Another Way (Stichting Bakens Verzet), 1018 AM
Edition 01: 15 January, 2011
Edition 05 : 18 March, 2011
Edition 06 : 28 August, 2011.
Study points : 05 points out of 18
Minimum study time : 125 hours out of 504
The study points are awarded upon passing the consolidated exam for Section C : The Model.
[Study points 03 out of 18]
[Minimum study time: 85 hours out of 504]
The study points are awarded upon passing the consolidated exam for Section C : The Model.
03 : Potential areas of application of CDM mechanisms under the
1. Some specific issues to be faced when applying the CDM mechanism to integrated development projects.
01. Integrated development projects cover all structures and services needed for a good quality of life for all in each given project area. Activities such as afforestation/reforestation initiatives and the use of improved cooking stoves and of locally-made mini-briquettes for them are carried out under the local money system set up in each project area. Proceeds from the CER applications would be used to finance the initial money capital costs of the projects and not directly related to the improved cooking stoves and mini-briquettes and other facilities themselves. The formal money costs of the projects are used to finance a wide range of services for the benefit of all the inhabitants of each project area.
02. Wherever possible small-scale
methodologies with simplified validation procedures have been adopted. The
question arises why a system of agreed default values cannot be introduced as a
methodology to avoid complicated compliance and expensive monitoring activities
are in least-developed countries and would be exempt from registration and
adaptation fees. The problem is how to get compliance costs down to a
reasonable level and eventually eliminate the Designated Operational Entity
(DOE) altogether. Given that all integrated development projects in poor
countries are more or less the same size with similar characteristics and that
the rate of ecological degradation is highest there, it should be possible to
adopt a default system with just a minimum of formalities. Some 2500 integrated
development projects are needed to cover West- and Central Africa
03. How exactly can it be proved that bio-mass reductions achieved are reductions of non-renewable biomass? Renewable biomass is defined in Annex 18 – Definition of Renewable Biomass , a decision taken during CDM Executive Board Meeting 23, 12-15 December, 2006. Biomass not being renewable under Annex 18 is considered non-renewable. In the end though, use of non-renewable biomass often has to be measured in terms of on-going environmental degradation based on historical and subjective reports on conditions in specific project areas.
04. How exactly, can it be “proved” that the carbon savings in question can only be obtained where carbon finance is made available ? A CDM project activity is defined as being “additional” in UNFCCC document 3/CMP.1, Annex, p. 16, paragraph 43 “if anthropogenic emissions of greenhouse gases by sources are reduced below those that would have occurred in the absence of the registered CDM project activity.” In practice, therefore, under the CDM mechanism, it must be shown that the claimed energy savings would not have been possible without applying the CDM mechanism. They must therefore be additional to any savings which would have taken place through the application of laws, national projects and similar which would normally be financed through other sources. This is called additionality. Proof of additionality is often the most difficult part of a CDM application. A Project is considered additional if, when it is compared with other investment possibilities, it is either “financially unattractive” or would meet insurmountable barriers for execution if CDM carbon credits were not made available. The project in question must not be based on any common practices in the project area and may often have special features making it particularly risky for “investors”. It is not clear how the concept of additionality will be applied to cooperative integrated development projects in least developed countries.
logical advantages offered by integrated development projects for applications
for CDM finance under the
01. Integrated Development concepts are suitable for a new-generation cooperative multi-methodology Programme of Activities (PoA) initiatives at sub-continental level, without the need for business plans, promotional activities and similar. They would form part of policy implementation at sub-regional level, but are not currently part of that policy due to lack of finance. They are additional in terms of 3/CMP.1, Annex, paragraph 43 because they have not been financed up until now. It is reasonable to suppose they will not be financed in the foreseeable future without the CDM finance.
02. Actions covered by integrated development projects are universally applicable in each clearly defined project area. For example, installation of improved cook stoves in each project area takes place over 2-3 years, so the so-called evolving base-line approach would need to be followed for CO2 savings initiatives. This would not usually be necessary with afforestaton/reforestation (AR) initiatives where all trees for each plan would be planted over a short period, subject always to availability of water and manpower.
03. Formal money and micro-credits are not required for the purchase of items such as improved cook-stoves, mini-briquettes and similar themselves the subject of CDM applications within the framework of integrated development projects. This is because all production, distribution and maintenance of these items is carried out under the local money system set up in each integrated development project area. Briquette production, for example, is organised under the local money system, at well-commission level, in areas serving about 350 families. Formal money transport costs there are eliminated. Instead, the CDM investment funds earned by CO2 savings deriving, for instance, from the introduction of improved cook-stoves are needed to cover the formal money investment costs set out in the budget for any given project. These refer in particular to the formal money costs of drinking water supply and solar lighting installations which must be “imported” into the project area because they cannot be produced there under the local money system.
04. Integrated development projects provide numerous options for women to participate in and take advantage of climate mitigation and adaptation initiatives as proposed in publications such as Bäthge, S, The Governance Cluster : Climate change and gender : economic empowerment of women through climate mitigation and adaptation?, Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ) Eschborn, Working Paper, October 2010 (English version).
