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Support for the Development and Uptake of CDM Projects in the Industrial Sector

Project Objectives

Introduction

'Support for the Development and Uptake of CDM Projects in the Industrial Sector' is a pilot project funded by the Austrian government to be undertaken by UNIDO in cooperation with Austrian industry in three geographically diverse CDM host countries (Mexico, South Africa & Vietnam).

The overall objective of the project is to contribute to the mitigation of GHG emissions in a cost-effective manner thereby contributing to the goals of the UN Convention on Climate Change (UNFCCC). The immediate objectives are to facilitate capacity building and the development of innovative partnerships (between investor and host country institutions, business and industry) that would help to unlock the potential of the Clean Development Mechanism in the industrial sector of participating countries.  Capacity building activities and the outputs will be structured around specific technologies and project types that represent the priorities of the participating developing countries and will take into account the driving forces and the prospects of the global carbon market.

Several barriers to the uptake of CDM projects in the host countries will be addressed, especially the high transaction costs associated with developing individual projects that have sustainability benefits. As decision-making, dialogue and coordination and institutional, technical, regulatory/legal capacity and frameworks are, in most cases, still inadequate, a “learning-by-doing” approach to project formulation and negotiating carbon sales and project financing will be taken and technical assistance/support provided.

Project objectives

The global objective of the project is to mitigate GHG emissions in a cost-effective manner thereby contributing to the goals of the UN Convention on Climate Change (UNFCCC).

The project will bring together opportunities that arise in the context of the EU ETS and other recent market developments relevant to Austria and match them with CDM project opportunities from the three participating host countries (South Africa, Mexico and Vietnam) through assisting in their identification and development. The project will build innovative partnerships between potential hosts and interested private sector investors leading to the generation of CERs. At the same time, the project will help to build related capacity in the participating countries through learning-by-doing project identification, design and formulation as well as in other stages of the CDM project cycle.

While aiming at the formulation of business-grade CDM project proposals for each participating country, the project will also include a technical assistance component that will address related capacity building needs including training and support for DNAs as well as technical training in the formulation of CDM project proposals and participation in the international GHG market.

The project will:

  • Undertake identification and formulation of investment-grade projects in the participating countries (in cooperation with Austrian industry, 5-10 PINs per country);
  • Identify training needs of CDM project developers and service providers and carry out relevant training in project identification and project formulation;
  • Identify opportunities for CDM projects and facilitate their development and access for financing, including through special carbon-purchase programmes such as the Austrian JI/CDM Programme;
  • Improve existing and create new business contacts between Annex I and non-Annex I countries and strengthen their cooperation where possible;
  • Contribute to cost-effective fulfilment of Kyoto-targets.

Project Review Meeting

Schedule of activities (preliminary version)

 

 
Contact

Marina Plutakhina
Chief, Industrial Energy Efficiency Unit
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