Official development assistance

Official development assistance (ODA) is defined in the OECD Glossary of Statistical Terms as follows:

Flows of official financing administered with the promotion of the economic development and welfare of developing countries as the main objective, and which are concessional in character with a grant element of at least 25 percent (using a fixed 10 percent rate of discount). By convention, ODA flows comprise contributions of donor government agencies, at all levels, to developing countries ("bilateral ODA") and to multilateral institutions. ODA receipts comprise disbursements by bilateral donors and multilateral institutions (OECD Glossary of Statistical Terms).

ODA is a category of development aid which flows from members of the OECD's Development Assistance Committee (developed countries) to countries on the Part I List of Aid Recipients (developing countries).

The Conference of the Parties (COP) has emphasised that projects funded by official development assistance are not eligible to be registered under the CDM:

The Conference of the Parties...

Emphasizing that public funding for clean development mechanism projects from Parties in Annex I is not to result in the diversion of official development assistance and is to be separate from and not counted towards the financial obligations of Parties included in Annex I (17/CP.7, preamble).

To this end, 3/CMP.1, Annex, Appendix B requires that any public funding for a CDM project activity be disclosed in the project design document (PDD):

Information on sources of public funding for the project activity from Parties included in Annex I which shall provide an affirmation that such funding does not result in a diversion of official development assistance and is separate from and is not counted towards the financial obligations of those Parties (3/CMP.1, Annex, Appendix B, paragraph 2(f)).

Therefore, the Guidelines for completing the CDM-PDD at EB 41, Annex 12 require project participants to describe the sources of public funding for the project, if any:

In case public funding from Parties included in Annex I is involved, please provide in Annex 2 information on sources of public funding for the project activity from Parties included in Annex I, which shall provide an affirmation that such funding does not result in a diversion of official development assistance and is separate from and is not counted towards the financial obligations of those Parties (EB 41, Annex 12, Part II).

Related Topics

What is the project design document? (CDM-PDD)

Kyoto Protocol