Cambodia. China. India. Lao PDR. Philippines. Thailand

Transcription

1 June 2010 Version Cambodia China India Indonesia Lao PDR Philippines Thailand

2 Cambodia P. 1-8 China P India P Indonesia P Lao PDR P The Philippines P Thailand P Indonesia P25-32 Latest CDM project Updated in June 2010 information as of 1 June 2010 New formatted CDM Project Information in Indonesia, Philippines and Thailand Current Status of CDM CDM Project Information DNA Structure, Approval Procedure and Criteria (1) DNA Structure (2) DNA Approval Procedure (3) DNA Approval Criteria CDM Relevant Information

3 Institute for Global Environmental Strategies Ministry of Environment The Royal Government of Cambodia Current Status of CDM in Cambodia Four Cambodia s CDM projects have been registered at the CDM Executive Board: rice husk biomass cogeneration project in Kandal Province; biogas project at tapioca starch factory in Basic Information (1 June 2010) Project Status Num. Kampong Cham Province; methane recovery and utilisation at a pig farm in Kandal Province, and Kampot cement waste heat CDM projects registered at CDM executive board 4 power generation project in Kampot Province. One hydro power project in Kampot Province and one biogas projects were CDM projects approved by Cambodia s DNA 6 approved by Cambodia s DNA and is currently under validation. CDM projects at or after the validation stage 6 National approval procedures are formally approved by the Source: IGES CDM Project Database < > and UNFCCC website < t/i Cambodia s DNA and operated smoothly so far. Cambodian Government organised the first national workshop on climate Approved CDM Projects (1 June 2010) change last year and many important stakeholders including politician participated its event. In addition, the DNA in Cambodia Type of project/year Total is active in proposing the CDM reform to the UNFCCC in order to Biogas further promote CDM in Least Developed Countries (LDCs). Hydro power 1 1 The potential area for CDM in Cambodia may be particularly the agricultural sector, where major emissions occur in Cambodia, Waste/heat gas utilisation 1 1 but the total emission level is not so large. Biomass 1 1 In general, risks for project implementation, which are common Total Source: Cambodia Climate Change Department < Recent activities in Cambodia Event Date Venue The 1 st National Forum on Climate Change Oct Phnom Penh in LDCs, may exist in Cambodia. As most projects are closely related to production in agricultural sector, those projects are highly vulnerable to the global market due to its export-oriented nature. Recent global economic recession also affects Cambodia. Hence, issuance of CERs from registered it projects arenot yet occurred, since the projects are implemented with some delay due to the recent global recession. Source: Cambodian Climate Change Department < > UNDP Cambodia < > 1

4 CDM Project Information Approval Status (as of 1 June 2010) Name of CDM Project Activity Angkor Bio Cogen Rice Husk Power Project Type of Project Supplemen tal Information Approval Date (D/M/Y) Annual emission reduction (tco 2 /yr) Biomass Rice husk 19/1/ ,620 Project Participants (Host Country) Angkor Bio Cogen Co., Ltd. T.T.Y T.T.Y. Cambodia Biogas Project Biogas Agricultural Waste 4/7/ ,036 Corporation Ltd. Carbon Bridge Pte Ltd. Methane fired power generation plant in Samrong Thom Animal Husbandry, Kampot Cement Waste Heat Power Generation Project (KCC-WHG) Kamchay Hydroelectric BOT Project Biogas Waste heat/gas utilisation Hydro Animal Waste Cement production line New reservoir 15/10/2007 5,593 20/11/ ,107 20/11/ ,496 Samrong Thom Animal Husbandry Kampot Cement Company Co., Ltd. Sinohydro Kamchay Hydroelectric Project Co., Ltd. Project Participants (Others) Mitsubishi UFJ Securities Co., Ltd. None Mitsubishi UFJ Securities Co., Ltd. None None Status Registered Registered Registered Awaiting issuance request (06/09-04/10) Under validation Biogas Project at MH Bioethanol Distillery, Cambodia Biogas Agricultural Waste 29/6/ ,831 MH Bio-Energy Co., Ltd None Under validation Source: IGES CDM Project Database < > and UNFCCC website < Note One biogas project at tapioca starch factory in Kampong Cham Province is now under preparation and expected to be submitted to the Cambodia DNA soon. 2

5 DNA Structure, Approval Procedure, and Criteria (1) DNA Structure DNA Board Policy makers (at least at the level of the Undersecretary of State) for the Board Members Ministry of Environment (MoE) Ministry of Agriculture, Forestry and Fisheries (MAFF) Ministry of Industry, Mines and Energy (MIME) Ministry of Planning (MoP) Council for the Development of Cambodia (CDC) Ministry of Public Works and Transport (MPWT) DNA Secretariat The Cambodian Climate Change Department (CCD) of the MoE acts as the DNA Secretariat. Technical Inter-ministerial Working Group Source: Cambodia Climate Change Department. < The chair is the Minister of Environment and the vice-chair is elected from either MAFF or MIME. The Board evaluates proposed CDM projects submitted to Cambodia s DNA to determine whether the projects are to be approved or rejected. A proposed CDM project requires the approval of each member and also an approval letter that will be issued with the signature from the chair of the Board. The Secretariat receives project applications and checks if the Project Design Document (PDD) and other application documents are complete. Assessment using the sustainable development criteria will not be conducted by the Secretariat who are not allowed to ask for the resubmission of the project documents or to reject the project, based on such assessment. The Secretariat coordinates working groups, that assess the PDDs, and asks for the project participants to submit further information, if necessary. The Secretariat may also request domestic or international technical experts for assessment of the PDDs. The technical working group assesses the PDDs based on the sustainable development criteria. After an assessment, the technical working group submits a Project Technical Assessment Report to the DNA secretariat. The energy technical working group Representatives from MIME (renewable energy, planning and hydroelectricity) Representatives from MOE (CCD, environment impact assessment, and one other relevant department) Representative from the Royal University of Phnom Penh (RUPP) Representative from the Royal University of Agriculture (RUA) Representative from the Institut de Technologie du Cambodge Representative from the MPWT. The forestry technical working group Representatives from MAFF (Forest Administration, agronomy, planning) Representatives from MoE (CCD, environment impact assessment, e natural a conservation, ato one other relevant ee department), Representative from the RUPP Representative from the RUA * MIME and other relevant ministries are also invited, if necessary. 3

