CDM DESIGNATED NATIONAL AUTHORITY Costa Rican Case Overview

CDM DESIGNATED NATIONAL AUTHORITY Costa Rican Case

Overview b CDM: Key decisions and steps in creating NDA b NDA: Possible Tasks and structures b Costa Rican experience b Conclusion

Steps in creating NA b Define mission and objectives; b Obtain legal status; b Review legal framework; b Attain CDM stakeholder participation; b Obtain financial and non-financial resources; b Align CDM strategies with national development priorities.

NDA: Possible Tasks (1) 1. Formulation and decision on CDM national policy and strategy • • Deciding on sustainable development criteria Recommending CDM sectors and project type (renewable energy, waste management, forestry, agriculture, industry) Preferences on technology Credit sharing, etc. 2. Evaluation and Approval: b Adopt international eligibility criteria (Marrakesh)

NDA: Possible tasks (2) b Develop local criteria: – Compliance with relevant policies and regulatory regimes; – Financial, technical and administrative feasibility (e. g. PPA, financial close, etc); – Environment al standards and considerations on stakeholders comments; – Technology transfer (innovation, transfer and diffusion) b Capacity Building : - Project identification and formulation(PDD) -Standardized baselines , additionality, ER cuantification, monitoring protocols, etc. b Marketing

UNFCCCSecretariat CDM Institutions Host country COP/MOP Executive Board Verifying, certifying Validating Operational Entity National Authoriy Project Participants Investors: -national -international Buyer of CER/RMU CDM Project activity Stakeholders, other Parties, registered NGO

Possible Structure of National Authority (1) National Climate Change Committee Nat. CDM Board (Sub. Committee) Verifying, Validating Operational Entity certifying Operational Entity Host country National Authoriy Technical Office/ CDM Clearinghouse Project Participants Investors: -national -international Buyer of CER/RM U CDM Project activity Stakeholders, other Parties, registered NGO

Possible Structure of National Authority (1) National CDM Board (Sub-Committee) Function: recommendation of CDM national agenda including policies and strategy, procedures, appeal, etc. Members representing : • Ministries : e. g. Environment and Natural Resources, Energy, Economy &, Finance, Planning. Etc. • Private sector (corporations, chambers, etc. ) • NGOs and CDM experts

Possible Structure of National Authority (2) Technical Office / CDM Clearinghouse (Government or mix Government -private) Function: • • • Secretariat of CDM Board. Support of CDM project identification and preparation NDA and focal point for CDM investors and buyers Following of ongoing CDM project activities Marketing, bilateral and multilateral Mo. Us, home page, etc.

In 1996, the OCIC was legally elevated to the rank of maximum de-concentration office within the Ministry of Environment and Energy. This decision allowed the program to have technical and administrative autonomy and also guaranteed all participating sectors a voice in climate change policy development. .

NDA Costa Rica Ministry of Environment and Energy ASOCIC Land Use Change Expert Energy Expert Consultants

ASOCIC Private Association

Challenges of Institutionalization Nature of NA varies widely in legal structure, financial sources and responsibilities which they were entrusted. b Awareness raising; b Political will; b Sectoral coordination; b Champion

CONCLUSION Reason for success: Institutional capacity and political support, b Country driven process, b Compatibility between national priorities and “good practices” in climate change, b Cost and environmental effective and, b Market oriented process. b