 Introduction
The Clean Development Mechanism (CDM), contained in Article 12
of the Kyoto Protocol, is expected to play a significant role
in assisting sustainable development and addressing poverty-environment
issues in developing countries. However, Sub-Saharan Africa has
to date largely been overlooked by the global carbon market:
the region accounts for just 2 percent of confirmed CDM projects.
In line with the vision of transforming the Republic of Mauritius
as a major CDM investment destination, the Government of Mauritius
via the Ministry of Environment & NDU has requested UNDP
to assist in preparing a National Strategy for CDM that aims
at building the capacity of the country to effectively participate
in the global carbon market.
Objectives
The objectives of this study will be to:
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strengthen the institutional and legislative
framework for CDM; |
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assess Mauritius’s potential to host CDM projects,
to identify priority sectors and to develop a pipeline of
projects eligible for CDM; and |
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identify priority capacity building needs within the Government
and potential CDM project proponents, and to develop a strategy
and resource mobilization framework to address them. |
The emphasis of the National CDM strategy will be on providing
an overview of the potential of carbon finance (principally CDM)
in Mauritius, identifying the legislative, sectoral, technical
and financial barriers currently preventing the potential being
realised, and constructive solutions to addressing these barriers.
The intention would be to provide a factual, evidence-based foundation
to the debate about carbon finance in Mauritius, and to provide
a ‘roadmap’ for the Government, international agencies
and other stakeholders seeking to remove investment/implementation
barriers for the sector. The Strategy will devote special attention
paid to the unique circumstances of Mauritius as Small Island
Developing State (SIDS).
National
CDM Strategy Focal Areas
In developing the National CDM Strategy, eight distinct focal
areas will be addressed:
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Legal & Regulatory
What is the legal basis of carbon finance in Mauritius?
What is the current legal
and operational status of the Designated National Authority?
Has ownership of carbon credits been recognised in law?
What sectors of the economy have been identified as strategic
priorities by the Government? Does the Government have
any
plans to harness carbon finance to address these priorities?
What laws, regulations and strategic plans govern key CDM
sectors such as forestry, biofuels, waste management, agro-processing,
renewable energy and grid extension? What are the current
laws and regulations governing grid feed-in? |
|
Institutional
Which
institutions have a formal role in the CDM, and what are
their current capacities? (In particular,
the DNA and the line ministries from which the DNA is composed).
Which institutions will play a key operational role in
the CDM? What centres of academic and consultancy expertise
in
carbon finance exist in Mauritius? How can institutional
capacity best be enhanced? |
|
Sectoral
A sector-by-sector analysis of the carbon potential
of each sector in Mauritius, the barriers currently preventing
the potential being realised, and constructive solutions
to addressing these barriers. Analysis of how cost-competitive
these sectors are in the context of the global carbon market. |
|
Enabling sectors
Some sectors do not actively undertake
carbon projects, but they do provide supporting services.
Obvious examples include the financial sector (as a source
of loans), the accountancy and auditing sector, the legal
sector (for negotiation of emissions contracts, for example)
and the consultancy sector. What is the level of awareness
and technical understanding of the CDM in each enabling sector? |
|
Human Resource Development
What types of HRD strategies should be put in place to enable the creation of
qualified manpower and to boost up CDM as an important investment thrust. Can
Mauritius become an exporter of CDM expertise to other countries in Africa
and to the rest of the world? What should be catalyzed and what specific training
needs should to be identified which may be introduced as core modules at Tertiary
level. |
|
Public-Private
Sector Partnership
What enabling conditions are to be created to have an efficient and effective
partnership between the private and the public sectors? |
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Examples of
carbon projects in Mauritius
Can any lessons be drawn regarding the key to these projects’ success?
What costs have these projects tended to incur, and what
revenues do they expect to generate? What has been the primary
motivation behind these projects’ establishment,
in terms of output (carbon revenues? Timber? Electricity?)
and
in terms of aspiration (profits? Sustainable development
outcomes?) |
|
Recommendations
The National CDM Strategy is intended
to provide a rigorous but succinct overview of carbon finance
in Mauritius, above all providing practical policy guidance
for establishing the ‘enabling conditions’ necessary
for establishing a flourishing carbon sector. Particular
recommendations will be required for:
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The structure of the Mauritius DNA |
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The role of the government in CDM project implementation |
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The role of private entities in CDM project implementation |
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The role of foreign donors |
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Measures to promote small scale CDM project activities,
bundling of projects and programmatic CDM projects |
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Supplementary financial mechanisms to stimulate the
development of CDM projects – including possible
reforms relating to access to the national grid by
independent power producers |
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Measures to maximize the ‘development dividend’ of
the CDM for Mauritius |
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Capacity building needs of the Government, project
developers, the financial sector and other local stakeholders |
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Present
Status
The recruitment of a team of cross functional consultants is
well underway and this study is expected to start by end of
2008.
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