6 (2) DNA Approval Procedure 1. The application form is provided by Cambodia s DNA and required application documents should be submitted to the DNA Secretariat. The application documents are as follows. A) Documents to be submitted (mandatory): Completed application form (downloadable from the CCD web-site) PDD (Project Design Document) Sustainable Development Compliance Checklist (downloadable from the CCD web-site) Section A2 of the PDD (Description of the project activity) written in Khmer B) Documents to be submitted (optional): Environment Impact Assessment Report Stakeholders Consultation Report Environment Management Planning Report Approval letter for project investment, etc. Submission by project participants Screening by the DNA secretariat Evaluation by the Inter- ministerial Technical Working Group No Submission of technical evaluation report, summary of public comments Reject/ Re-submit Public consultation 10 days 30 days 2. The DNA Secretariat checks if the submitted documents are complete (10 days). After screening, the Secretariat notifies the 1 st meeting of an inter-ministerial technical working group, sends the PDD, and conducts public consultation. 4. After the 1 st meeting, the working group prepares the Project Technical Assessment Report (within 10days). After preparing the report, the 2 nd meeting will be held. The public consultation will be ended. 5. The DNA Secretariat prepares a final evaluation report for DNA Board members (within 10 days). After submitting the report, a DNA Board meeting will be organised. Reject/ Re-Submit No Decision by DNA Board Yes Issuance of approval letter 3. The inter-ministerial technical working group assesses the Source: Cambodia Climate Change Department. < htm> PDD and holds the meeting. 6. Each board member assesses the final evaluation report (within 10 days). After 10 days, a Board meeting is organised again and makes the final decision. 15 days 7. An approval letter or notification of rejection is prepared (within five days). 8. An approval letter is issued to project participants (total 45 days for issuance). 4

7 (3) DNA Approval Criteria A sustainable development matrix is used for the assessment of a project s contribution towards sustainable development. An inter- ministerial technical working group evaluates a proposed CDM project based on the SD compliance checklist and PDD prepared by project participants. Evaluation criteria are classified into four groups: economic, social, environmental, and technology transfer and each indicator is evaluated according to three ratings: positive, neutral, or negative. No project is allowed to receive negative points at any indicators. If the project receives a negative point, the project has to re-consider the design to satisfy the criterion and re-apply. Sustainable criteria are as follows. Category 1: Environmental Protection and Improvement Eligibility Criteria Indicator for Assessment Legislation and Policy Reference Table* 1.1 Contribution to mitigation of Cambodia s National Communication under the Change of GHG emissions global climate change UNFCCC 1.2 Reduction in air pollution Change of air pollutant levels (Comparison with baseline Sub-decree on Air Pollution Control and Noise scenario in the PDD) Disturbance 1.3 Reduction in water pollution Sub-decree on Water Pollution Control Change of water pollutant levels (Comparison with Strategic Plan on Water Resources Management and baseline scenario in the PDDs) Development Reduction in soil pollution Change of soil pollutant levels (Comparison with baseline scenario in the PDDs) Sub-decree on Solid Waste Management 1.5 Reduction in noise pollution Change of noise levels (Comparison with baseline scenario in the PDDs) Sub-decree on Air Pollution and Noise Disturbance 1.6 Biodiversity conservation Draft Protected Areas Law Impact on indigenous biodiversity resources at the Royal decree on the Creation and Designation of ecosystem, species and/or genetic levelsl Protected Areas 1.7 Sustainable use of land resources Impact on land resources Draft Protected Areas Law Royal decree on the Creation and Designation of Protected Areas 1.8 Rationale use of mineral resources Rational use of mineral resources Law on Mineral Management and Exploration 1.9 Sustainable use of forest resources 1.10 Sustainable use of water resources 1.11 Archaeological, cultural, historical and spiritual heritage Impacts on forest resources Management/implementation plan in place to mitigate the impacts Impacts on water resources Management/implementation t ti plan in place to mitigate t the impacts Impacts on archaeological, cultural, historical and spiritual heritage Forestry Law Community Forestry Sub-decree Sub-decree on Water Pollution Control Strategic t Plan on Water Resources Management and Development Draft Protected Areas Law Source: Cambodia Climate Change Department. < * All legislation are not listed from the original document. Measure legislation is only selected. 5

8 Category 2: Social Enhancement of Income and Quality of Life Eligibility Criteria Indicator for Assessment Legislation and Policy Reference Table* 2.1 Poverty alleviation Impacts on livelihoods of local people 2.22 Provision i of community infrastructures 2.3 Stakeholder consultation 2.4 Access to community assets 2.5 Equity in accessing the community benefits of the project for the target Communities 2.6 Creation of employment in country Impacts on community infrastructure Stakeholders were consulted and minimal impact identified Change in access for the target communities to community assets Equitable access for the target communities to the community benefits of the project National Poverty Reduction Strategy Cambodian Millennium Development Goals 2003 Second Five-Year Socioeconomic Development Plan Sub-decree on Community Fisheries Sub-decree on Social Land Concessions Sub-decree on Community Fisheries Sub-decree on Social Land Concessions Change in employment compared to the baseline; no jobs are created or lost Labor Law 2.7 Impact on public health Impact on public health 2.8 Gender equity Change in gender equity and women empowerment Cambodian Millennium Development Goals 2003 Category 3: Technology transfer Eligibility Criteria Indicator for Assessment Legislation and Policy Reference Table* - best available technology and technology well proven 3.1 Transfer of appropriate and best available technology 3.2 Capacity building - best available technology and technology can easily be maintained locally - best available technology and technology appropriate for local economic and social conditions - transfer of skills for use and maintenance of technology/equipment - use of local companies to install and maintain equipment - training of local technicians in areas of expertise not available in Cambodian Millennium Development Goals 2003 Second Five-Year Socioeconomic Development Plan Cambodian Millennium Development Goals 2003 Second Five-Year Socioeconomic Development Plan Category 4: Economic Benefits Eligibility Criteria Indicator for Assessment Legislation and Policy Reference Table* 4.1 Use of local business and National Poverty Reduction Strategy Use of local businesses and industries industries Cambodian Millennium Development Goals Share of project budget spent in Proportion of total budget spent in country on country Cambodian economy Investment Law 4.3 Reduced dependence on fossil fuels (energy projects only) Frequent use of clean energy Dependence on fossil fuels Renewable Energy Action Plan Cambodian Millennium Development Goals Reduced dependence on Renewable Energy Action Plan Dependence on imported energy. imported energy Cambodian Millennium Development Goals 2003 Source: Cambodia Climate Change Department. < * All legislation are not listed from the original document. Measure legislation is only selected. 6

