Ministry of Natural Resources and the Environment
National Workshop on
Establishment of the Designated National Authority for Belize
November 4th to 5th, 2010
Belmopan Convention Hotel
Belmopan, Belize
Prepared by: Joseph A. McGann
Table of Contents
1.0INTRODUCTION
1.1BACKGROUND:
1.2clean development mechanism (CDM) projects and belize:
1.3FINANCING OF CDM PROJECTS:
2.0WORKSHOP OBJECTIVES
2.1Objectives:
2.2Outputs From The Wworkshop:
3.0WORKSHOP AGENDA
4.0TARGETED AUDIENCE and WORKSHOP PARTICIPANTS
5.0KEYNOTE ADDRESS and WORKSHOP OPENING
ANNEX 1: WORKSHOP AGENDA
ANNEX 2: DRAFT DNA REGULATIONS
THE ORDER
PURPOSE OF THE REGULATIONS
DEFINITIONS
ESTABLISHMENT OF THE DESIGNATED NATIONAL AUTHORITY
DUTIES OF THE DESIGNATED NATIONAL AUTHORITY
ESTABLISHMENT OF THE ADVISORY COMMITTEE FOR THE DESIGNATED NATIONAL AUTHORITY
CDM PROJECT VALIDATION
APPROVAL PROCEDURE
FINANCING OF THE DESIGNATED NATIONAL AUTHORITY
ANNEX 3: ANNEXURE A OF THE DNA REGULATIONS
ANNEX 4:ANNEXURE B OF THE DNA REGULATIONS
The Project Identification Note (PIN)
ANNEX 5: ANNEXURE C OF THE DNA REGULATIONS
Performance against the Sustainable Development Criteria
ANNEX 6: ANNEXURE D OF THE DNA REGULATIONS – The DNA Aprroval Letter
ANNEX 7: THE CDM OFFICE
ANNEX 8: LIST OF WORKSHOP PARTICIPANTS
1.0INTRODUCTION
1.1BACKGROUND:
Over the past decades there has been a build up of scientific evidence which indicate that global warming and climate change is occurring and it will more than likely become warmer during the twenty-first century. This change, it has been established, is a direct result of the increased concentration of greenhouse gases in the atmosphere resulting from human activity.
Based on the evidence, the United Nations General Assembly adopted a resolution to take steps to protect global climate for present and future generations. In 1992, at the United Nations Conference on Environment and Development (UNCED), the Governments of the world agreed to establish the United Nations Framework Convention on Climate Change (UNFCCC) as a negotiating mechanism to respond to the threats of climate change. The Parties to the Convention in 1995 adopted the “Berlin Mandate” which required that the developed countries make commitments to return their greenhouse gas emissions to 1990 levels. Negotiations around this mandate lasted for two years and terminated in the city of Kyoto, Japan in December 1997. At this forum the Parties agreed to adopt a Protocol under which industrialized countries would reduce their combined greenhouse gas emissions by at least five percent of their 1990 levels by the end of the first commitment period 2008 to 2012. This is called the Kyoto Protocol.
1.2THE KYOTO PROTOCOL AND CDM PROJECTS IN BELIZE:
The Kyoto Protocol entered into force on February 16, 2005, ninety days after ratification by the required number of Parties with the required emissions. It has very specific provisions designed to assist developing countries with its implementation (Article 2.3). As a developing country (or “Non-Annex 1”) Party to the UNFCCC, Belize is not required to reduce its emissions but can supply and/or trade carbon credits under the Clean development Mechanism (CDM) of the Protocol (Article 6). Belize acceded to the Kyoto Protocol in 2003 and became a Party on the date it came into force (February 16, 2005) and is therefore eligible to participate in the CDM.
To participate in the CDM Belize is required to establish a Designated National Authority (DNA). The DNA will serve to evaluate and approve projects based on national sustainable development criteria and to confirm or certify that the proposed project will assist the country in meeting its development objectives as outlined in the various national development plans including Horizon 2030. A CDM office is to be established for Belize and its role would include the promotion of the CDM as an economic development instrument. This office would facilitatethe preparation, (along with private sector partners); of CDM project proposals and the submission of proposals through the DNA to the CDM Executive Board (EB) of the UNFCCC for approval.
