transfer of new, proven, affordable and the transfer of new, proven, affordable and relevant technologies.relevant technologies.

CDM Strategy CDM Strategy (Cont.)(Cont.)

CDM Projects that address national environmental CDM Projects that address national environmental issues including improvement of hygienic living issues including improvement of hygienic living condition of the people will be especially condition of the people will be especially encouraged.encouraged.

CDM projects having adaptation and vulnerability CDM projects having adaptation and vulnerability co-benefits shall be encouraged.co-benefits shall be encouraged.

CDM projects shall be approved through a CDM projects shall be approved through a participatory and transparent process that involves participatory and transparent process that involves detailed assessment of their economic, social and detailed assessment of their economic, social and environmental benefits and their relevance to local environmental benefits and their relevance to local needs and priorities.needs and priorities.

CDM Strategy CDM Strategy (Cont.)(Cont.)

Proposed Sustainable Development IndicatorsProposed Sustainable Development Indicators

Potential CDM Projects

Meet International Screening Criteria

Meet National Sustainable Development Criteria of CDM Projects

Potential CDM Projects

Environmental Economic Poverty R./Social Technology

Evaluate Project Using SD Criteria

NO

NO

NO

YES

YES

YES

Rejected

Accepted

Rejected

Does the CDM project aggravate any existing

environmental problem

Does the CDM project violate any

Development Objectives

Does the CDM project Strongly address any

development and environmental goal

Decision Tree for Evaluating CDM

Projects

Sustainable Development Matrix

Relative ImpactRelative Impact n Scoren Score[ [ (V (V

11) x (W1)]) x (W1)]

i = 1i = 1(V(V11= Degree of = Degree of

ImpactImpactW1 = Relative W1 = Relative Weight)Weight)

Sustainable Development Sustainable Development ParametersParameters

Relative Relative ImportanceImportance

Degree Degree of of

ImpactImpact

PositivePositive NegativeNegative

ECONOMIC (25)ECONOMIC (25)1.Balance of Payment1.Balance of Payment2.Contribution to Growth2.Contribution to Growth3. Cost Effectiveness3. Cost Effectiveness

ENVIRONMENTAL (20)ENVIRONMENTAL (20)1. Natural Resource Augmentation1. Natural Resource Augmentation2. Reduction of Pollutants2. Reduction of Pollutants

POVERTY REDUCTION/ POVERTY REDUCTION/ SOCIAL (20)SOCIAL (20)1.1. Employment Employment opportunitiesopportunities2. Improved quality of life 2. Improved quality of life (Health, Sanitation)(Health, Sanitation)3. Take into consideration Gender 3. Take into consideration Gender issue/ Gender equityissue/ Gender equity

Sustainable Development Matrix

Relative ImpactRelative Impact n Scoren Score[ [ (V (V

11) x (W1)]) x (W1)]

i = 1i = 1(V(V11= Degree of = Degree of

ImpactImpactW1 = Relative W1 = Relative Weight)Weight)

Sustainable Development Sustainable Development ParametersParameters

Relative Relative ImportanceImportance

Degree of Degree of ImpactImpact

PositivePositive NegativeNegative

Technology (15)Technology (15)1. Technology easily adaptable1. Technology easily adaptable2. Technology Promotes2. Technology Promotes Sustainable Use of NaturalSustainable Use of Natural ResourcesResources3. Social Acceptance3. Social Acceptance

CAPACITY BUILDING (20)CAPACITY BUILDING (20)1. Programme/Project Planning1. Programme/Project Planning2. Programme/Project2. Programme/Project implementationimplementation3. Training3. Training4. Grassroots capacity building4. Grassroots capacity building

Note: the categorization of broader and sub-issues are generic. Extension of sub-issues will have to be accommodated within the maximum number for the broader parameter.

Potential Sectors for CDM Projects in Potential Sectors for CDM Projects in BangladeshBangladesh

EnergyEnergy– Energy efficiency, Co-generation, Renewable Energy efficiency, Co-generation, Renewable

energy, Efficient lamps and Fuel Substitutionenergy, Efficient lamps and Fuel Substitution

WasteWaste– Methane Recovery from landfill, Biogas and Methane Recovery from landfill, Biogas and

composting of urban solid wastecomposting of urban solid waste

ForestryForestry– Aforestation and ReforestationAforestation and Reforestation

DNA Approved projectsDNA Approved projects

Serial

Name of Project

Relevant Information Status

1 Landfill gas Extraction and Utilization at Matuail Dumpsite, Dhaka

–Expected to generate 3-5 MW Electricity from the extracted methane–990,000 tons of GHG will be reduced over the 8 yr period

Got registration from CDM Executive Board.DCC is yet to approve the project proponent access to Matuail Dump site.

2 Composting Project at Matuail Dumpsite, Dhaka

–700 tons of kitchen market waste would be composted –487,506 tons of GHG will be reduced over 8 yr period

got registration from CDM Executive BoardUndergoing infrastructure development for project implementation

DNA Approved projectsDNA Approved projects

3 Installation of 30,000 Solar Home Systems (SHS) in rural households

–230,850 tons of GHG will be reduced over 21 yr period–SHSs will be established at remote areas with credit facilities to the rural poor.

undergoing validation process[1]

4 Replacement of 100,000 Incandescent Bulb with Energy Efficient Compact Fluorescent Lamp (CFL) in Rural Bangladesh

–49,790 tons of GHG will be reduced over 10 yr period–under credit facilities this would also be given to rural poor

undergoing validation process

Project Proponent Project Activity Total Units to be Installed

Total estimated reduction (tons of CO2)

1. Grameen Shakti 65 Wp GS Solar Home System

187,256 units 132,716(7 years)

2. Grameen Shakti 60, 75, 80, 85 & 120 Wp GS Solar Home System

134,044 units 98,018(7 years)

3. Grameen Shakti 30 & 40 Wp GS Solar Home System

194,869 units 240,809(7 years)

4. Grameen Shakti 50 Wp GS Solar Home System

289,723 units 95,356(7 years)

Sub-total 805,892 566,899

5. Infrastructure Development Company Limited (IDCOL)

30, 40, 50, 60, 75, 80 Wp IDCOL Solar Energy Program

226,700 units 243,976(7 years)

Total 10,32,592 810,875