9 CDM Relevant Information Ratification Status Ratification of the Climate Change Convention 13 December 1995 Ratification of the Kyoto Protocol 4 July 2002 Establishment of the Climate Change Office (CCCO) at the Ministry of Environment 23 June 2003 Appointment of the Ministry of Environment as interim DNA 15 July 2003 Establishment of the National Climate Change Committee 24 April 2006 The 4 th Meeting of the National Climate Change Committee 29 June 2009 UNFCCC related Works Cambodia s First National Communication Cambodia s National Adaptation Programme of Action to Climate Change Source: (UNFCCC. 2010) < August 2002 October 2006 Establishment of the Climate Change Department 14 October 2009 Source: (UNFCCC. 2009) < (Cambodia Climate Change Department) < Interview of the Cambodia Climate Change Department Laws and regulation to apply for CDM investment Law on Investment The Council for the Development of Cambodia (CDC) List of example cases required for EIA in Cambodia Projects Rice mill and cereal grains * Referred only relevant projects for CDM Production Capacity More than 3,000 tons/year Rubber factories More than 1,000 tons/year Law on Environmental Protection & Natural Resources Management Chemical fertilizer plants More than 1,000 tons/year Sub-decrees on Water Pollution Control, Solid Waste Cement industry, oil refinery, gas factory All projects Management, Air Pollution Control and Noise Disturbance Waste disposal plants All projects Wastewater treatment plants All projects EIA Requirement Mining All projects Sub-decree on Environmental Impact Assessment Process Power Plants More than 5MW Hydro power projects More than 1MW Agriculture and agro-industrial Electricity Law Forestry Law land More than 10,000 ha Source: Cambodian Climate Change Department< > Source: Annex of Sub-decree No.72 ANRK.BK. (MOE, 1999) 7

10 Proposed New Methodology (as of 1 June 2010) Supplem Name of CDM Project Type of ental Approval Activity Project Informati Date on (D/M/Y) Cambodia Rural Electrification and Transmission Project Energy Supply (RETP) 220 kv Efficiency Side Interconnection between Cambodia and Vietnam. Source: UNFCCC website < Annual emission Project Project reduction Participants (Host Participants (tco 2 /yr) Country) (Others) Cambodia Electricte du Cambodge (EDC) Not yet 53,616 Vietnam IBRD as trustee Electricite it of of one various Vietnam (EVN) Carbon Funds Power Company 2 (PC2) Status Not approved at EB50 Contact Information Cambodia s DNA Ministry of Environment, Department of Climate Change 48, Samdech Preah, Sihanouk Bld, Phnom Penh, Cambodia Phone: (855-23) Fax: (855-23) ETAP@online.com.kh, cceap@online.com.kh References Department of Climate Change for Cambodia DNA information Market Mechanism Group, Institute for Global Environmental Strategies CDM Capacity Building Activities in Cambodia IGES Market Mechanism Group Keisuke Iyadomi June 2010 Acknowledgement The valuable information and comments, especially for CDM projects in Cambodia was provided by the Department of Climate Change of the Ministry of Environment, Cambodia. IGES would like to express our sincere gratitude for their invaluable supports in making this CDM Country Fact Sheets for Cambodia. 8

11 Institute for Global Environmental Strategies Current Status of CDM in China Basic Information (as of 1 June 2010) Project Status Number of Projects Registered at the CDM EB 856 Approved by the Chinese DNA 2,536 At or after the validation stage 2,281 New updates Source: UNFCCC website < and CDM in CHINA < Basic Data for Registered CDM Projects (as of 1 June 2010) Num. Annual ERs (k-tco 2 e/y)* Total ERs by 2012 (k-tco 2 e) Registered Projects Updated list of approved CDM projects by the Chinese DNA was released (28/05/2010) Supplementary Notes for Hong Kong enterprises to implement CDM projects on the Mainland was released (1/12/2010) Num. projects with issuance Num. issuance * k = thousand ** Average annual emission reduction of all registered projects Amount issued k- CERs Num of rejected/ withdra wn Rest of nonregistered Hydro power , , Wind power , , Waste heat/gas utilisation , , Methane recovery & utilisation , , N 2O decomposition , , Fuel Switch 18 1,093 80, , Biomass , HFC reduction 11 5, , , Cement , Biogas , Afforestation & reforestation Methane avoidance Other renewable energy Others (energy efficiency, etc) , Total ** 1,017, , ,551 Source: IGES CDM Project Database < and UNFCCC < /cdm.unfccc.int/index.html 9

12 CDM Project Information Project Information for Registered CDM Projects Data Rank (share) Province Num Province Num Province Num Province Num Province Num Num. of registration 1 (39%) Total emission reductions by (55%) Total issued CERs 1 (49%) Num. of rejection 1 (34%) Use of ACM2 or AMS-I.D. 80% Unilateral projects 2% Yunnan 105 Guizhou 31 Liaoning 27 Chongqin g 18 Ningxia 11 Sichuan 77 Hebei 31 Henan 26 Anhui 17 Qinghai 8 Inner Mongolia 71 Fujian 30 Guangdo ng 26 Heilongji ang 17 Beijing 5 Gansu 53 Jiangsu 30 Guangxi 25 Xinjiang 16 Hainan 5 Hunan 52 Hubei 30 Jilin 24 Jiangxi 16 Shanghai 3 Shandong 39 Shanxi 27 Zhejiang 20 Shaanxi 15 Tianjin 2 Source: IGES CDM Project Database < and UNFCCC < /cdm.unfccc.int/index.html> Number of Requesting Registration, Registration & Rejection (as of 1 June 2010) 250 Request Registered Rejected/Withdrawn Apr-Jun 2005 Jul-Sep 2005 Oct-Dec 2005 Jan-Mar 2006 Apr-Jun 2006 Jul-Sep 2006 Oct-Dec 2006 Jan-Mar 2007 Apr-Jun 2007 Jul-Sep 2007 Oct-Dec 2007 Jan-Mar 2008 Apr-Jun 2008 Source: IGES CDM Project Database < and UNFCCC < /cdm.unfccc.int/index.html> Jul-Sep 2008 Oct-Dec 2008 Jan-Mar 2009 Apr-Jun 2009 Jul-Sep 2009 Oct-Dec 2009 Jan-Mar

