Capacity Development Work plan for
the Clean Development Mechanism in
Uganda
ROLES AND COMPOSITION OF THE
DESIGNATED NATIONAL AUTHORITY (DNA)
Presented by:
Enock Mugyenyi- Uganda Management Institute
ROLES, ACTIVITIES & SKILLS REQUIRED OF THE (DNA)
1. Approval Registration
Role Activity
Check on :
 Sustainable development
 Validity of baseline i.e will
project meet the reduction
indicated
 Credibility of project
developers
 Financial reliability of the
Projected CER Value
 Advantages to government
vis-à-vis project developer
(CER Shares)
 Monitoring proposal
 Reporting proposal
 Overall credibility of the
underlying assumptions
Skills required
 Evaluation of
baselines or at
least basic
understanding
of how this is
done
 Basic Financial
analysis skills
 Negotiation
Skills with
Project
financiers
 Project
Monitoring and
reporting tools
and dynamics
2.
Reporting
to EB on
CDM
Activities
Validity of project
(Based on approach)
Evaluation of
baselines or at
least basic
understanding of
how this is done
Project
Monitoring and
reporting tools
and dynamics
3.
Understanding
Promoting potential in Country
CDM
Negotiating with
potential developers
(mainly government)
Keeping in- Country
Stakeholders
interested
Linking CDM to
development
Updating itself on
international
developments relating
to CDM or affecting
CDM
Negotiation
Marketing
Awareness
raising
RATIONALE FOR INSTITUTIONAL
ANALYSIS
CDM is about investments with different
Institutions having a role to play
according to their expertise.
However, in an environment of scarce
resources there is need to situate CDM
in the existing Institutional framework
rather than creating a completely new
Institutional framework. The intention
is to have a cost-effective Institutional
framework which is sustainable.
GENERIC MODELS FOR DNA
Theoretically, there are five models for
DNA. They include:
A single government department model
A two-unit model
Inter-departmental government model
Foreign Direct Investment - Piggyback
and
Outsourcing model
CHARACTERISTICS AND FUNCTIONS OF A
SINGLE GOVERNMENT DEPARTMENT
MODEL
One department or Ministry undertakes
all the activities of the DNA - most likely
the environment department/climate
change unit.
The department or Ministry acts as a
secretariat and would invite technical
experts from other government
agencies/ministries upon demand to
evaluate/analyse and validate CDM
projects/investments.
The secretariat would then prepare a
project design document (PDD) and
report to the EB (refer to CDM cycle).
The secretariat (the environment
agency) would ultimately be responsible
for approval of the CDM projects.
The secretariat would be responsible for
marketing and promoting CDM by
designing CDM promotion material and
furnish the FDI office and other relevant
stakeholders.
Structure
Executive Board
Environment Ministry/Agency
DNA Secretariat
TECH experts
(Energy)
TECH experts
(Agriculture)
TECH expert
(forestry)
CHARACTERISTICS AND FUNCTIONS OF A
TWO-UNIT MODEL
Activities of the DNA are split into two.
Part 1
Evaluation
Approval
Registration
Development
of Projects
Policy
development
Part 2
Capacity
Building
Out reach
promotion
Technical and
economic
assessments
The first part could be located in
department responsible for climate
change and second part in many
places as an independent unit.
The separation into two parts helps
to avoid possible conflicts of interest
in the process of project formulation
and approval.
CHARACTERISTICS AND FUNCTIONS OF
INTER-DEPARTMENTAL MODEL
Entails establishing a structure which
allows all the relevant government
departments to be integrated into DNA
as permanent members.
The ministry of Environment would act
as co-ordinator but approval of projects
would be undertaken by all
departments.
A committee to operationalise the
approval of projects would be set up.
The co-ordinating Institution would act as
the registration office and would receive
proposals on behalf of DNA.
