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Strategies for Carbon Market Development through Standardised Baselines in African LDCs

Strategies for Carbon Market Development through Standardised Baselines in African LDCs
(Photo: RWE)

To promote rural electrification in Ethiopia, the BMU commissioned Perspective Climate Change GmbH and UNEP Risø to conduct a research project on Strategies for carbon market development in African Least Developed Countries. The aim of the project was to develop strategies and practical approaches to increase both greater global carbon market participation for and sustainable development in LDCs.    


In a first step, Perspective Climate Change GmbH and UNEP Risø took the necessary measures to develop a standardised baseline for rural electrification. This involved analysing appropriate literature and seeking dialogue with local institutions of importance. Meetings with these stakeholders were held during an excursion to Ethiopia. The input and experience gained served as a basis in developing a strategy paper on additional promotion of capacities in institutions of importance in the development of SB projects in the rural electrification sector. The strategy paper continues the study of existing processes and finance sources for use in capacity building.  

In a second step, the project team entered into dialogue on the topic of capacity building with a broader-based group of Ethiopian stakeholders. A workshop attended by national and regional actors held in the first half of 2013 focused on the processes identified in the strategy paper (cited above), including measures to improve the regulatory infrastructure, the administrative processes and access to funding for implementation.

Given the experience of the participating stakeholders, the strategy paper was adapted to take account of local and regional conditions in the best-possible way. The final version of the strategy paper analysed the potential of standardised approaches (methodologies, baselines and demonstrating additionality) for rural electrification in Ethiopia and provides the Ethiopian DNA with recommendations for strategic options in using the potential of recently-approved methodological innovations.

The next programme phase comprised four tasks whose primary focus was to identify targeted measures which could be used as decisive steps in bringing potential CDM projects further towards implementation. These four studies, which were completed in collaboration with the Ethiopian DNA, were designed to identify gaps in local stakeholders’ capacity and knowledge.    


As part of the project, a case study was performed on rural electrification in Ethiopia. This was to be used to identify knowledge gaps and develop strategies for use in overcoming existing barriers. A strategy paper developed for use by the Ethiopian DNA and other stakeholders contained recommendations for using SBs for rural electrification projects together with ways to manage their implementation and ensure their success. 

Based on the input and experience gained, a consulting tool was developed for use in formulating and developing SBs, and in maintaining and managing data in the prescribed way. The knowledge gleaned from the case study was used to assess the project’s potential for transfer to other sectors, countries and regions.

Official project title

Strategies for carbon market development in African Least Developed Countries


Perspectives GmbH

Other project participants

UNEP Risø Centre

Project lifecycle

2012 – 2015


Stefan Wehner