13 DNA Structure, Approval Procedure, and Criteria (1)DNA Structure National Coordination Committee on Climate Change (NCCCC) Chair: Chairman of NDRC Executive deputy-chair: Vice-chairman of NDRC Deputy-chair: Representatives from the Ministry of Foreign Affairs (MFA), Ministry of Science and Technology (MOST), China Meteorological Administration, and Ministry for Environmental Protection Other Members: Representatives of the Ministry of Finance (MOF), Ministry of Commerce, Ministry of Communications, Ministry of Water Resources, State Forestry Administration, Chinese Academy of Science, State Ocean Administration of China, and Civil Administration of China National CDM Board Co-chairs: Representatives of NDRC and MOST Vice-chair: Representative of the MFA Other Members: Representatives of MOF, Ministry of Agriculture (MOA), MEP, and CMA. DNA NDRC acts as the Chinese DNA and manages the office of NCCCC To review national CDM policies, rules and standards To approve members of the National CDM Board To review other issues deemed necessary To review CDM project activities To report to the Committee on overall progress of CDM project activities, issues emerged, and further recommendations To make recommendations on the amendment of the current measures for Operation and Management of CDM projects in China To accept CDM project application To approve CDM project activities on the basis of the conclusion by the Board To issue written approval letter on behalf of the Government To supervise the implementation of CDM project activities To deal with other relevant issues Note: Assisting CDM projects at provincial level The establishment of the CDM Service Centers have been initiated by MOST with several international donor assistance. Even though maturity level of the centers are different due to its establishment in a different time, provincial centers are aimed at facilitating CDM through PDD assistance, training and information dissemination. NDRC is also promoting capacity building projects for local DRC staffs with a help of Japanese private bank. This project provides overseas trainings to increase the capacity of local DRC staffs for effective CDM procedures at local level. (NDRC, 2009) Source: CDM in CHINA < Source: Measures for Operation and Management of Clean Development Mechanism Projects in China (NDRC, 2005.) 11

14 (2)DNA Approval Procedure Submission of PIN by project proponent Optional The application documents CDM Project Application Form (for reference) (2 copies) 1 Application Form for CDM Project Activity (15 copies in st Screening Chinese) * 20 May 2008 updated by DNA Letter of Mandatory annexed documents: Recommend Copy of the business license ation Submission of application documents by project proponent Approval certificate of the Feasibility Study (FS) report Record of approval Approval certificate of the Environmental Impact Assessment (EIA) report Voluntary annexed documents: (e.g.) Copy of the Emission Reduction Purchase Agreement (ERPA) or the Letter of Intent (LOI) for the credit purchase Project Design Document (PDD) (15 copies in Chinese and 5 copies in English) General Information on the Construction Project and Financing (15 copies in Chinese) 30 days DNA Assessment by expert team DNA Decision by the National CDM Board Rejection/resubmit Rejection/re- submit Consideration of improvements General Information on the Construction Project and Financing 1. General information about the project owner 2. General information about foreign partner(s) 3. Project information 4. Total investment and project financing 5. Brief technical description of the project activity 6. Estimated GHG emission reductions 7. Economic and environmental benefits of the project 8. Approval status of the construction of the project and the environmental impact assessment (if approved, attach copies of the approval certificate) 9. Current status of the project Source: CCCHINA < DNA Issuance of approval letter Note: Expert review shall be done within 30 days NDRC will make a decision on approval within 20 days (excluding the expert review time). This may be extended to 30 days if a decision could not be made within 20 days. Project owner should report to NDRC on the decision by the CDM EB within 10 days after the date of receiving the notice from the CDM EB. Source: (NDRC, 2005) Measures for Operation and Management of Clean Development Mechanism Projects in China 12

15 (3)DNA Approval Criteria Requirements for approval Qualification to participate p CDM (More than 51% of stock should be owned by Chinese funded or Chinese-holding enterprises) Qualification of PDD Baseline Methodology and emission reduction Price of CER (RMB/tCO 2 e) and total transfer amount of CERs (tco 2 e) Note: CER price decided under the purchase agreement should be converted to RMB on the exchange rate on the date when application form is filled. Funding and technology transfer (need to confirm that project funding is not diverted from ODA) Crediting period Monitoring Plan Contribution of sustainable development China s policy on CDM from the Measures for Operation and Management of CDM Project in China Priority Area (Article 4) Energy efficiency improvement Development and utilisation of new and renewable energy Methane recovery and utilisation Allocation ratio for the Chinese Government (Article 24) HFC and PFC project: 65% N 2O project: 30% A priority area (Article 4) and forestation project: 2% Amount of transfer of CER (Article 24) emission reduction resource is owned by the Government of China emission reductions generated by specific CDM project belong to the project owner revenue from the transfer of CERs shall be owned jointly by the Government of China and the project owner Source: Measures for Operation and Management of Clean Development Mechanism Project in China (CCCHINA, 2005) < Note: CDM Project Activities in the Hong Kong Special Administrative Region (HKSAR) Liaison agency for CDM projects in HKSAR: the Environmental Protection Department of the HKSAR Government (HKEPD) Application procedure: Application documents with supporting information should be submitted to HKEPD. HKEPD will forward them to NDRC within 5 working days after receipts of all required documents. Documents to be submitted: 1. Letter of Application for the CDM project, 2. Application Form for CDM Project Activity, 3. PDD, 4. Relevant information on construction and financing (including a copy of the approval letter on the EIA report approved under the laws of HKSAR) * Two extra copies should be submitted in addition to each conventional requirement by NDRC Levy on the revenue of transfer of CERs: No charges by the Central Government or the HKSAR Government Source: Arrangements for the Implementation of Clean Development Mechanism Projects in the Hong Kong Special Administrative Region (NDRC, 2008) Supplementary Notes for Hong Kong enterprises to implement CDM projects on the Mainland (NDRC, 2009) 13

