The Philippines Interest in Climate Change Mitigation

Transcription

1 Expert Meeting on Trade and Climate Change: Trade and Investment Opportunities and Challenges under the Clean Development Mechanism (CDM) April 2009 The Philippines Interest in Climate Change Mitigation by Albert Magalang Designated National Authority of the Philippines "The views expressed are those of the author and do not necessarily reflect the views of UNCTAD"

2 The Philippines Interest in Climate Change Mitigation Philippine Designated National Authority for CDM Department of Environment & Natural Resources The Philippines

3 OUTLINE Basic Policy of the Philippine DNA The National Approval Criteria The CDM Project Activities Main Issues on CDM 3

4 Basic Policy of the Philippine 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 4

5 National Approval Criteria Sustainable development benefits and the legal capacity to participate serve as the bases for evaluating an application SUSTAINABLE DEVELOPMENT IS THE MAIN DRIVER FOR GoP PARTICIPATION IN THE CDM 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 5

6 Sustainable Development Criteria Sovereign Matter Host Country s prerogative to confirm whether a project activity assists it in achieving SD Approval Procedure up to Host Party Major Pillars Economic Dimension Environmental Dimension Social Dimension 6

7 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 7

8 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 8

9 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 9

10 Types of Project Activities based on applications received by DNA 80% small scale ,000 CERs/yr Mostly methane recovery & electricity generation projects swine and poultry wastewater sewage treatment Methane avoidance from biomass decay via composting Bagasse (from an ethanol distillery) - biogas (wastewater treatment) cogeneration Biomass Rice-husk - for heat generation at steam laundry facilities, rice mills Coconut husk - for steam boilers at a feedmill Mini-hydropower Watershed rehabilitation Tricycle retrofitting 20% regular scale 53, ,000 CERs/yr Renewable energy Wind Geothermal Hydropower Wastewater from an ethanol plant Waste heat recovery at a sinter plant Landfill gas recovery & power generation Rice-husk biomass use at cement plants and a sugar mill Organic waste composting Secondary Catalytic Reduction of N 2 0 Emissions at ONPI Nitric Acid Plant 10

11 Host Country Approval Applications Status Qty Regular Scale Project Activities Regular Scale: Estimated Annual CERs (tco2-e/yr) Smallscale Project Activitie s Small-scale Estimated Annual CERs (tco2- e/yr) Total Estimated Annual CERs (tco2-e/yr) DNA Applications Received ,137, ,151 3,068,512 Year ,899 84,899 Year , , ,416 Year ,528, ,467 1,719,871 Year , , ,537 Year , , ,789 Total LoAs Issued ,886, ,787 2,463,600 Year 2009 Year ,266, ,936 1,683,088 Year , , ,665 Year , , ,059 Year , ,788 77% of Total Applications Received by the Philipppine DNA have received Host Country Approval

12 CDM Registration Stage Status Qty Regular Scale Project Activities Regular Scale: Estimated Annual CERs (tco2-e/yr) Smallscale Project Activities Smallscale: Estimat ed Annual CERs (tco2- e/yr) Total Estimated Annual CERs (tco2-e/yr) Applying for Registration (Current) , , ,277 Requesting Registration Project Activities w/ Requests for Review Minor Corrections 1 1 5, ,761 Corrections following Review 4 3 8, , ,516 Project Activities Rejected ,790 5,790 Project Activities Withdrawn ,620 45,620 Project Activities Registered ,611 Year , , ,048 Year , , ,087 Year , , ,221 Year , , ,303 (ACTUAL) Project Activities w/ Issued CERs , ,568 34% of projects with LOAs have been registered with the CDM EB.

13 Registered CDM Project Activities by Host Party (as of 31 March 2009) Philippines: 1.49% of 1,539 registered projects China=501 India=411 Brazil=156 Mexico= 113 Malaysia=44 Chile= 31 Republic of Korea=25 Indonesia=23 RP=23 Philippines: 23 registered CDM project activities; ranks no.8 13

14 Main Issues on CDM 14

15 23 Registered Projects / 59 LoAs Issued Only 23 have been REGISTERED so far, with 5 more proposed projects currently applying registration NECESSARY STEP before registration: completion of the validation process proponents unable to meet Designated Operational Entity s requirements? failed contractual obligations? LoA requires proponents to update the DNA of the status of registration/project implementation but DNA has not received any update LoA was revised 15

16 Issues on CDM Diversion vs. non-diversion of ODA funds Non-comitted CERs Stakeholders consultation requirement Meaningful determination of SD benefits Limited sectoral scopes of projects 16

17 More effort is needed to achieve the objectives of CDM ensure environmental integrity of project activities: real GHG emission reductions encourage demands for small scale projects with high SD benefits rather than those with perverse incentives current rules on some project activities are too restrictive resulting in the registration of a small number of projects public participation is crucial expand the portfolio of CDM project activities More RE and A/R project activities 17

18 Post 2012 Implications 18

19 Climate Change Actions undertake adaptation actions to pursue sustainable development and meet commitments under the MDGs (Without development, the country cannot effectively implement any mitigation actions) join the developing world in strongly pushing for developed countries to take the lead and show genuine demonstrable progress in fully implementing their commitments acquire new and additional adequate and predictable financing, technology transfer and capacity development for both mitigation and adaptation now, up to and beyond

20 THANK YOU IACCC Secretariat DNA - CDM Secretariat Office Environmental Management Bureau 2/F, HRDS Building, DENR Compound, Visayas Avenue, Diliman, Quezon City T: (+63-2) ; F: