14 November 2006

UNFCCC Side Event, COP/MOP, Nairobi

Development and Implementation of a JI Track 2 projectManfred StockmayerDirector Camco International Ltd

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Camco International

Leading developer of carbon assets in JI and CDM projects

Camco works with industrial companies and utilities

Camco helps to maximise the volumeand to facilitate placement

Main markets:• China

• Russia

• Africa

• Central and Eastern Europe (CEE)

Listed on the London Stock Exchange

Current portfolio of more than 100 million tons of CO2

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JI in CEE: Lots of questions…..

…. Which impacts does the EU Emissions Trading Scheme have?

…. How will the issue of double counting be interpreted and be dealt with?

…. What is the JI project potential in various sectors?

…. How easy is it to develop the project documents and get them approved?

…. How much time is left to develop JI projects?

…. What is the view of buyers on ERUs?

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The Linking Directive – a bit of background

Links the project-based mechanisms (JI and CDM) to the EU Emissions Trading Scheme

National Allocation Plans shall determine the maximum percentage of CERs and ERUs to be used by installations

Application of criteria and guidelines from World Commission on Dams for hydro power projects

No CERs and ERUs from nuclear facilities and LULUCF activities

Avoidance of double counting (direct and indirect)

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The Linking Directive – basis for headache

Direct double counting

No (serious) problems as emission reductions lead to financial benefits => projects will be implemented

Indirect double counting

Potential for projects in the following categories is reduced:Renewables (wind, small hydro, biomass CHP)CHPEnergy efficiency (electricity, district heating)

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Challenges in developing baselines and monitoring plans

Based on CDM methodologies

Flexibility – take the best and leave the rest

Develop own approaches if no methodology existing

Need for well-experienced project developer/consultant

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… and even more questions…

…. How will countries react on potential limitations?

…. Are Green Investment Schemes (GIS) the solution?

…. How will the JISC further define the framework for JI?

Limited timeline for many project categories

Focus on project categories with no (minor) impact on EU ETSEnergy projects up to 20 MWMethaneBiofuels

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Thank You

Manfred Stockmayer

Director

Camco Internationalwww.camco-international.com

manfred.stockmayer@camco-international.com