tims/eeaa cd4cdm- second national workshop (phase ii) unep riso / apex
DESCRIPTION
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX. CDM in Egypt Cairo, January 12-13, 2004. - PowerPoint PPT PresentationTRANSCRIPT
Egypt’s National Strategy Study (NSS)on the
Clean Development Mechanism (CDM)
Presented by:Dr. Attia Saad El-Din
Dr. Yosry BarakatTIMS
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Project Execution
Energy & Environment Research Center (E2RC)/
Tabbin Institute for Metallurgical Studies (TIMS)
Under Umbrella of
Climate Change Unit / Egyptian Environmental Affairs Agency (EEAA)
In Cooperation With
The World Bank (WB) & Ernst + Partners Ltd. (EBP)Government of Switzerland
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
• Introduction• Conventional & CDM Project Inputs & Outputs• CDM Strategy Objectives• CDM Benefits in Egypt• CDM Barriers in Egypt• Institutional Setup • Eligibility Criteria• Ranking Criteria• CDM Projects Portfolio• CDM Projects Pipeline
Content
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Introduction• One of the mechanisms for international GHG
abatement is the Clean Development Mechanism (CDM), as described in Article 12 of the Kyoto Protocol:
– In short, an Annex I country (or firm) pays for GHG mitigation in a developing country through CDM projects and purchases the resulting measurable reduction of GHG emission in the host country.
– A CDM project has to comply with the criteria set by the Kyoto Protocol and has to be approved by the host and investor countries.
– The investing paying country obtains certified emission reductions, which it can use to comply with its Kyoto commitment.
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
ConventionalProject
Equity Investment
Financial Returns
Conventional Project Inputs and OutputsConventional Project Inputs and Outputs
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
CDMProject
Equity Investment
Financial Returns
CDM Project Inputs and OutputsCDM Project Inputs and Outputs
Carbon Investment
Carbon Credits
Other Development Benefits
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
CDM Strategy Objectives
• Establishing a national mechanism for the selection, coordination, facilitation and implementation of CDM projects.
• Identifying the roles of the different Egyptian institutions within the CDM project cycle.
• Preparing a pipeline of CDM projects.• Assessing GHG reduction potential in Egypt
and the competitiveness in the international GHG market.
• Identifying national capacity building needs.
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
CDM Benefits in Egypt
• Financial Flow
• Improvement of Local Environment
• Technology Transfer
• Creation of Jobs
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Potential Barriers
Examples
TechnologicalRisks for provision of the technical service for equipment Technical risks - technology performanceTechnology has never been demonstrated in the host country
Organizational / Legal
Substantial obstacles to receiving direct investment Policies the subsidize fuel
FinancialLack of long-term risk capitalHigh cost of capitalExchange rate risksDemonstration of new business model (e.g. energy service company)
MarketRaw material supply risks Unpredictable price trends
Barriers that could be addressed by CDM investment
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Existing National Governmental Institutions Participating in the CDM
Ministry of State for Environ-mental Affairs
(MSEA)
Ministryof
Petroleum(MOP)
Ministryof
Electricity& Energy
(MEE)
Ministry of Industry &
Technological Development
(MITD)
Ministryof
Transport(MOT)
Ministry ofAgriculture and Land
Reclamation(MOALR)
The Central Department for Afforestation & Environment
Tabbin Institute for Metallurgical Studies (TIMS)
Egyptian Accreditation Council (EGAC)
New & Renewable Energy Authority (NREA)
Organization of Energy Planning (OEP)
The Egyptian General Petroleum Corporation (EGPC)
Egyptian Natural Gas Holding Company (EGAS)
Egyptian Environmental Affairs Agency (EEAA), Climate Change Unit
Environmental Protection Fund (EPF)
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Existing Private Sector Institutions and NGOs with CDM Potential
Environmental NGOs
Federation of Egyptian
Industries (FEI)
Private Audit/
Consulting Firms
World Energy Council (WEC)
Energy Efficiency
Council (EEC)
The Egyptian Energy Service Business
Association (EESBA)
Criteria for CDM Projects
• The CDM operates basically on a project level• The projects meeting essential (Mandatory)
criteria (ELIGIBILITY CRITERIA):– Real and measurable reduction of GHG
emission compared with baseline scenario– Simple payback period ought to be more than
two years– The proposed CDM project must be in areas
where no national development plans have been formulated
