UNEP Risoe CentreContribution to regional distribution

Miriam HinostrozaProgramme Manager

7th CDM Joint Coordination Workshop

Bonn, 12-13 March 2011

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Regional Distribution

• Measuring regional distribution - discrepancy in the distribution of current CDM projects lays in the geographic distribution of the different projects

Region Nr. of all projects

Latin America 15,2%

Asia & Pacific 80,0%

Europe and Central Asia 1,1%

Africa 2,6%

Middle-East 1,1%

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Regional Distribution

• Measuring regional distribution

Region Nr. of all projects

Latin America 15,2%

Asia & Pacific 80,0%Europe and Central Asia 1,1%

Africa 2,6%

Middle-East 1,1%

Latin America

Asia

Africa

Euroasia

Middle East

0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00

CERsno. of projects

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Barriers

• Lack of capacity for DNAs• Lack of finance to cover upfront costs• Complexity of procedures combined with lack of

CDM expertise• Lack of awareness and know-how of project

developers• Lack of project financing• Lack of local CDM champions• Specific nature and scope of projects in the regions

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Increasing access of medium-small developing countries to the carbon markets

Energy and Carbon Financepolicy analysis and capacity development to facilitate the transition towards low

carbon societies

Capacity building Innovative approaches Analytical work

Institutional

Individual

• Seminars• Workshops• Training sessions• Regional Forums

Policy analysis on new developments: • Pledge tracker• REDD+• Programmatic approaches • Interfacing and integration of NAMA and

NAPA by sector• impact assessment - The role of capacity

development in making the CDM operational in developing countries

Carbon finance and sustainable development:• Indirect benefits of CDM• PoA analysis – new sheet in the Pipeline• CER price analysis• Analysis of investments in CDM projects by

sub-type, country etcCarbon finance and clean energy: • Large hydro problems• Articles on hydro/wave/geothermal energy • PoA potential and feasibility study for solar

technologies in Indonesia• CDM technology fact sheets

• Guidebooks on specific issues of the CDM

• Carbon Market Perspective Series

• CD4CDM Working Paper Series

• CDM data & analysis - CDM&JIPipeline

• CDM Bazaar• Web based CDM Technology

&Methodology Selection Tool

• Legal frameworks• enabling

environments

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Key activities and Projects

• CD4CDM in ACP• CDM Green Facility• UNDP/UNEP in Africa• UNDP/UNEP in LAC• CASCADe• ACAD• UNEP POA Facility

(new)

Projects• Structured, country-level capacity building

programs• Regulatory advisory, DNA/ institutional

capacity building• Targeted, hands-on workshops & training

sessions• Analytical work (guidebooks; market

surveillance and analysis & targeted research)

• Promotion Activities – organization/participation in regional/global carbon events

• Facilitation of information management – web-based tools.

• CDM Bazaar

Activities

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ACAD

• Innovative PPP for green financing supported by German Government with two aims:o Facilitate realization/closure of replicable carbon projectso Mainstream carbon investment literacy within African financial sector

• Secretariat embedded in Standard Bank following UNEP tender• A catalytic platform

o Risk sharing model, leveraging private finance with seed capital + TA• Addresses key barriers to African market growth by:

o Enhancing transactional capacity within African bankso Reducing high early-stage costs and riskso Providing a jump-start financing solution

• Launched fall 2009 at UNEP FI Roundtable, Cape Town

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ACAD - Key Activities• Transaction cost sharing with accompanying technical support to leverage closure

of 10-12 replicable transactionso Roughly €50,000 per project o Local financiers, developers, or project proponents can applyo Can disburse to service provider of choice and cover CDM documentation development,

carbon auditing, registration fees, enviro-legal studies, etc.

• Enhance knowledge and skills in origination, financial appraisal, and due diligence amongst African banks o Four advanced training workshops for developers and African FIs: Cape Town (Oct.

2009), Nairobi (Mar. & June 2010), Lagos (January 2011). Over 100 bankers trained.o Additional in-house clinics and training for Standard Bank & clients

• Investor outreach/mobilizationo 2nd African Bankers’ Carbon Finance & Investment Forum, Joburg, Nov. 4 - 5, 2010

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1. Abule-Egba, Soulos and Epe Project : Consortium incl. Lagos State Waste Management Authority (LWMA), NIGERIA

2. APA Integrated Waste Management Program, NIGERIA3. Athi River Mining Kaloleni Cement Plant Fuel Switch/EE

project, KENYA4. Lake Turkana Wind Power Project, KENYA5. Terem Hydropower Project, KENYA6. Distillery effluent management at EthCo Ltd, MALAWI7. International Ferrometals Waste Gas Cogeneration, SOUTH

AFRICA8. Katene Kadji Biomass Project, MALI9. NURU Lights Projects, RWANDA

Approved Projects to Date

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CASCADE• Carbon Finance for Agriculture, Sylviculture, Conservation and

Action against Deforestation• The aim is to stimulate generation of carbon credits from land

use, land use change and forestry (LULUCF) and bio-energy projects in seven Sub Saharan countries: Benin, Mali, Senegal, Cameroon, Democratic Republic of Congo, Gabon and Madagascar. o Technical assistance to selected projects, developed by a variety of

organizations from the private sector, civil society or governmental organizations;

o National, regional and international knowledge transfer;o Institutional support to the Designated National Authorities

• CASCADE is funded by the “Fonds Français pour l’Environnement Mondial (FFEM)” and implemented by UNEP DTIE and UNEP Risoe Centre.

