Hydromet
 

 

Clean Development Mechanism

The Hydrometeological Service is the Designated National Authority (DNA) for the Clean Development Mechanism in Guyana. The role of the DNA is to evaluate the existing legal environment of a country and establish an enabling regulatory framework for evaluation and approval of CDM projects. The DNA has only been set-up recently and is still to further strengthening at the institutional level.

The Clean Development Mechanism (CDM) is one of three flexibility mechanisms under the Kyoto Protocol developed under the United Nations Framework Convention on Climate Change (UNFCCC). Flexibility mechanisms enable Parties to the Protocol to access cost-effective opportunities to reduce emissions or to remove carbon from the atmosphere in other countries.

Under Article 12 of the Kyoto Protocol the CDM was established “…to assist Parties not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention, and to assist Parties included in Annex I in achieving compliance with their quantified emission limitation and reduction commitments under Article 3”. Under the Kyoto Protocol, Annex 1 Parties are generally classified as those countries which have played a significant role in contributing to the increases in green-house gas emissions in the atmosphere over time, and therefore have an obligation to reduce emissions. Non-Annex 1 Parties are those which are not included under Annex 1 and are not legally obligated to reduce emissions at this stage.

Through the CDM, Annex I Parties may undertake emissions reduction projects in Non-Annex 1 Parties and earn Certified Emission Reductions (CERs) that can be redeemed against their emission reduction targets. Non-Annex 1 Parties benefit through the development of emissions reduction projects by Annex 1 Parties. The CDM therefore provides an opportunity for developing countries, not bound to reduce their emissions under the protocol, to participate in the process of global green-house gas mitigation.

The CDM is a new concept and many countries have little or no experience with it. Although investments to earn emission reduction credits started as early as the year 2000, CERs could have only been banked for future use, under the assumption that the Kyoto Protocol would be ratified. In 2004, Russia formally ratified the Kyoto Protocol, clearing the way for the Kyoto Protocol to come into force and for the CDM to become fully operational.

The CDM is seen as an important tool to assist developing countries in addressing their sustainable development needs in terms of achieving economic growth, poverty reduction, technology transfer, environmental protection/improvement and capacity building. Although many of the modalities pertaining to the operation of the CDM are formalized at this stage, there are many rules and compliance mechanisms which are still to be clearly defined.

CDM- type projects

Under the CDM rules and modalities, only certain types of projects can be developed to earn credits. These include:

  • End-use energy efficiency improvement
  • Supply-side energy efficiency improvement
  • Renewable energy
  • Fuel switching
  • Agriculture
  • Industrial processes
  • Solvent and other product use
  • Waste management
  • Sinks (only afforestation and reforestation)

Guyana and the CDM

Guyana is one of many Caribbean Non-Annex 1 Parties that has ratified the Kyoto protocol. This now allows Guyana to qualify for benefits under the CDM, following entry into force of the Protocol on February 16, 2005, consequent upon ratification by the Russian Federation in December 2004.

CDM-derived benefits for Guyana

The following is a list of some of the benefits that can accrue to Guyana under provisions of the Clean Development Mechanism:

  • The CDM provides an opportunity for Guyana to phase in the use of cleaner energy systems in preparation for future emissions reduction commitments, in an efficient and cost-effective way;
  • Accessing benefits under the CDM will help to promote activities that are energy efficient, reduce local consumption of fossil fuels, thereby helping the country to achieve its sustainable development goals;
  • The CDM can also help Guyana to achieve the objectives of its National Energy Policy (1994), which are: to provide a stable, reliable and economic supply of energy; to reduce dependency on imported fuels; to promote, where possible, the increased utilization of domestic resources; and to ensure that energy is used in an environmentally sound and sustainable manner.

CDM - Considerations for Guyana

Guyana’s National Climate Change Adaptation Policy and Implementation Strategy for Coastal and Low-lying Areas 2002, states that a key adaptation strategy to climate change for Guyana is, ‘to promote and support efforts to maximise the benefits to all sectors under existing and new protocols, including those that may become available under the CDM’.

The country has vast potential to reduce fossil fuel use and earn carbon credits through renewable energy sources such as wind, solar, biomass and hydro energy. Carbon credits can also be earned through the use of forests as sinks (re-forestation and afforestation projects only). Guyana is already moving towards less fuel intensive or cleaner sources of energy with a number of alternative energy schemes in the pipeline.

While good opportunities for the development of CDM-type projects exists in Guyana, many areas will require strengthening before this potential can be fully integrated as a sustainable development tool for the country. Also, although many of the modalities pertaining to the operation of the CDM are formalized at this stage, there are many rules and compliance mechanisms which are still to be clearly defined.

The framework for supporting CDM projects is only in the initial stages of development, and now needs to be strengthened significantly. The Hydromet Service will work in collaboration with other agencies to ensure that CDM developed to its full potential. Overall, the CDM can be seen as an effective sustainable development tool for Guyana if developed effectively.

For further reading material on the CDM, refer to the following references:
UN. 1997. The Kyoto Protocol to the United Nations Framework Convention on Climate Change. United Nations.

UNEP. 2004. The UNEP Project CD4CDM: Information and Guidebook, Second Edition. UNEP, Riso Center, Roskilde, Denmark
Government of Guyana.2002. Guyana: Initial National Communication in Response to its Commitments to the UNFCCC. Georgetown, Guyana.
UNFCCCC: Clean Development Mechanism. Available at: http://cdm.unfccc.int/index.html

Information provided on this website was adopted from:
Chandarpal Gitanjail (2006) Adaptation to Climate Change in Guyana University of West Indies Masters Thesis