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Meeting greenhouse gas targets and supporting development: a win-win situation?

In 1997, as part of the Kyoto Protocol, industrialised countries agreed to reduce their greenhouse gas (GHG) emissions. One method for achieving their targets is to invest in projects that reduce GHG emissions in other countries. The Clean Development Mechanism (CDM) is an instrument of the Kyoto Protocol that allows a donor country to fund emissions reduction projects and contribute to the sustainable development of a host country. Donor countries benefit by receiving ‘credits’ towards achieving their GHG emissions targets.

A project coordinated initially at the University of Surrey’s Centre for Environmental Strategy and then at the Institute for Energy and Sustainable Development at De Montfort University aims to contribute to the progress of the CDM. The report examines small-scale energy projects and how to maximise benefits from them. Through this investigation it suggests how to make sure that investment in CDM projects does not ignore least developed countries, which has been a common problem with previous foreign investment programmes.

Small-scale CDM energy projects are encouraged under the agreed terms of implementation under the protocol. Small-scale projects are preferred as these provide benefits directly to households. At this level, women and children particularly can be targeted and their quality of life improved. Projects from Tanzania, Ghana and Kenya that have proved successful in reducing GHG emissions include:

new designs of charcoal kilns that have much greater efficiency of fuel use
using cow dung and human waste to produce biogas; this can be converted to electricity and replace kerosene and candles
solar panels, which provide domestic lighting and power hospital refrigeration and equipment
the use of bagasse (crushed sugar cane pulp) for generating energy and reducing the dependence on grid electricity for lighting
replacing diesel generators with hydropower, which provides electricity for domestic small industry use
new methods of producing cement more efficiently
sustainable community-managed woodlots where wood is free for domestic uses, but charges are made for commercial uses.

The use of a new assessment tool, the sustainability assessment model (SAM) would allow host governments to assess projects for their potential to deliver sustainability benefits in line with their priorities and to suggest improvements where required. The SAM is a multi-criteria decision model that helps people assess and design projects. It also provides developers with a tool to ensure that projects maximise their potential to reduce emissions and deliver sustainability benefits in the long term.

In addition, the following approaches need to be considered in order to make CDM projects appealing to investors, policymakers and people who will be using the new techniques:

Combine small projects to minimise transaction costs and maximise benefits so that they make more attractive investment options for both the donor and the host.
Present clear guidance under the CDM Executive board for this aggregation of projects and to manage the complexities of baseline emissions.
Provide a central point in host countries to coordinate small-scale projects. This could be organised by a single government agency and supported by local banks.
Train people to introduce CDM projects and develop the necessary facilities in host countries.
CDM’s executive board must consider ways in which the greater costs involved in small-scale projects, relative to larger projects and a significant barrier to their inclusion under CDM, can be reduced. Parallel to this is ensuring that projects also deliver the sustainability benefits they are capable of.

Source(s):
‘Encouraging CDM energy projects to aid poverty alleviation’ Summary report to UK DFID, by K. Begg, R. Wilkinson, S. Parkinson, H. Amissah-Arthur, S. Atugba, A. Brew-Hammond, D. Theuri, M. Mathenge, S. Gitonga, H. Meena, S. Mwakifwamba, S. Mwakifsonde and D. van der Horst June 2003

Funded by: DFID (IUDD) R8037

id21 Research Highlight: 24 January 2005

Further Information:
Dr Katherine Begg, Stuart Parkinson, Dan van der Horst
Institute for Energy and Sustainable Development
De Montfort University
Queens Building
The Gateway
Leicester
LE1 9BH
UK

Tel: +44 (0)116 257 7975
Fax: +44 (0)116 257 7977
Contact the contributor: kbegg@dmu.ac.uk

Institute for Energy and Sustainable Development, UK

Rona Wilkinson
Intermediate Technology Consultants (ITC)
Bourton Hall
Bourton on Dunsmore
Rugby
CV23 9QZ
UK

Tel: +44 (0)1926 634534
Fax: +44 (0)1926 634405
Contact the contributor: ronaw@itdg.org.uk

Intermediate Technology Consultants, (ITDG), UK

Daniel Theuri
Intermediate Technology Development Group East Africa (ITDGEA)
PO Box 39493
Nairobi
Kenya

Tel: +254 20 719313
Fax: +254 20 710083
Contact the contributor: daniel.theuri@itdg.or.ke

ntermediate Technology Development Group East Africa (ITDGEA)

Views expressed on these pages are not necessarily those of DFID, IDS, id21 or other contributing institutions. Unless stated otherwise articles may be copied or quoted without restriction, provided id21 and originating author(s) and institution(s) are acknowledged.

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