Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Mechanism (CDM)
Overview, DNA process and
Current Project Activities
26.6
26.4
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26.2
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T e mpe r a t u r e (
26.0
25.8
25.6
25.4
25.2
25.0
24.8
1900 1910 1920 1930 1940 1950 1960 1970 1980 1990 2000
Developed countries:
have the obligation to take the
lead in combating climate
change and the adverse effects
thereof &
have commitments to provide
financial resources, including for
the transfer of technology, for
developing countries
CSE India presentation
KyotoProtocol: Taking Root
182 Countries & the EEC have
ratified (as of 16 October 2008)
= 63.7% of total carbon dioxide
emissions, 1990 as the base yr
Developed countries to
implement domestic policies
and measures to achieve the
mandatory targets
A legally binding instrument
that strengthens the UNFCCC by Three (3) innovative
committing developed mechanisms supplemental to
countries which have accepted it domestic action:
to individual, quantified GHG - Joint Implementation
emission and limitation targets
(an average total cut in GHG
- Emission Trading
emissions of 5% from 1990 levels - Clean Development Mechanism
for the period 2008-2012) or CDM
Clean Development Mechanism
Since the atmosphere is equally damaged by GHG
emissions wherever they happen and equally helped
by cutbacks in emissions wherever they are made,
the CDM, as a market-based flexibility mechanism:
allows Annex I countries to earn “certified emission
reduction units (CERs)”
CERs that can be applied to partially
meet their GHG reduction commitments under the KP
whenever they undertake GHG-reducing projects that
contribute to sustainable development in a non-Annex
I Party, where land, technology and labor are less costly, &
concomitantly result in real, measurable, verifiable
and long-term GHG reductions that are additional to
any that would otherwise occur
Annex I Countries / Parties: NON-Annex I Countries /
UNFCCC Annex I list - Parties:
developed countries including developing countries not bound
Economies in Transition by emission reduction targets
CDM as a Market-based Mechanism
FOR Annex 1 countries: FOR non-Annex 1 countries:
Stakeholder / Public
Consultation
Annex I
Project Implementation Party
National
Approval
Host Country –
Non-Annex I Party,
e.g. Philippines
CDM Cycle – Project Development
Project Activity Design
Project Participants check conditions for CDM, conduct
stakeholder consultations & determine contribution to
sustainable development
PDD is the core document
Presents information on essential technical &
organizational aspects of the proposed project activity
Can be prepared by the Project Owner/Developer but often
outsourced to CDM professionals
Prepared in accordance with template and using a
methodology approved by the CDM Executive Board
Proposal of a New Baseline &/or Monitoring
Methodology through a DOE for EB’s review & approval
Validation
Independent evaluation of a proposed project activity by a DOE
against requirements of CDM, period for soliciting public
comments via UNFCCC website
Registration
Host Country Approval and Investor Country Confirmation of
voluntary participation are required
Formal acceptance by the EB of a validated project as a CDM
project activity
CDM Cycle – Project Implementation
Monitoring
Conducted by project participants
Collection and archiving of all data necessary for calculating
GHG emission reductions of project against baseline (expected
emission w/out the project) in accordance w/ monitoring plan
Provides basis for verification by the DOE
Verification
Periodic independent review and ex post determination by the
DOE (Different DOE except for small-scale project activities)
Determines that the monitored emission reduction has in fact
occurred
Certification
Written assurance by the DOE, certifying that the project
activity achieved the verified amount of reductions during the
specified time period
Issuance and Distribution
CERs equal to verified amount of emission reductions are
issued by the EB and recorded at the EB Registry
CERs will be distributed among Project Participants
CDM Fees
Kinds of Fees
Consulting fee for PDD production
Fees to be paid to a Designated National Authority
(DNA)
Fees to a Designated Operational Entity
(Validation, Verification)
Fees to be paid to the UNFCCC
(Request for registration, Share of Proceeds)
Placement / brokering fees for CER sales
Critical Issues
Verification & Project Description
Certification Emissions Reduction Calculation
Clear project boundary
Crediting Period
Issuance
Sustainable Development
Host Country Approval Stage
Project Design
Institution/s Involved
Philippine Designated National Authority
for CDM (DENR)
National Approval Parameters
Sustainable Development Criteria and
Indicators
Validation & National Laws
Registration
Critical Documents
PDD
Monitoring Proof of legal capacity
Stakeholder consultation documentation
Sustainable development benefits
Verification & description (SDBD)
Certification ECCs / CNCs
Letter of Approval Host Country DNA (LoA)
Transaction Costs:
Issuance
Php 5,600 – 10,600 (processing fee)
Validation & Registration Stage
Institutions
Project Design Accredited Designated Operational Entity
e.g.: DNV, TÜV-SÜD, JCI, etc.
