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Climate Change Centre, Development Alternatives 1 Incorporating and Monitoring of SD Goals in CDM Projects Kalipada Chatterjee Climate Change Centre March 25-26, 2004 An Orientation Workshop on CDM Opportunities in the Small Scale Sector India Habitat Centre, New Delhi

Climate Change Centre, Development Alternatives 1 Incorporating and Monitoring of SD Goals in CDM Projects Kalipada Chatterjee Climate Change Centre March

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Page 1: Climate Change Centre, Development Alternatives 1 Incorporating and Monitoring of SD Goals in CDM Projects Kalipada Chatterjee Climate Change Centre March

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Incorporating and Monitoring of SD Goals in CDM Projects

Kalipada ChatterjeeClimate Change Centre

March 25-26, 2004

An Orientation Workshop on CDM Opportunities in the Small Scale Sector

India Habitat Centre, New Delhi

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Rapid industrialistion since the last century has led to an alarming rise in the concentrations of greenhouse gases in the atmosphere.

The resultant global warming leading to climate change has many adverse impacts on our life supporting systems, such as water, agriculture, health. This may also increase the frequency of extreme events such as droughts, floods and cyclones.

Global leaders have largely accepted the fact that climate change is one of the most pressing and dangerous threat to our life on earth today.

INTRODUCTION

(Contd...)

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As a response to climate change the United Nations Framework Convention on Climate Change (UNFCCC) was adopted in June 1992 at Rio

The Climate Convention was further strengthened by the Kyoto Protocol that has drawn precise ground rules to combat and mitigate climate change.

INTRODUCTION (Contd...)

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CLEAN DEVELOPMENT MECHANISM OF THE KYOTO PROTOCOL

The Clean Development Mechanism (CDM) is one of the three flexibility mechanisms of the Kyoto Protocol to the Convention on Climate Change

The purpose of CDM is to : assist developing countries in achieving sustainable

development

contribute to the ultimate objective of the Convention i.e. stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system, and

assist developed countries in achieving compliance with their Quantified Emission Limitation and Reduction Commitments (QELRCs)

(Contd...)

Page 5: Climate Change Centre, Development Alternatives 1 Incorporating and Monitoring of SD Goals in CDM Projects Kalipada Chatterjee Climate Change Centre March

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The CDM was established to explore cost effective options to mitigate climate change by the industrialised countries

Opportunities to reduce emissions through CDM project activities in developing countries are enormous at a fairly low cost particularly in the energy, transport, building materials (brick, cement and steel), municipal waste, animal husbandry sectors

CLEAN DEVELOPMENT MECHANISM OF THE KYOTO PROTOCOL (Contd...)

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It is the perogative of the host country (e.g. India) to ensure that a CDM project activity addresses the SD goals of the country (Marrakech Accord)

The Ninth Five Year Plan (1997-2002) of India has set the sustainable development goals of the country such as : agriculture and food security rural development adequate employment poverty eradication accelerating economic growth safe drinking water primary health care

SD GOALS AND CDM PROJECTS

(Contd...)

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universal primary education

population control

environmental sustainability of the development process

women empowerment

national security

building self reliance

strengthening participatory institutions

SD GOALS AND CDM PROJECTS(Contd...)

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The concept of sustainable development was first introduced by the International Union for Conservation of Nature (IUCN) in 1950.

A definition of sustainable development was first given by the World Commission of Environment and Development, popularly known as Brundtland Commission in 1987 as a development process that “meets the needs of the present without compromising the ability of the future generations to meet their own needs”.

WHAT IS SUSTAINABLE DEVELOPMENT

(Contd...)

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Brundtland Commission considered population control, food security, energy supply as critical components of sustainability.

Since the Rio Summit in June 1992, and adaptation of Agenda 21 by the global community, many nations have set sustainability as a key goal of their development

Concept of Sustainable Development is quite distinct from economic growth and recognises the limitations of economic indicators like GNP in measuring the true well being of nations.

WHAT IS SUSTAINABLE DEVELOPMENT(Contd...)

