Clean Development Mechanism The Dutch Approach

Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment 25-4-2020

Objective of the presentation (1)

Provide insight into

: The “over all” Dutch climate change policy -The international legal framework: UN FCCC and the Kyoto Protocol Clean Development Mechanism The Dutch CDM Purchase Programme

2

Objective of the presentation (2)

-

The role of “VROM” and the host countries

Memoranda of Understanding -Letters of Approval -Declarations of Approval -Impact of the Dutch CDM Programme on Central and Latin America -Challenges

3

The “over all” Dutch Climate Change policy

Full commitment vis-a-vis UN FCCC and the Kyoto Protocol -Reduction target for the emissions of greenhouse gases: -6% (2008-2012) -200 Million Tonne of CO2 equivalent ”50% domestically and 50% internationally”

4

The international legal framework

-UN Framework Convention on Climate Change (UN FCCC, 1992) -Kyoto Protocol (1997) -Bonn Agreement (2001) -Marrakech Accords and Executive Board (2001) -COP-9: afforestation and reforestation (2003)

5

Clean Development Mechanism

-Triple objective of Article 12 of the Kyoto Protocol:

1) Achieving sustainable development 2) Contributing to the ultimate objective of the UN FCCC 3) Achieving compliance with reduction commitments

6

The Dutch CDM Purchase Programme

-Multi-track approach:

-Carboncredits.nl (CERUPT) -International Multilateral Financial Institutions (IFC, IBRD and CAF) -Private Financial Institutions (Rabobank International) -Bilateral CER Purchase Agreements (BCPAs) with host countries (under consideration)

7

The role of “VROM” and the host countries (1)

-Participation requirements under UN FCCC and Kyoto protocol ”Participation in a CDM project activity is voluntarily” (this implies: on an equal basis) -CDM project cycle stipulates the involvement of the Governments (LoA, DoA)

8

The role of “VROM” and the host countries (2)

Pro active: “VROM” may facilitate the submissions of LoAs by means of bilateral talks or a MoU!

Features of a MoU: -

Intension for a long standing cooperation -Not legally binding -A quantified insight into the potential for CDM cooperation with VROM -Support underlying activities, willingness to purchase CERs, if projects qualify

9

The role of “VROM”and the host countries (3)

MoU: No prerequisite for CDM cooperation!

-Results so far: -

Panama, Costa Rica, Colombia, El an Salvador, Guatemala, Uruguay, Nicaragua and Bolivia Amount of Mton CO2 eq vary per MoU: 5 30 Mton

10

Impact of the Dutch CDM Programme on Central and Latin America

CCAD/Prosiga workshop: “How to develop CDM projects in Central America?” San Salvador, El Salvador, March 27-28, 2003

-CDM Project activities:

- CERUPT : “pending”: Panama (3), Costa Rica (3), El Salvador (1), Bolivia (1), Brazil (2), Jamaica (1): CERUPT: 11 out of 18!

-IBRD, IFC: pending: Brazil,Belize,Chile Colombia,Guyana,Peru -CAF: pending: Bolivia,Colombia,Nicaragua

11

Challenges (1)

-Entry into force of the Kyoto protocol!

“Stirr up” the carbon market!

-

Need to “promote equitable geographic distribution at regional and subregional level”!:

-C(osta Rica) or C(hina) Development Mechanism?

-C(ameroon) Development Mechanism?

12

Challenges (2)

-New Dutch Government underway! (Impact for the Dutch CDM Purchase Programme?) -Executive Board Ruling available and in development!

-The baseline methodolog(y)(ies), as applied under CERUPT, accepted by the Executive Board will be key!!

13

Challenges (3)

”It takes two to tango”

-A need for institutional CDM capacity in host countries -Identification of the (interim) Designated National Authority (DNA) for the CDM -Role of the host countries acquired in order to keep the CDM “clean”

14

CDM a living issue!

For the latest developments

: WWW: CDMINFO.NL

For any remarks and/or questions:

e-mail: [email protected]

15