1. CDM Capacity building: Lessons learned and future directions CD4CDM Workshop October 19-21, 2005, Bangkok, Thailand Yukimi Shimura Institute for Global Environmental Strategies

2. Contents Summary of the ICS-CDM/JI Programme Lessons learned on the CB approach Remaining topics to be covered for the CB Our future directions

3. Summary of the ICS-CDM/JI Programme

4. Integrated Capacity Strengthening for CDM/JI (ICS-CDM/JI) 3 year programme under Ministry of the Environment, Japan Systemic, institutional and human capacity building Targeting countries with different size and level of capacity  FY2003: Cambodia, India, Indonesia, the Philippines  FY2004: ++Thailand  FY2005: ++China, Russia “standardized” “country-specific” Started with the “standardized” programme applied to all countries, which was later developed into more “country-specific” programmes

5. Country activities in FY 2004 India Thailand China Indonesia Cambodia Philippines Russia CDM Basic Seminar Training WS for PIN, baseline, and PDD National Meeting CDM Country Guide Preliminary research WS for Local Government WS for Financial Sector National Meeting Small Group Study for DNA CDM Country Guide Preliminary research Training WS for PIN/baseline and PDD National Meeting CDM Country Guide

6. Information and awareness raising on CDM/JI (1) CDM and JI in CHARTS provides a comprehensive and easy-to-understand description of the CDM and other Kyoto Mechanisms Download http://www.iges.or.jp/en/cdm/pdf/charts.pdf

7. Information and awareness raising on CDM/JI (2) CDM Country Guides (Cambodia, China*, India, Indonesia, the Philippines and Thailand*) Providing essential information to develop CDM projects in each country, such as the information on potential CDM project types, project approval procedures, legal issues, fiscal and financing issues and government incentives. (Electric version soon available) * Guides for China and Thailand are under development now.

8. Supporting institutional framework ICS-CDM/JI Programme supports the development and further smoothening of the operation of the Designated National Authority (DNA) and other CDM- related government institutions in the host countries. Cambodia DNA seminars on the national project approval process Thailand CDM seminars for government officials The Philippines Training-Workshop on the CDM (for DNA Steering Committee, Technical Evaluation Committees, Secretariat)

9. Training human resources Development of the capacity of human resources is one of the crucial aspects for the actual implementation of CDM projects. Various stakeholders need to be equipped with the know- how on CDM to facilitate the CDM project development. Regional WS with UNEP-RISOE, UNESCAP, JBIC Tokyo Meeting CDM basic seminar Training WS for PIN, baseline, and PDD National Meeting WS for local government WS for the financial sector Documents downloadable @ http://www.iges.or.jp/en/cdm/index.html

10. Support for project development The ICS-CDM/JI Programme supports CDM project identification, development and implementation activities in the countries though the Japan Kyoto Mechanism Acceleration Programme (J-KAP). Different types of support mechanism: Financial assistance for feasibility studies (GEC, NEDO); Underlying finance (JBIC); Upfront payment (MOE and NEDO) Carbon finance (JCF) For more information: http://www.kyomecha.org/jkap/jkap.html GEC: Global Environment Centre Foundation; NEDO: New Energy and Industrial Technology Development Organization; JBIC: Japan Bank for International Cooperation; MOE: Ministry of the Environment; JCF: Japan Carbon Finance, Ltd.

11. Lessons learned from the ICS-CDM/JI Programme

12. Lessons learned: positive feedbacks Starting from the broader approach (standardized programme) to the narrower approach (country- specific programmes) was quite effective “Integrated approach” allowed to reduce the gaps between CDM-advanced and just-started countries Still wide perspective for the concerns and the great needs for the CB in the region, but the next target for the CB is much clearer and more narrowed down (moving up the steps together) in the region. Partnership with local NGOs to coordinate the CB activities itself contributed to their capacity building. CB as a bridge to smoothen the CDM process between Annex-I and Non-Annex I countries.

13. Lessons learned: negative feedbacks Difficult to have solid outputs from the CB for evaluation Targets too broad The “integrated approach” was necessary, but it was difficult to make the best judgment on when to move in from the broad to narrow approach and how to balance the three components of the programme Communication with other donors was well established, but making a next move to avoid the redundancy in the CB activities was difficult

14. What’s left for the CDM capacity building (CB)

15. CB: Remaining issues DNA and approving procedures have been established, but still lacking the actual experience in approving the projects Baseline issues Regional governments Web sites as new tools for the capacity building? CDM registryGovernment How to keep up with the constantly updated rules on the CDM CB target: Gaps between forerunners and late comers Data accuracy and collection issues Project developers

16. CB: Remaining issues (cont’d) Consultants: how to skill up? Competence? Banking sector: standardization of loaning process for the CDM projects and internalization of the CDM-related profits when considering the financial viability of the projects DOEs: Yes, we need a special training programme to have Non-Annex I DOEs, but who shares the information to develop the effective programme? Project development supports

17. What’s next for the ICS-CDM/JI?

18. Current status Currently under the negotiation with Ministry of the Environment, Japan. Various factors affecting the designing of the programme

19. Possible course for the next ICS-CDM/JI programme Option 1: Continuation of the current structure (balanced assistance to both governments and private sector) Option 2: Narrowed-down approach Option 3: More regionally-focused approach (wider perspective) Option 4: Hybrid of Option 1 and 2 with specific focus on certain topics/stakeholders Great possibility of having the stronger emphasis on the outputs

20. A decisive factor for shaping the next ICS-CDM/JI Possibility of having a carbon credit procurement programme as of FY2006 (April 2006) Proposed budget (both MOE-J & METI together): 8.8 Billion JPY Linking CB with the procurement programme as a possibility Japanese Government’s proposal for the credit procurement programme (requiring a Diet approval)

21. Thank you for your attention! CDM Programme Institute for Global Environmental Strategies 2108-11 Kamiyamaguchi, Hayama, Kanagawa, 240-0115 Japan Phone: +81-(0)46-855-3820 Fax: +81-(0)46-855 3809 E-mail: cdm@iges.or.jp URL: http://www.iges.or.jp/en/cdm/index.html Contact details: