NGO "ANOTHER WAY" (STICHTING BAKENS VERZET), NETHERLANDS, SUSTAINABLE INTEGRATED SELF-FINANCING DEVELOPMENT PROJECTS AND ADVANCED DEVELOPMENT TECHNOLOGIES

Recently introduced Programmes of Activities (PoA) appear to offer greater potential for CDM financing of integrated development projects in developing countries. A programme of activities defines parameters for CDM activities to be included in the programme. It is a sort of convention. Once registered by the CDM Executive Board, the PoA applies to activities brought under it from time to time without the need for project by project applications. For more information refer to : Beaurain F., Schmidt-Traub G, Developing CDM Programmes of Activities : A Guidebook, South Pole Carbon Asset Management Ltd, Zurich, 2010.

As at 21 December, 2012, there were 129 Programmes of Activities Registered by the CDM, just 2 in 2009, 3 in 2010, 12 in 2011, 2 in the first quarter of 2012, 17 in the second quarter of 2012, 25 in the third quarter of 2012, and 68 in the last quarter of 2012. The rapid increase in 2012 could have been due to uncertainties surrounding the extension of the CDM system beyond 2012. However, with CO2 emissions certificates producing just Euro 2 per ton of CO2, the sharp increase in the number of PoAs approved is unlikely to be repeated.

Click here to see a drawing showing how this might work on a sub-continental scale in developing countries. In the example, a sub-regional authority is the “owner” of the Programme of Activities which forms an integrated part of its regional development policy. The programme is run by a consortium of leading NGOs represented throughout the sub-region. This consortium is responsible for the operation of the programme and for the sale of CER emission certificates. On behalf of the project owner it collects CER emission funds and distributes them either to the sub-regional authority as repayment of the initial capital costs of the integrated project concerned, and/or to the cooperatives responsible for the on-going management of project structures of each individual project. The activities of the consortium are controlled and audited by a DOE (Designated Operating Entity) which acts on behalf of the CDM Executive Board (EB).

Programmes of Activities (PoA) for integrated development projects would be organised in two layers.

The first level Programme of Activities (PoA) is the mother PoA. For the integrated development of, say, West Africa (excluding Nigeria and Ghana) there will therefore be about 2500 applications of the first-level (mother) Programme of Activities (PoA).

The second level comprises a batch of 13 sub-Programmes of Activities (PoAs) each using a specific CDM methodology. Each of the 2500 individual integrated projects may choose to apply any one, any combination, or all of the 13 second level PoAs in accordance with the local requirements there. For instance, one project area may apply methodology AR AMS-003, Version 1 for the reforestation of wetlands, another may choose to apply AR-AMS-0005 (Version 2, 8 April 2009) in an area with low inherent potential to support living biomass, while a third project area with both wet and very dry areas may choose to apply both methodologies and a fourth project may not apply either of them.

The scheme with two layers of PoAs proposed here is different from anything done under the CDM mechanism until now. It will take time, financial investment, and full engagement at sub-regional level to get it accepted by the Executive Board of the Clean Development Mechanism. That acceptance could lead to a breakthrough in the financing of projects for the integrated development of the world’s poorest countries. Promotion of the CDM proposal presented here is a high risk enterprise involving substantial costs which must be paid up front without guarantee of success.

Table 1 shows the plan of the Mother PoA and the 13 sub-PoAs. For the development of West Africa, the mother PoA would be expected to have about 2500 applications. Each of the sub-PoAs may have a single application at project level, or up to about 45 applications at intermediate development unit level, or up to about 250 applications at local development unit level, or up to about 10.000 applications at household level. Note that applications 01 and 02 continue through 50 years – the last 30 years are not shown. Application 06 continues through 30 years – the last 10 years are not shown.

Table 1 : The two Programme of Activities (PoA) layers.

Year of operation

Sub-PoAs

One application at project level, or up to 45 applications at intermediate unit level, or up to 250 applications at local development level, or up to 10.000 applications at household level

One

Application under the mother

PoA

for each project

01. CO2 savings reduced use of non-renewable biomass for cooking purposes through the introduction of improved stoves. AMS-II-G (version 5). (50 years)

02. Demonstration projects for the recovery of forest lands and natural parks and reserves. AR-AMS-0004 , version 2. (50 years)

03. Afforestation activities in settlements as defined Distributed planting of fruit and nut trees and similar. AR-AMS-2 (version 2)

04. Small-scale agro-forestry activities – such as distributed bamboo plantations on grasslands and croplands. AR-AMS-0001

05 Small-scale agro-forestry activities – distributed demonstration Moringa plantations on marginal lands, AR-AMS-0004 , version 2.

06. Demonstration afforestation and/or reforestation (AR) projects on wetlands using traditional species. AR AMS-003, Version 1. (30 years)

07 Demonstration Jatropha projects on lands having low inherent potential to support living biomass. AR-AMS-0005 (Version 2, 8 April 2009)

08. Use of renewable biomass instead of non-renewable biomass with improved cook stoves. AMS 1.E .

09. Recycling of human waste to avoid the use of industrial fertilisers. No methodology currently available.

10. Methane recovery from animal waste for cooking and lighting purposes especially in pastoralist areas. AMS-III-AR (Reserve pending applications)

11. Replacement of kerosene lamps etc (wind, solar and/or renewable bio-mass including plant oil, gasification of biomass). Methodology AMS-III-AR

12. Replacement of non-renewable electrical, diesel- and battery-driven sources for mechanical equipment AMS-I-A

13. Local recycling and recovery of materials from solid wastes, including but not limited to plastics. AMS-III-AJ. (Reserve pending applications)

Sect. 5 : Kyoto Treaty : Analysis of possibilities for finance. (Additional)

01. Executive summary.

02. Introduction.

03. Potential areas of application of CDM mechanisms to integrated development projects.

04. Small-scale CDM activities.

05. Programmes of activities.

06. Selection of the CDM methodologies for the applications listed in section 03.

07. Information specific to afforestation/reforestation (AR) methodologies specifically applicable to integrated development projects.

08. Notes specific to the role of bamboo in afforestation and reforestation (AR) projects.

09. CDM funding indications for the selected applications and methodologies.

10. Graphs and conclusions.

Exam Block 8 : [4 hours]

Consolidated exam : Section C. [6 hours].

◄ ►

◄ Eighth block : Section. 5 : Kyoto Treaty : Analysis of possibilities for finance.

◄ Eighth block : Economic Aspects.

◄ Main index for the Diploma in Integrated Development (Dip. Int. Dev.)

◄ List of key words.

◄ List of references.

◄ Course chart.

◄ Technical aspects.

◄ Courses available.

◄ Homepage Bakens Verzet

"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, Peter Owen, London 1958, page 228.

“Poverty is created scarcity”

Wahu Kaara, point 8 of the Global Call to Action Against Poverty, 58^th annual NGO Conference, United Nations, New York 7^th September 2005.

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