The legal authority for the establishment and operation of the DNA in Belize will be derived through the promulgation of Regulations to an existing Act of Parliament (The Environmental Protection Act, Chapter 328 of the Laws of Belize, Revised Edition 2000). This will allow Belize to fulfill and carry out its obligations under the Kyoto Protocol and to benefit from the Clean Development Mechanism through investment in CDM Projects. Under the proposed Regulations it is being recommended that the Office of the Chief Executive Officer of the Ministry of Natural Resources and the Environment be designated as the Designated National Authority. This is being done as the enabling legislation is administered by the Ministry of Natural Resources and the Environment.
1.3THE FINANCING OF CDM PROJECTS:
Under the framework of the CDM, developing countries such as Belize can generate carbon credits or Certified Emission Reduction (CER) credits from projects and activities approved by the CDM Executive Board (EB). These credits can be sold, transferred or traded with partners in developed countries to help meet their reduction emission targets under the Kyoto Protocol.
Financial and other support (investment) for the implementation of the approved projects will come from private sector partners, in particular from developed countries but also including local investors;national government agencies and organizations; and international development agencies. Belize, mainly through private sector initiatives and in partnership with investors from developed countries, will prepare projects and activities for the mitigation of climate change and will submit these for consideration and approval to the EB of the CDM. Before submission to the EB, these projects must be certified by the Designated National Authority as being in line with and supporting sustainable development in Belize and approved by the government. This process can potentially bring a significant amount of development through investment to Belize.
2.0WORKSHOP OBJECTIVES
2.1OBJECTIVES:
The preparation of the draft Regulations to give effect to the establishment of the DNA in Belize was led by consultant Joseph McGann and involved the participation of a number of key stakeholders from government, non Governmental Organizations and the private sector. This consultative process culminated with an interactive workshop in Belmopan in November 2010 in which the stakeholder were invited and actively participated in the development and finalization of the draft Regulations. It is intended to have the draft Regulations reviewed by the Solicitor General’s office and transformed into a Statutory Instrument for presentation to the Minister of Natural Resources and the Environment for presentation to Cabinet for approval.
The following were the objectives of the workshop:
- To provide background information to key stakeholders in the Government of Belize, the private sector and the non-governmental community on the Clean Development Mechanism of the Kyoto Protocol;
- To promote the use of the CDM as a financial mechanism that contributes to achieving the sustainable development goals of Belize.
- To request the support and endorsement of these stakeholders of the process leading to the formalizing of a Designated National Authority for the Clean Development Mechanism; and
- To request support of the stakeholders for the designation of an institution to serve as the Clean Development Mechanism Office to carry out the principal support functions associated with the CDM Office.
2.2OUTPUTS FROM THE WORKSHOP:
The workshop achieved the following outputs:
- Developed the second draft of the Regulations for the Establishment of the Designated National Authority for CDM Projects; and
- Agreement on the need for the establishment of a CDM Office and the identification of possible institutional houses for the CDM Office
3.0WORKSHOP AGENDA:
The workshop was conducted over two days, November 4-5, 2010 and was guided by the agenda listed below as Annex 1 to this report. Mr. Carlos Santos performed the role of Workshop Facilitator.The workshop was officially declared open by Mrs. Beverly Castillo, Chief Executive Officer in the MNRE who was deputizing for the Minister of Natural Resources and the Environment,The Hon. Gaspar Vega. Presenters included Mrs. Ann Gordon (The National Climate Change Committee, Its Role and Functions in Belize); Mr. Carlos Fuller, the Deputy Executive Director of the Caribbean Community Climate Change Centre (The Current Status of the Climate Change Negotiations and Implications for the CDM); and Mr. Joseph McGann, the consultant to the Ministry of Natural Resources and Environment on the establishment of the Designated National Authority who made three presentations to the workshop. Some of the presentations are included as Annexes to this report.
4.0TARGET AUDIENCE AND WORKSHOPPARTICIPANTS
The workshop was designed to deliver its message to and solicit the participation a select group of stakeholders to achieve its objectives. Participants included the following:
- Representatives of the GOB Ministries, Departments and Agencies which have direct connection with the CDM sectors and activities.
- Representatives from private and public companies, agencies or associations which could become CDM project developers
- Representatives of the Universities and the Finance sector which could become active players or facilitators to generate a national CDM project portfolio.
The workshop was attended by approximately twenty-two (22) participants representing the government,the private sector, non-governmental organizations and academia. A list of workshop participants is presented in Annex 8 to this report.
