IGES-URC Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism March 2004 Siem Reap, Cambodia CDM INSTITUTIONAL FRAMEWORK IN CAMBODIA By Tin Ponlok, Project Advisor Climate Change Office, Cambodia

Outline of the Presentation: 1.Background 2.Institutional Environmental Framework 3.Current CDM Framework 4.Options for Establishing DNA in Cambodia 5.Conclusion

1. Background 1. Background   The 70s-80s internal turmoil prevented Cambodia from participating in international affairs until early 90s.   The first democratic UN-sponsored elections in 1993 reopened opportunities for the country to participate in UN and other international activities   Cambodia ratified the UNFCCC on 18 December The Convention entered into force of the UNFCCC on 17 March 1996   Cambodia acceded to the Kyoto Protocol on 04 July2002, which entered into force on 22 August 2002   First climate change project started in 1999 to help prepare the first National Communication, which was submitted to the CoP-8 at New Delhi in late 2002

2. Institutional Environmental Framework (1/2) 2. Institutional Environmental Framework (1/2)   Cambodia started establishing comprehensive legal, policy, and institutional frameworks for sustainable development only after the 1993 elections   The new Constitution requires the state to ensure a rational use of natural resources and environmental protection   Legislations, Decrees, and sub-Decrees have been established: the Law on Environmental Protection and Natural Resources Management, Land Law, Mineral Law, Pollution Control Sub- decrees, and Sub-decree on Environmental Impact Assessment. Others are under preparation such as Forestry Law, Fisheries Law, Wildlife Law, and Law on Protected Area Management   Sustainable management and use of natural resources and environmental protection is one of the three Government strategies outlined in The Socio-Economic Development Plan II (SEDPII) for ”, a vital political platform to combat poverty

2. Institutional Environmental Framework (2/2) 2. Institutional Environmental Framework (2/2)   The Ministry of Environment (MoE) was established in 1993 with a broad mandate of promoting environmental protection and conservation of country’s natural resources   To ensure effective and successful implementation of sustainable development related programs, the Government has also established a number of National Inter-Ministerial Committees such as Biodiversity, Protected Areas, Coastal and Marine Management, and Management of the Tonle Sap Biosphere Reserve   A number of environment-related action plans have been developed or are under preparation: National Environmental Action Plan, National Biodiversity Strategy and Action Plan, Coastal Zone Management Plan, Climate Change Action Plan, National Adaptation Program of Action to Climate Change, Protected Area Management Plan, etc.

3. Current CDM Framework (1/4) 3. Current CDM Framework (1/4)   The Climate Change Office was established on 23 June 2003 within the MoE Department of Planning and Legal Affairs by MoE Declaration No 195   MoE is the National Focal Point for the UNFCCC and the Kyoto Protocol   MoE was appointed as the Interim Designated National Authority for CDM by the Prime Minister’s Decision No 01 dated 15 July A Letter of Notification to the UNFCCC Secretariat on this decision was sent on 26 August 2003.

3. Current CDM Framework (2/4) 3. Current CDM Framework (2/4) An exert from the Prime Minister’s Decision No 01 dated 15 July 2003:   Article 1: Appoint the Ministry of Environment to act as the Interim Designated National Authority for the CDM, as required by the Kyoto Protocol and the modalities and procedures outlined in the Marrakech Accords.   Article 2: MoE, acting as the Interim DNA, shall have the authority to request information from CDM project proponents and/or from all concerned agencies and stakeholders related to that project.   Article 3: MoE, in close cooperation with all relevant line Ministries and Agencies, shall: 1. Develop a set of interim criteria suitable to assess the proposed CDM projects to ensure that they are in accordance with Cambodia's Sustainable Development objectives. MoE shall defer to Cambodia's official legislation, regulations, policies, plans, commitments, statements and decisions in developing these criteria; 2. Assess the proposed CDM projects the sustainable development criteria; and 3. As necessary, assess the proposed CDM projects against the modalities and procedure as outlined in the Marrakech Accords and other relevant CoP/MoP Decisions.

