CDM Experience: QUEZON CITY (PAYATAS) Controlled Disposal Facilities

Transcription

1 CDM Experience: QUEZON CITY (PAYATAS) Controlled Disposal Facilities

2 Clean Development Mechanism (CDM) CER (certified emission reduction) produced by Developing Countries CER/Carbon trading Industrialized countries 1 CER=1 ton CO2 Goal Emission reduction targets under Kyoto Protocol

3 Clean Development Mechanism (CDM) Benefits Developing Countries investment access to better technology sustainable development while reducing emissions Industrialized Countries flexibility in meeting their emission reduction targets cost effective manner

4 Clean Development Mechanism (CDM) FIRST global, environmental investment and credit scheme of its kind standardized emissions offset instrument the CERs

5 Clean Development Mechanism (CDM) Since 2006: registered more than 1,000 projects anticipated to reduce more than 2.7 billion tons of CO2 equivalent during the first commitment period ( ) of the Kyoto Protocol.

6 The Quezon City Controlled Disposal Facility Biogas Emission Reduction Project Background: Pangea Green Energy Srl Italy-based renewable energy company Pangea Green Energy Philippines local affiliate Design Construction Finance management * viability: revenues projected from the sale of CERs.

7 The Quezon City Controlled Disposal Facility Biogas Emission Reduction Project Background: Generates: average of 110,000 CERs per year over a period of 10 years From 2007 to the present: invested over Euro 1.8 million in the project expects to make further investments: drilling of additional wells provision of pipes and other necessary materials

8 CDM PROJECT ACTIVITY CYCLE Design Validation/registration PP DOE EB DNA Monitoring PP Verification/certification DOE Issuance EB CER

9 Approval Process: Philippine Designated National Authority (DNA) STEP 1 STEP 2 STEP 3 STEP 4 Project Application Project Evaluation Project Endorsement Project Approval/ Non-Approval Project Proponent Technical Evaluation Committe CDM Steering Committee DENR Secretary Project Application Monitoring CDM Secretariat

10 Step 1: Project Application Filing of Application CDM Secretatiat Verify completeness of documents Processing of Application Payment of Fees

11 Step 2: Project Evaluation CDM Secretatiat TEC (Technical Evaluation Committee) Evaluation based on National approval criteria (DAO )

12 Step 3: Project Endorsement TEC (Technical Evaluation Committee) CDM Secretatiat CDM Steering Committee (CDMSC) APPLICANT Endorsement Report Head of the DNA

13 Step 4: Project Approval/ Non-Approval Head of the DNA (DENR SECRETARY) DECISION APPROVED NON- APPROVAL Within 15 days Registration CDM Executive Board Motion for reconsideration

14 Approval Process: Philippine Designated National Authority (DNA) STEP 1 STEP 2 STEP 3 STEP 4 Project Application Project Evaluation Project Endorsement Project Approval/ Non-Approval Project Proponent Technical Evaluation Committe CDM Steering Committee DENR Secretary Project Application Monitoring CDM Secretariat

15 Quezon City Controlled Disposal Facility Biogas Emission Reduction Project CDM Project Cycle A. DNA Approval April 20, 2007 April 25, 2007 Technical Evaluation Committee under the Dept. of Energy recommended approval of the project to the CDM Steering Committee of DENR DENR (DNA) granted approval

16 Quezon City Controlled Disposal Facility Biogas Emission Reduction Project CDM Project Cycle B. PDD Review & Validation Process April 1-30, 2007 July 9, 2007 August 6, 2007 PDD was publicly posted on Det Norske Veritas (DNV) website DOE completed validation and DNV issued the 1 st validation report DNV completed the corrective actions, clarifications and approval then recommended registration to UNFCCC

17 Quezon City Controlled Disposal Facility Biogas Emission Reduction Project CDM Project Cycle C. UNFCC Registration Process Nov , 2007 Nov. 30, 2007 Feb. 1, 2008 UNFCC Secretariat received requests from CDM Executive Board Members requesting review of the PDD and Validation Report DNV sent letter of request to UNFCC Secretariat in response to requests for review CDM Exec. Board reviewed approved and registered.

18 Quezon City Controlled Disposal Facility Biogas Emission Reduction Project CDM Project Cycle D. Certified Emission Reduction (CER) Request for Issuance Monitoring Report for Crediting period: Feb. 1, 2008 to Aug. 31, ,860 CERs TUV-SUD (DOE) Verification of plant and production data. - Onsite visit: Sept after publication of Monitoring Report 30,243 CERs Issued 25 June 2009 Certification Report - 28 April 2009 Request for CER issuance 6 May 2009

19 Quezon City Controlled Disposal Facility Biogas Emission Reduction Project CDM Project Cycle Next Verification Period 1 Sept 2008 to 30 June 2009 Monitoring Report v. 0 July 2009 published on UNFCCC website for public comments Onsite audit by TUV-SUD conducted on 24 Sept. 2009

20 CONCLUSION The CDM registration and issuance process is not only very rigorous it also requires: Strong technical experience, skills, and know-how from the engineering design, construction and operational perspectives Knowledge of CDM requirements and methodologies and the DNA approval process Experience in emission audit and verification conducted by the DOE

21 Capacity to invest and willingness to work hard without immediate revenue generation in order to take advantage of positive carbon market opportunities CONCLUSION In-depth knowledge of the CER markets, both primary and secondary, and factors driving CER prices

22 CONCLUSION Strong private-public partnership and cooperation Quezon City s commitment to environmental protection and management

23 CONCLUSION The CDM approval process is long and rigorous. It took 2 years from DNA approval to the issuance of CERs for the first crediting period. But the CDM Executive Board is currently working to improve the efficiency of the project approval process.

24 For a history of the procedures undertaken and documentation prepared by Pangea for the project, please view the following: V-CUK /history. THANK YOU!