feasibility of renewable energy (incl. biogas) cdmopportunities in south east asia; status and...
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Ingo Puhl, Managing Director - 500 PPM GmbH - Germany.TRANSCRIPT
- 1. RE CDM opportunities in South East Asia; status and potential Ingo Puhl, Managing Director, 500 PPM GmbH Contact:[email_address] Bangkok, May 2006
2. Outline
- Introducing 500 PPM
- RE CDM potential in South East Asia (SEA)
- Barriers to RE CDM project implementation in SEA
- Solutions to increasing RE CDM deal flow in SEA
3. Introducing 500 PPM: turn key partner for carbon asset origination & transaction
- CDM project co-development
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- Total life-cylce partner for origination & placement using distributed risk approach
- Optimizing carbon performance
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- Structuring through technology suppliers, portfolio management, third parties
- Facilitating carbon finance arrangements
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- Reducing construction finance needs through up-front payment & securitization
- Carbon asset sales
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- Bilateral negotiation w/ suitable buyers according to client needs re: counterparty risks, upfront payments, fixed vs. indexed pricing, delivery guarantees
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- Listing agent services for sales via carbon asset exchange (used by top buyers)
- Presence in Asia
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- Office in Bangkok, Thailand (through CDM Solutions Ltd)
4. RE CDM project types are well established [NM69]: Fuel switching from fossil to biodiesel Biofuels AMS I: Small scale renewable energy ACM2: Grid connected electricty from renewables Solar, wind AM6: Biogas power from swine manure AM13:Biogas power from open anaerobic lagoon waste water treatment systems AM22:Biogas for drying & power at starch factory AMS I, III: Small scale renewable energy and methane avoidance Biogas ACM6: Grid connected electricity from biomass residues AMS I, III: Small scale renewable energy and methane avoidance Biomass Approved method Project type 5. RE CDM potential in SEA is large Note: Based on calculation from ALGAS 5 5 27 43 Philippines 15 17 75 157 Indonesia 10 3 48 28 Vietnam 11 9 55 80 Thailand Biomass & biogas RE except Annual emission reduction potential [Mil. T CO2eq] CO2 from agriculture [Mt CO2eq] CO2 from energy [Mt CO2eq] Emissions & reduction potential 6. Sustainable development benefits of potential RE CDM projects are attractive
- Environmental
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- Reduced combustion of fossil fuels and pollution reduction
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- Clean water (for waste water treatment projects)
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- Green power
- Economic
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- Improved trade balance (reduced import of fossil fuels)
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- Rural income generation (sale of biomass, maintenance of off-grid power systems)
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- Carbon credits make RE projects financially viable
- Social
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- Employment (operation & maintenance of project facilities)
7. Considering RE CDM potential, SEA lags behind in project identification & approval 501 62 744 World 18 0 0 0,31 21 Philippines 10 58 1 1,18 10 Malaysia 4 0 0 0,89 6 Indonesia 4 0 0 0,16 4 Vietnam 11 0 0 1,2 12 Thailand No of RE projects ER from registered projects No of registered projects ER validated projects [MtCO2e pa] No of validated projects Country 8. For example: SEA is not on the CDM map: countries represented at Carbon Expo 06 9. Why is SEA not on CDM map?Typical barriers
- Lack of demonstration projects
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- Small spectrum of projects within country context
- Low risk bearing capacity
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- Smallish operators are not willing to bear CDM risks
- Inadequate information transfer mechanisms
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- Unawareness re: benefits from CDM remain
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- Information distribution through banks, DNA, intermediaries, technology providers
- Lack of financial intermediation to take early project risks
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- Financial services to take around early CDM related costs lags behind (i.e. compared to Latin America, India, China)
- Lack of DNA approval and CDM promotion
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- SEA has 6% of validated projects but only 1,6% of registered projects
10. Solutions to improved RE CDM deal flow
- Energy security and trade balance arguments are key driver for increased CDM awareness and streamlining approval procedures.
- Streamlined procedures and fast approval will bring an increasing number of CDM risk takers to SEA carbon market.
- Increasing number of approved projects will multiply domestic and international interest in the local markets.
- Ongoing and participation in new CDM capacity building projects can accelerate these developments.
11. Identified potential RE CDM project opportunities in Thailand 2550 48 53 1140 830 480 ER potential [in 1000 CER p.a.] 74,6 Investment [Mil. EUR] 24 Total 1 Palm oil producers 3 Papermills 9 Agroindustries 6 Destilleries 5 Breweries No of projects in Thailand Sector 12. Contact information
- 500 PPM
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- Ingo Puhl, Managing Director
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- [email_address]
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- Phone
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- Global (Germany): + 49 721 4519 280
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- Asia (Thailand): + 66 6 778 2869
- Thank you for your attention.