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Contribution of CDM projects to sustainable development Case Study - Bolivia

Contribution of CDM projects to sustainable development Case Study - Bolivia. Sergio Jáuregui Consultant Santa Cruz, Bolivia, August 2004. Presentation Index. Institutional and policy framework Procedures for Host-Country Approval for CDM project activities

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Contribution of CDM projects to sustainable development Case Study - Bolivia

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  1. Contribution of CDM projects to sustainable developmentCase Study - Bolivia Sergio Jáuregui Consultant Santa Cruz, Bolivia, August 2004

  2. Presentation Index • Institutional and policy framework • Procedures for Host-Country Approval for CDM project activities • Criteria for host country approval • Criteria for the characterization of the contribution of project activities to sustainable development • Case studies • Conclusions • Recommendations

  3. Institutional and policy framework (1) Ministry for Sustainable Development Inter-institutional Commission on Climate Change Commission for Project Evaluation Viceministry for the Environment (DNA) NCDO NPCC

  4. Institutional and policy framework (2) • Environmental policy integrated into National Development Plan (1994) - SD • Ratification of UNFCCC - 1994 • CC Action Plan – UNFCCC Implementation Plan – 1997/98 • Integration of CC policies, NDP, 1999 • First National Communication - 2000 • NSS - 2001 • DNA Designation, 2002 • Establishment of NCDO, 2002 • Overall, nominally, sustainable development policies

  5. Procedures for Host-Country Approval (1)

  6. Criteria for host country approval • Conformity with CDM rules – EB • Conformity with national regulation on benefit distribution • Clearly defined additionality case • Baseline scenario conforms with real trends • Sectoral authority approval (written) • Clearly defined contribution to SD (argumentative) • Stakeholder consultation implemented

  7. Approval Procedures (1) - If you have a PIN or Project Profile Develop PIN Obtains sectoral endorsement Technical advice – Recommendation to DNA Issues Letter of Interest Continues to develop project

  8. Approval Procedures (2) – Submission of a PDD or Developed Project Develop PDD Obtains sectoral endorsement Technical advice – Recommendation to CEP Convenes CEP Submits to DOE Issues Letter of Approval

  9. Overall mitigation potentials [preliminary]

  10. Criteria for definition of SD contribution (1) • Based on broad criteria and regulatory requirements • SD criteria (only guidelines): social, environmental and economic • Environmental criteria • Reductions of emissions from particulates – improvement of local air quality • Sustainable use of local resources • Reduction of the local environmental pressures • Effects of environmental impacts on local health

  11. Criteria for definition of SD contribution (2) • Social criteria • Improved quality of life at the local level • Effects on poverty levels • Increase of equity levels • Respect of local cultures • Economic criteria • Effects on the local level of income • Effects on the levels of local production • Generation of new investment • Effective transfer of technology

  12. Criteria for definition of SD contribution (3) • Regulatory requirements • Contribution to and compatibility with Government policies (local, sectoral, regional) and compliance with international commitments • Fulfillment of regulations and sectoral development plans: property rights; rights over use of natural resources, certificates and licenses; rights of local and indigenous communities • Environmental Impact Assessment (EIA) • Distribution of benefits derived from the generation of CERs

  13. Cases for analysis • Santa Cruz Landfill Gas Project (Flaring) • Central Santa Rosa (Reconstruction of a run-of-the-river hydro central) • CETEFOR (Afforestation and reforestation in the Chapare region)

  14. Conclusions • Contributions to SD defined by broad criteria • Criteria recommended / non-mandatory • No methodological references for indicators • No monitoring process for SD impacts required • A framework needed without compromising competitiveness nor generating a perception of regulatory barriers • Methodologies exist to develop cost-effective instrument • Need to tackle issues of potential conflict of interest

  15. Recommendations (1) • Establish an operative instrument for fast, cost-effective assessment of SD contribution (verifiers) - RIA • Generate a perception among investors that this is a cost-saving tool • Devise a standardized methodology to self-define or construct alternative verifiers • Develop a cost – effective, random monitoring protocol, based on RIA • Finalize development of regulatory framework (including law and technical instruments) • Avoid conflict of interests – further detach NCDO from DNA

  16. Recommendations (2) - RIA

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