16 Host Country CDM Approval Information Number of DNA Approved CDM Projects(as of 1 June 2010) Province / Type of Renewable Energy CH4 Project Energy efficiency recovery Fuel switch N2O HFC23 LFG A/R Others Total Anhui Beijing Fujian Gansu Guangdong Guangxi Guizhou Hainan Hebei He nan Heilongjiang Hubei Hu nan Jilin Jiangsu Jiangxi Liaoning Inner Mongolia Ningxia Qinghai Shandong Shanxi Shaanxi Shanghai Sichuan Source: CDM in CHINA Tianjin 1 6 Note: Latest approved project list was published in 14 October Xinjiang Yunnan Zhejiang Chongqing Total 1, ,536 Source: CDM in CHINA < * Approved projects Up to 12 May

17 CDM Relevant Information UNFCCC Related Status UNFCCC The Kyoto Protocol The First National Communication 11 June January 1993 (Signed) (Ratified) 29 May 1998 (Signed) 10 December 2004 (Submitted) 30 August 2002 (Ratified) CDM Related Policies & Regulation at Domestic Level Measures for Operation and Management of CDM Projects in China National Climate Change Programme China s Scientific and Technological Actions on Climate Change China s Policies and Actions for Addressing The Second In preparation National (Subprojects in cooperation with Communication UNDP launched in March 2009) Climate Change Source: UNFCCC < China s Regional Grid Emissions Factors 2009 Regional Grid North China Grid Northeast China Power Grid East China Grid Central China Power Grid Northwest China Power Grid Southern China Power Grid Hainan Provincial Power Grid Covered Region Beijing, Tianjin, Hebei, Shanxi, Shandong, Inner-Mongolia OM* (t-co 2 /MWh) 30 June 2004 (Approved) Source: Climate Change Info-Net < OM 2007 OM BM* (t-co 2 /MWh) June 2007 (Announced) June 2007 (Issued) 29 October 2008 (Issued) 12 October 2005 (Revised) 2008 BM 2007 BM Liaoning, Jilin, Heilongjiang Shanghai, Jiangsu, Zhejiang, Anhui, Fujian Henan, Hubei, Hunan, Jiangxi, Sichuan, Chongqing g Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang Uyghur Guangdon, Jiangxi, Yunnan, Guizhou Hainan *OM: Operating Margin from data, BM: Build Margin from 2007 data Source: CDM in CHINA < Recent data was announced in 3 September

18 EIA requirements for construction projects Impact Level Major Light Very small Required documents Environmental impact report Environmental impact report form Environmental impact registration form Assessment level Comprehensive assessment Analysis or special assessment No assessment required Note: A catalogue for the classified management of the appraisal of environmental impacts shall be determined at the State Council and published through the Ministry of Environmental Protection. Ref.: Laws and regulation for electricity generation projects Electric Power Law 28 December 1995 (Approved) 1 April 1996 (Enforced) Renewable Energy Law 28 February 2005 (Approved) 1 January 2006 (Enforced) Electric Power Law Renewable Energy Law Approval requirements from the central government a. Special construction projects incl. nuclear facilities and top secrets projects b. Construction projects that include different provinces, autonomous regions or municipalities directed under the Central Government c. Construction projects subject to the examination and approval of the State Council or the relevant departments authorized by the State Council * Projects not mentioned above are subject to the prescription of the provinces, autonomous regions and municipalities directed under the Central Government. Source: Environmental Impact Assessment Law (Entered into force in Sep. 2003) Other CDM Information Source: UNFCCC website < and CDM in CHINA < Data from only registered projects Reference: Clean Development Mechanism in China, National Development and Reform Commission (NDRC) China Climate Change Info-Ne t, Department of Climate Change, NDRC Market Mechanism Group, Institute for Global Environmental Strategies (IGES) Total amount (t-co2e) Contribution to Adaptation Fund (CERs issued) 4,095,633 Contribution to the China CDM Fund* 279,398,547 * The China CDM Fund is managed by the Chinese Government based on levy from the benefits of CER transfer. This number is just indication of estimated amount equivalent to be levied by the government, based on the total emission reductions til The fund will levy on actual benefits from CER transfer according to the Measures for Operation and Management of CDM in China. IGES Market Mechanism Group Keisuke Iyadomi June

19 Institute for Global Environmental Strategies Current Status of CDM in India Basic Information(as of 1 June 2010) Project Status N. of projects CDM projects registered at CDM executive board 506 CDM projects at or after the validation stage 1,492 CDM projects approved by India 1,561 * Source: IGES CDM Project Database < >, UNFCCC < /cdm.unfccc.int/index.html>, CDM India < p j p * This value is based on the information available on 15 June 2010 at CDM India website. The frequency and timing of update is not available. Basic data on CDM Projects (as of 1 June 2010) Registered CDM Projects N. of Avg. Annual Emission Total ERs by 2012 Amount of Issued Review Rejected Projects Reductions (tco 2 ) (tco 2 ) CERs (tco 2 ) Conducted Biomass ,768 34,776,806 6,601, Wind power ,629 26,905,546 7,297, Waste gas / heat utilization 66 87,079 35,335,991 9,493, Hydro power 64 69,110 16,796,410 1,753, Energy efficiency 54 22,728 8,486,804 1,020, Cement ,077 16,806,437 1,253, Fuel Switch ,999 24,582,873 1,426, Biogas 14 28,032 2,473, , Methane avoidance 11 73,823 2,165, HFC reduction 6 1,773,622 82,665,893 49,283, N 2 O decomposition 4 475,974 5,843, Afforestation & reforestation 3 23, , Other renewable energies 3 17, , Methane recovery & utilization 2 94,314 1,174,219 75, PFC reduction 1 433,789 1,301, Transportation 1 41, ,811 3, Total ,940 ** 260,475,582 78,777, Source: IGES CDM Project Database < UNFCCC < /cdm.unfccc.int/index.html> ** This value is not the total of average annual emission reduction of each project type, but average annual emission reduction of all the projects. 17

