Download - CDM and SSN: A winning combination
CDM and SSN:CDM and SSN:A winning combinationA winning combination
SSN and CDMSSN and CDMCreating partnerships between Creating partnerships between SouthSouth, , SouthSouth and and NorthNorth countries countries through the opportunity of the through the opportunity of the Clean Development Mechanism to Clean Development Mechanism to combat adverse climate change, combat adverse climate change, and to promote Sustainable and to promote Sustainable Development, best practice, and Development, best practice, and capacity enhancement in the capacity enhancement in the developing world.developing world.
The SouthSouthNorth projectThe SouthSouthNorth project
The SouthSouthNorth Project is a capacity The SouthSouthNorth Project is a capacity building initiative helping four southern building initiative helping four southern countries to learn from the experience of countries to learn from the experience of developing CDM projectsdeveloping CDM projects
We operate in Brazil, South Africa, We operate in Brazil, South Africa, Indonesia, and BangladeshIndonesia, and Bangladesh
An SSN introductionAn SSN introduction
In this presentation we will highlight some In this presentation we will highlight some fundamental points regarding,fundamental points regarding,
the Clean Development Mechanismthe Clean Development Mechanism
and illustrate what SSN seeks to achieveand illustrate what SSN seeks to achieve
TRADE with the SOUTH :TRADE with the SOUTH :THE CDMTHE CDM
The CDM, or Clean Development The CDM, or Clean Development Mechanism, is a unique trade instrumentMechanism, is a unique trade instrument
Through it, SOUTH countries (without Through it, SOUTH countries (without targets) can elect to assist NORTH targets) can elect to assist NORTH countries (with targets) to achieve their countries (with targets) to achieve their target at a lower costtarget at a lower cost
How is this done?How is this done?
A CDM project:A CDM project:
Emitter in NORTH Emitter in SOUTH
Target level ofemissions
Achieved level of emissions
COST $
COST $
Investment funds
EmissionReduction
credits
Countries and emittersCountries and emitters
A CDM Project A CDM Project activity can either be activity can either be a contract between a contract between countries or emitters countries or emitters themselves:themselves:
Holland
Local LandfillProject
Philips
Costa Rica
In summary…In summary…
The SOUTH project developer receives The SOUTH project developer receives investment from the NORTH investment from the NORTH investor/purchaserinvestor/purchaser
And in return assists the NORTH And in return assists the NORTH investor/purchaser to reach its target at a investor/purchaser to reach its target at a lower costlower cost
This is TRADE: there must be a difference This is TRADE: there must be a difference between the cost to the investor and the between the cost to the investor and the price to the developerprice to the developer
The project activity…The project activity…
Must reduce GHG’s against a validated Must reduce GHG’s against a validated baselinebaseline
This baseline represents what the This baseline represents what the emissions would have been without the emissions would have been without the CDM project taking placeCDM project taking place
Each ton CO2 equivalent reduced in this Each ton CO2 equivalent reduced in this way becomes a CERTIFIED REDUCTION way becomes a CERTIFIED REDUCTION CERTIFICATE, which is tradableCERTIFICATE, which is tradable
And…And…
The NORTH emitter wins by achieving a The NORTH emitter wins by achieving a portion (no more than 50%) of its target at portion (no more than 50%) of its target at a lower costa lower cost
The SOUTH emitter wins by receiving The SOUTH emitter wins by receiving investment funds to improve technology investment funds to improve technology and performanceand performance
The world wins through a reduction of The world wins through a reduction of GHG’sGHG’s
And…And…
The host country…The host country…
It is a requirement of the Kyoto Protocol It is a requirement of the Kyoto Protocol that the host country must first satisfy itself that the host country must first satisfy itself that any CDM project will contribute to its that any CDM project will contribute to its SUSTAINABLE DEVELOPMENTSUSTAINABLE DEVELOPMENT
So the host country wins in this waySo the host country wins in this wayWell, that, at least, is the idea…Well, that, at least, is the idea…But a lot has gone wrongBut a lot has gone wrong
SD: the challengeSD: the challenge
Setting SD rules is complexSetting SD rules is complexMany developers want deal flow without Many developers want deal flow without
restrictions: a race to the bottom?restrictions: a race to the bottom?Some CDM projects will result in job Some CDM projects will result in job
losseslossesGovernment may be stuck in the middleGovernment may be stuck in the middleShould there be thresholds?Should there be thresholds?And anyway, with the US out, is there a And anyway, with the US out, is there a
carbon market?carbon market?
