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Modalities for addressing socio-economic and environmental impacts, including impacts on

biodiversity and natural ecosystems

Heikki Granholm

Programme Officer

MIS Programme

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Overview• Approaches for addressing socio-economic

impacts• Possible new modalities and procedures to address

socio-economic impacts• Approaches for addressing environmental impacts• Possible new modalities and procedures to address

environmental impacts• “Checklist” or an annex to draft decision• A need for further clarifications

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Approaches for addressing socio-economic impacts

1. Minor revision to existing modalities and procedures

2. More extensive revisions

3. Countries elaborating country-specific guidelines (host and/or investing country)

4. The CDM Executive Board (EB) developing operational guidelines

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Possible new modalities and procedures to address socio-

economic impacts• Project design

– Country specific sustainable development criteria– Consistency with other national and international

commitments– Provision of multiple benefits– Project developer to conduct a social assessment

(Social Impact Statement, SIS)– A Project Design Document to include a local

community agreement, and statements on land, sequestration rights, economic viability, management capacity

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.• Validation / registration– Assessment of socio-economic impacts as a validation criterion– A designated operational entity to validate a SIS – DEA and CDM EB to have the right to reject a project

• Monitoring and implementation– Project developer to monitor implementation of a Social Impact

Statement

• Verification / certification– DOE to verify implementation of SIS– CDM EB to have a right to invalidate a project and cancel any

credit

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Approaches for addressing environmental impacts

1. Minor revision to existing modalities and procedures

2. More extensive revisions, possibly including a “checklist”

3. Countries elaborating country-specific guidelines (host and/or investing country)

4. The CDM Executive Board (EB) developing operational guidelines

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Possible new modalities and procedures to address

environmental impacts • Project design

– Country specific sustainable development criteria covering environmental priorities and assurance of stakeholders’ participation

– Provision of multiple benefits

– The Project Design Document to include a baseline study on biodiversity ”with” and “without” a project

– Project developer to conduct an environmental impact assessment (Environmental Impact Statement or Environmental Impact Assessment) and a Strategic Impact Assessment

– A “checklist” of issues to be considered

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• Validation / registration– Assessment of environmental impacts as a validation criterion– A designated operational entity to validate environmental impacts (EIS,

EIA, SIA)– Development of thresholds and eligibility criteria for “with” and

“without” a project– DEA and CDM EB to have the right to reject a project

• Monitoring and implementation– Project developer to monitor implementation of a Environmental Impact

Statement ( EIA and SIA)

• Verification / certification– DOE to verify implementation of SIS, (EIA and SIA)– CDM EB to have a right to invalidate a project and cancel any credit

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“Checklist” or an annex to draft decision

• Separate lists or common list for socio-economic and environmental impacts? Status?

• Possible issues: – Increase or al least preservation of diversity and of soil fertility– Planting of indigenous, native species and non-GMOs; establishment of

multi-species culture (“ecosystem approach”) – Sustainable soil preparation and silviculture– Minimal leakage– Tenure and land-use– Special needs of indigenous people, stakeholder involvement, benefit

sharing, definition of responsibilities– Planning and management tools of project– Capacity building, awareness and safety

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A need for further clarifications

• To which phase of the CDM project cycle a proposal refers?

• How to follow a proposal throughout the CDM project cycle?

• Who are actors, who is responsible?

• How does a proposal refer to existing modalities and procedures?