Facilitating
Climate Change Mitigation:
Creating
an Enabling Environment
|
The
Context
Climate Change is emerging as one of the major threats affecting the global
environment. From the time that ‘global warming’, or the greenhouse effect
began to be recognised as an issue, to the present day where a huge proportion
of the scientific world is actively involved in this field, climate change has
come to be recognised as a serious issue. In fact, there is a whole slew of
organisations, ranging from Government departments to consultancy ‘shops’
that are gearing up to the needs of the climate change regime, if one can call
it so.
The basic driver that mobilises the whole process is the importance of
mitigating climate change, and the costs associated with the whole business of
it. At one end, this translates into the promotion of climate change
mitigation projects, either by the developed world, or by the developing
world, or through a collaboration of the two, (in the nature of projects that
can be developed under the Clean Development Mechanism of the Kyoto Protocol to
the UNFCCC). At the other end, there is a whole gamut of activities under the
umbrella of preparing strategies for successful community-led action to adapt to
adverse conditions created by climatic change. A third front deals with
preparing an enabling environment globally, in terms of policy prescriptions, to
address climate change. Across all the three activities, the broad groups of
institutional services required to address the issue are:
qThe
supreme global body (like CDM Executive Board), that approves climate change
mitigation projects and certifies emission reduction and looks after the global
negotiations on climate change.
q
Designated Focal Points in developed as well
as developing countries that would issue a ‘letter of acceptance’ for all
projects that seek to earn emission reduction "credits" and / or
assist in the building up of national policy on climate change.
q Monitoring,
Verification and Certifying agencies that would conduct periodic M&V of the
projects, and would need a license for operating in the specific field of
climate change.
q Trading and
facilitating agencies that would facilitate as brokers in bringing the host and
investing entities together, and assist individual project developers in
preparing a climate change project.
q Institutions,
such as stock exchanges, where entities may buy or sell carbon emission rights
globally, and insurance agencies, to provide cover for the immense risks that
are presently associated both with carbon as a commodity and with the future
status of all CDM-type climate change mitigation projects.
The Centre at Development
Alternatives
The Climate Change Outreach and Facilitation Centre (the Centre) at Development
Alternatives is arguably the first of its kind in the country, and exemplifies
the vision and dedication of Development Alternatives to promote sustainable
development in all directions. The Centre has evolved rather than grown over a
period of time, and its conceptualisation, concretisation and final
implementation runs parallel to the emergence of climate change as a major
threat to the global ecological balance.
Broadly speaking, the evolution of the Centre can be traced into three phases,
beginning from 1995. Prior to 1995, Development Alternatives was essentially
working on the science of climate change issues focusing on understanding
impacts of climate change on various activities in society and attempting to
evolve appropriate response strategies.
Phase I - Initiation - January 1995 to December 1998: The
idea of a CCOFC was born with the first Joint Implementation Conference
organised by Development Alternatives in January 1995. Activities to establish a
CCOFC was initiated.
Phase II - Pilot - January 1999 to May 2000: The
CCOFC was formally set up in 1999 through the Climate Change Outreach and
Awareness project. The project has allowed for a test-run of the CCOFC before it
can be meaningfully established with clear priorities.
Phase III - Establishment - June 2000 to May 2004: With
the experience during Phase I and II, this phase will focus on establishing an
efficient and market oriented CCOFC. This phase coincides with the stage in the
global scenario, where the stress shifts from policy advocacy to actual
demonstration of action on the field in terms of projects.
Client Segments
Two broad client segments have been
identified by the Development Alternatives CCOFC :
q
Sections that have the capacity and willingness to pay for services that they
require - primarily large and medium business sector adapting their business to
climate change concerns.
q Sections that
do not possess the resources to pay for the services provided to them - farming
communities, small entrepreneurs and other similar stakeholders in society
adapting to climate change concerns.
While the latter will pay for a small part of expenses incurred on them, the
balance will be partially cross subsidised through surpluses from the former and
support from public funds, both national and international.
Activities of the Centre
during the Pilot Phase
The activities of the Centre in the pilot phase can be classified into the
following heads:
Research:
Development Alternatives took up research on various aspects involved in the
design and implementation of climate change mitigation projects. In
particular, the research assessed the potential of such projects to promote
sustainable development in developing countries. A training module on how to do
the same was also prepared and field tested in the pilot phase. The training
modules seek to incorporate a) corporate awareness
on how sustainable business practices may improve bottomlines for businesses; b)
techniques for assessment of a firm’s
progress towards more sustainable forms of business, and c) the possible action
that the firm may be able to take up.
Outreach:
A number of workshops and roundtables were organised in different parts of the
country to raise awareness about these issues among the stakeholders. These
events provided an opportunity to bring various stakeholders on a common
platform and share their concerns.
Facilitation:
As a facilitating unit, the Centre
promoted projects that had the potential for climate change mitigation, and
sought financial support from global climate change funds.
Challenges Ahead
In the years to come, the Centre will have to develop into a resource centre
on climate change. It should be able to assist the stakeholders globally on how
to either mitigate, build up strategies that reduce the vulnerability of a
region to climate change impacts, or adapt to climate change, by providing
information on any issue related to climate change. In particular, the Centre
has to provide project proponents a package of customised services with regard
to promoting, developing and implementing a climate change mitigation project.
To achieve this end, the Centre would need to undertake research on various
climate change issues. In the long run, the Centre hopes to provide the
necessary institutional support to local and global efforts to create an
enabling environment for the promotion of activities that seek to mitigate
climate change. q