CDM DESIGNATED NATIONAL AUTHORITY Costa Rican Case

Overview b CDM: Key decisions and steps in creating NDA b NDA: Possible Tasks and structures b Costa Rican experience b Conclusion

Steps in creating NA b Define mission and objectives; b Obtain legal status; b Review legal framework; b Attain CDM stakeholder participation; b Obtain financial and non-financial resources; b Align CDM strategies with national development priorities.

NDA: Possible Tasks (1) 1. Formulation and decision on CDM national policy and strategy Deciding on sustainable development criteriaDeciding on sustainable development criteria Recommending CDM sectors and project type (renewable energy, waste management, forestry, agriculture, industry)Recommending CDM sectors and project type (renewable energy, waste management, forestry, agriculture, industry) Preferences on technologyPreferences on technology Credit sharing, etc.Credit sharing, etc. 2. Evaluation and Approval: b Adopt international eligibility criteria (Marrakesh)

NDA: Possible tasks (2) b Develop local criteria: –Compliance with relevant policies and regulatory regimes; –Financial, technical and administrative feasibility (e.g. PPA, financial close, etc); –Environment al standards and considerations on stakeholders comments; –Technology transfer (innovation, transfer and diffusion) b Capacity Building : - Project identification and formulation(PDD) -Standardized baselines, additionality, ER cuantification, monitoring protocols, etc. b Marketing

CDM - Institutions COP/MOP UNFCCC-Secretariat ExecutiveBoard Validating Operational Entity Verifying, certifying Operational Entity National Authoriy Project Participants Investors:-national-international Host country CDM Project activity Stakeholders, other Parties, registered NGO Buyer of CER/RMU

Possible Structure of National Authority (1) Validating Operational Entity Verifying, certifying Operational Entity National Authoriy Project Participants Investors:-national-international Host country CDM Project activity Stakeholders, other Parties, registered NGO Buyer of CER/RM U National Climate Change Committee Nat. CDM Board (Sub.Committee) Technical Office/ CDM Clearinghouse

Possible Structure of National Authority (1) National CDM Board (Sub-Committee) Function: recommendation of CDM national agenda including policies and strategy, procedures, appeal, etc. Members representing : Ministries : e.g. Environment and Natural Resources, Energy, Economy &, Finance, Planning. Etc.Ministries : e.g. Environment and Natural Resources, Energy, Economy &, Finance, Planning. Etc. Private sector (corporations, chambers, etc.)Private sector (corporations, chambers, etc.) NGOs and CDM expertsNGOs and CDM experts

Possible Structure of National Authority (2) Technical Office / CDM Clearinghouse (Government or mix Government -private) Function: Secretariat of CDM Board.Secretariat of CDM Board. Support of CDM project identification and preparationSupport of CDM project identification and preparation NDA and focal point for CDM investors and buyersNDA and focal point for CDM investors and buyers Following of ongoing CDM project activitiesFollowing of ongoing CDM project activities Marketing, bilateral and multilateral MoUs, home page, etc.Marketing, bilateral and multilateral MoUs, home page, etc.

In 1996, the OCIC was legally elevated to the rank of maximum de-concentration office within the Ministry of Environment and Energy. This decision allowed the program to have technical and administrative autonomy and also guaranteed all participating sectors a voice in climate change policy development..

Ministry of Environment and Energy Ministry of Environment and Energy ASOCIC NDA Costa Rica Land Use Change Expert ExpertEnergy Consultants

ASOCIC OCIC Private Association

Challenges of Institutionalization Nature of NA varies widely in legal structure, financial sources and responsibilities which they were entrusted. b Awareness raising; b Political will; b Sectoral coordination; b Champion

CONCLUSION Reason for success: b b Institutional capacity and political support, b b Country driven process, b b Compatibility between national priorities and “good practices” in climate change, b b Cost and environmental effective and, b b Market oriented process.