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CASCADE – activities and achievements• Technical assistance provided to 24 project (PIN) in participating countries• Twelve from those PINS were supported to develop PDDs• Three out of the 12 PDDs are currently under validation• 2 more advanced afforestation/reforestation projects in Latin America

have been supported with the view to draw lessons for South-South knowledge and experience transfer for the benefit of projects in sub-Saharan Africa

• 2 reforestation projects in Senegal and Cameroon have also received support

• CASCADe target countries have received tailor-made institutional support with a specific focus on forestry and bio-energy. Support offered included: o assistance for the elaboration of the forest definition, o legal review of the national regulatory CDM framework, o capacity building for the members of the DNA national councils,o establishment of a website for the DNA,

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• Funded by the EC – EUR 4,3 millions• Simultaneous execution in 12 ACP countries + regional activities in the

Caribbean and the Pacific• Duration: 4 years• Executing Agency: UNEP Risø Centre, in close coordination with CARICOM

& 5C the AUC and SPREP and local partners.

Project Overview

• enable targeted ACP countries to participate in the global carbon market• provide skills to identify, design, approve, finance, implement and

monitor CDM projects,• emphasise the development of a regional CDM projects portfolio that

could be marketed in international carbon events • support the provision for Designated National Authority (DNA) website.

Objectives

ACP – CD4CDM

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• Africa: Angola, Botswana, Côte d’Ivoire, Malawi, Nigeria, Rwanda and São Tomé and Principe

• Caribbean: Belize, Cuba and Trinidad and Tobago. Regional activities will also be conducted.

• Pacific: Fiji and Vanuatu. Regional activities will also be conducted

Project participating countries

ACP – CD4CDM

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ACP – CD4CDM – Activities

• 48 workshops will be organized, including national and training workshops

• 36 sector focused workshops will be organized: − Energy – EE & RE− CH4 avoidance and electricity generation− Landfill− Biogas

• A number of community meetings

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ACP – CD4CDM – Activities

• National CDM Project Portfolios • Potential sectors for CDM projects will be prioritized• 48 Project Idea Notes (PINs) will be developed (4 per country)• 24 Project Designs Documents will be formulated (2 per country)• 4 POA PINs will be developed (2 per region)• 2-4 POA – DDs will be formulated for each region

• Promotion of CDM Portfolios• 3 Regional Carbon Forums will be organized• Participating country delegations will be supported to participate in

Carbon Expo 2011• 3 Regional Carbon Forums for the Financial sector• National CDM websites will be supported

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Regional Activities

• Identification/selection of two to three high-potential sectors for Program of Activities (POAs), that might be implemented at regional level, i.e., in several Island States

• Regional POA Training Workshop (A regional workshop to present and discuss potential ideas for one or more Program of Activities under the CDM) - May-June 2011, Trinidad and Tobago

• 2 Regional Workshop for DNAs – March 2011, Havana

• 4 POA PINs and 2POA DD for prioritized sectors in each region

• A regional workshop to present developments of PINs and POAs

• Regional Carbon Forum , Marrakesh, July 2011; Costa Rica October 2011

• A regional Carbon Finance Bankers' Forum, TBA, 2011

• Participate in Carbon Expo to present and promote portfolio of PINs and PDDs

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Regional activities

• Africa Carbon Forum, Senegal, Sep. 2008; Kenya, March 2010

• Latin America Carbon Forums, Quito 2006, Lima 2007, Santiago 2008, Panama 2009, DR 2010

Knowledge and information sharing platforms

Bring together CDM stakeholders to benefit from:

Updates on Carbon markets; technical knowledge sharing on conferences; trade fair and capacity-development sessions,

Organizers: IETA, UNEP/Risø, WB, OLADE, UNDP, and UNFCCC

Investment mobilization and engaging the finance sector

Regional Carbon Forums

• African Bankers’ Carbon Finance Investment Forum. May 2007, Johannesburg

• Dakar, Senegal: Carbon finance perspectives for the banking sector. Feb 12-14, 2008

• Training finance sector staff – Regional Financial Sector CDM Forum, Lima, Nov 2008

• Finance guidebook

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UNEP/URC capacity development activities in Africa

• CD4CDM• Green Facility

• UNDP-UNEP

• CASCADE

• CD4CDM in ACP in 7 countries.

28 COUNTRIES; 11 LDC

UNEP/URC capacity development activities in Africa

• CD4CDM• Green Facility

• UNDP-UNEP

• CASCADE

• CD4CDM in ACP in 7 countries.

