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Tanzania on track for CDM investments
2008-02-09 08:50:32
By Deodatus Mfugale
For almost every country in the world, climate change is no longer a myth but a reality that they have to put up with and everyone is rising to the emerging challenges which in turn compel people to change their way of doing business.
Central to combating the effects of climate change is the reduction of emissions through the Kyoto Protocol\'s Clean Development Mechanism (CDM) which promotes sustainable development and clean infrastructure development in developing countries while contributing to cost-effective reductions of greenhouse gas emissions in developed countries.
However, with all the benefits that go with CDM project investments, African countries are yet to participate fully in CDM activities as it has only three percent of all the CDM projects registered in 49 developing countries.
And out of more than 800 projects that have been approved by the CDM Board, Asia and Pacific countries have a total of 490 projects followed by Latin America and Caribbean countries with 295 projects and Africa has only 21 projects.
Of all the projects being undertaken in Africa, only one is being implemented in Tanzania, a situation which calls for mustering serious efforts that would see the country's private sector and non-government actors initiating viable CDM projects which would attract funding.
Fortunately the government has seen this drawback and is taking appropriate action by inviting information and advice from experts in various fields that would assist it to develop as many CDM projects as possible.
The government has also called for the active participation of the relevant stakeholders including local governments, private sector and the scientific community in developing CDM projects, basing on availability and timely delivery of the relevant information.
``The government with the collaboration of the development partners and other developed countries that are partners to the Kyoto Protocol will continue to raise awareness on CDM activities through the Designated National Authority and other relevant sectors.
Since CDM projects are primarily implemented by the private sector and other non governmental actors, we will continue to provide enabling environment for stimulation of CDM projects,`` explained Ruth Mollel, Permanent Secretary in the Vice President`s Office, when welcoming delegates to the Ministerial Briefing on CDM in Tanzania, that was held recently in Dar es Salaam.
In a bid to prepare a solid foundation Tanzania has already established the Designated National Authority (DNA) which is the Division of the Environment in the Vice President's Office, in line with the international legal rules on the CDM.
The authority has set up a legal framework for climate change adaptation and mitigation basing on the provisions of the Environmental Management Act (2004) and the Environmental Impact Assessment regulations (2005).
Also in place are the CDM Investor's Guide and the Handbook for CDM in Tanzania, both of which have been prepared by the DNA.
The National CDM Implementation Guide 2004 is now under review as well as a Cabinet Paper which outlines the background on CDM- objectives, opportunities, institutional set up, criteria for approval of projects and suggested fees to be paid for operation of CDM activities implemented in the country.
To supplement these measures is the conducive investment environment that is being created through a steady economic growth, peace, good sectoral policies and strategies all of which should in their totality be able to stimulate more CDM projects.
In order to help the country establish CDM projects that are in line with national sustainable development goals, particularly projects in the energy sector, the UNEP RISOE Centre launched the Capacity Development for the Clean Development Mechanism (CD4CDM) in Tanzania in 2007.
The project which operates with financial support from the Dutch Government is being implemented jointly by the Centre for Energy, Environment, Science and Technology (CEEST Foundation) and the Environment Protection and Management Services (EPMS).
The CD4CDM seeks, among other things, to improve Tanzania`s institutional preparedness for hosting CDM projects; including enabling the DNA to efficiently approve CDM projects in line with the country`s sustainable development priorities, to build the capacity of local experts in key sectors in the identification, design and implementation of CDM projects.
It also seeks to build the capacity of relevant institutions in appraising, funding, and promoting CDM and carbon offset investments as well as to promote Tanzania as a CDM investment destination.
Efforts by the government and other local stakeholders to stimulate implementation of CDM projects are also getting support from the international community.
The Netherlands, for example, is working very closely with Tanzania towards that end.
``Development organization SNV and CAMARTEC are involved in a multi-stakeholder programme to revitalize the enormous potential brought about by numerous easy-to-build and maintain bio-mass installations for cooking,`` noted the Netherlands Ambassador Karel van Kesteren , during the Ministerial Briefing.
He added that UNEP RISOE capacity building programmes are funded by the Netherlands Ministry of Development Cooperation (DGIS).
Tanzania is also a beneficiary of the Regional CDM Capacity Building project led by UNDP which operates in six other countries: Democratic Republic of Congo, Ethiopia, Kenya, Mauritius, Mozambique and Zambia.
The project, which is jointly financed by Sweden, Spain and Finland, runs up to the end of this year and aims to enhance the capacity of the private sector to access carbon finance.
It will also review existing institutional frameworks and identify gaps both in the public and private sectors to attract carbon finance under the CDM voluntary carbon markets.
A major feature of the regionally-structured approach is the facilitation of cost-effective delivery of capacity development services and the promotion of South-South technical cooperation between project participating countries.
With all these measures being taken, Tanzania is surely on the right track to stimulate CDM investments and a number of projects will be implemented in the near future.
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