focus: mitigation a glance at post- kyoto
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FOCUS: MITIGATION A glance at post- kyoto. Louis Perroy , ClimatEkos 1 September 2011, Vientiane, Lao PDR. MITIGATION A glance at post- kyoto. Programmatic CDM ( Programme Of Activities-POA) Nationally Appropriate Mitigation Actions (NAMAs) Programmatic CDM to NAMAs Green Fund. - PowerPoint PPT PresentationTRANSCRIPT
FOCUS: MITIGATIONA glance at post-kyoto
Louis Perroy, ClimatEkos1 September 2011, Vientiane, Lao PDR
MITIGATIONA glance at post-kyoto
• Programmatic CDM (Programme Of Activities-POA)• Nationally Appropriate Mitigation Actions (NAMAs) • Programmatic CDM to NAMAs• Green Fund
Programmatic CDM
•Traditional CDM: A project by project approach
•Emission reductions – from single project activities– in single locations – in certain sectors– in star countries
Many sectors + countries have significant potential untapped
Little or no effect on the carbon intensity of the economy
Little or no sustainable benefits for many projects
How to make the CDM incentivise GHG emissions reductions throughout entire sectors or large areas?
What is pCDM?
Programmatic CDM
pCDM: One programme + numerous project activities
Traditional CDM: One CDM project activity
What is pCDM?
Framework/programmeGHG reducing
actions
Programmatic CDM
pCDM examples
PoA>voluntary coordinated action by a private or public entity which coordinates and implements any policy/measure or stated goal (i.e. incentive schemes and voluntary programmes)
CPA> unlimited number of CDM Programme ActivitiesEB47 An 29 (version 3)
Obvious and typical examples:Efficient lighting programmeFuel switching programme in industrial facilitiesSolar water heaters in businesses / householdsLandfill programmeGreenfield electrification programmeAnd a lot more…
Installation of (compact fluorescent light) CFLs in a group of householdsFuel switch in one facility
Installation of a group of solar water heaters
Landfill gas flaring in one landfillNew biomass generator
Programmatic CDM
pCDM terminology
pCDM = Programmatic CDM
PoA = Programme of Activities (most commonly used term for the whole concept)
CPA = CDM Programme Activity (a project activities implemented under the Programme)
CDM-PoA-DD = Programme of Activities Design Document
CDM-CPA-DD = CDM Programme Activity Design Document
Programmatic CDM
Single Project Bundle of Projects Programmatic
Single location Multiple locations Multiple locations, across countries
Single project participant (PP)
Multiple PPs possible Multiple PPs possible
1 project activity (PA) at a time
A number of activities submitted as 1 PA at a time
A number of activities (CDM PA = CPA) submitted as a coherent groups
Project does not change over time
Composition does not change over time
An unlimited number of CPAs can be added to the PoA within 28 years
PP known prior to registration of project
PP known prior to registration of project
At least one PP is known prior to registration, rest join later
1 crediting period Uniform crediting period for all activities
Each CPA has its own crediting period
Programmatic CDM
Why is pCDM so exciting?Flexibility– Validation + registration of the PoA, along with one sample CPA– Addition of CPAs over time, without validation or new LoAs (“consistency
check”) No need to know the composition + magnitude of the project ex-ante Decreased registration time + transaction costs – see next slides
New opportunities– In underrepresented sectors (esp. where ERs are dispersed in space and
time + low ERs/unit small projects can make big PoAs) – see next slides
– In underrepresented countries – see next slides
Allows for replication of successful projects
Step towards NAMAs and sectoral mechanisms
Programmatic CDM
Opportunity 1:Extend CDM to micro-activities
• PoAs are ideal for CFLs, solar water heaters, cook stoves, household biogas, distributed energy, etc.
• Registered PoAs can generate recurring revenues to reduce need for working capital
Þ Over 50% of PoAs in validation cover household sector (<<1% for stand-alone CDM projects)
Þ To date only modest private sector activity in this segment
Opportunity 2: Bankable CERs under a PoAStand-alone RE projects• >2.5 ys until CDM revenues• Perceived high registration riskÞ CERs are not bankable at financial closure
Under registered RE PoA• ~15 months until CDM revenues• Low inclusion riskÞ CERs become bankable at financial closure
Project Developer Forum | UNFCCC Technical Workshop, Kiev Year -2 -1 1 2 3 4 5 Year -2 -1 1 2 3 4 5
Carbon finance
Cash
inflo
wCa
sh o
utflo
w
Cash
inflo
w
Debt
Equity
Investment & construction expenditure
Debt servicingOperating expenditure
Operating revenues
??? CER revenues ???
Operating revenues
Investment & construction expenditure
Debt servicing
Cash
outf
low Operating expenditure
CER revenues
Equity
Debt
??Programmatic CDM
REDUCING EMISSIONS - VER TRANSACTION
Programmatic CDMin the region
Project name Location StatusInstalling Solar Water Heating Systems Southern Vietnam At Validation
Small Scale Livestock Waste Management Program
Thailand At Validation
Sustainable Small Hydropower Vietnam At Validation
Renewable Energy Development Program (REDP), hydro, wind, biomass
Vietnam At Validation
National Biogas Programme Vietnam At Validation
Green Brick Development INTRACO Vietnam At Validation
Biomass Power Development Programme Thailand At Validation
small scale biomass power generation at Mae Lee Forest Plantation
Thailand At Validation
energy efficiency improvement for street lightings
Thailand At Validation
Nationally Appropriate Mitigation Actions (NAMAs)
• Voluntary activities for emission mitigation in countries not subject to reduction commitments and another step towards increased mitigation efforts from the developing nations. Twofold objective:– Developed countries promise technical and financial support for
related programmes, whereas – developing countries are requested to develop and implement
mitigation actions, usually for a whole sector. This can also be seen as.
• NAMAs can supplement or incorporate carbon finance activities such as CDM projects, with the practical implications of how to do monitoring, reporting and verification (MRV).)
Nationally Appropriate Mitigation Actions (NAMAs)
• NAMAs distinguish between three different types: 1- Unilateral NAMAs: mitigation actions independently funded and carried out by developing countries. 2- Supported NAMAs: climate protection measures in developing countries are supported by technical assistance and / or direct funding from Annex I countries. 3- Credited NAMAs: climate protection measures in developing countries that generate certified emission reduction credits to be sold on the international market. This type is similar to sectoral mechanism.
• There is a need to consider which category would suit a given country, and whether a gradual and stepwise approach could be applied progressing from supported to credited to unilateral NAMAs. Advanced developing countries or economies in transition could potentially directly start with credited NAMAs.
Step towards NAMAs & sect. mechanisms
PoAs establish operational features of NAMA, e.g.– Project identification & inclusion– Program finance– Carbon incentives for individual sites– Monitoring, reporting verification (MRV)
Implications for Governments:Þ Identify national development / GHG mitigation priorities that can be
implemented through PoAsÞ Promote PoAs to learn how to address NAMA challengesÞ Experiment with implementation models (public, private or PPPs)
Programmatic CDM to NAMAs
Thank You!
Louis PerroySenior Partner and [email protected]