5.0KEYNOTE ADDRESS AND WORKSHOP OPENING
The Key Note Address by Hon. Gaspar Vega, Minister of Natural Resources and the Environment was delivered by Mrs. Beverly Castillo, Chief Executive Officer of the Ministry of Natural Resources and the Environment.
"Ladies and Gentlemen,
It is my pleasure to welcome you on behalf of the Deputy Prime Minister Gaspar Vega and the entire administration and I would like to offer my appreciation for your participation in this event.
Belize has made significant milestones in its response to address climate change. However, there is still much more to be done. The Government of Belize is committed to strengthening the National Climate Change Committee by approval by Cabinet. That in itself demonstrates the Government commitment in addressing the issue of climate change.
The Clean Development Mechanism:
The representation here from government, research community, public and private sectors is indicative of the great interest and enthusiasm towards this Clean Development Mechanism Capacity Building initiative. I am very much impressed with the turnout for this workshop.
We have gathered here today to discuss the approval process that we envisage and the sustainable development indicators to approve these projects. According to the Kyoto Protocol, the Clean Development Mechanism should fulfill two purposes: greenhouse gas emission reductions and contribution to the host country’s sustainable development. The Marrakech Accords affirm that “it is the host Party’s prerogative to confirm whether a clean development mechanism project activity assists it in achieving sustainable development”. Therefore we need to define sustainable development requirements for CDM projects in this country according to our own wishes.
The Sustainable Development Indicators:
Assessing the sustainable development indicators is an important task you will need to undertake during your work today. These indicators are necessary for any assessment procedure. In the context of CDM projects, they are needed to provide information about the performance of a given CDM project with respect to the chosen sustainable development criteria. The idea is to show CDM projects in practice can be selected and designed in a way, where they support a broader set of national development priorities as outlined in the various development plans including Horizon 2030.
The CDM Project Approval Process:
Additionally, the Government has made a strong commitment to establish an operational Designated National Authority capable of approving projects consistent with Belize’s sustainable development priorities. We are committed to establish an approval process that ensures credibility, consistency, transparency, fair and equal treatment of the entire process.
We cannot do any of these successfully and efficiently without constructive input from all involved and concerned parties. This workshop is designed to be participatory and inclusive encouraging input from you, a broad and diverse group of stakeholders with differing views.
Thank you in advance for your comments, involvement and expertise. I know that this will be a productive workshop generating many good ideas and suggestions for a credible, transparent, and consistent approval process and sustainable development indicators of high standards.
The point here is to get your feedback on the approval process, legal framework and sustainable development….you should be rigorous, constructive and forward looking. …I know you will be.
On behalf of the Honorable Minister I take this opportunity to declare this workshop officially opened. Good luck in your deliberations".
Page 1 of 55
ANNEX 1
WORKSHOP AGENDA
GOVERMENT OF BELIZE
MINISTRY OF NATURAL RESOURCES AND THE ENVIRONMENT
NATIONAL WORKSHOP ON THE ESTABLISHMENT OF THE DESIGNATED NATIONAL AUTHORITY IN BELIZEVenue – Belmopan Convention Hotel
WORKSHOP AGENDA
Day 1
November 4
(8:30 – 10.30) /- Registration (8:30 – 9:00)
- Welcome and Introductions – Facilitator
- The National Climate Change Committee, Its Role and Functions in Belize – Mrs. Ann Gordon, National Focal Point
- Keynote Address – Mrs. Beverly Castillo, Chief Executive Officer, Ministry of Natural Resources and the Environment
- Declaration of Workshop Opening – Mrs. Beverly Castillo
- Coffee break (10:00 – 10:30)
Day 1
November 4
(11:00 – 12.00) / Establishment of the Designated National Authority – Joseph McGann- Legal Mechanism for Establishment
- Definitions to be Included in The Statutory Instrument
- Establishment of the Designated National Authority