3. Potential areas of application.
Clean Development Mechanisms (CDM) applications under the Kyoto Protocol apply only to the replacement or improvement of existing energy use and conservation measures which serve to increase carbon sinks.
Applications under the Kyoto Protocol are organised by sector and sub-type or purpose. The 15 CDM activity sectors are listed in section 02. Introduction. Since integrated development projects involve a wide range of services and activities, CDM applications for each project area can in principle be made under several activity sectors and for several purposes, provided doubling-up of claimed benefits is carefully avoided.
The widely-known long-standing degradation of forested areas and environmental conditions in general in most developing countries offers attractive prospects for afforestation and reforestation (AR) projects there. These activities may take place in forests and natural reserves, built-up areas, grass- and croplands, wetlands, marginal lands, and areas unable to support bio-mass. These possibilities are included in items 02, 03, 04, 05, 06 and 07 below. Provided sufficient water is available (integrated development projects do not cover irrigation projects), afforestation and reforestation (AR) activities in a given integrated development project area may take place in any or all of the described land-use types there.
For an analysis of CDM potential in least developed countries see Arens C. et al, The CDM project potential in Sub-Saharan Africa, with focus on Selected Least Developed Countries., Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), Division KI I: Fundamental Aspects Environment and Energy, Climate Protection, 11055 Berlin, Germany www.jiko-bmu.de
Most integrated development projects are likely to involve at least some of the following applications. They are listed here in their likely order of importance:
01. (Small scale) CO2 savings through the reduced use of biomass for cooking purposes through the introduction of improved stoves. (Sector 3. Energy demand).
02. (Small scale) afforestation and/or reforestation projects. Recovery of forest lands and natural parks and reserves using traditional species. (Sector 14 - Afforestation and reforestation.)
03. (Small scale) afforestation and/or reforestation projects. Afforestation activities in settlements as defined Distributed planting of fruit and nut trees and similar. (Sector 14 - Afforestation and reforestation.)
04. (Small scale) afforestation and/or reforestation projects. Small-scale agro-forestry activities – distributed bamboo plantations, palms, soap-nuts on grasslands and croplands. (Sector 14 - Afforestation and reforestation.)
05. (Small scale) afforestation and/or reforestation projects. Small-scale agro-forestry activities – distributed plantations for practical purposes for local use, including but not limited to Moringa trees on marginal lands. (Sector 14. - Afforestation and reforestation.).
06. (Small scale) afforestation and/or reforestation projects on wetlands using Mangroves, eventually other traditional species. (Sector 14 - Afforestation and reforestation.)
07. (Small scale) afforestation and/or reforestation projects on lands having low inherent potential to support living biomass, using Jatropha, eventually other local species. (Sector 14 - Afforestation and reforestation.)
08. (Small scale) use of renewable biomass instead of non-renewable biomass with improved cook stoves. (Sector 1. Energy industries.)
09. (Small scale) recycling of human waste to avoid the use of industrial fertilisers. (Sector 13. Waste handling and disposal .)
10. (Small-scale) methane recovery from animal waste for cooking and lighting purposes in pastoralist areas. (Sector 15 – Agriculture.)
11. (Small scale) replacement of kerosene lamps incandescent light bulbs and of the use of throw-away batteries by renewable energy sources (wind, solar and/or renewable bio-mass including but not limited to plant oil, gasification of biomass). (Sector 3. Energy demand .)
12. (Small-scale) replacement of non-renewable electrical and diesel-driven sources for mechanical equipment such as pumps and mills and, where applicable, pubic and commercial lighting systems. (Sector 1- 01. Energy industries.)
13. (Small scale) local recycling of and recovery of materials from solid wastes, including but not limited to plastics. (Sector 13. Waste handling and disposal )
Different methodologies are used for different sectors and purposes. Each methodology is unique to the sector it is listed under. Click here to see which methodologies are linked with which sectors. Since an activity may fall under any one of several sectors, there may be more than one methodology which can be applied to it.
development projects involve many sectors and purposes. The choice of sector
and of the most suitable methodologies within the sector is complex. In some
cases an application for the approval of a new combination system might turn
out to be the best option as new methodologies can also be submitted to the CDM
Executive Board for approval. The CDM methodologies currently available are
described in the CDM Methodology Booklet issued
by the United Nations Framework Convention on Climate Change (UNFCCC),
United Nations Environment Program (UNEP) has recently issued a Tool for Selecting CDM Methodologies and Technologies (United Nations Environment Programme (UNEP) Risø Centre
For a description of how the choice of methodologies has been made, see : 06. Selection of the CDM methodologies for the applications listed in section 03.
For a full description of the various CDM applications foreseen refer to : 09. CDM funding indications for the selected applications and methodologies. This is the core material on the application of CDM system to integrated development projects.
Exam Block 8 : [4 hours]
Consolidated exam : Section C. [6 hours].
"Money is not the key that opens the gates of the market but the bolt that bars them."
Gesell, Silvio, The Natural Economic Order, revised English edition,
“Poverty is created scarcity”
Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58th
annual NGO Conference, United Nations,
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