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Criteria Indicators for Ranking and Criteria Indicators for Ranking and Prioritising CDM ProjectsPrioritising CDM Projects
• Point system based on allocated weight and score for each of the following indicators:– Economic benefits– Environmental benefits– Social Benefits
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Economic Benefit Parameters
• Value added • Infrastructure• Export potential• Import substitution• Employment
• Salaries and taxes• Foreign investment • Payback period • State of technology • Energy savings
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Environmental Parameters
• Overall environmental performance
• Environmental management systems
• Implementation of eco-efficiency and cleaner production techniques
• Self-monitoring and auditing
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Social ParametersSocial Parameters• Percentage of employees covered by social
insurance• Percentage of female employees to total• Presence of programmes for vocational
training• Awards bonuses and other incentives
programmes • Presence of programmes for summer
internship & training• Social & fringe benefits
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
CDM Pilot Projects Pipeline
CDM Pilot Projects Pipeline
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
ProjectCode
ProjectInvestment
(M$)ASC(Ton)
CSC($/tC)
Pbp(years)
I. Electricity Generation
I.1 Electricity Generation by Wind Farms
I.1.1 60 MW Wind farm 54 40138 30 No Pbp
I.2 Electricity Generation by Integrated Solar Thermal System
I.2.1
Integrated Solar Thermal
Combined Cycle System
300 MW
240 49664 107.5 No Pbp
Overview of the Project Portfolio
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
ProjectCode
ProjectInvestment
(M$)ASC(Ton)
CSC ($/tC)Pbp
(years)II. Other Renewable Energy Applications
II.1 Other Solar Energy Applications
II.1.1Toshka PV Water
Pumping0.6 39.4 2141 No Pbp
II.1.2 Solar Food Dehydration 2 1691 156.8 No Pbp
Overview of the Project Portfolio
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
ProjectCode
ProjectInvestment
(M$)ASC(Ton)
CSC ($/tC)Pbp
(years)III. Transportation ProjectsIII.1 Railways Electrification Projects
III.1.1Cairo–Alex. Railwayelectrification
355 21073 1604. 5 No Pbp
III.2 UndergroundIII.2.1 Alex. Underground 687 11579 3169.9 No PbpIII.3 Waterway Transportation
III.3.1Development of CargoRiver Nile
174 31855 97 No Pbp
III.4 Switching to N.G in Transportation
III.4.1Install dedicated CNGengines to replace lowefficiency diesel engines
12.3 2580 -300.6 3.8
Overview of the Project Portfolio
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
ProjectCode
ProjectInvestment
(M$)ASC(Ton)
CSC($/tC)
Pbp(years)
IV. Energy EfficiencyIV.1 Control Systems and Energy Saving Equipment
IV.1.1Control Systems and EnergySaving Equipment at Zenotex
1.1 1932 -76.2 6.2
IV-2 Waste Heat Recovery
IV.2.1Using N.G. & RegenerativeBurners in Ezz Steel Co.
4.0 3956 -21.3 9.5
IV.3 CogenerationIV.3.1 Beni Soeif Cement Cogen 8.3 6336 -125 8.5
IV.3.2Industrial Investments Co.(Chemical Industry)
0.3 185 -174 7.8
IV.3.3 Misr Elmonifia Cogen (Textile) 1.6 911 -237 6.3IV.3.4 Mohm cogen (metal works) 0.3 369 -133 5.5IV.3.5 Egypt Air Hospital (Building) 0.3 59 -488 8.5
Overview of the Project Portfolio
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
ProjectCode
ProjectInvestment
(M$)ASC(Ton)
CSC($/tC)
Pbp(years)
V. Waste ManagementV.1 Solid Waste Management
V.1.1Feed Stock from OrganicWaste
1 377336 -3.9 6.1
V.1.2Organic Solid WasteDigestion
40 127000 163 No Pbp
Overview of the Project Overview of the Project PortfolioPortfolio
Overview of the Project Overview of the Project PortfolioPortfolio
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
CDM Projects PipelineCDM Projects PipelineProject #1 Cogeneration Project of 3.5 MW Capacity at Misr
Elmonifia Company (Textile)
Project #2 Control System and Energy Saving Equipment at Zenotex
Project #3 Installing Dedicated CNG Engines to Replace Low Efficiency Diesel Engines
Project #4 Establishment of Forest Plantations and Shelterbelts Around 10th of Ramadan City
Project #5 Afforestation of a Part of Cairo-Aswan Highway
Project #6 CDM 60 MW Wind Farm in Comparison with BAU 45 MW Steam Turbine (Mixed Fuel)
Project #7 Organic Solid Waste Digestion
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX
Conclusions from the National Strategy Study on CDM in Egypt
• There is a significant potential for CDM in Egypt:
– Projects– People and institutions
• CDM opens business opportunities and benefits to Egyptian stakeholders
• Steps needed to make use of this potential:– Capacity building– Institutional setting– Pilot projects
CDM in Egypt Cairo, January 12-13, 2004
TIMS/EEAA CD4CDM- Second National Workshop (Phase II) UNEP RISO / APEX