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Ensuring Sustainability of Clean Development Mechanism Projects for Global Sustainable Development


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Burton, A. (2007) Ensuring Sustainability of Clean Development Mechanism Projects for Global
Sustainable Development. Presented at the IEMA Environmental Knowledge Exchange, Manchester.

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Ensuring Sustainability of Clean Development Mechanism Projects for Global Sustainable Development

  1. 1. Ensuring Sustainability of CleanDevelopment Mechanism Projects for Global Sustainable Development Aaron Burton
  2. 2. Outline• Introduction• CDM Beginnings and Definition• Sustainability of the CDM process – framework issues• Evaluation of CDM Decision-Making methods• Conclusions and further research
  3. 3. Introduction• Climate change is a large multi-actor problem• Kyoto protocol represents cooperation between these levels• Intrinsic links between climate change and sustainable development• Research undertaken in 2006 with Murdoch University ISTP combined with a World Bank consultancy project in Bangladesh – Can a CDM project in poultry waste management achieve sustainability outcomes in practice?
  4. 4. Climate Impacts- Developing Countries
  5. 5. CDM Beginnings• UNFCCC negotiations recognised cost- effective mitigation strategies for reducing GHG – Legally non binding pledge to reduce emissions to 1990 levels by 2000 (Rio 1992)• Kyoto Protocol agreed in 1997 to achieve a stabilisation and begin to address global climate change – Reduction by 5% compared to 1990 levels by 2008-12 for Annex-1 countries
  6. 6. CDM Beginnings 2• Kyoto Protocol ratified 16/02/2005• Several flexible market based mechanism introduced in recognition of enormous cost of emission reductions • Common Targets (“Bubbles”) • Emission Trade • Joint Implementation • Clean Development Mechanism
  7. 7. Clean Development Mechanism - Defined• Dual objectives – assisting developing countries to achieve sustainable development – provide cost-effective emission reduction for industrialised countries The purpose of the clean development mechanism shall be to assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention, and to assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments under Article 3.
  8. 8. CDMvs Typical Investment
  9. 9. CDM Projects
  10. 10. CDM Issues• Not setting criteria – no limits to achievement• However, lack of a minimal standard – High SD value projects being priced out by more cost- effective projects with lower SD benefits• Competition between non Annex-1 countries resulting in setting low sustainable development standards• Sovereignty issues “it is the host Party’s prerogative to confirm whether a clean development mechanism project assists it in achieving sustainable development but it is the host country prerogative to decide the sustainable issue”.
  11. 11. Impacts• Governments knowingly/ unknowingly accepting projects with negative effects due to no assessment• Lack of institutional capacity and little guidance• Missing EIA legislation and weak practice EIA in developing countries• Direct impacts – Intergenerational equity of selling cheap GHG control options leaving only the more expensive options for future generations
  12. 12. Sustainability Assessment Balancing the dual objectivesTherefore,Sustainability assessment is required toensure sustainability outcomes for the hostcountry and to further global sustainabledevelopment
  13. 13. CDM Process
  14. 14. Best Practice SA• Best practice sustainability assessment is required to ensure the dual objectives are met• Sustainability decision making methods were evaluated according to best practice – Methods described – Evaluated according to 3 criteria – Findings summarised
  15. 15. Methods Reviewed MCA Ranking OtherStakeholder analysis and World Bank PCF Method (Huq Multidimensional qualitative MCA (Brown et al. 2004) 2002) analysis in Brazil (Motta,MATA-CDM/ Sustainability Synergy Method (SYNERGY Srivastava, and Markandya Check-up (Sutter and 2004) 2002) Parreno 2005; Burian SouthSouthNorth Matrix Checks as part of validation. 2006) Approach (Thorne andMCA Egypt (Olhoff et al. 2004) Raubenheimer 2002; Burian 2006) WWF Gold Standard (Burian 2006) Analytical Hierarchy Process (AHP) in India (Motta, Srivastava, and Markandya 2002) Matrix and Screens by Bangladesh DNA (Waste Concern 2005)
  16. 16. Evaluation Dimensions Best PracticeAssessment Efficiency Process Indicators
  17. 17. Evaluation - Assessment ProcessCriteria Importance/ RelevanceDoes the assessment guarantee Important to ensure the quality of thevalid results? decision making method. Important for validity, verification and withstanding third- party scrutiny.Is there adequate scoping Assessment of alternatives for similar(assessment of reasonable purposes and their relative outcomesalternatives and possible enables choice of the best option.cumulative effects)? Cumulative effects of proposed or operating projects must be accounted for in assessment.Is this scoping transparent and Scoping needs to be based on stakeholderinclusive of stakeholder views? views to meet local concerns or requirements.Is there attention paid to long-term Project construction, operation andwhole of project life factors? decommissioning needs to be considered for all social, economic and environmental impacts.Does the method provide for a This is essential in providing information tosystematic ranking or scoring of the decision maker for evaluation. Theprojects? transparency of the methods as shown in these results is also important.
  18. 18. Evaluation - Indicators• Examples – Have indicators been developed with public participation? – Are indicators useful for a broader sustainability agenda (information for regional, national and international frameworks)? – Are technological indicators included separately? – Is data available and for what cost? – Are indicators applicable only to specific sectors? – Do indicators ensure positive outcome rather than focussing on prevention of negative outcomes
  19. 19. Evaluation - EfficiencyCriteria Importance/ RelevanceDoes the assessment CDM rules cover areascover area already part of additionality, projectof the CDM rules and areas and other factors.assessment process?
  20. 20. Best Practice Decision Making• MCA most appropriate for formal assessment of CDM• Ranking methods suitable for initial assessment at PIN/PCN level• Indicators too sector specific• Public participation is essential• Need linkages beyond assessment
  21. 21. Conclusions• CDM has the potential to be a powerful tool for sustainable development and emissions reductions• Potential issues with cost-effective favoured over highly sustainable projects• Many SA methods applied but no standard or best practice• MCA identified as best for formal assessment• Subsequent best practice method developed and applied to a Bangladesh poultry waste case study
  22. 22. Thank YouQuestions….For more information: Email: Mob: 07704351399