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The sustainable development criteria and indicators for assessing a proposed CDM project are categorised into four groups: environmental, economic, social and technological sustainability. The first three types of criteria concern local impacts of the proposed CDM project; therefore the evaluation boundary is local. Specifically, the scope of evaluation for environmental sustainability is the area having direct ecological impacts from the project. The scope of evaluation for economic and social sustainability is administrative border of regency. If the impacts cross boundaries, the scope of evaluation includes all impacted regencies. However, the scope of evaluation for technological sustainability is national.
A proposed project must pass all individual indicators that are applicable in order to be approved. The “checklist” method is used in the evaluation of CDM projects. Project Proponent has to provide explanation and justification that the proposed project fulfils all the indicators. Wherever possible the explanation in the application form should include comparison of the condition with and without the proposed project. The supporting data for justification can be qualitative or quantitative. The explanation may also refer to the current regulation related to the indicators, or refer to any supporting documents attached in to the application. The Technical Team, and Expert Advisor(s) must tick each indicator with "yes", "no", or "not applicable". The proposed project will pass the sustainability criteria if "no" is never ticked.
Environment
The scope of evaluation is the area having direct ecological impacts from the project.
- Criteria: Environmental sustainability by practicing natural resource conservation or diversification
- Indicator: Maintain sustainability of local ecological functions
- Indicator: Not exceeding the threshold of existing national, as well as local, environmental standards (not causing air, water and/or soil pollution)
- Indicator: Maintaining genetic, species, and ecosystem biodiversity and not permitting any genetic pollution
- Indicator: Complying with existing land use planning
- Criteria: Local community health and safety
- Indicator: Not imposing any health risk
- Indicator: Complying with occupational health and safety regulation
- Indicator: There is a documented procedure of adequate actions to be taken in order to prevent and manage possible accidents
Economy
The scope of evaluation is administrative border of regency. If the impacts are cross boundary, the scope of evaluation includes all impacted regencies.
- Criteria: Local community welfare
- Indicator: Not lowering local community’s income
- Indicator: : There are adequate measures to overcome the possible impact of lowered income of community members
- Indicator: Not lowering local public services
- Indicator: An agreement among conflicting parties is reached, conforming to existing regulation, dealing with any lay-off problems
Social
The scope of evaluation is administrative border of regency. If the impacts are cross boundary, the scope of evaluation includes all impacted regencies.
- Criteria: Local community participation in the project
- Indicator: Local community has been consulted
- Indicator: Comments and complaints from local communities are taken into consideration and responded to
- Criteria: Local community social integrity
- Indicator: Not triggering any conflicts among local communities
Technology
The scope of evaluation is national border.
Criteria: Technology transfer
- Indicator: Not causing dependencies on foreign parties in knowledge and appliance operation (transfer of know-how)
- Indicator: Not using experimental or obsolete technologies
- Indicator: Enhancing the capacity and utilisation of local technology
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