Abstract
The creation of the suitable framework to host CDM projects involves institutional and legislative preparations and changes.
One of the benefits of national preparations is that clarity on national decision-making processes will improve a country’s attractiveness to potential CDM investors. Foreign investors look for the most cost-effective opportunities but are also more likely to seek CDM project opportunities in countries that have well organized project approval processes.1 Therefore, when establishing the national framework to host CDM projects, the achievement of a good balance between protection of national values and attraction of foreign investment should be put at the top of the agenda.2
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Notes
- 1.
See A. Michaelowa (2005) Creating the foundation for host country participation in the CDM: experiences and challenges in CDM capacity building. In: F. Yamin (ed.) Climate change and carbon markets – a handbook of emission reduction mechanisms. Earthscan, London, pp. 305–320.
- 2.
See UNDP (2003) The clean development mechanism: a user’s guide. UNDP Bureau for Development Policy, New York.
- 3.
See A. Michaelowa (2003) CDM host country institution building. Mitigation Adapt Strateg global change 8:201–220
- 4.
See www.wbcarbonfinance.org
- 5.
Article 12 of the Kyoto Protocol reads as follows:
2) 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.
3) Under the clean development mechanism:
a) Parties not included in Annex I will benefit from project activities resulting in certified emission reductions; and
b) Parties included in Annex I may use the certified emission reductions accruing from such project activities to contribute to compliance with part of their quantified emission limitation and reduction commitments under Article 3, as determined by the Conference of parties serving as the meeting of the Parties to this Protocol (UNFCCC).
- 6.
See UNDP, The Clean Development Mechanism. An Assessment of Progress, (2006); UNEP, Legal Issues Guidebook to the Clean Development Mechanisms, (2004); World Bank, The Establishment of Designated National Authorities under the Clean Development Mechanism of the Kyoto Protocol, (2003).
- 7.
See http://cdm.unfccc.int/DNA/index.html
- 8.
Marrakesh Accords, Decision 17/CP.7/CMP.1 Modalities and procedures for a clean development mechanism. For comments, see Rosales J, Pronove G (2003) An implementation guide to the clean development mechanism: putting the marrakech accords into practice. UNCTAD-Earth Council. http://r0.unctad.org/ghg/sitecurrent/download_c /publications.html.
- 9.
On the sustainable development criteria for CDM projects, see M. Montini (2008) Sustainable development within the climate change regime. In: A. C. Bugge, C. Voight (eds) Sustainable development in international and national law. Europa Law Publishing, p. 523.
- 10.
Agreed to at the Eighth Conference of the Parties to the UNFCCC in 2002.
- 11.
Available at http://www.un.org/esa/sustdev/documents/WSSD_POI _PD/English/POIToc.htm.
- 12.
For example, the United Nations Commission on Sustainable Development (UNCSD) has developed a comprehensive set of indicators which are listed at http://www.un.org/esa/sustdev/natlinfo/indicators/indisd/isdms 2001/table_4.htm
- 13.
Available at www.cd4cdm.org/Publications/CDM%20Sustainable%20 Development%20Impacts.pdf
- 14.
See UNEP,CDM Sustainable Development Impacts, 2004; M. K. Lee (ed) (2004) CDM information and guidebook, 2nd ed. UNEP Risø Centre, Roskilde.
- 15.
The international NGO SouthSouthNorth (SSN) has developed a commonly referred to and used checklist tool for appraising the suitability of proposed CDM projects. The tool is called the SSN matrix tool and it consists of eligibility criteria, additionality filters, sustainable development indicators, and feasibility indicators. The SSN matrix tool has been applied to projects in Bangladesh, Indonesia, South Africa, and Brazil.
- 16.
See http://www.mct.gov.br/index.php/content/view/13986.html. See M. Chaparro (2006) DNA structure and CDM project approval process in five Latin American Countries: Argentina, Brazil, Chile, Mexico, and Peru. In: CDM Investment Newsletter No. 2/2006. Bureau of Environmental Analysis and Climate Business Network, Nairobi/Vienna, pp 7–10; C. Figueres (2004) Institutional Capacity to Integrate Economic Development and Climate Change Considerations: An Assessment of DNAs in Latin America and the Caribbean, Inter American Development Bank, Washington DC, 2004; L. Morera, O. Cabeza, T. Black-Arbeláez (2003) The state of development of national CDM offices in Central and South America, CCNM/GF/SD/ENV(2003)9/FINAL. OECD, Paris.
- 17.
Consejo Nacional del Ambiente, www.conam.gob.pe. See FONAM (Fondo Nacional del Ambiente-Perú) (2006) Clean development mechanism: a business opportunity in Peru. FONAM, Lima; Figueres C (ed) (2002) Establishing national authorities for the CDM: a guide for developing countries. International Institute for Sustainable Development and the Center for Sustainable Development in the Americas, Winnipeg/Washington, DC.
- 18.
See IGES, CREIA (2005) CDM country guide for China: first edition. Kanagawa. http://cdm.ccchina.gov.cn/english
- 19.
- 20.
See IGES (2005) CDM country guide for Cambodia: second edition. Kanagawa. http://www.camclimate.org.kh
- 21.
See M. Shvangiradze (2005) Country case study: designated national authority in Georgia; Ministry of Environmental Protection and Natural Resources of Georgia, National Agency of Climate Change, Tbilissi. http://www.climatechange.telenet.ge
- 22.
For more information see www.mdpmaroc.com
- 23.
Regulation No. 721 under Section 25(3) of the National Environmental Management Act (1998) establishing the DNA was issued on 24 December 2004 by the Minister of the Department of Environmental Affairs and Tourism of South Africa (see http://www.dme.gov.za/dna/index.stm).
References
Chaparro M (2006) DNA structure and CDM project approval process in five Latin American countries: Argentina, Brazil, Chile, Mexico, and Peru. In: CDM Investment Newsletter No. 2/2006. Bureau of Environmental Analysis and Climate Business Network, Nairobi/Vienna
Figueres C (2004) Institutional capacity to integrate economic development and climate change considerations: an assessment of DNAs in Latin America and the Caribbean. Inter American Development Bank, Washington, DC
IGES, CREIA (2005) CDM country guide for China: first edition. IGES, Kanagawa
Krey M (2004) Transaction costs of CDM projects in India – an empirical survey. HWWA, Discussion Paper, Hamburg
Michaelowa A (2003) CDM host country institution building. Mitig Adapt Strategies Global Change 8:201–220
Michaelowa A (2005) Creating the foundation for host country participation in the CDM: experiences and challenges in CDM capacity building. In: Yamin F (ed) Climate change and carbon markets – A handbook of emission reduction mechanisms. Earthscan, London
Shvangiradze M (2005) Country case study: Designated national authority in Georgia. Ministry of Environmental Protection and Natural Resources of Georgia, National Agency of Climate Change, Tiblisi
UNDP (2003) The clean development mechanism: a user’s guide. UNDP Bureau for Development Policy, New York
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Alberton, M. (2010). The Designated National Authority (DNA): Requirements, Models, Competences, Best Practices. In: Montini, M. (eds) Developing CDM Projects in the Western Balkans. Springer, Dordrecht. https://doi.org/10.1007/978-90-481-3392-5_4
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