20 CDM Project Information Since the establishment of the Indian DNA (Designated National Authority) in 2003, it has approved a significant number of projects. 506 projects have been registered by the CDM executive board, which account for about 20% of all the registered projects (as of 1 June 2010). In the initial stage of CDM development in India, biomass utilisation projects, waste gas/heat utilisation projects, and renewable energy (wind, hydro) projects were mainly being implemented. Other than those projects, India has various types of registered CDM projects that include energy efficiency (cement, steel and etc.), fuel switch, HFC reduction, N 2O decomposition, afforestation and reforestation, and transportation. CDM promotion cells have been established at a state level. They conduct supportive activities such as information dissemination on CDM and coordination between local and national governments. One of the features of CDM in India is its large share of unilateral CDM projects, CDM project developed by Indian stakeholders without the involvement (finance, technology) of Annex I countries. Indian project developers implement the project by bearing transaction costs of CDM and taking on the risks of the projects. Therefore, the price of credits issued by unilateral CDM projects tends to be higher than bilateral or multilateral CDM projects. 1. The number of CDM projects registered at the CDM executive board (as of 1 June 2010): The number of registered unilateral CDM projects (at the time of registration) (as of 1 June 2010): 422 (83 %) 3. Type of registered CDM Projects 4. Number of registered CDM Projects per half a year (as of 1 June 2010) Biogas 3% Methane avoidance 2% 120 Fuel switch 3% 100 Cement 3% 80 Energy efficiency 11% Biomass 29% Hydro 13% Waste gas/heat 13% Wind 20% Source: IGES CDM Project Database < UNFCCC < /cdm.unfccc.int/index.html>

21 DNA Structure, Approval Procedure, and Criteria (1)DNA Structure The Indian Designated National Authority is the National Clean Development Mechanism Authority (NCDMA), which consists of 6 ministries and agencies and the Planning Commission. The main role of the NCDMA is to evaluate and approve proposed projects and disseminate information related to all aspects of CDM. Chairperson Secretary, Ministry of Environment and Forests Member Foreign Secretary Finance Secretary Secretary, Department of Industrial Policy and Promotion Secretary, Ministry of Non-conventional Energy Sources Secretary, Ministry of Power Secretary, Planning Commission Joint Secretary, Climate Change, Ministry of Environment and Forests Member-Secretary Director, Climate Change, Ministry of Environment and Forests NCDMA has the powers: to invite officials and experts from Government, financial institutions, consultancy organizations, non-governmental organizations, civil society, legal profession, industry and commerce, as it may deem necessary for technical and professional inputs and may co-opt other members depending upon need. to interact with concerned authorities, institutions, individual stakeholders for matters relating to CDM. to take up any environmental issues pertaining to CDM or Sustainable Development projects as may be referred to it by the Central Government, and to recommend guidelines to the Central Government for consideration of projects and principles to be followed for according host country approval. al Source: CDM India < 19

22 (2)DNA Approval Procedure Approval procedures in India are straightforward and project developers could get host country approval letters within 60 days unless proposed projects have questions from NCDMA. An NCDMA meeting for project approval is held every month. Submission of PCN & PDD with 2 CDs and online submissions to NCDMA Circulation among NCDMA members 1. Project proponent is required to submit the following for application: Cover letter signed by the project sponsors Project Concept Note (PCN) (one submitted through online form and 20 hard copies) Project Design Document (PDD) (one submitted through online form and 20 hard copies) Two CDs containing PCN and PDD 2. Approval procedures in DNA are as follows 60 days Presentation by Project Proponents during NCDMA Meeting Clarification / additional information from Project Proponent if required by NCDMA members Host Country Approval Letter Source: CDM India < Application documents submitted by project proponent are circulated among NCDMA members. If NCDMA members have any preliminary queries the same is asked from the project proponents. The project proponent and his consultants are normally given days notice to come to the Authority meeting and give a brief power point presentation regarding their CDM project proposals. NCDMA members mainly evaluate if the project meets the national sustainable development priorities and seek clarifications during the presentation. In cases when it is requested by NCDMA members, the project proponent should prepare and submit some additional clarifications or information. Once the members of the Authority are satisfied, the Host Country Approval is issued. 20

23 (3)DNA Approval Criteria 1. Sustainable Development Indicators Social well being Economic well being Environmental well being Technological well being: The CDM project activity should lead to alleviation of poverty by generating additional employment, removal of social disparities and contribution to provision of basic amenities to people leading to improvement in quality of life of people. The CDM project activity should bring in additional investment consistent with the needs of the people. This should include a discussion of impact of the project activity on resource sustainability and resource degradation, if any, due to proposed activity; bio-diversity friendliness; impact on human health; reduction of levels of pollution in general. The CDM project activity should lead to transfer of environmentally safe and sound technologies that are comparable to best practices in order to assist in upgradation of the technological base. The transfer of technology can be within the country as well from other developing countries also. 2. Additionality Emission Additionality Financial Additionality The project should lead to real, measurable and long term GHG mitigation. The additional GHG reductions are to be calculated with reference to a baseline. The procurement of CERs should not be from Official Development Assistance (ODA) 3. Baselines Baselines should be precise, transparent, comparable and workable Baselines should avoid overestimation The methodology for the determination of baselines should be homogeneous and reliable Potential errors should be indicated System boundaries of baselines should be established Interval between updates of baselines should be clearly described Role of externalities should be brought out (social, economic and environmental) Baselines should include historic emission data-sets wherever available Lifetime of project cycle should be clearly mentioned Source: CDM India < 21