3. Current CDM Framework (3/4) 3. Current CDM Framework (3/4) An exert from the Prime Minister’s Decision No 01 dated 15 July 2003 (cont.):   Article 4: MoE shall provide a written letter of approval confirming that as the Host Country, Cambodia's participation in the CDM project activity is voluntary; and that through the assessment process outlined in Article 3, the proposed project will assist in achieving sustainable development in Cambodia.   Article 5: MoE shall be responsible for establishing the permanent DNA in cooperation with concerned Government Ministries and Agencies and other stakeholders.   Article 6: MoE shall perform other tasks as required as the DNA, and the Focal Points of the UNFCCC and the Kyoto Protocol.   Article 7: MoE shall serve as the liaison office and focal point for national and international communications related to the CDM; and where necessary, promote and facilitate CDM projects and investment within Cambodia.

3. Current CDM Framework (4/4) 3. Current CDM Framework (4/4) National Climate Change Committee (under establishment) Cambodian Climate Change Office UNFCCC Implementation GHG Inventory Vulnerability & Adaptation UNFCCC & the Kyoto Protocol Focal Point Ad hoc Inter-ministerial Working Group on Energy Ad hoc Inter-ministerial Working Group on Forestry GHG Mitigation Cambodian Interim DNA Minister of Environment Secretariat

4. Options for Establishing DNA in Cambodia (1/4) 4. Options for Establishing DNA in Cambodia (1/4) Cambodia is currently analysing different alternatives for DNA structures and assessment process to be submitted to the Government for consideration with support from UNEP/RISO CD4CDM and IGES The CD4CDM. Cambodia is currently analysing different alternatives for DNA structures and assessment process to be submitted to the Government for consideration with support from UNEP/RISO CD4CDM and IGES The CD4CDM. The process of DNA establishment is being carried out through cross-sectoral consultation with all relevant stakeholders. The process of DNA establishment is being carried out through cross-sectoral consultation with all relevant stakeholders. The final recommendation on DNA structure is expected to be made to the Council of Ministers by August The final recommendation on DNA structure is expected to be made to the Council of Ministers by August 2004.

4. Options for Establishing DNA in Cambodia (2/4) 4. Options for Establishing DNA in Cambodia (2/4) Single Government Agency Approval by a Single Government Agency (For example, Ministry of Environment or Ministry of Industry...) CDM Office (Technical Staff) Staff Seconded from Other Government Agencies (Industry, Forestry, Energy, Agriculture...)

4. Options for Establishing DNA in Cambodia (3/4) 4. Options for Establishing DNA in Cambodia (3/4) Inter-Ministerial National CDM Authority (An Organisation Independent of Line Ministries with Approval Power) Ministry of Environment (Work Coordinated by National Authority) Ministry of Industry (Work Coordinated by National Authority) Ministry of Agriculture (Work Coordinated by National Authority)

4. Options for Establishing DNA in Cambodia (4/4) 4. Options for Establishing DNA in Cambodia (4/4) Outsourcing Line Ministry or Government Agency Non-Governmental Organisation or Private Company (Contractual Agreement for Assessment of CDM Projects)

5. Conclusion In Cambodia, we have taken two-step process in establishing DNA:   Establishment of an interim DNA to catch emerging CDM opportunities   Extensive consultation with relevant stakeholders for establishing a permanent DNA to ensure board representation Political support and commitment from the Government and adequate technical capacity are key towards CDM implementation Broad participation and coordination of concerned stakeholders is crucial in developing a meaningful and workable DNA Clear institutional arrangement and regulatory frameworks are required to ensure interest from potential CDM project investors Development of relevant sustainable development criteria for assessing proposed CDM projects is crucial to ensure that they are in line with sustainable development priorities of the country For Cambodia, support from UNEP/RISØ CD4DM project and IGES ICS-CDM project is important in timely establishment of DNA.

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