PHILIPPINE CDM APPROVAL PROCESS

Transcription

1 PHILIPPINE CDM APPROVAL PROCESS Sustainable Development Criteria Documentary Requirements Japan Carbon Investors Forum JCI Forum 2006 Tokyo, Japan March 2006

2 Annex I Party National Approval Host Country - NON-Annex I Party e.g. Philippines

3 Milestones Creation of the Philippine IACCC (08 May 1991) Philippine Ratification of the UNFCCC (02 August 1994) Philippine Ratification of the Kyoto Protocol (02 Nov 2003) Executive Order No. 320 (25 June 2004) - The DENR as the Designated National Authority for CDM DENR Administrative Order No (31 Aug 2005) - Rules and Regulations Governing the Implementation of EO Published in the Manila Standard Today on 05 September 2005, reprinted 07 September To view/download, visit - Laws & Policies or News and Features

4 Basic Policy of DENR as the DNA Facilitate and promote CDM project activities that: contribute to the UNFCCC objective of stabilization of GHG concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system lead to the transfer of environmentally safe and sound technology and know-how contribute to the conservation of biological diversity and sustainable use of natural resources comply with all other pertinent laws and regulations provide measures to alleviate poverty as part of their contribution to sustainable development

5 Guiding Principles States have right to, and should promote SD; policies and measures appropriate to conditions of the State; economic development essential to adopting measures to address climate change process shall be transparent, participatory, credible, efficient and effective responsive to the needs and demands of project proponents, the Government and various stakeholders; updated regularly to meet evolving international CDM guidelines and recent developments in national policies, laws, rules and regulations

6 Organizational Structure of the DENR as the Designated NA DENR Secretary CDM Steering Committee Chairperson DENR USec and an alternate Members and alternates: Philippine DOE, DOST, Private Sector, NGO TEC for Energy-Related Activities TEC for Afforestation & Reforestation Activities DOE FMB- DENR CDM Secretariat EMB- DENR TEC for Waste Management Activities EMB- DENR

7 National Approval Criteria Phil. project proponents possess the legal capacity to participate in the proposed CDM project activity Authorization is required in order to open accounts in CDM Registry Host Party that authorizes an entity s participation shall remain responsible for the fulfillment of its obligations and ensure that such participation is consistent with COP/MOP decisions The proposed project activity will assist the Philippines in achieving sustainable development Sovereign matter SD Criteria meaningful from a project level perspective and are in line with the Philippine Agenda 21 To select better-designed CDM projects that provide the largest sustainable development benefits for the country

8 Economic Dimension Philippine CDM policy seeks to adhere to the antipoverty goals articulated in the PA21 and MTPDP by upholding project activities that: Provide livelihood and other economic opportunities in the community Provide proper safety nets and compensatory measures for affected stakeholders Promote the use of cleaner, more efficient and environment-friendly technology in the sector Provide new financial resources

9 Environmental Dimension Philippine CDM policy recognizes that ecological integrity is a key pillar of Philippine SD by pushing CDM project activities that: Comply with environmental policies and standards Improve local environmental (e.g. air, water, soil) quality Promote sustainable use of natural resources

10 Social Dimension Philippine CDM policy works toward instituting social order based on fairness and provision of support systems that look after the welfare of every Filipino by supporting CDM project activities that: Provide education and training which build the capacities of local stakeholders Provide vulnerable groups access to local resources and services Promote local participation in the project activity Overall sustainable development impact of a proposed project activity must be POSITIVE

11 Philippine DNA CDM Approval Process Activities Not Considered Small Scale Any project activity not falling within the definition set out below for Small Scale Activities Small Scale Activities (COP/MOP decisions) Definitions based on the COP/MOP decisions: expected to result in net anthropogenic GHG removals by sinks of less than 8 kilotonnes of CO 2 /year and are developed or implemented by low-income communities and individuals RE project activities with a maximum output capacity equivalent of up to 15 megawatts (or an appropriate equivalent) EE improvement project activities which reduce energy consumption, on the supply and/or demand side, by up to the equivalent of 15 gigawatt hours per year Other project activities that both reduce anthropogenic emissions by sources and directly emit less than 15 kilotonnes of CO 2 e annually

12 Step 1 Application Step 2 Evaluation Step 3 Endorsement Step 4 Approval/ Non-Approval Proponent TEC CDM Steering Committee DNA (Secretary of DENR) CDM Secretariat