CDM Executive Board
National Approval Documentation
PDD and Host Country Approval
Validation Report (basis for registration)
Validation & Transaction Costs:
Registration Validation costs:
~ US$ 10,000 – 25,000
Registration costs:
Monitoring
Expected ave. annual emission reduction US$
10,000 t CO2-e -
Verification & 15,000 1,500
Certification 30,000 4,500
100,000 18,500
1,000,000 198,500
Issuance 1,757,500 350,000
3,000,000 350,000
Monitoring Phase
Project Design PP / CDM Consultant
Critical Issues
Data archiving
National Approval
Must be done according to the
approved monitoring plan
Validation & Quality Control / Quality
Registration Assurance
Subject to third party verification
Documentation
Monitoring
Monitoring Protocols
Data files
Costs
Verification &
Certification Dependent on project complexity,
monitoring plan requirements
Issuance
Verification & Certification Phase
Project Design Related Documents
Monitoring Report
Verification Report
National Approval
Actors involved
Project proponent
Validation & Consultant
Registration
DOE (must be different from the
DOE that validated the project
Monitoring for regular scale CDM projects)
Critical Issues
Project must prove to DOE that
Verification & data monitored has been done
Certification according to the monitoring
protocol
Data quality
Issuance
Transaction Costs
US$ 1,500 – 15,000
CER Issuance
Project Design Related Documents
DOE’s request for issuance
Certificate of Emissions Reduction
National Approval
ERPAs
Institutions Involved
Validation & CDM EB through the CDM Registry
Registration
Project Participants
Critical Issues
Monitoring Who owns the CER?
Transaction costs
2% CERs for adaptation fund
Verification &
Certification US$0.10/CER (1st 15,000 CERs) and
US$0.20/CER (amount in excess of) for
CDM Secretariat administration costs
Issuance Other service fees related to CER sales
Timescale
Time required
CDM process
For regular For small-
project scale project
Project Development:
New methodology production ~ 6 months Usually not
and approval required
The PDD productiona 1-2 months 1-2 months
CERs are
CERs added
and
emission
cap
increases
GHG Emissions
Non-Annex I /
Host Parties will
benefit from
project activities
resulting in CERs
Specific Place in a
CER = 1 metric ton of CO2-e CDM in Charts. IGES. July 2007.
Host Party Photo fr www.vueweekly.com
CDM Programme of Activities
CDM Project activities under a program of activities
(CPAs) can be registered as a single CDM project activity
provided that approved methodologies are used
Program of activities (PoA)
Voluntary coordinated action by a private or public entity
w/c coordinates and implements any policy/measure or
stated goal and
w/c leads to GHG emission reductions or increased
removal by sinks additionally
via a # of CDM program activities
PoA addressing mandatory policies and regulations are
permissible provided it is demonstrated that these
policies and regulations are not enforced as envisaged.
If enforced, the effect of PoA is to increase the
enforcement beyond the mandatory level required
State and Trends of the
Carbon Market
GHG emissions:
A new commodity is emerging
Targets are expressed as levels of allowed emissions, or “assigned
amounts,” over the 2008-2012 commitment period, divided into
“assigned amount units” (AAUs).
