The Clean Development Mechanism (CDM), one of the Kyoto Protocol's three so-called Flexible Mechanisms, emerged from the 3rd Conference of Parties (CoP3) at Kyoto in December 1997.

CDM is a project-based approach, which aims to encourage private sector companies in the Annex I countries (essentially OECD countries) to invest in low greenhouse gas (GHG) projects in non-Annex I countries. These projects will generate Certified Emission Reduction's which will be used to achieve the targets set out in Kyoto.

CDM provides a golden opportunity for creating a new paradigm for economic and political development. It will put in place mechanisms for transferring finances, investment and technology from the developed world to the developing countries on a far more equitable basis.

It is expected that the CDM Susac project will lead to identified investments in key sectors (primarily energy). These will be identified in conjunction with market players, and will be developed through operational national secretariats co-ordinating national and international activities. These secretariats will identify and promote projects that meet developmental and environmental objectives that result in accelerated national growth on an equitable, low-carbon path.


To achieve investment under the CDM, Africa, Caribbean and Pacific (ACP) countries need to streamline their efforts in order to attract foreign investors. Putting in place national clearinghouse agencies to identify, verify, certify and monitor investments and emissions will go a long way in doing this.

While CDM represents one of the best opportunities for dramatically altering the development paradigm, there will be considerable international competition amongst developing countries for attracting investment under CDM. Only those countries best prepared, best mobilised, with the most dynamic, streamlined project identification, authorisation, verification and monitoring procedures will attract and 'capture' such investment. There is a real risk that the ACP countries will be ' left behind' in CDM because of their lack of substantial GHG emissions (compared with, say, India, China, Brazil).

It will take fast action in the building of local capacity and transparent identification, verification and monitoring procedures for ACP countries to not only be at the front of the queue for CDM investment, but actually lead the developing world. The CDM Susac project aims specifically to put in place all the necessary mechanisms for this to occur and it adopts a learning-by-doing, fast track approach over its two year life.

The project is funded by the Directorate General Development of the European Commission, and co-funded by the UK's Foreign and Commonwealth Office (FCO) under its Climate Change Challenge Fund (CCCF).


IER of the University of Stuttgart is responsible for overall project management. IER is providing the baseline and information management expertise to the consortium along with the necessary IT support and expertise.

ESD is providing the overall economic and financial expertise for the project and links with international companies and agencies. ESD will deal specifically with institutional issues and play a key role in securing interest from potential project investors.

ENDA TM Senegal is providing both the international UNFCCC co-ordination and liaison for the consortium and co-ordinating the Senegal activities. CEEEZ (the Centre for Energy, the Environment and Economics in Zambia), with its extensive work under the UNFCCC and the SADC (Southern African Development Community), will lead the Zambian team, and liase with its SADC partners.

The Uganda Meteorological Department is the UNFCCC focal agency in Uganda. It will co-ordinate the Ugandan activities, and will liase with the World Bank's African Rural and Renewable Energy Initiative (AFRREI) and the Prototype Carbon Fund, both of whom have expressed interest in pioneering CDM support activities in Uganda.

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