mr paul patar maruli butarbutar (access to carbon finance)

8/3/2019 Mr Paul Patar Maruli Butarbutar (Access to Carbon Finance)

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Access to

Carbon FinanceEU-EAGA BizTech Partnership

South Pole Carbon Asset Management Ltd

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproduced

November 18, 2009

This report is solely for the use of client personnel. No part of it may be circulated, quoted, or reproducedor s r u on ou s e e c en organ z a on w ou pr o r wr en approva r om ou o e ar on sse

Management Ltd. This material was used by South Pole Carbon Asset Management Ltd during an oralpresentation; it is not a complete record of the discussion.

or str uton outs e t e c ent organ zat on w t out pror wrtten approva rom out o e

ar on ssetManagement Ltd. This material was used by South Pole Carbon Asset Management Ltd during an oralpresentation; it is not a complete record of the discussion.

Photo under the Creative Commons-license of Flickr. Photographer: Jeff Kubina.


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OVERVIEW

.

The Protocol e ec an sm The Process

The Statistics

Example of CDM projects

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Who is South Pole Carbon Asset Management?

Leading developer of carbon offset projects* headquartered in Zurich, Switzerland Offices in Bangkok, Beijing, Hanoi, Istanbul, Jakarta, Johannesburg, Mexico, New Delhi,

Taichung; offices are being set up in Venezuela and other countries

>70 carbon professionals Projects in over 20countries coveringvoluntar & certifiedemission reductions

Excellent regulatory

insights into CDM andvoluntary standards

Strong sales pipeline forcarbon offsets

Focus on high qualityemission reduction

projects, where possiblewith Gold StandardLabel

2 Source: ENDS Guide to Carbon Offsets 2008


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Overview of South Pole Services

Carbon AssetManagement

Manage regulatory process for approval of carbon offsets in line with UN orvoluntary standards

Sell CERs/VERs on behalf of project developers

Asset-backed and unsecured carbon pre-payments Build-Operate-Transfer (BOT) for carbon offset projects

anage pro ect eve opers pr ce r s t roug guarantee car on o set pr ces

Project finance

Buy CERs/VERs on behalf of compliance or voluntary buyers

Establish and operated dedicated CER/VER purchasing vehicles

Selling/sourcing

mandates forCERs/VERs

Will co-manage Gold Carbon Capital Fund to invest in carbon offset projectsthat generate Gold Standard certificates

FundManagement

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* Certified Emission Reductions under the Kyoto Protocol** Voluntary Emission Reductions

Source: South Pole Carbon Asset Management Ltd.


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The Kyoto Protocol

Commitments of industrialized countries to reduce emissions at,

between 2008 2012

Undertaken throu h Domestic Action

Or together throughflexible mechanisms:

m ss ons ra ng c eme;

Joint Implementation;

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The Clean Development Mechanism

The purpose of the Clean Development Mechanism is threefold:

(1) to contribute to the ultimate objective of the UNFCCC;

(2) to assist Annex I Parties in achieving compliance with their emissionlimitation and reduction commitments;

3 to assist non-Annex I Parties in achievin sustainable develo ment K otoProtocol Art.12,2).

The CDM has been developed to create opportunities for synergies betweencost-effective climate change mitigation and sustainable development.

The development of CDM projects can involve various combinations ofstakeholders. Both public and private entities and both host country-based and'foreign' entities are allowed to participate.

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CDM How does it work

Average emissionsin 2008 2012

Domesticreduction

1990 emissions

reduction

commitment

-

Emissionreductioncommitment

CertifiedEmissionReduction (CER)

CER

1990 levels

(Assiged Amount)

Project BAU

Reduction fromCDM

Emissions

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The ProcessFeasibility and DueDiligence

2 Documentation 3 Public consultation

4Validation byOperational Entity5

Approval byNational Authority

2Methodologicalapproval 6

Registration byExecutive Board

7 Implementation 8 Verification by OE

Issuance of CERs

by EB

10 Transaction of

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The Statistics

AnnualAverageCERs* ExpectedCERsuntilendof2012**

CDMprojectpipeline:>4200ofwhich: N/A >2,900,000,000

>

96arerequestingregistration 13,317,757 >40,000,000

* Assumption: All activities deliver simultaneously their expected annual average emission reductions

** Assumption: No renewal of crediting periods

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Typical projects that can qualify for voluntary or certified carbon credits

Methane capture from landfills and conversion toelectricity

electricity generation

Reduction of industrial greenhouse gas emissions(nitrous oxide, hydrofluorocarbons, perfluorocarbons,

Cogeneration with biomass & biofuels Hydropower Geothermal energy Wind power Solar power Methane capture from mines and conversion to

Forestry Energy efficiency


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CDM project example: Co-Composting at Palm Oil Mill

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Case study: co-composting project at POM 30 tons/hour

Price: US$4 / CER

Compost value:US$ 32 / ton

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CDM project example: methane capture at wastewater treatment plant

anaerobic digester; use of methane

for electricity generation/industrialheat

ro ec : arapan a m

Capex US$ 2.8 m for 45k CERper year

Replacement of diesel fuel s rom me ane cap ure

and fuel switching

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CDM project example: biogas production from industrial waste water

Reference case (what would happen in the

Project activity: installation of closed anaerobicdigester; use of methane for electricityeneration/industrial heat

Example project - Korat Waste to Energy:

Largest starch plant in Thailand ro uc ng , tonnes o cassava starc

per year

Capex 5.2m, for 1.95m CERs (325,000 p/afor 6 years)

CDM

CERs from methane capture and fuelswitching


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CDM project example: Geothermal Power Plant

CYCLONE ELECTRICAL

Geothermal Power Plant Cycle

UPTO

4K

M

SEPARATOR

CONDENSER

PSI

v v v v v v

V V V V V V

GENERATOR

PUMP

STEAM

TURBINE COOLING

TOWER

PUMP

CYCLONE

SCRUBBERSTEAM

STEAM

TURBINE STEAM EXHAUST

CONDENSATE

COLD CONDENSATE

FLASHING TO

STEAM-BRINE MIXTURE

IN BOREHOLE

RESERVOIR BRINEBRINE

INJECTION

WELL

CONDENSATE

INJECTION

WELL

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CDM project example: Hydroelectric Power Plant

Reference case (what would happenin the absence of the project):generating electricity using fossil fuel

Project activity: construction of hydropower plant

Example project Parlilitan Hydro

Installed capacity 7.5 MW

Capex US$13.4m for 32,550CERs/year Electricity sales: US$ 2.2m per

year (US$5 cents per kWh)

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CDM project example: Waste Heat Recovery

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Further information on CDM?

www.cdm.unfccc.int www.pointcarbon.com www.reuters.com/finance/ reenBusiness www.carbonpositive.net

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Thank you for your attention!

South Pole Carbon Asset Mana ement Ltd.

Paul Butarbutar

Regional Director

Phone: +62 21 726 [email protected]

. .

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mr paul patar maruli butarbutar (access to carbon finance)

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