‘One of the key elements for attracting CDM investments is the host country’s application of quick and transparent procedures for screening, evaluation and approving projects.[i]’
The Clean Development Mechanism (CDM) gives emission-reduction projects in developing countries certified emission reduction (CER) credits for each ton of CO2e they reduce or absorb. CERs can be bought by industrialized countries to offset their own emissions. The sale of CERs can be a significant source of revenue for Sub-Saharan African countries. But for a project to be considered for CDM registration, it first must be approved by a country’s Designated National Authority (DNA).
The designation of a national coordinating authority for the CDM is a requirement for a country’s participation in the mechanism. The main task of the DNA is to assess potential CDM projects to determine whether they will help the country in reaching its sustainable development goals. Since the DNA’s approval is a key part of the registration process for potential CDM projects, it is crucial that these focal points stay informed and updated on climate change and carbon market issues. As African countries have signficant potential to reduce green house gas emissions, it is critical that African DNAs in particular provide more support to project developers to ensure an increase in potential CDM projects and therefore an increase in CERs once the projects have been implemented.[ii]
GKI understands the importance of effective DNAs and with this in mind is formulating several conferences that will bring together regional DNAs to share knowledge and strategize. The first of these conferences will be in February, targeting those countries in the SADC (Southern Africa Development Community). Taking place in Livingstone, the conference will run for three days. The next two conferences will be in Eastern and Western Africa.
Included in the programme will be a discussion on ways to keep all DNAs up to date and informed on carbon finance issues as well as planning for COP17 which will take place in South Africa next year.
GKI is still looking for funding though it is pleased to have the support of USAID PROFIT, Afrexim Bank and the Lusaka Stock Exchange. More will be on the GKI website.
[i] UNEP Risoe’s CDM Information and Guidebook
[ii] Taken from GKI’s SADC DNA brochure