13 Application Document Option A: PAD Step 1: Application (~1/2 days) Step 2: Evaluation Step 3: Endorsement Step 4: Approval/ Non- Approval Contents of the PAD (Annex II of DAO ) I. General Description of the Activity II. Identification of Additionality Test III. Identification of Baseline and Monitoring Methodology IV. Identification of Baseline V. Duration of Activity / Crediting Period VI. Calculation of GHG Emission Reductions VII. Contact Information of Proponent(s) - include Management Experience & No. of Years VIII. Documentation of Stakeholders Consultation IX. Sustainable Development Benefits Description X. Proof of Legal Capacity Annex: Environmental Compliance Certificate (ECC)/ Certificate of Non-Coverage (CNC) **PAD to be notarized; CDM Secretariat receives applications Info

14 Application Document Option B: PDD Step 1: Application (~1/2 days) Step 2: Evaluation Step 3: Endorsement Design Document or PDD, if available prescribed by the CDM Executive Board and approved by the COP and COP/MOP, and used by the Designated Operational Entity as a key input into the validation, registration and verification of the project under CDM PDD shall be supplemented by: - Sustainable Development Benefits Description or SDBD - Proof of Legal Capacity - Environmental Compliance Certificate/Certificate of Non-Coverage *PDD s Section G. Stakeholders Comments (with the supporting attachments) = PAD s Documentation of Stakeholders Consultation *PDD with SDBD & Proof of Legal Capacity PAD not required *PDD to be notarized (in applying for the Phil DNA Approval) Step 4: Approval/ Non- Approval DNA FEES: Filing Fee: PhP Application Fee: PhP 5, (Small Scale) PhP 10, (Not Small Scale)

15 TEC Review Step 1: Application Step 2: Evaluation (5/ 5/9 days +5 days if w/ revision) Step 3: Endorsement Step 4: Approval/ Non- Approval TEC uses the National Evaluation Protocol (NEP) to assess the proposed CDM project activities based on the approval criteria TEC may request revisions on any of the documents submitted by the project proponent: to be made before the lapse of the periods specified for Small Scale Activities (5 working days) and Activities Not Considered Small Scale (9 working days) Failure to submit within 15 working days from receipt of TEC request = abandonment of application A project proponent may, within 5 working days from receipt of TEC request, submit a written undertaking indicating: a specific period within which to submit revised documents acknowledgment that its application will not be processed until revised documents are submitted consent that its application will be considered abandoned upon failure to submit revised documents within the period indicated

16 TEC Re-assessment and TEC Evaluation Report Step 1: Application Step 2: Evaluation (5/ 5/9 days +5 days if w/ revision) Step 3: Endorsement TEC shall re-assess and submit its Evaluation Report w/in 5 working days from the submission of revised documents /additional information TEC Evaluation Report contains the written conclusions of the TEC and its recommendations to the CDM Steering Committee, stating the grounds for each recommendation. This report shall also assess how the project proponent addressed the concerns raised in the Documentation of Stakeholders Consultation. Step 4: Approval/ Non- Approval

17 CDM SC Endorsement Report Step 1: Application Step 2: Evaluation Step 3: Endorsement (5( days) Step 4: Approval/ Non-Approval A document to be prepared by the CDM Steering Committee which contains its assessment of the findings of the Technical Evaluation Committee(s) as embodied in the TEC Evaluation Report Endorsement Report shall be submitted within 5 working days from its deliberations Should the CDM SC decide not to adopt the recommendation of the TEC, it shall state its grounds for doing so in writing In the case of a project activity that has been referred to more than one TEC and their Evaluation Reports do not recommend the same course of action, the CDM SC shall decide which recommendation to adopt and state its reasons for supporting such recommendation.

