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mexico, support for the development and uptake of - Unido

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. • Partnership building according to concept;<br />

. • Formulation <strong>of</strong> projects: preparation <strong>of</strong> PINs <strong>and</strong> PDDs, including baseline methodology<br />

<strong>and</strong> M&V methodology <strong>and</strong> plan;<br />

. • Preparation <strong>of</strong> st<strong>and</strong>ardized baseline methodologies <strong>for</strong> specific technology options;<br />

. • Stakeholder/partner review process;<br />

. • External project review <strong>and</strong> validation (depending on availability <strong>of</strong> funding);<br />

. • Registration <strong>of</strong> projects with CDM Executive Board.<br />

2.3 RISKS AND SUSTAINABILITY<br />

Recently, <strong>the</strong>re has been a great deal <strong>of</strong> debate appearing in <strong>the</strong> media questioning <strong>the</strong> future <strong>of</strong> <strong>the</strong> Kyoto<br />

Protocol since <strong>the</strong> US withdrawal from <strong>the</strong> pact; <strong>the</strong> climate community is now focused on what Russia will<br />

do, as <strong>the</strong>ir ratification will enable <strong>the</strong> Protocol to come into <strong>for</strong>ce. There have been rumors that this will not<br />

happen <strong>and</strong> <strong>the</strong>re<strong>for</strong>e that <strong>the</strong> Protocol is doomed.<br />

However, <strong>the</strong>re is a parallel <strong>development</strong> that may not always be considered by those not fully<br />

involved/following <strong>the</strong> debates: <strong>the</strong> EU has established an Emissions Trading Scheme (ETS) that will come<br />

into <strong>for</strong>ce in January 2005 (emissions’ trading is one <strong>of</strong> <strong>the</strong> three Kyoto ‘mechanisms’). The EU has also just<br />

concluded a ‘Linking Directive’ that allows credits from <strong>the</strong> o<strong>the</strong>r two Kyoto mechanisms, CDM (CERs) <strong>and</strong><br />

JI (ERs), to be included in <strong>the</strong> ETS from 2005 <strong>and</strong> 2008 respectively. There<strong>for</strong>e, even if <strong>the</strong> Kyoto Protocol<br />

does not come into <strong>for</strong>ce, <strong>the</strong> market <strong>for</strong> carbon <strong>of</strong>fsets from CDM <strong>and</strong> JI projects is available already.<br />

There are also national risks associated with <strong>the</strong> ‘readiness’ <strong>of</strong> <strong>the</strong> country <strong>for</strong> Kyoto Protocol related<br />

activities; carbon services are only part <strong>of</strong> <strong>the</strong> ‘enabling environment’ required <strong>for</strong> <strong>the</strong> CDM to function <strong>and</strong><br />

o<strong>the</strong>r national institutions <strong>and</strong> facilities should be in place or under active <strong>development</strong>, including conditions<br />

that encourage FDI <strong>and</strong> technology transfer; ratification <strong>of</strong> <strong>the</strong> Kyoto Protocol; a functional Designated<br />

National Authority; o<strong>the</strong>r required <strong>support</strong> institutions, facilities & legislation as appropriate. Two major<br />

requirements are already in place in all three <strong>of</strong> <strong>the</strong> host countries (all have ratified <strong>and</strong> established DNAs).<br />

2.4 SUCCESS CRITERIA<br />

Success in achieving <strong>the</strong> project objectives can be measured using <strong>the</strong> following criteria:<br />

Increased national capacity to identify, develop <strong>and</strong> submit CDM projects (output 2&3); Carbon services<br />

functional in host countries (output 2&3); Portfolio <strong>of</strong> CDM projects available (output 3); Projects from<br />

portfolio taken-up by Austrian investors (output 1 <strong>and</strong> 3); Lasting partnerships developed between host<br />

country & Austrian business/industry (output 1).<br />

2.5 MONITORING, REPORTING AND EVALUATION .<br />

Regular (weekly) monitoring will be undertaken using an advanced project management tool 117 to check on<br />

progress, activities <strong>and</strong> achievements. This will ensure that <strong>the</strong> project team is kept in<strong>for</strong>med <strong>of</strong> potential<br />

slippage in time to find ways <strong>and</strong> means to address any delivery problems. The same tool will be used to<br />

provide inputs to monitoring <strong>and</strong> evaluation exercises in line with UNIDO rules <strong>and</strong> requirements.<br />

117 Micros<strong>of</strong>t Project<br />

Draft 1, UNIDO-AUSTRIA 102

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