1 Modalities for addressing socio- economic and environmental impacts, including impacts on biodiversity and natural ecosystems Heikki Granholm Programme Officer MIS Programme

2 Overview Approaches for addressing socio-economic impacts Possible new modalities and procedures to address socio-economic impacts Approaches for addressing environmental impacts Possible new modalities and procedures to address environmental impacts “Checklist” or an annex to draft decision A need for further clarifications

3 Approaches for addressing socio- economic impacts 1.Minor revision to existing modalities and procedures 2.More extensive revisions 3.Countries elaborating country-specific guidelines (host and/or investing country) 4.The CDM Executive Board (EB) developing operational guidelines

4 Possible new modalities and procedures to address socio- economic impacts Project design –Country specific sustainable development criteria –Consistency with other national and international commitments –Provision of multiple benefits –Project developer to conduct a social assessment (Social Impact Statement, SIS) –A Project Design Document to include a local community agreement, and statements on land, sequestration rights, economic viability, management capacity

5. Validation / registration –Assessment of socio-economic impacts as a validation criterion –A designated operational entity to validate a SIS –DEA and CDM EB to have the right to reject a project Monitoring and implementation –Project developer to monitor implementation of a Social Impact Statement Verification / certification –DOE to verify implementation of SIS –CDM EB to have a right to invalidate a project and cancel any credit

6 Approaches for addressing environmental impacts 1.Minor revision to existing modalities and procedures 2.More extensive revisions, possibly including a “checklist” 3.Countries elaborating country-specific guidelines (host and/or investing country) 4.The CDM Executive Board (EB) developing operational guidelines

7 Possible new modalities and procedures to address environmental impacts Project design –Country specific sustainable development criteria covering environmental priorities and assurance of stakeholders’ participation –Provision of multiple benefits –The Project Design Document to include a baseline study on biodiversity ”with” and “without” a project –Project developer to conduct an environmental impact assessment (Environmental Impact Statement or Environmental Impact Assessment) and a Strategic Impact Assessment –A “checklist” of issues to be considered

8. Validation / registration –Assessment of environmental impacts as a validation criterion –A designated operational entity to validate environmental impacts (EIS, EIA, SIA) –Development of thresholds and eligibility criteria for “with” and “without” a project –DEA and CDM EB to have the right to reject a project Monitoring and implementation –Project developer to monitor implementation of a Environmental Impact Statement ( EIA and SIA) Verification / certification –DOE to verify implementation of SIS, (EIA and SIA) –CDM EB to have a right to invalidate a project and cancel any credit

9 “Checklist” or an annex to draft decision Separate lists or common list for socio-economic and environmental impacts? Status? Possible issues: –Increase or al least preservation of diversity and of soil fertility –Planting of indigenous, native species and non-GMOs; establishment of multi-species culture (“ecosystem approach”) –Sustainable soil preparation and silviculture –Minimal leakage –Tenure and land-use –Special needs of indigenous people, stakeholder involvement, benefit sharing, definition of responsibilities –Planning and management tools of project –Capacity building, awareness and safety

10 A need for further clarifications To which phase of the CDM project cycle a proposal refers? How to follow a proposal throughout the CDM project cycle? Who are actors, who is responsible? How does a proposal refer to existing modalities and procedures?