28 COUNTRIES; 11 LDC

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• CD4CDM

• UNDP & UNEP – LCF in LAC

• CD4 CDM for the Caribbean

Current UNEP/URC capacity development activities in Latin

America & Caribbean

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• Guidebooks on specific issues of the CDMo Introduction to the CDM: 2002o CDM Information and Guidebook: Dec. 2003o Institutional strategy to promote the CDM in Peru: Feb. 2004o CDM legal issues Guidebook: May 2004o Institutional issues in CDM implementation: May 2004o CDM and Sustainable Development: Feb. 2004o Guidebook on developing baselines for CDM projects: June 2004o PDD Guidebook: Navigating the Pitfalls - Second edition: April 2008)o Guidebook to Finance CDM projects: May 2007o Implementing CDM Projects: Guidebook to Host Country Legal Issues: August 2009o A Primer on CDM Programme of Activities: November 2009

Analytical Activities & Publications

Support the informational and educational objectives of our capacity development activities

Support the informational and educational objectives of our capacity development activities

provide targeted audiences with ‘reference’ manuals containing clear operational instructions on concrete topics for which public information is already available.

provide targeted audiences with ‘reference’ manuals containing clear operational instructions on concrete topics for which public information is already available.

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• Carbon Market Perspective Serieso 2010 – Pathways for implementing REDD+:

Experiences from carbon markets and communitieso 2009 - NAMAS and the Carbon Market o 2008 - A Reformed CDM - Including New

Mechanisms For Sustainable Development o 2007 - Equal Exchange: Determining a Fair Price for

Carbon

Analytical Activities & Publications

aims at comprising an annual special feature on a topic of pivotal importance to all developing countries in the global carbon market

aims at comprising an annual special feature on a topic of pivotal importance to all developing countries in the global carbon market

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• CD4CDM Working Paper Series1. Facing Destruction without Representation? Low-Power Groups in Climate

Negotiations on Post-Kyoto CDM 2. PoA CDM Manual - Mini Biogas Plants for Households 3. Electricity sector crediting mechanism based on a power plant emission

standard: A clear signal to power generation companies and utilities planning new power plants in developing countries post-2012

4. Electricity sector no-lose targets in developing countries for post-2012: Assessment of emissions reduction and reduction credits

5. Technology and knowledge transfer from Annex 1 countries to Non Annex 1 countries under the CDM - An empirical case study of CDM projects implemented in Malaysia

6. A quantitative analysis of the cost-effectiveness of project types in the CDM Pipeline

7. Potentials and barriers for end-use energy efficiency under programmatic CDM

8. Sustainable Development Benefits of Clean Development Projects 9. Risks and Chances of Combined Forestry and Biomass Projects under the

Clean Development Mechanism

Analytical activities & publications

analytical in nature and are designed to address critical policy issues and methodological barriers constraining the CDM through cutting-edge independent research.

analytical in nature and are designed to address critical policy issues and methodological barriers constraining the CDM through cutting-edge independent research.

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Analytical activities & publications

Data base and analysis providing monthlyData base and analysis providing monthly

• CDM data & analysis - CDM&JIPipelineo A web based data base compiling CDM

projectso Analysis and market surveillanceo Projections of GHG emission reductionso Calculation of different parameterso It also contains the baseline &

monitoring methodologies, a list of DOEs and several analyses. Almost all information is from cdm.unfccc.int and ji.unfccc.int.

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Virtual platform for information exchange

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Analytical activities & publications

• Up coming publications:o Studies on CDM Potentials for countries with less that 5

projects in the pipeline (together with UNFCCC and UNDP)

o Guidebook on MRVs

• Update of guidebooks:o CDM Information and guidebook

o CDM PDD guidebook: Navigating the pitfalls

o Financing CDM projects

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• A handy and simple tool• Categorizes methodologies by technology• Facilitates choosing a methodology that is applicable to

a specific type of CDM project • Builds on the list of approved methodologies updated

monthly at the CDM/JI pipeline• A snapshot review of technologies used to date in CDM activities, including:

• Examples of application• Investment • Estimated CERs revenues• Performance under CDM• Methodology applicable to the technology

Methodology

Technology

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• it is linked to each methodology

• users can share experiences and views on pitfalls, difficulties, applicability, especial requirements, limitations and tips on how to draft a PDD

Tool for Selecting CDM Methodologies and technologies

Discussion Forum

http://www.cdm-meth.org

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UNEP’s Contribution to the Carbon Markets

Final Impact – Development and promotion of national CDM project portfolios and

the institutional capability to attract CDM investments

• A comprehensive capacity development package• Provision of technical and financial assistance to country’s institutional and

individual preparedness for the CDM in more than 40 countries – impact on host country attractiveness as CDM destination

• Provision of CDM knowledge and dissemination – Impact on CDM dissemination and promotion

• Free flow information – impact on improving the information asymmetry • Support to national CDM portfolio creation and/or diversification – impact

on increase of CDM portfolio• Facilitation of national portfolios promotion and dissemination through

regional events, such as the ACF and in Carbon Expo – impact on cost reduction

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More information:http://uneprisoe.org

http://cd4cdm.orghttp://cdmbazaar.net

http://cdmpipeline.orghttp://acp-cd4cdm.orghttp://cdm-meth.org

Thank you!!