24 Host Country CDM Approval Information Number of approved CDM projects in each state * (as of 1 June 2010) State Approved projects Andhra Pradesh 134 Chattisgarh 89 Gujarat 185 Himachal Pradesh 53 Jharkhand 29 Karnataka 169 Madhya Pradesh 42 Maharashtra 239 Orissa 71 Punjab 74 Rajasthan 74 Total 1,561 8% 18% 30% Breakdown of approved CDM project by types ** in six states with over 100 approved projects 8% 20% 36% 8% 8% 15% 42% 17% 8% 17% Gujarat Uttar Pradesh Maharashtra Andhra Pradesh Karnataka 29% 21% Tamil Nadu 6% 21% 8% 6% 35% 6% 16% 5% 17% 62% 31% 17% 53% Wind Hydro Biomass Other renewable Energy efficiency *** Industrial process Fuel switch Solid Waste * The table and graphs are based on the information available on 15 June 2010 at CDM India website. The frequency and timing of update is not available. ** Categorization of project types for the breakdown is as per CDM India website. *** Other renewables includes all the renewable energy generation projects other than those already included in a pie graph. Tamil Nadu 194 Uttar Pradesh 117 All of the six states that have over hundred approved CDM projects, except Uttar Pradesh, are located in either South or West India. Uttarakhand 34 In Maharashtra, Tamil Nadu, Gujarat, and Karnataka, where the best wind resource in India West Bengal 57 is available, about 30% to 50% of its approved projects is wind power generation projects. In Uttar Pradesh and Andhra Pradesh, biomass projects utilizing residues from agricultural Source: CDM India < activities such as bagasse and rice husk account for a large part of its approved projects. In most of the six states majority of the projects are renewable energy generation, though hydro power generation is one of the main project type only in Karnataka. 22

25 CDM Relevant Information Type * and sizes of projects/activities requiring EIA (Environmental Impacts Assessment ) report (a) New start of, (b) expansion/ modernization/ addition of capacity of, and (c) any change in product of the projects/activities in the table below shall require prior environmental clearance from: The Central Government in the Ministry of Environment and Forests for those under Category A, and The State Environment Impact Assessment Authority (SEIAA) for those under Category B, before any construction work, or preparation of land by the project management except for securing the land, is started on the project/activity: Project or Activity Category with threshold limit A. B. Mining, extraction of natural resources and power generation (for a specified production capacity) Offshore and All projects - onshore oil and gas exploration, development & production River valley projects (i) 50MW (i) < 50MW 25MW hydroelectric power hydroelectric power generation; generation; (ii) 10,000 ha. of (ii) < 10,000 ha. of culturable command culturable command area area Thermal Power Plants Materials Production Cement plants 500MW (coal/lignite/naphta & gas based); 50MW (Pet coke diesel and all other fuels -) 1.0 million T/yr production capacity < 500MW (coal/lignite/naphta & gas based); < 50MW 5MW (Pet coke, diesel and all other fuels) < 1.0 million T/yr production capacity. All stand alone grinding units Source: Environmental Impact Assessment Notification by Ministry of Environment and Forests < * Excerpt of projects/activity types relevant to CDM. Project or Activity Category with threshold limit A. B. Material Processing Petroleum refining All projects - industry Coke oven plants 250,000 T/yr <250,000 & 25,000T/yr Manufacturing / Fabrication Chemical fertilizers All projects - Petro-chemical All projects - complexes Distilleries (i) All Molasses based All cane juice/nonmolasses distilleries based (ii) All cane juice/nonmolasses distilleries < 30 KLD based distilleries 30 KLD Pulp & paper industry Pulp manufacturing and pulp & paper manufacturing industry Paper manufacturing industry without pulp manufacturing Sugar Industry - 5,000 tcd cane crushing capacity Physical Infrastructure including Environmental Services Common Effluent - All projects Treatment Plants (CETPs) Common Municipal - All projects Solid Waste Management Facility (CMSWMF) 23

26 CDM Relevant Information cont. Kyoto Protocol Ratification Status Date of signature of Climate Change Convention Date of ratification of Climate Change Convention Date of signature of Kyoto Protocol Date of ratification of Kyoto Protocol 10 June November August 2002 Establishment of DNA December 2003 India Regional Grid Emission Factors (Unit: t-co 2 /MWh) Regional Grid * *** OM** BM** OM BM OM BM Northern Western Eastern North-Eastern Sourthern Source: UNFCCC < IGES CDM Country Guide for India < Source: The Central Electricity Authority, Ministry of Power. * Covered region of each regional grid is as follows: Northern: Chandigarh, Delhi, Haryana, Himachal Pradesh, Jammu & Kashmir, Punjab, Rajasthan, Uttar Pradesh, Uttarakhand Western: Chhattisgarh, Gujarat, Daman & Diu, Dadar & Nagar Haveli, Madhya Pradesh, Maharashtra. Goa Eastern: Bihar, Jharkhand, Orissa, West Bengal, Sikkim, Andaman-Nicobar North-Eastern: Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura Southern: Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Pondicherry, Lakshadweep ** OM: Operating Margin, BM: Build Margin. Figures include inter-regional and cross-border electricity transfers. *** Emission factors of Northern, Eastern, Western, and North-Eastern regional grids have been integrated since the publication of the data. References Website of Indian DNA CDM India Market Mechanism Group, Institute for Global Environmental Strategies (IGES) : IGES Market Mechanism Group Nozomi Okubo June

27 Institute for Global Environmental Strategies National Council on Climate Change of Indonesia State Ministry of Environment The Republic of Indonesia Current Status of CDM in Indonesia Basic Information (as of 1 June 2010) Number of Project Status New updates Projects Number of CDM projects approved by DNA CDM projects registered at CDM executive board 45 Barrier analysis and investment analysis information CDM projects approved by the Indonesia DNA 122 are newly added. CDM projects at or after the validation stage 132 Basic Data on Registered CDM Projects (as of 1 June 2010) Source: IGES CDM Project Database < National Commission for Clean Development Mechanism UNFCCC < /cdm.unfccc.int/index.html> Registered CDM Projects Average Annual Amount of Review N. of Total ERs by Rejected Emission Issued CERs Conducted Projects 2012 (tco Reduction (tco 2 ) 2 ) (tco 2 ) Biogas 20 52,901 4,598,542 42, Biomass 7 113,001 3,667, Methane recovery & utilization 6 67,490 1,562, Other renewable energies 3 240,795 4,187,026 91, Cement 2 307,082 4,566,137 80, Energy efficiency 2 26, , Fuel switch 2 27, ,832 17, Methane avoidance 1 7,671 25, Waste gas heat utilization 1 390,893 2,429, , N 2 O Reduction 1 80, , Total ,494* 21,786, , Source: IGES CDM Project Database < and UNFCCC < /cdm.unfccc.int/index.html> * This value is not the total of average annual emission reduction of each project type, but average annual emission reduction of all the ten project types 25