CDM projects: the cycleCDM projects: the cycle
The CDM project is a component of a The CDM project is a component of a development projectdevelopment project
It is based on a PROJECT DESIGN It is based on a PROJECT DESIGN DOCUMENT (PDD)DOCUMENT (PDD)
The PDD is a prediction of the “carbon The PDD is a prediction of the “carbon offset” which the CDM component will offset” which the CDM component will achieveachieve
This prediction is then validated, This prediction is then validated, approved, registered and transactedapproved, registered and transacted
The Project Cycle illustratedThe Project Cycle illustrated
Owner and Stakeholder
Groups
Project Design Approval by
DNA
Validation by OE
Registration by Exec Board
MonitoringVerification and Issuance
Implementation
CDM milestonesCDM milestones
Owner and Stakeholder
Groups
Project Design
Approval by DNA
Validation by OE
Registration by Exec Board
Monitoring Verification and Issuance
DNA : approves project for Sustainable Development OE = Operational Entity eg: accredited auditor
Validates project design
Exec Board = of the CDM
Registers Project
By the OE
Issues CER’s
CDM Administrative Bodies
So what can the CDM achieve?So what can the CDM achieve?
The South can help the North meet its The South can help the North meet its targetstargets
In return the South can promote its path In return the South can promote its path towards sustainable developmenttowards sustainable development
The South can choose its projects, the The South can choose its projects, the timing, the investors, and so forthtiming, the investors, and so forth
So…the CDM could achieve a great deal So…the CDM could achieve a great deal
The SSN ProjectThe SSN Project
Our organisation, our workOur organisation, our work
We are about…We are about…
Viable, commercial, Viable, commercial, and transactable and transactable CDM projectsCDM projects
People focused People focused sustainable sustainable developmentdevelopment
Capacity Capacity development and development and learninglearning
We are first a SOUTH We are first a SOUTH organisation…organisation…
South Africa Office
Central Office
Brazil Office IndonesiaOffice
BangladeshOffice
We are monitored by HELIO INTERNATIONAL
Our principal funderis the Government
of the Netherlands
Our structure…Our structure…
Object 1: assist project owners to Object 1: assist project owners to develop CDM projectsdevelop CDM projects
BRAZILBRAZIL SOUTH SOUTH AFRICAAFRICA
INDONESIAINDONESIA BANGLADESHBANGLADESH
Thermo Power Plant Thermo Power Plant Energy Production Energy Production through the using of waste through the using of waste gas (bio- gas) and bio-gas (bio- gas) and bio-diesel (methyl ester)diesel (methyl ester)
Bundled Bundled housing project housing project over 3000 low over 3000 low cost housescost houses
Geo-thermal Geo-thermal power plant with power plant with UnocalUnocal
Rural solar homes Rural solar homes system with system with Grameen for 50000 Grameen for 50000 houseshouses
Bio-diesel (methyl ester) Bio-diesel (methyl ester) Production from Residual Production from Residual Vegetable Oil Vegetable Oil
Landfill project Landfill project aimed at the aimed at the recovery & recovery & collection of collection of LFG for LFG for subsequent subsequent use as thermal use as thermal or electrical or electrical energyenergy
Transport project Transport project in Yokjakartain Yokjakarta
Electric vehicle Electric vehicle project in Dhakaproject in Dhaka
Thermo Power Plant Thermo Power Plant through a semi dry through a semi dry Anaerobic Bio-digestion Anaerobic Bio-digestion
technologytechnology
We assist project developers:We assist project developers:
By providing a technical team with expertise for By providing a technical team with expertise for each project activityeach project activity
By assisting with approval, validation, By assisting with approval, validation, registration and transactionregistration and transaction
By providing a portion of the transaction costsBy providing a portion of the transaction costs By providing project facilitatorsBy providing project facilitators By sourcing investors/purchasersBy sourcing investors/purchasers In this way maximizing benefits to southern In this way maximizing benefits to southern
hostshosts
Object 2: work with governmentsObject 2: work with governments
We are in close co-operation with all four We are in close co-operation with all four governments to assist them in developing governments to assist them in developing criteria and indicators, and a procedure, for the criteria and indicators, and a procedure, for the approval of CDM projectsapproval of CDM projects
We are also assisting all four governments to We are also assisting all four governments to develop internal capacity for the Designated develop internal capacity for the Designated National Authority officesNational Authority offices
We are facilitating consultative meetings We are facilitating consultative meetings between governments and stakeholdersbetween governments and stakeholders
Object 3: develop a CDM guideObject 3: develop a CDM guide
Our CDM guide will be based on actual Our CDM guide will be based on actual experiences gained from developing CDM experiences gained from developing CDM projectsprojects
The Guide has 64 modules and can be used The Guide has 64 modules and can be used in various formats and for various audiencesin various formats and for various audiences
It will contain template documentsIt will contain template documents It will be web, CDROM and trainer-event It will be web, CDROM and trainer-event
basedbased It will be for all to useIt will be for all to use
Helio helps us to Helio helps us to monitor our projects,monitor our projects,
To develop To develop Monitoring and Monitoring and Verification ProtocolsVerification Protocols
And to develop a And to develop a number of trained number of trained CDM monitorsCDM monitors
Visit us at….Visit us at….