DNA

1. Government of Nepal
Ministry of Science, Technology and Environment
DesignatedNational Authority for
Clean Development Mechanism
of The
Kyoto Protocol
April 2013
Background
Nepal signed the The United Nations Framework Convention on Climate Change (UNFCCC) on 12 June
1992 during the UN conference on Environment and Development in Rio de Janerio, Brazil. The
Instrumentof Ratificationwassubmittedtothe ConventionDepository on 2 May 1994 and the UNFCCC
enteredintoforce inNepal from31 July1994.
The partiesto the Conventionadoptedthe KyotoProtocol (KP) on11 December1997 in orderto pursue
the ultimate objective of mitigating climate change. Article 12 of the Protocol established the Clean
Development Mechanism (CDM) to assist parties not included in Annex 1 in achieving sustainable
developmentgoal bytradingCertifiedEmissionReduction(CER).
Nepal submitted the Instrument of Accession to the Kyoto Protocol to its depository on 16 September
2005. The Protocol enteredintoforce inNepal from14 December2005.

2. Establishmentof DNA
To facilitate and expedite the process of registration and to get maximum benefits from CDMprojects,
the Governmentof Nepal (GoN) decidedon22 December2005 that the thanMinistryof Populationand
Environment (now Ministry of Science, Technology and Environment (MoSTE)) would function as
DesignatedNational Authority(DNA)toCDMprojectsrelatedtothe KyotoProtocol.Further,the Ministry
authorized the Climate Change Management Division to function as DNA secretariat. To enhance the
coordinationinprojectapproval,anelevenmemberSteeringCommittee (SC)underthe chairmanshipof
SecretaryMoSTE was formedinApril 2006. A six memberTechnical AdvisoryCommittee (TAC) underthe
coordination of Joint Secretary (Tech.) Climate Change Management Division (CCMD), MoSTE was also
formed.The CDMSectionwasmade responsibleforadministrativesupporttothe DNA secretariat.
Functionsand responsibilitiesofthe DNA
1. Increasingparticipationof the private sectorinCDMprojects.
2. SupportingandfacilitatingprojectdevelopersinpromotingCDMprojects.
3. Managing andcoordinatingCDMprojectactivities.
4. ProvidingCDMrelatedinformationtostakeholders
5. Formulationandimplementationof strategiesandpoliciestopropagate CDMprojects.
6. Organizingcapacitybuildingandpromotional activitiestoinformpeople aboutCDM.
7. Supportingthe preparationof standardbaselines.
8. Providingcomments,suggestionsandinputsfromTACandSCmembersforprojectdevelopersto
incorporate intheirprojectreport.
9. Issuing No Objection Letter (NOL) for approved Project Idea Note (PIN) and Letter of Approval
(LoA) forapprovedProjectDesignDocument(PDD).
10. Monitoringandevaluationof the CDMProjects.
11. Achievingsustainable developmentgoal throughCDMand preparingastatus paperon it.
12. Coordinatingcapacitybuilding,technologytransferandknowledgemanagementforCDM.
CDM Project Review
The DNA will approve and produce NOL for PIN and LoA for PDD of CDM Projects. NOL will be
producedforPIN afteracceptance byTAC. LoA will be producedforPDDafteracceptance byTAC
and SC.
The SC will advise the DNA on whether or not to approve the submitted PDD. It also has the
authoritytoprovide methodologiesandguidelinesonpreparationof CDMprojects.
The TAC will evaluate the PIN and PDD of CDM projects for technical feasibilityand sustainable
developmentcriteria.Itcanrejector propose improvementsonPINsandPDDsof CDM projects.

3. The CDMSectionwill screenandconductaninitialevaluationof PIN andPDDstakingintoaccount
the sustainable developmentcriteria,nationalpolicies,strategies,lawsandguidelines.
The projectdeveloper(PD)willbe responsibleforholdingstakeholderconsultation.The PDshould
make powerpointpresentationandexplainPINandPDDdocumentstoTACandSCmeetings.The
PD is also accountable for incorporating all the comments and suggestion obtained from
stakeholderconsultation,TACandSCon PIN and PDD documents.
Requirementsforsubmissionof PINand PDD
1. In jointventure projects,Nepaleseenterprisesshouldleadthe implementationof the project
and itshouldbe the contact pointfor notificationbythe government
2. The CER price should be converted to Nepalese rupees on exchange rate on the date when
applicationisfilled.
3. The PIN shouldfollowWorldBankformatandPDD shouldfollow UNFCCCformat.
Documents to be submitted
1. Sevencopiesof PIN and12 copiesof PDD includingsoftcopytoDNA secretariat
2. Letterof intentfromthe contactpoint
If applicable
3. EIA or IEE Report
4. StakeholderConsultationreport
5. JointVenture agreementbetweenpartiesindicatingleadingpartyandcontactpointincluding
responsibilities,liabilities,investmentratiosandarbitrationprocessetc.
6. Approval Letterforprojectinvestment
7. Othernecessarydocuments
CDM Projects status
As for 15 April 2013 DNA has approved 17 CDM projects of which 6 projects have received CER. Four of
themare Bio-gasprojects,one ImprovedCookStove projectandone Micro-hydroproject.
CDM Project ReviewProcess
Steering Committee
Proponent Stakeholder Secretary, MoSTE Chairman
Consultation
Rep.JS level,MoF Member
•
Rep.JS level,MoFSC Member
Government ofNepal Rep.JS level,Mol Member