18 Host Country Approval Step 1: Application Step 2: Evaluation Step 3: Endorsement Step 4: Approval/ Non-Approval (~1 week) Prerequisite to the submission by a Designated Operational Entity (DOE) of a validation report to the CDM Executive Board, requesting the registration of the project activity under CDM Letter of Approval issued by the DENR Secretary as head of the DNA stating that Philippines ratified the KP on 20 November 2003 authorizing the voluntary participation of named Philippine project participants in the proposed CDM project activity confirming, based on representations made in the PAD or PDD that the implementation of the proposed CDM project activity will assist the Philippines in achieving sustainable development *this shall not exempt the project proponent(s) from complying with applicable laws, rules and regulations of the Philippines Letter of Non-Approval TARGET PROCESSING TIME: ~15-20 Working Days (Small Scale) ~ Working Days (Not Small Scale)

19 Applications with the DNA As of December 2005: 20 Applications Estimated Total tco 2 -e/yr: 230,290 Regions I (1), III (11), IVA (5), VII (2), X (1) 17 Methane Recovery and Electricity Generation Small Scale Activities (from piggeries) Various locations: Region III -Bulacan (1), Pampanga (2), Tarlac (7), Nueva Ecija (1) Region IVA -Rizal (2), Cavite(1), Batangas (1), Quezon (1) Region X -Misamis Oriental (1) Estimated tco 2 -e/yr: 75,926 (Range: 1,420 23,855 tco 2 -e/yr) - undergoing validation by the designated OE - reviewed by TEC for Waste Mgmt - CDM SC requiring further clarification on the proof of legal capacity and stakeholders consultations

20 Applications with the DNA 1 Landfill Gas to Energy Small Scale Activity Components: methane capture, biogas conversion and utilization for electric power production 17-hectare controlled landfill started operations in 1998 Region VII: Cebu City, Cebu Province (Visayas) Est. 21,500 tco 2 -e/yr Undergoing review by TEC for Waste Mgmt

21 Applications with the DNA 2 Renewable Energy Activities Not Considered Small Scale Wind Energy: 33MW wind power plant by NorthWind Power Development Corporation Region I: Bangui Bay, Ilocos Norte est. 51,855 tco 2 -e/yr First project activity to be issued a Letter of Approval by the Philippine DNA (16 Dec 2005) Geothermal Energy: 20 MW by PNOC Energy Development Corporation Region VII: (Palinpinon, Valencia) Dumaguete, Negros Oriental est. 81,009 tco 2 -e/yr undergoing validation Undergoing review by the TEC (Philippine DOE)

22 Next Steps Manual of Procedures Inter-agency dialogues Supplementary Issuances Archiving of Baseline Data IEC activities Country Guide Workshops Investor Forum CDM Helpdesk at EMB CDM Clearinghouse at EMB

23 CDM in the Philippines Potential for CDM has yet to be fully tapped, its potential to support national development programs has not been fully explored, particularly for the Visayas and Mindanao regions Prospects for developing Small Scale CDM project activities across the country are high Vast natural resources sizeable rural population that presents a large trade and investment potential Nature of small scale project activities provide huge potential for benefiting the poor sectors of society Essential to provide assistance to potential Philippine project proponents and developers in addressing proportionately higher business costs, limited access to information and skills and bigger risks, particularly for small scale CDM project activities

24 Think climate! Klaus Toepfer, ExecutiveDirector of UNEP Countries are the Parties to the Convention and the Kyoto Protocol. Therefore, it must be the governments who should ensure that commitments made in terms of GHG emissions reduction and sustainable development are met. Nonetheless, private sector participation must be optimized to ensure the sustainability of CDM projects

25 THANK YOU For your questions / queries: CDM Helpdesk DNA - CDM Secretariat Office Environmental Management Bureau DENR Compound, Visayas Avenue, Diliman, Quezon City T: (+63-2) ; ext 2109; F: cdm_pmo@yahoo.com; joygoco@yahoo.com Ms. Joyceline A. Goco Head-IACCC Secretariat and Coordinator-CDM PMO

26 Documentation of Stakeholders Consultation A report indicating how the consultation, in which comments by local stakeholders were invited and compiled, was undertaken Chapter VIII of PAD Minimum Content shall follow the outline below: A. Proof of Written Announcement / Invitation B. List of Participants C. Minutes of Proceedings D. Summary of Issues and Concerns Raised E. Proposed Measures to Address Issues and Concerns

27 Sustainable Development Benefits Description or SDBD A document presenting the sustainable development impacts of the proposed CDM project activity Item IX of PAD; minimum content shall follow the outline below per Annexes III and IV of DAO : Small Scale Activities: Activities Not Considered Small Scale: I. General Information -same- II. Economic Dimension -same- III. Environmental Dimension -same- IV. Social Dimension -same- V. Monitoring Measures VI. Mitigating Measures V. Overall Sustainable Development -same- (Item VII) Impact of the

