CEEST Foundation.

January 2008 1
€ National communications to the UNFCCC
ƒ GHG Inventory preliminary findings – emissions are
increasing over time (compared to the Initial national
Communications)
ƒ Vulnerability and adaptation to climate change impacts –
Climate change scenarios shows a trend of increasing
temperature and decreasing rainfall Sectoral impacts
include
| Impacts forestry
forestry, biodiversity and tourism
| Impacts of sea level rise
| Health sector especially malaria and cholera
| Water resources
| Rangelands and livestock
€ NCAP adaptation studies
ƒ Livelihood impacts of floods and drought in Rufiji and
climate change impacts to smallholder farmers in
Kilimanjaro region

CEEST Foundation. January 2008 2

€ CEEST implementation of climate change
studies in Tanzania
€ Clean development Mechanism
ƒ Essence and objectives
ƒ Pi i l
Principles
ƒ Implementation criteria
€ Insights of CDM opportunities
ƒ World carbon trade
ƒ World CDM pproject
j distribution byy type
yp and
numbers
ƒ Opportunities for Tanzania
z Challenges for Tanzania
| Implementation challenges
| Governance issues and institutional challenges

CEEST Foundation. January 2008 3

„ CDM was established in Kyoto
Kyoto, Japan in 1997 at
the third Conference of the parties to the
UNFCCC;;
„ CDM is a mechanism for achievement of the
UNFCCC throughg collaboration between
developed and developing countries
€ CDM p
purposes
p are:
ƒ to assist developing country Parties in achieving sustainable
development, thereby contributing to the ultimate objective of
the Convention; and
ƒ to assist developed country Parties in achieving compliance with
part of their quantified emission limitation and reduction
commitments under Article 3.

CEEST Foundation. January 2008 4

„ Protection
P i off climate
li system b
by
ensuring that Developed (Annex I)
countries meets their obligations of
reducing GHG emissions using cost-
effective measures and contribute
towards achieving sustainable
economic development
„ Addressingg specific
p need and
circumstances of developing
countries
CEEST Foundation. January 2008 5
„ Voluntary
V l participation
i i i approved dbby
each party involved
„ Real, measurable, and long-term
g
benefits related to the mitigation of
climate change
„ Reductions in emissions to be
additional to any that would occur
in the absence of CDM projects
„ CDM projects should not divert ODA
funds
CEEST Foundation. January 2008 6
€ Carbon trade has been growing fast over time from trade
worth less than 4 billion Dollars in 2004 to over 30 billion
dollars in 2006.
€ Total volume of carbon in 2005 was 710 Million tones of
CO2 while in 2006 it was 1,639 Mill tons of CO2.
€ In terms of monetary value, in 2005 the carbon was worth
US$ 10 Billion while in 2006 it was worth US$ 30 Billion.
€ EU dominates the carbon market with trade worth US$
7billi iin 2005 which
7billion hi h grew tto US$ 24 Billion
Billi iin 2006
2006.
€ Other market participants include
ƒ the New
th N SSouth
th Wales,
W l
ƒ the Chicago Climate Exchange
ƒ the UK

CEEST Foundation. January 2008 7

€As of 2 November 2007, 828 CDM projects
have been registered by the CDM
Executive Board. These p projects
j reduce
greenhouse gas emissions by an estimated
171 million ton CO2 equivalent per year.
year
€There are about 2,600 projects in the
pipeline (not yet registered) which would
until the end of 2012 p
produce over 2.5
billion tons CO2 equivalent reductions.

CEEST Foundation. January 2008 8

 Others
Oth SSouth
th Korea
K M i
Mexico
17% 2% 12%
Africa
3%

Argentina
g
1%

B il
Brazil
12%
India
Chile 36%
2%
China
15%
CEEST Foundation. January 2008 9
50
45
40
35
30
25
20
15
10
5
0
South Mexico India China Chile Brazil Argentina Africa Others
Korea

% reduction % numbers

CEEST Foundation. January 2008 10

45
40
35
30
25
20
15
10
5
0

number of projects % reduction potential%

CEEST Foundation. January 2008 11

€ Countries dominating the CDM projects in terms of
numbers are India with 283 projects, China with 120
projects and Brazil with 108 projects
€ Africa region has 21 projects only which are distributed
as follows:
ƒ South Africa 10 projects, 1biogas power 30ktCO2/yr, 2 biomass
energy 241ktCO2/yr,1 energy efficiency in households
6.6ktCO2/yr, 2 fossil fuel switch 120ktCO2/yr, 2 N2O with
1433ktCO2/yr.
ƒ Egypt 3 projects (1 landfill 371ktCO2/yr, 1N2O 1066ktCO2/yr and
1 wind 249ktCO2/yr)
ƒ Morocco 3 projects, (1solar pv 39ktCO2/yr) (2 wind
185ktCO2/yr)
ƒ Tunisia 2 landfill projects with total 688ktCO2/yr
ƒ Nigeria 1 fugitive project with 1497ktCO2/yr
ƒ Tanzania 1 landfill project with 210 ktco2/yr
ƒ Uganda 1 hydro project with 36ktCO2/yr
CEEST Foundation. January 2008 12
€ To put in place CDM guide and implementation
framework particularly the National
sustainable development criteria for CDM
€ Increase the number of CDM projects
implemented as well the number of projects in
the pipeline projects
€ Include CDM in the Environmental law
€ Put in place the appropriate institutional
framework
€ Capacity building
€ Public awareness creation

13
CEEST Foundation. January 2008
€ The government should consider the establishment of
the multi-stakeholders review committee under the
VPO to include the following institutions:
ƒ Investment Promotion Centre
ƒ Commission for Science and Technology
ƒ Local banks
ƒ CEEST Foundation
ƒ EPMS
ƒ Ministry of Energy and Minerals
ƒ Ministry of Industry and Trade
ƒ Ministry of Natural Resources and Tourism
ƒ Higher Learning institutions

CEEST Foundation. January 2008 14

• It is important that there exist a
rosters of CDM local experts with
their CVs and a list of private and
NGOs dealing with CDM projects at
the office of DNA such that there is
i case their
easy access in h i expertise
i is
i
a needed.

CEEST Foundation. January 2008 15

• Foreign actors who are development partners
should provide funds for developing
appropriate
i t capacity
it and
d infrastructural
i f t t l
support for CDM process. Foreign actors who
are investors should prioritize Tanzania as
one of the partner and avail investment
funds facilities and technologies for CDM
funds,
projects.

CEEST Foundation. January 2008 16

€Awareness and capacity building
initiatives should take place
separately from actual CDM project to
avoid high transaction cost
• Foreign investors should also play a
role of building the capacity of local
investors so as to make them active
and effective partners.

CEEST Foundation. January 2008 17

• Mostt projects
M j t are very expensivei and d require
i
high levels of technology; conditions that are
difficult for local investors to meet.
therefore there should be more capacity
creation in terms of both financial and
human resources.
resources Financial institutions
should also offer opportunities for local
investors to invest in bigger projects – bigger
CERs – bigger money.
money

CEEST Foundation. January 2008 18