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GTZ’s CDM capacity building in Indonesia

CDM-ASEAN. Skillshare Workshop Jakarta, March 18, 2004. GTZ’s CDM capacity building in Indonesia. Axel Michaelowa Hamburg Institute of International Economics, Germany climate@hwwa.de www.hwwa.de/climate.htm. Structure of presentation. Target groups of capacity building Policymakers

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GTZ’s CDM capacity building in Indonesia

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  1. CDM-ASEAN Skillshare Workshop Jakarta, March 18, 2004 GTZ’s CDM capacity building in Indonesia Axel Michaelowa Hamburg Institute of International Economics, Germany climate@hwwa.de www.hwwa.de/climate.htm

  2. Structure of presentation • Target groups of capacity building • Policymakers • Private sector • Barriers • Political • Technological • Knowledge-related • Methods to overcome barriers • Ensuring long-term success • Conclusions and recommendations

  3. Policymakers • Get Kyoto Protocol ratified • Remains challenge in Indonesia • Germany cannot stem this alone: donor coordination crucial • Develop a CDM strategy • Priority sectors: National Strategy Study 2000 - 2001 • SD criteria: interministerial consultations 2003-2004 supported by GTZ though input from local consultants (Pelangi)

  4. Policymakers • Get DNA agreed • Decide on composition: GTZ supported interministerial negotiations 2003-2004 • Decide on competences /rules: GTZ supported process to define rules • Decide on resources: GTZ‘s local consultants drafted a document specifying fees • Agreement should be reached within the next months • Indonesia is losing time and the lag to leaders in Asia increases!

  5. Political barriers • Conflict of interests between different ministries • Who gets a seat on the DNA? • Who can charge fees? • Whose portfolio will be boosted by CDM? • Who can get donor funds? • Multi-level conflict due do decentralisation • Frequent change of officials

  6. Policymakers • DNA staff • Ability to make objective decisions: GTZ supported elaboration of code of conduct • Ability to market host country: GTZ offers opportunities to participate in international greenhouse has market fora • Hurdles remain: • Adressing the private sector

  7. Private sector • Project developers • Understand CDM incentive • Understand principles of CDM rules • Understand differences between technologies • Consultants • Understand CDM and are able to find their niche • Become able to deliver high-quality service according to CDM rules • Network with Annex B buyers /investors

  8. Ensuring long-term success • Make stakeholders understand that CDM is not stationary • International rules will never be fixed • DNA has to adapt rules • Prices, technologies and buyers will not remain the same • Create communities of CDM beneficiaries • Link policy institutions and project developers • Be clear about time when support will be phased out

  9. Conclusion • Capacity building will continue for years to come • Knowledge is not the real problem, but the fight of interest groups • Build on quality and the disciplining power of international rules and competition to prevent capture of CDM process by rent seekers • Make clear that CDM will continue to change • Build critical mass of CDM beneficiaries

  10. Thank you!Further information:www.hwwa.de/climate.htmor: climate@hwwa.de

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