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Measuring sustainability is not an easy task. Therefore a concept of sustainable development indicator (SDI) has been introduced to assess, measure and monitor sustainability of a development process

For measuring sustainability of a development process, a useful way is to select and organise indicators in a pressure (cause), state (linking effects), impacts and response (policy action) framework.

MESURING PROGRESS TOWARD SUSTAINABILITY

(Contd...)

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MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT

Issue Pressure State Impact ResponseClimate Change

GHG Emissions

Atmospheric conc. of GHGs

Sea Level Rise

Climate Change Mitigation Projects, UNFCCC & KP

Ozone Depletion

Use of CFCs/HFCs

Chlorine in the stratosphere; UV-B

Human Immune system, Food Production, Cataracts

Phasing out of CFCs

Example of Pressure-State-Impacts Response Framework

(Contd...)

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MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT

Sustainability Dimension

Goal Driving Force/Pressure Indicators

State Indicators Response Indicators

Economic Poverty alleviation

Inadequate means of livelihood

Poverty Index(long and healthy life, knowledge, decent standard of leaving)

Employment generation

Social Access to basic services

Inadequate public infrastructure

Electricity consumption per capita

Electricity services from Renewable energy sources

Environmental Reduction in health effects from indoor air pollution

Inadequate access to clean cooking fuel

Morbidity from particulate concentrations

Provision of fuel with lower emissions and efficient chullas

Technological Capacity to improve technological base

Inefficient production technologies

Energy use per unit of output

Training and investment to adopt improved technologies

(Contd...)

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MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT

CDM Projects have to have a sustainability screening. Development Alternatives have identified a six stage sustainability screening process. This is as follows :

First Step : Setting the Sustainability Criteria

Set a criteria for SDIs - for a CDM project the criteria has to be project based (Such criteria must be based on the four pillars of Sustainable Development and the criteria laid down under the Article 12 of the Protocol).

The four pillars are economic / social /environmental and technological well beings

(Contd...)

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MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT

Candidate CDMProjects

economic screen

environmental screen

social screen

projects qualifying as sustainable

national screenprojects selected by

host country

technological screen

(Contd...)

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MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT

Second Step : Methodologies for SDIs

Choose a proven methodology for developing indicators Participatory : Involve the Stakeholders [Tell me and

I will forget ; show me and I may remember; involve me and I shall understand - Andrew Campbell]

A careful scrutiny of the Climate Change Mitigation Project proposal to develop indicators

A Ready Reckoner (RR) on SDIs under preparation in DA. Such a RR will be useful for the business sector. Otherwise developing SDIs for each individual Project may increase transaction costs

(Contd...)

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MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT

SDIs must be :

Driven by host country’s development priorities

User friendly

Simple & robust

A few in number, but as many as

required

(Contd...)

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Third Step : Monitoring and Verification of SDIs

Emission reductions Improvement in air and water quality / local

environment Employment generation and rise in per capita

income, etc. Other social benefits

Lack of database in developing countries for setting up baselines and monitoring net changes is a

major hurdle

MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...)

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Fourth Step : Measuring Sustainability

Choose eight SDIs : two from each pillar of sustainability

Construct baselines : compare the benefits offered by the project against baselines

Evaluate SDIs for net changes against baselines

MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...)

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+ve changes indicate sustainable development ; -ve changes indicate an unsustainable project

The goal

-1

0

-10

-1

0

0-1

The worst

The baseline

1

MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...)

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Fifth Step : Certification of Sustainability

An approved independent sector organisation, like a national NGO with necessary expertise, may take up such certification, based on monitoring and verification of sustainability through SDIs

Sixth Step : A time Dimension, that is required to meet the SD criteria

MESURING SUSTAINABILITY OF A DEVELOPMENT PROJECT (Contd...)

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Conclusion Since it is the prerogative of the host country to

ensure (e.g. India) if a CDM project has addressed to the sustainable development priorities of India before endorsement by the DNA such process can be facilitated by e.g. the Climate Change Centre, Development Alternatives in view of their considerable work done in this field.

CDM is a golden opportunity for country like India to choose a green development path and make our development process sustainable, which is also one of the objectives of the UNFCCC

MONITORING AND VARIFICATION OF SUSTAINABILITY

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