- The Roles and Functions of the Designated National Authority
- Establishment of the DNA Advisory Committee
- Financing The Designated National Authority
12:00 – 13:00 LUNCH BREAK
Day 1
November 4
(13:00 – 14:00) / Procedures for Approval of CDM Projects – Joseph McGann- Validation of CDM Projects
- The CDM Project Approval Procedures
Day 1
November 4
(14:00 – 15:30) / Working Group Exercise- Working Group 1 – Establishment of the DNA
- Working Group 2 - Procedures for Approval of CDM Projects
- Coffee break (15:30 – 16:00)
Day 1
November 4
(16:00 – 16:45) / The Draft Sustainable Development Criteria for Evaluation of CDM Projects – Joseph McGann- Review of the Draft Sustainable Development Criteria
Day 1
November 4
(16:45 – 17:15) / Discussion, summary and conclusions – Carlos Santos, FacilitatorNATIONAL WORKSHOP ON ESTABLISHMENT OF THE DESIGNATED NATIONAL AUTHORITY IN BELIZE
Venue - Belmopan Convention Hotel
WORKSHOP AGENDA
Day 2
November 5
(08:30 – 08:45) / Review of Day 1: Summary and Some Conclusions – Carlos Santos, Facilitator- Key issues and conclusion to guide working group sessions
Day 2
November 5
(08:45 – 09:30) / The Kyoto Protocol and the CDM – Mr. Carlos Fuller, Deputy Director, Caribbean Community Climate Change Centre- Status of Negotiations at the UNFCCC
- The Regional CDM Program
Day 2
November 5
(09:30 – 10:00) / The CDM Office – Joseph McGann- Why The Need for a CDM Office
- Options for the CDM Office/desk
Day 2
November 5
(10:30 – 12.00)
/ Working Group Exercise- Working Group 3 – The Options for the CDM Office
- Working Group 4 – The Sustainable Development Criteria
Day 2
November 5
(12:00 – 13.00)
/ Working Group Reports- Report of Working Group 1
- Report of Working Group 2
- Report of Working Group 3
- Report of Working Group 4
- Conclusions, recommendations, the way forward and close of workshop (13:00 onwards) – Ann Gordon/Facilitator
13:00 – 14:30 LUNCH BREAK
ANNEX 2
DRAFT REGULATIONS FOR THE ESTABLISHMENT OF THE DESIGNATED NATIONAL AUTHORITY FOR BELIZE
THE ORDER
MINISTRY OF NATURAL RESOURCES AND THE ENVIRONMENT
REGULATION UNDER SECTION 45 of the Environmental Protection Act Chapter 328 (Revised Edition of 2000):
ESTABLISHMENT OF A DESIGNATED NATIONAL AUTHORITY FOR THE CLEAN DEVELOPMENT MECHANISM AND CONSOLIDATED REGULATORY FRAMEWORK
Under the power vested in the Minister of Natural Resources and the Environment (the Minister) by Section 45 of Act, the Minister hereby promulgates this regulation, establishing a Designated National Authority for Belize.
Gasper Vega, M.P.
Minister of Natural Resources and the Environment
Dated:
PURPOSE OF THE REGULATIONS
The purpose of these Regulations is to give effect to the Clean Development Mechanism established under Article 12 of the Kyoto Protocol, and to establish a Designated National Authority in Belize as required by the Protocol.
DEFINITIONS
In these regulations any word or expression given a meaning in the Belize Environmental Protection Act, has that meaning, unless such word or expression is defined in this regulation for the purposes of these regulations, and, unless the context indicates otherwise.
"Act" means the Belize Environmental Protection Act, Chapter 328 (Revised Edition 2000);
“Certified Emissions Reductions (CER)” means the formal commodity transferred to project-developing entities in Annex I and/or Annex B states for the amount of emissions reductions achieved in the process of CDM project implementation, provided they meet certain eligibility criteria.
"Clean Development Mechanism" or "CDM" means the mechanism referred to in Article 12 of the Kyoto Protocol;
"Clean Development Mechanism Project" or "CDM Project" means a project activity proposed or established under the rules adopted under the UNFCCC and the Kyoto Protocol for the CDM, which seeks approval from the Designated National Authority;
“Conference” means the Conference of Parties to the Convention serving as the meeting of the Parties to the Protocol as contemplated in Article 13 of the Kyoto Protocol;
“The Decision” means Decision 3/CMP.1 dated 30 November 2005 of the Conference on the modalities and procedures for a clean development mechanism as defined in Article 12 of the Kyoto Protocol;
“Designated Operational Entity” means an entity designated by the executive board pursuant to paragraph 3(c) of the annex to the Decision;
"Designated National Authority" or DNA means the national authority responsible for the approval of Clean Development Mechanism projects for the purposes of the Kyoto Protocol established in terms of these regulations;