The Philippines expects to complete next month a national approval process (NAP) for its availment of Kyoto Protocols Clean Development Mechanism (CDM) to tap financing for environment-friendly projects from the worlds up to 3.5 billion metric tons (MT) of carbon market (at $1.4 to $4 per MT).
Dr. Roberto C. Yap, project director of the Philippines Capacity Development for CDM, said in a proposed (NAP) that the NAP may be operational by April 2005 as it has been going through designing since June last year, and its pilot phase is up to March 2005.
Yap said in a stakeholders consultation said that the NAP, which will be overseen by the Department of Environment and Natural Resources (DENR), may just be the "first screening" for a project to obtain financing from the huge carbon market in developed countries. But this, he said, will significantly aid government and the private sector in tapping tremendous capital resource.
"We can use the national approval to attract project investors and carbon buyers, help secure debt financing, and use it to secure incentives such as from the Board of Investments," he said.
Yap, also environmental economist at the Ateneo de Manilas Climate Change Center, said the NAP should focus on approving projects based on a "sustainable development criteria." This means it should generate sustainable employment of local communities, provide safety nets and compensatory measures for minorities, and use cleaner and efficient technology.
On the environmental and social dimension, Yap said a project to be approved for CDM financing should comply with environmental standards, promote use of natural resources, conserve biodiversity, alleviate poverty, and provide education to local communities. (MMA)
The World Bank (WB) set up in 2000 a $180 million Prototype Carbon Fund (PCF) with the participation of Canada, Finland, Netherlands, Norway, Sweden and 17 large energy companies to facilitate carbon credit trading. The …