CDM Opportunities and Challenges in Mozambique
Mozambique, as a country vulnerable to the adverse effects of climate change and with few resources to meet the costs of adaptation, has welcomed the potential benefits of the CDM. The CDM, if appropriately designed, besides reducing GHGs can be used as an instrument for poverty alleviation, technology transfer and for achieving other environmental benefits.
However, Mozambique has limited capacity to engage with carbon markets, especially the Clean Development Mechanism (CDM) under the Kyoto Protocol. Many barriers have been identified, including:
- A low awareness of CDM opportunities;
- The lack of upfront financing for pre-investment studies of the CDM component (baseline and PDD elaboration, monitoring programme development);
- Lack of a national definition for ‘forest’ under the CDM;
- A low capacity to develop CDM projects, with only a very limited number of professionals and institutions having an in-depth understanding of the CDM process.
The Carbon Situation
Mozambique has one CDM project at the validation stage, recently approved by the DNA. This project involves switching from coal to natural gas at the rotary kiln of a clinker manufacturing plant outside of Maputo, Mozambique. The project participants are the CIMPOR (Portuguese Cement Company) plant owner and Matola Gas Company (MGC).
Recently a PIN for an A/R CDM project was submitted to the DNA. The project called Sanga Reforestation is located in Sanga district in Niassa province, the project participant is Malonda Tree Farm Company financed by Green Resources AS (GRAS) Norway.