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Evaluating Country Performance in CDM: Challenges and Strategic Insights

This report examines the overall performance of countries in the Clean Development Mechanism (CDM), reflecting on market dynamics and development challenges. Key issues include financial barriers for projects, contributions to the grid, and cross-border emissions reductions. The involvement of various entities like the World Bank and UNIDO is analyzed, along with specific case studies from Côte d'Ivoire and Uganda. Recommendations focus on enhancing project pipeline development, transaction cost management, and strategic collaborations to optimize CDM outcomes and address the existing gaps in project execution and stakeholder engagement.

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Evaluating Country Performance in CDM: Challenges and Strategic Insights

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Presentation Transcript

  1. Wrap-up on overall country performance Opinion 2: Steve Thorne

  2. Let’s remember… • CDM is a market based mechanism • Yet the market isn’t here • So what are we doing? • Are we the right people to drive this? • Are we in a market mindset or are we thinking about more donor driven Cap Dev?

  3. Issues • Finance for projects • Baselines (margins build and operation) • Size of contributions to the grid • Leakage • WB/IFC/GEF/PCF etc interests and how they interact • DNA – what are other projects/programmes doing CBLA (Moz.), UNIDO (Ug.)

  4. Other issues… • Regional CDM projects • Cross border emissions reductions • Cross border leakage issues • Regional, sub-regional groupings, and leverage or bundles • Our barrier issues – worth analyzing but not raising • DNA ceding of emissions reductions

  5. Country specific • Cote D’Ivoire – problems… • Mozambique • Workshops in Dec. 2003 and Feb 2004 • End-product partially complete PDDs • Questions raised about electricity baseline not answered • Not much progress on projects since then • 2+ projects concepts • 2 incomplete PDDs - questions relating to baselines • Uganda • Recent training • No had time to reflect • Good technical capacity not yet translated into project pipeline nor DNA • 2 ½ incomplete PDDs

  6. Progress questions • Project pull? Whose pulling these CD4CDM projects? Confusion of country team roles… • PINs for who? • CDM hustle… • Transaction costs • More money for: baseline development, transaction costs, feasibility studies, DNA, ongoing cap dev.?

  7. Where to? • Data shortfall – how to move forward… • Process movement – build teams around specific projects and make champions of project participants. • Strategy: sell off problems? Maximise benefits? Early transactions to create deal flow? • Is there any room for joining forces to push and pull DNA formation

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