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Strategies for Carbon Market Development through Standardised Baselines in African LDCs

Background and Objective

To promote rural electrification in Ethiopia, the BMU commissioned Perspective Climate Change GmbH and UNEP Risø (now UNEP DTU Partnership) to conduct a research project titled “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, the necessary measures were taken to develop a standardised baseline (SB) for rural electrification. The input and experience gained through stakeholder meetings served as a basis for developing a strategy paper on additional promotion of capacities in institutions of importance in the development of SB projects in the rural electrification sector. Another workshop attended by national and regional actors was held in the first half of 2013 in Ethiopia. The event focused on the processes identified in the strategy paper, 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 last 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. 

Results and Outlook

As part of the project, a case study was performed on rural electrification in Ethiopia. Thanks to the study, knowledge gaps have been identified and strategies developed to overcome existing obstacles. 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, the project team developed a tool to support 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.

Strategies for Carbon Market Development through Standardised Baselines in African LDCs

Role of BMU: Research funding

Lifecycle: 2012 - 2015 (completed)

Implementation: Perspectives Climate Group

Other Organisations Involved: UNEP Risø Centre

Contact: Stefan Wehner,

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