UNIDO now focuses on the development of capacity building and technology transfer projects that relate to the implementation of the Kyoto Protocol and the Clean Development Mechanisms (CDM). The work of the Organization in this area builds on the experience of and lessons learned by the international climate community from CDM. In addition, it focuses on sectoral scopes and geographical areas that are currently under-represented in CDM. On that account UNIDO has been systematically addressing energy efficiency in CDM in its global forum activities and has paid particular attention to the support of CDM capacity building in Africa.
Between 1998 and 2002, UNIDO undertook background study projects and preparatory assistance activities in the industry and the CDM in six African countries. (Ghana, Kenya, Nigeria, Senegal, Zambia and Zimbabwe) Within these activities, the Organization incorporated a CDM component into the Nigerian Country Service Framework and prepared background studies in Congo (Brazaville) and the UR Tanzania.
Although results of these activities show that some CDM-relevant capacity has been built in stakeholder groups (government, NGOs, academia/research as well as for a few private sector institutions), local capacity to identify and develop CDM project opportunities is still limited in several African countries. The bulk of assistance going to the continent reaches only a few persons or institutions and merely a handful of countries have been involved in CDM project preparation to date.
Consequently, the market for CDM and particularly the number of projects coming from African countries is minimal at the moment. Therefore, UNIDO undertook the demonstration project on CDM for ten Francophone sub-Sahara African countries at the end of 2005.