CDM in Asia: Opportunities and obstacles
Presented by the Institute for global Environmental Strategies (IGES) and the Global Environment Centre Foundation (GEC).
Chairing this side event, Taka Hiraishi, IGES, stressed the need to recognize that the CDM is an opportunity for sustainable development.
Hiroaki Takiguchi, Ministry of the Environment of Japan (MOEJ), explained that the MOEJ's support for operationalizing CDM and joint implementation (JI) projects includes: conducting CDM/JI feasibility studies; establishing a domestic Kyoto Mechanism support center; providing financial support; developing capacity building programmes; and developing a national registry.
Kunihiro Ueno, GEC, presented GEC's activities in Asia and spoke on the project scheme of CDM/JI feasibility studies on, inter alia, waste management, biomass and afforestation. Ueno outlined obstacles for CDM projects, including a lack of incentives for Japanese private sectors, uncertainty of approval by host countries, and business risks.
Peter Kalas, World Bank, provided a regional comparison between Asia and Latin America with respect to CDM projects. Noting numerous CDM projects in each Latin American country, Kalas said the region has active public and private sectors and a rapid acceptance of market mechanisms. In contrast, he said Asia has a larger CDM potential and growing private sector potential, but less inter-regional cooperation.
Duan Maosheng, Tsinghua University, spoke on implementing the CDM in China and stated that the priority sectors for CDM projects in China are the power, industrial, transportation and household sectors. Examining possible barriers, Maosheng identified a lack of understanding of the CDM by local governments and industries, low carbon price and high transaction costs, and long and complex CDM approval procedures.
Mattias Krey, Hamburg Institute of International Economics, discussed the German experience and support for overcoming the barriers and promoting opportunities for CDM projects in Asia. He noted that Germany aims to assist Asian countries in participating in the CDM and focuses on sectoral training and reducing transaction costs through institutional support, as well as for providing baseline data, marketing and outreach.
Naoki Matsuo, IGES/Climate Experts, presented ways to overcome CDM obstacles for CDM through issue mapping, for issues including: additionality, baselines and methodologies for PDDs; ways to attract foreign investment for designated national authorities; domestic incentives; project selection; project financing; and sustainability.
Ancha Srinivasan, IGES, explained the IGES-MOEJ initiative on integrated capacity strengthening for CDM in Asia and noted that the goal of the initiative is to develop institutional and human capacity to operationalize the CDM within the sustainable development context. He stated that the way forward for the CDM in Asia should involve stakeholders at all stages and establish a credible baseline for CDM projects.
Discussion: The panel discussion consisted of remarks from Ashok Sarkar (Asian Development Bank), Amelia Supetran (UNDP), Peter Pembleton (UNIDO), and P.Venkata Ramana (Winrock International). The panel speakers outlined their organization's initiatives on developing CDM projects and noted: the importance of improving regulatory environments and institutional support; the lack of understanding at the national level; and the need to build capacity and overcome transaction barriers between buyers and sellers.