programmatic cdm projects financing experiences and challenges carbon bazaar 2009. presentation
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8/14/2019 Programmatic CDM Projects Financing Experiences and Challenges Carbon Bazaar 2009. Presentation
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1Session II: Buyers, Financers and Investors : Money for Change
Programmatic CDM Projects FinancingProgrammatic CDM Projects Financing
Experiences and ChallengesExperiences and Challenges
Carbon Bazaar 2009Carbon Bazaar 2009
K. UmamaheswaranK. Umamaheswaran
Deputy Team Leader, GTZ-International ServicesDeputy Team Leader, GTZ-International Services
Carbon Procurement UnitCarbon Procurement Unit
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2Session II: Buyers, Financers and Investors : Money for Change
GTZ ISis an extendedbusiness arm of GTZ
GTZ IS-CPU Indiais a conducive Carbon Markets platformbetween India and Germany
About GTZ InternationalAbout GTZ International
ServicesServices
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3Session II: Buyers, Financers and Investors : Money for Change
End-to-end solutions including Project Development Assistanceand Emission Credits Trading Assistance
CPU: Operational ModelCPU: Operational Model
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4Session II: Buyers, Financers and Investors : Money for Change
Identify eligible GHG emission reductionprojects
Facilitate / finance CDM projectdocumentspreparation and approvals inline with the CDM/GS VER projectdevelopment cycle
Introduce high qualified/rated big buyers inGermany (Compliance Buyers)
Facilitate Financing/ Carbon EmissionCredits Trading in all stages for GHGmitigation projects
Facilitate Buyers with MonitoringManagement to timely and reliable delivery
Facilitate transfer of advanced cleantechnologies from Annex I countries
GTZ IS-CPU ServicesGTZ IS-CPU Services
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5Session II: Buyers, Financers and Investors : Money for Change
1. Reliance Energy
2. IL&FS Ecosmart Limited
3. Integrated Sustainable Energy and Ecological Development
Association (INSEDA)
4. Aster Silicates Pvt. Ltd.5. Malavalli Power Plant (P) Ltd.
6. Hanjer Biotech Energy Private Limited
7. Ravi Mettalics
8. Ganesh Mettalics
9. Energy Marketers
10. Raja Bhaskar Power Generation Limited
11. Anu Solar Power Private Limited
12. Satish Sugars Limited
13. Santoshimata Power Generation Limited
14. Dhampur & Asmoli Sugar Mills
Total CERs contracted = ~ 6 Million till 2012
Carbon Financing = ~ 5 Million Euros = 30 CRs
GTZ IS- CPU Clients.GTZ IS- CPU Clients.
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6Session II: Buyers, Financers and Investors : Money for Change
is associated with AAA rated Compliance Buyers-end users of emission credits
is widely networked in Indian and European carbon
market has long-term involvementwith project developers
worldwide
has credible experience in the carbon market
provides complete solution from CDM projectdevelopment to transaction of carbon credit with reputedbuyers
is cost/risk free to the project developer
GTZ IS- CPU Advantages.GTZ IS- CPU Advantages.
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As per UNFCCC definition
PoA - Voluntary action by aprivate or public entity,coordinatesand implements
any policy/measure or statedgoal
leads GHG emission reductionsor increase net GHG removalsby sinks
that are additional to any thatwould occur in the absence ofthe PoA
via an unlimited number ofCDM project activities (CPAs)
PoA Programme of ActivitiesPoA Programme of Activities
PoA
CPA
CPA
CPA
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Project finance, financing projects based upon a financialstructure where debt and equity are used to finance theproject. Debt is repaid using the cash flow generated byoperation of the project, rather than the general assets orcreditworthiness of the project sponsors
Carbon finance, financing of projects based upon financialstructure where debt, equity, carbon emission reductions.Debt is repaid using the cash flow generated by operation ofthe project, Carbon Emission Reductions are transferred basedon pre agreed price
FinancingFinancing
http://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Financehttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Debthttp://en.wikipedia.org/wiki/Finance -
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1. Public Private Partnership - Government Agencies(Program Financing / Complete Program)
implementation of GHG mitigation policies
Transportation / EE Programs
1. Financial Institutions
Re Financing - Financial Assistance (Sectoral EmissionReductions)
Projects with fast return and high Capex
1. Private Entities with plausible projects pipeline (ProjectSpecific / CPAs)
Project Developers (RE power projects)
Technology Suppliers
1. Industrial Development Associations
Industrial Promotions
Financing Models for PoAFinancing Models for PoA
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Project Idea
Project Implementation
CER Buyer
CER potential
Upfront PaymentProject Developer
(equity)Project Developer
(equity)
InvestorInvestor
Technology providerTechnology provider
BanksBanks
GovernmentGovernment
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Investment - Project Specific (CPA) / Program (PoA) ????
Project Specific Program Specific
CER Generation Per CER Cost
Transaction Cost
Technology and Operation of Project
Return on Investment
Investment PerceptionInvestment Perception
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Additional liabilities on Validators
Reflections on Additional Validation Expenses
PoA has to be revalidated every time its baseline
methodology is revised (Increased TC)
Complication in CER Issuance: CERs are issued to the PoAnot CPA Specific
Credibility of PoA Manager
Long Term Risks Investment Returns
CPA Inclusion
Challenges - CDM Regulatory Challenges - CDM Regulatory
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Regulatory Regulatory clearances of the Project
Institutional Creditworthiness of Project Owner
Stability of the political and investment climate of the project parties
Technology Creditworthiness of the technology
Penetration of the technology
Project Proponent technical expertise
Miscellaneous Risk
Environmental and social compliance + additional benefit General Market Risks
Challenges Project Related Challenges Project Related
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Grid Connected Biomass PowerProjectimplemented in India
Project Participant: Green Planet Energy PrivateLimited & Others
Coordinating Agency: Malavalli Power Plant (P)Limited (PoA Manager)
Present CDM Stage: Under Development
No: of CPAs 12 Nos. (6 MW each)
Financing Model: Private Entities
CPA specific Investment
Equity against CERs
GTZ IS- CPU: ExperienceGTZ IS- CPU: Experience
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PROJECTDEVELOPER
Carbon Credit
Buyer
Equity PartnerERPA
Debt
Carbon FinancingCarbon Financing
http://www.orkut.com/Community.aspx?cmm=15575288 -
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K Umamaheswaran
Deputy Team Leader
uma.krishnan@gtz.de
+919899853564 / 9810422689
Thanks for your attention!Thanks for your attention!
mailto:uma.krishnan@gtz.demailto:uma.krishnan@gtz.de
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