Annex I countries that have emission units to spare - emissions
permitted them but not "used" – are allowed to sell this excess
capacity to Annex I countries that are over their targets
Other units which may be transferred under the emissions trading
scheme, each equal to one tonne of CO2:
A removal unit (RMU) on the basis of land use, land-use
change and forestry (LULUCF) activities such as reforestation
An emission reduction unit (ERU) generated by a joint
implementation project
A certified emission reduction (CER) generated from a CDM
project activity
European Union Allowance (EUA)
Carbon credits: both an environmental and a financial asset
Environmental asset: reducing carbon emissions which
cause global warming & climate change
Financial asset: being bought and sold in emerging carbon
markets
Price and Payment
Price
Determined by supply and demand
No official prices
Most observers agree that issued CERs have a similar
value to EU Emissions Trading Scheme Allowances
Approx. 20 € in August 2007
Based on Price Level for second period EUAs, the level of
most predictions for the price to be in average (Pomar/Marmet
Project Report, 30 August 2007)
Immediate Substantial
III Now Future
(pre-payment) discount
Price and Payment
Payment-against-delivery contracts
Registration
No Yes Some USD 10
completed
Project
TEC CDM Steering
Proponent
Committee DNA Head
(Secretary of DENR)
Major Pillars
Economic Dimension
Environmental Dimension
Social Dimension
Economic Dimension
Philippine CDM policy seeks to adhere to the
antipoverty goals articulated in the PA21 and
MTPDP by upholding project activities that:
Metal production
Eligible CDM Project Activities
EMISSION REDUCTION PROJECT ACTIVITIES
Energy industries - renewable energy: wind/solar/hydro power
Energy demand - energy efficiency: high efficiency
equipment/lighting
Manufacturing - energy efficiency: high-efficiency equipment
- fuel switching: from coal to natural gas
Transport - fuel substitution: biofuels
- energy efficiency: improved vehicle efficiency
Mineral production - fuel substitution: coal mine methane
recovery
Metal production - process change: dry coke quenching
Waste handling - fuel substitution: landfill gas recovery,
and disposal wastewater treatment
SEQUESTRATION PROJECT ACTIVITIES
Afforestation and reforestation
Agriculture - methane avoidance from biomass decay
Distribution of Registered Projects
by Scope
CDM Market
Annual Average Expected CERs until
CERs end of 2012
Goldi-Lion Agricultural
Goldi-Lion Agricultural Development Development EcoSecurities Group Ltd 、
Corporation Methane Recovery 19-Oct-2006 8-Sep-2007 3,994 Corporation EcoSecurities
and Electricity Generation Project Philippine BioSciences Group Plc
Co., Inc. (PhilBIO)
D&C Concepcion Farms, Inc. Methane D&C Concepcion Farms, Inc. EcoSecurities Group Ltd 、
Recovery and Electricity 19-Oct-2006 26-Aug-2007 3,348 Philippine BioSciences EcoSecurities
Generation Project Co., Inc. (PhilBIO) Group Plc
San Carlos Renewable Energy Project 22-Jan-2007 13-Apr-2007 37,658 San Carlos Bioenergy Inc.
Project
Host Party Registration Annual ERs Project Participants Participants
Name of CDM Project Activity
Approval Date (tCO2/y) (Authorized by Host Party) (Authorized by other
Parties involved)
Paramount Integrated
Paramount Integrated Corporation
Corporation; Philippine
Methane Recovery and Electricity 30-Jun-2006 31-Jan-2007 7,582 EcoSecurities Ltd.
731,611 : RP
0.32% of
TOTAL: 230,535,302
THANK YOU
For your questions / queries:
CDM Helpdesk
DNA - CDM Secretariat Office
Environmental Management Bureau
2/F, HRDS Building, DENR Compound,
Visayas Avenue, Diliman, Quezon City
T: (+63-2) 920-2251; F: 928-4674
http://cdmdna.emb.gov.ph
joy.goco@yahoo.com
gmerilo@yahoo.com