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Need to exploit CDM opportunities available in Tanzania
2008-02-07 09:04:14
By Deodatus Mfugale
As the first phase of the Koyto Protocol draws to the end, many countries both developed and developing are yet to meet its basic requirement, that of reducing emissions.
Although this requirement is mainly for industrialized countries, the Protocol also provides for developing countries to achieve sustainable development through undertaking Clean Development Mechanism (CDM) Projects.
On the other hand, industrialized countries are also expected to meet their emission reduction targets by partnering with the private sector in developing in countries to implement CDM projects thereby contributing to overall global objective of reversing the global warming trend.
The current situation shows that both industrialized countries and developing countries have not fully utilized the potentials of CDM as offered by Kyoto Protocol for various reasons.
Some developing countries like Tanzania have failed to take advantage of the facility for lack of capacity to initiate the projects and get the required certification and thus access funding.
It is for this reason that in 2007 the UNEP RISOE Centre launched in the country the Capacity Development for the Clean Development Mechanism (CD4CDM) so as to enable the private sector in the country to learn and share experience with the view to participate fully in the implementation of CDM projects in the country.
The project which is funded by the Dutch Government is being implemented by The Centre for Energy, Environment, Science and Technology (CEEST Foundation) and The Environment Protection and Management Services (EPMS).
Among other things, the project aims to develop Tanzania`s capacity so that eventually there will be experts in the country who will be capable of analyzing the CDM projects basing on their technical and financial merits and thus convince investors to agree to finance such projects.
But is there any justification for the capacity building if there are no CDM opportunities in the country? Indeed that is a question that any person who has little knowledge of Tanzania would ask.
Suffice it to say that since Tanzania ratified the Kyoto Protocol it also created an economic opportunity that can be exploited through CDM investments.
Already Tanzania has developed an inventory for greenhouse gas (GHG) emissions covering the energy, agriculture, industrial processes, waste management, forestry and land use sectors.
The energy sector in Tanzania covers the non-commercial primary energy sources, mainly wood-fuels, and commercial energy including petroleum, natural gas, hydroelectricity and coal yet the country\'s energy supply and end-use structure reflect her low level of development.
The country has considerable biomass resources in the form of forest and agricultural residues and biomass-based fuel accounts for 92 per cent of the total energy consumption. The rest is mainly petroleum and hydroelectricity.
These resources present abundant opportunities for investments in CDM projects; there is an economic possibility of converting these resources under CDM activities into electricity and energy for industrial and domestic purposes.
Coal and natural gas are the other commercial fuels with a high potential, with coal reserves being estimated at about 1,200 million toes, of which 304 million toes may be considered proven. A field of 29.02 million cubic metres of high quality natural gas has also been discovered at Songosongo.
On the other hand, hydroelectric energy is the most important indigenous source of commercial energy with a potential of 4.7 GW of installed capacity having been developed.
Solar, wind and geothermal energy which are yet to be exploited present the potential fast-track CDM projects in Tanzania.
In a bid to promote the exploitation of this potential, the government has made its commitment to fully cooperate with other stakeholders so as to realize sustainable development.
``We are committed to work closely with partners in developed countries to improve the CDM, through piloting new approaches that will make this market opportunity deliver and contribute significantly towards Tanzania`s investment and development priorities,`` explained Ruth Mollel, Permanent Secretary in the Vice President\'s Office, during the Ministerial Briefing on CDM in Tanzania that was held in Dar es Salaam recently.
She said that the government with collaboration of the development partners and other developed countries that are parties to the Kyoto Protocol will continue to raise awareness on the CDM issue through the Designated National Authority and other relevant sectors.
``Since CDM projects are primarily implemented by the private sector and other non-government actors, the government will continue to provide enabling environment for the stimulation of CDM projects,`` she added.
On his part the Ambassador of the Kingdom of the Netherlands to Tanzania, Karel van Kesteren, said during the briefing that his country has shown increased interest in the CDM issue in Tanzania.
``One of the activities the Dutch government is financing in Tanzania is the Energizing Development Programme. Dutch entrepreneurs on the other hand are very active in the field of bio fuels…
A delegation visited the Netherlands just two weeks ago for extensive discussions with the Dutch government representatives of the private sector to find common ground within the field of Tanzanian initiatives related to bio fuel projects,`` he explained.
He said that the Netherlands, through its agency SenterNovem, is looking for opportunities to support all sorts of bio fuel programmes in Tanzania, while other entrepreneurs are looking into possibilities of producing bio ethanol from cassava grown in Tanzania.
Given the importance of sustainable development in the CDM approval process, social considerations and public participation should be an important element of CDM projects.
Investments in the energy sector are of particular importance to Tanzania because only 6 percent of the population has access to electricity while the rural population is almost entirely dependent on wood for fuel.
It is not surprising, therefore, that deforestation stands at between 90,000 and 300,000 hectares per annum,
One purpose of the CDM is to assist developing countries to achieve sustainable development.
Sustainable is a broad concept that includes environmental sustainability, economic development and social equity. With the available vast opportunities for investment, CDM projects to be undertaken in Tanzania must support the Tanzania Vision 2025 and MKUKUTA 2005 in alleviating poverty among its people.
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