4. Ministryof Science, TechnologyandEnvironment Rep.JS level,MoLE Member
(MoSTE )
Rep.JS level,MoFALD Member
DesignatedNational Authority (DNA) for Rep.JS level,MoE Member
CDM Project Rep.JS level,MoAD Member
•
Experts(two) Member
•
JS,CCMD- MoSTE MS
DNA Secretariat
JS(Tech),Chief CCMD- MoSTE Technical Advisory Committee
•
JS (Tech),CCMD- MoSTE Coordinator
•
Rep.ConcernedMinistries Member
Administrative Support Experts(three) Member
CDM Section Chief,CDMSection,MoSTE MS
Development,
Potential Sectors for CDM Projects
• DecentralizedRenewable Energy –
SolidWaste
Micro Hydro, BioGas, SolarPV,Improved Transportation
CookStoves
• Tourism
• ImprovedWatermill
• CleanEnergy technology
• Hydropower
• Fuel SwitchinIndustries
Acronyms
MS- Member Secretary
JS- Joint Secretary,
Rep.- Representative
MoF- Ministry of Finance
MoE- Ministry of Energy
MoI- Ministry of Industry
MoLE- Ministry of Labour and Employment
MoAD- Ministry of Agriculture Development
CCMD- Climate Change Management
Division,
MoFSC- Ministry of Forestry and
Soil Conservation
MoFALD- Minstry of Federal
Affairs Local

5. • Agriculture
• Modification of Production system
Forestry
CDM Projects Approval Cycle
Sustainable DevelopmentCriteriaandother requirements for approval
(i) General Criteria
The proposedCDMprojectshouldcomplywithexistingLaw,strategiesandpoliciessuchas:
• National as well as sectoral plan and policies (such as Sustainable Development Agenda,
PeriodicPlanandpoliciesetc.)
• Development and conservation strategies (such as Biodiversity Strategy, Water Resources
Strategyetc)
• National andsectoral actsandlaws(suchasEnvironmentProtectionActand Law and Forest
ProtectionActetc)
1
st
Phase PIN 2
nd
Phase PDD
Review&Evaluation
(TAC meeting)
NOL
Evaluation
(SC meeting)
Improvement
/ Rejection
No No
Ye
Improvement
/ Rejection
Public Consultation
(PD or proponent)
No
Rejection/
Resubmit
LoA
Ye

6. • Otherrequirementsof the government
(ii) SpecificCriteria
The proposedCDMprojectshouldbe consistentwithfollowingCriteriaandIndicators
1. Environment
1.1 Environmental sustainability by practicing natural resource conservation or diversification 1.1.1
Maintainsustainabilityof local ecological functions
1.1.2 Maintain the threshold of existing national, sectoral as well as local, environmental
standards(notincreasingair,waterand/orsoil pollutionandnoise level)
1.1.3 Maintaingenetic,species,andecosystemdiversityandnotincreasinganygeneticerosion
1.1.4 Complywithexistinglanduse practice andplanning(if exist)
1.1.5 Reduce pressure onexploitationof local andnational environmental resources
1.1.6 Rational use of mineral recourse
1.1.7 Sustainable use of forestresources
1.1.8 No impacton existingarcheological,cultural,historical andtraditional heritage
1.1.9 Minimal/noimpacton existinginfrastructure.
1.2 Healthand safety
1.2.1 No healthriskposed
1.2.2 Provide improvedsafetymeasures
1.2.3 Provide improvedhealthcondition
1.2.4 Complywithnational occupationalhealthandsafetyacts,policiesandlaws
1.2.5 Documentprocedure of actionstopreventpossibleaccidentsandhealthhazards
1.3 GHG emissionsreduction
1.3.1 Reduce use of fossil fuelsandbiomass
1.3.2 Promote cleanenergygenerationanduse
1.3.3 Improve hygieneof surrounding(Managementof solid,liquidandgaseouswaste)
2. Economic
2.1 Povertyreductionandlocal communitywellbeing
2.1.1 Maintainor increase householdorlocal communityincome
2.1.2 Provide financialreturnstolocal communitiesduringprojectperiod
2.1.3 Increase national orrural employment
2.1.4 Nothamperor loweringnational andlocal publicservices
2.1.5 Buildagreement/concurrenceamongconflictingparties
2.1.6 Use local materialsforconstruction
2.1.7 Employlocal people forconstruction
3. Social
3.1 Communityparticipationinthe project
3.1.1 Consultlocal communityandstakeholdersandseektheiragreementforthe project
3.1.2 Incorporate comments,inputsandcomplaintsfromlocal communitiesintothe project
3.1.3 Avoidtriggeringconflictsamonglocal communities
3.1.4 Improve social harmonyamongcommunities
3.1.5 Promote genderequityandwomenempowerment

7. 4. Technology& Capacity building
4.1 Technologytransfer/capacitybuilding
4.1.1 Promote technologytransfer
4.1.2 Notuse experimental orobsoletetechnology
4.1.3 Enhance the capacity of local people
4.1.4 Utilize local technologies
4.1.5 Raise technological know-how
4.1.6 Transferskillsandincrease maintenance capacity
4.1.7 Include trainingandcapacitybuildingof local people
Note: Proofs of consultations, and comments and complaints, if any, of the local community should be
submittedbythe projectdeveloperwhilesubmittingthe proposal forCDM.
For more Information
Government of Nepal
Ministry of Science, Technology and Environment
Secretariat of Designated National Authority for Clean Development Mechanism
Singdurbar, Kathmandu
Telephone: +977-1-4211641/4211586
Fax: +977-1-4211954
Email: info@moste.gov.np
Website: www.moste.gov.np