The co-ordinating Institution would
communicate with other DNA members
and also with the EB but upon agreement
within DNA
Structure
EB
D
N
A
Energy
Ministry
Environment
Agency/
Ministry
Agriculture
Forestry
FOREIGN DIRECT INVESTMENT (FDI)
PIGGYBACK MODEL
Most countries have a FDI Institutional
framework which promotes foreign investment
and typically comprises of a promotion office
and an approval or implementation office.
This Institution receives projects from foreign
investors and using a pre-structured criteria
evaluates and approves projects.
The criteria for approving projects largely
reflects the national development
priorities.
The FDI framework could be adapted for
CDM and used as the DNA.
The investment office would thus receive
and approve projects from various areas
using its established system.
Given the special aspect of CDM,
concerning GHG emission reduction, the
relevant technical experts would be
sourced by the investment office when a
CDM project is submitted to assist in
validating the GHG reductions.
The FDI office would then prepare the
project design document (PDD) and
communicate with the EB.
Naturally, the FDI office would promote
CDM along with its other investment
promotion activities.
Structure
EB
DNA
FDI Office
GHG tech
experts
CHARACTERISTICS AND FUNCTIONS OF
OUTSOURCING MODEL
Host countries may choose to outsource
the bulk of DNA services to a private
agency.
The agency would evaluate the projects
and validate them.
The agency would report to a
government environment agency which
would then communicate approval to
the EB.
THE ROLES AND COMPOSITION OF DNA
Institution
Role
• NEMA
1.
• Ministry of
Appro
Water,
val
Lands &
Environme
Registr
nt
ation
• Ministry of
Trade,
Tourism &
Industry
• UIA
Activity
Check on :
 Sustainable
development
 Validity of
baseline i.e will
project meet
the reduction
indicated
 Credibility of
project
developers
Skills required
 Evaluation of
baselines or at least
basic
understanding of
how this is done
 Basic Financial
analysis skills
 Negotiation Skills
with Project
financiers
 Project Monitoring
and reporting tools
and dynamics
Institution
• Uganda National
•
•
•
•
•
Bureau of Standards
Uganda Cleaner
Production Centre
Ministry of Finance,
Planning & Economic
Dev't
Ministry of Energy &
Mineral Dev't
Forest Department
Department of
Meteorology
Role Activity
 Financial reliability




of the Projected
CER Value
Advantages
to
government vis-àvis
project
developer
(CER
Shares)
Monitoring proposal
Reporting proposal
Overall credibility
of the underlying
assumptions
Skills
required
DNA
coordinatin
g
Institution
2.
Reportin
g to EB
on CDM
Activities
Validity
of Evaluation of
project
baselines or at
(Based
on least basic
approach)
understanding of
how this is done
Project
Monitoring and
reporting tools
and dynamics
•NEMA
•Ministry of Water,
Lands &
Environment
•Ministry of Trade,
Tourism & Industry
•U I A
•URA
•PSF
•Uganda National
Chambers of
Commerce
•Ministry of Finance,
Planning &
Economic Dev't
•Ministry of Energy
& Mineral Dev't
3.
Promot
ing
CDM
Negotiation
potential in Country Marketing
Negotiating with
Awareness
Understanding
potential
developers (mainly
government)
Keeping inCountry
Stakeholders
interested
Linking CDM to
development
Updating itself on
international
developments
relating to CDM or
affecting CDM
raising
ACTIVITIES FOR ESTABLISHING A DNA
Hold a consultative workshop to identify
DNA coordinating Institution and
composition
Identify legal and regulatory implications
of the DNA
Develop operational guidelines for
functioning of the DNA
In depth review of DNA members to
identify capacity gaps and develop specific
implementation plan to capacitate them
Organise targeted series of sensitisation
and training workshops for DNA members
Develop CDM promotion manuals and
other aids
Conduct periodic reviews of DNA to
strengthen capacity
Develop guidelines for
approval/registration of CDM projects
Establish a list serve for the DNA members