28 Proof of Legal Capacity In the case of an individual, an official document indicating that he or she has reached the age of majority and is a Philippine citizen; In the case of entities other than an individual, the instrument creating the entity, such as its Articles of Incorporation or its charter, demonstrating that it has been created as a legal entity under the laws of the Philippines and that the implementation of the proposed project activity is in line with its authorized purposes, and proof of the registration of said instrument with the appropriate government authorities, if applicable. Other examples: certification of good standing with no pending cases against it from the Securities and Exchange Commission certification of good standing from the corporation (by the CEO, Board Chair or Corporate Secretary under oath) confirming that it has no pending cases against it, and with authorization from Board of Directors to be a project participant

29 DRAFT DNA Approval Process Flowchart for CDM Activities Department of Environment and Natural Resources RESPONSIBLE PERSONNEL / OFFICE / UNIT PROCEDURE PROCESSING TIME Submission of complete set* of application documents CDM Secretariat EMB Cashier CDM Secretariat Verification and confirmation of completeness of documents; issuance of order of payment** Payment of filing and other applicable fees and*** Submission of documentation of payment slip 2 / 1 (estimate) Determination and endorsement of application documents to appropriate and relevant evaluation committee/s and Issuance of a Tracking Slip Technical Evaluation Committee (depending on type of project activity) Assessment of the application documents using the National Evaluation Protocol (NEP) as a guide without revision with revision Are revisions needed? yes Issuance of Letter of Request for Revision 9 / 5 9 / 5 Submission of revised project documents**** no Technical Evaluation Committee Submission of an Evaluation Report and completed NEP to the CDM Secretariat Reassessment of project documents using the NEP 5 Small Scale Not Small Scale Proponent DENR as the DNA Required Document (printed and electronic copies) I. Application Document (PAD) OR Design Document (PDD) supplemented by: a) Sustainable Development Benefits Description (SDBD) b) Proof of Legal Capacity c) Supporting documentation of stakeholders consultation II. Environmental Compliance Certificate (ECC) / Certificate of Non-Coverage ** Document Involved Documentary Requirements Checklist *** Filing Fee: PhP 600 Application Fees: PhP 10,000 (Not Small Scale) PhP 5,000 (Small scale) ****Non-submission of revised documents w/in 15 working days from receipt of TEC request will be considered an abandonment of the application. Proponent may, w/in 5 working days from receipt of TEC request, submit a written undertaking, indicating that it will submit revised documents to the TEC w/in a specific period, acknowledging that its application will not be processed until said revised documents are submitted and agreeing that its application will be considered abandoned upon failure to submit said documents w/in the period indicated.

30 DRAFT DNA Approval Process Flowchart for CDM Activities Department of Environment and Natural Resources RESPONSIBLE PERSONNEL / OFFICE / UNIT PROCEDURE PROCESSING TIME Technical Evaluation Committee Submission of an Evaluation Report to the CDM Secretariat CDM Secretariat Transmission of Evaluation Report to the CDM Steering Committee and Convening of CDM Steering Committee CDM Steering Committee Assessment of Evaluation Report and Submission of an Endorsement Report 5 CDM Secretariat Transmission of the Endorsement Report and other supporting documents to the DENR Secretary DENR Secretary Review of Endorsement Report and issuance of Letter of Approval or Non-Approval 1 week (average) CDM Secretariat Releasing of Letter of Approval or Non-Approval to the project proponent and recording of all processed documents 20 to 25/ 15 to 20 working days (target) Small Scale Not Small Scale Proponent DENR as the DNA Required Document (printed and electronic copies) I. Application Document (PAD) OR Design Document (PDD) supplemented by: a) Sustainable Development Benefits Description (SDBD) b) Proof of Legal Capacity c) Supporting documentation of stakeholders consultation II. Environmental Compliance Certificate (ECC) / Certificate of Non-Coverage ** Document Involved Documentary Requirements Checklist *** Filing Fee: PhP 600 Application Fees: PhP 10,000 (Not Small Scale) PhP 5,000 (Small scale) ****Non-submission of revised documents w/in 15 working days from receipt of TEC request will be considered an abandonment of the application. Proponent may, w/in 5 working days from receipt of TEC request, submit a written undertaking, indicating that it will submit revised documents to the TEC w/in a specific period, acknowledging that its application will not be processed until said revised documents are submitted and agreeing that its application will be considered abandoned upon failure to submit said documents w/in the period indicated.