28 CDM Project Information 19 Sumatra region Kalimantan Biogas Biomas Methane recovery and utilization Fuel switch Other renewable enegies Sumatra Sulawesi 4 Java region Java Lesser sunda islands Others Cement Energy efficiency Methane recovery and utilization Biomass The number of registered CDM projects by province (as of 1 June 2010) Region Province Total Sumatra 27 Ache 2 Bangka Belitung 2 Jambi 1 Lampung 7 North Sumatra 8 Riau 3 Riau island 2 South Sumatra 1 West Sumatra 1 Source: IGES CDM Project Database < Region Province Total Java 12 Banten 1 Central Java 2 West Java 7 West Java and South Kalimantan 1 Yogyakarta 1 Kalimantan 1 West Kalimantan 1 Region Province Total Sulawesi 3 North Sulawesi 2 South Sulawesi 1 Lesser Sunda 2 Islands Bali 2 26

29 Summary of Barrier Analysis (Biogas project) Typical arguments for barriers from PDD Investment barrier Existing system is significantly lower in capital and operating costs and also adhere to Indonesian government requirements. Proposed project does not provide the positive economic return in the absence of the CDM and CER from the proposed project will be only revenue. Technologies related biogas recovery and energy utilization in the proposed project is quite new and seen as high h risk with limited it performance guarantee. Technological barrier Barrier due to prevailing practice There is a need for skilled and experienced operators and the availability of such personnel locally is limited because biogas systems are still relatively rare. Despite numerous changes to maximum discharge standards over the years, the current technology is able to meet the current permitted discharge levels. The highest priority for most palm oil mills is to simply maintain compliance with local regulation. Note: The listed arguments are based on the registered biogas projects in Indonesia. The list does not involve all arguments described in the PDDs. Benchmark rate information in the registered CDM projects Project type Benchmark type Benchmark rate Reference Biogas Interest rate 15% Economic Report on Indonesia published by Bank of Indonesia Biomass Methane recovery and utilization Weighted average cost of capital (WACC) National bank rate + risk t + E l ti t 14.5% 20% rate + Escalation rate Escalation rate: 2% Government bond rate Interest rate 6.75% 12.70% NA National bank rate : 15%, Risk rate : 3% E l ti t 2% Bank of Indonesia Ministry of Finance Fuel Switch National Bank rate + Private 16.75% National bank rate: 12.75%, Private bank rate: 4% bank rate Weighted average cost of capital (WACC) 18.67% NA Source: IGES CDM Investment analysis database < > 27

30 DNA Structure, Approval Procedure, and Criteria (1) DNA Structure (updated Oct. 2009) Secretariat (DNPI) NC-CDM members (14Members) Coordinating Ministry of Economy State Ministry of Environment Ministry of National Development Planning / National Development Planning Agency Ministry of Energy and Mineral Resources Ministry of Forestry Ministry of Industry Ministry of Foreign Affairs Ministry of Home Affairs Ministry of Transportation Ministry of Finance Ministry of Agriculture Agency of Technological Assessment and Implementation (BPPT) National Land Agency (BPN) National Council on Climate Change (DNPI) Experts (83 Members) Stakeholders Forum The Indonesian Designated National Authority is the National Commission for Clean Development Mechanism (NC-CDM). CDM). On October 2009, the new decree (No.522) regarding NC-CDM has been announced by State Ministry of Environment. Thus, the old decree (No.206) has been already invalid. Although the new DNA structure has been established and new NC-CDM members has been elected, the previous approval procedure and criteria are still used until the new DNA establishes new one.. National Commission for Clean Development Mechanism (NC-CDM) The commission is responsible for issuing approval letters to CDM project proposals, conducting monitoring for performance of CDM project, organizing meetings for technical team and providing consultation and facilitation to stakeholders, project developers, and communities. The commission submit a report for implementation of its work to the State Minister for Environment. Secretariat The secretariat, which is situated in the National Council on Climate Change (DNPI) is responsible for facilitating the work of NC-CDM and Technical Team. Technical Team The technical team evaluates project proposals by using sustainable development criteria and indicators and presents its evaluation report to the commission in order to support its decision. It may ask for inputs from the Expert Group and other Stakeholders. Expert Group The expert group assists Technical team if required by Technical team through the secretariat. They also provide additional evaluation on the project and a second opinion on the Technical team s evaluation. Stakeholders Forum Technical Team (14Members) Stakeholder Forum is an informative consultation forum to convey information on the proposed CDM project and accommodate comments as well as complaints on the project. Source: Keputusan Menteri Negara Lingkungan Hidup Nomor 522 Tahun 2009 Tentang 28

31 (2) DNA Approval Procedure (temporarily used) 1 1 Project proponent prepares application documents as follows The National Approval Application Form Project Design Document (PDD) EIA report (where required) Notes of public consultation; Recommendation letter from Ministry of Forestry, only for forestry CDM project proposal Other supporting documents to justify the project 2 Project Proponent Secretariat receives application documents 2 The Secretariat receives the documents and check whether the application documents are completed. 3 Executive secretary submits and presents the project proposals to the NC-CDM in Internal Coordination Meeting (1day). 3.a Additional evaluation of the project proposals based on Sustainable Development Criteria and Indicators by Experts (5days), if required. 4 The National Commission assigns members of the Technical Team to evaluate project proposals based on Sustainable Development Criteria and Indicators. (21days) 4.a If required, Technical Team members of the same sector as the proposed project may take the application document to the Sectoral Technical Team meeting. 4.b If required, Technical team and experts write a note on the data needed to be completed and attach it to the evaluation report to be submitted to the National Commission. 5 Submitting the Evaluation Report on project proposals to the Secretariat by the Technical Team. Evaluation Report will be posted on the National Commission website. 6 After receiving the Secretariat s report, the National Commission makes a decision whether the project proposal p will be given Approval or Rejection. (This process takes one day.) 6.a If there is any significant difference of opinion among the stakeholders, the National commission may hold a Special Stakeholder Forum. (Forum takes one day) 7 If the National commission i cannot give the Approval Letter because of incomplete data in the project proposal, according to the note made by the Technical Team and experts, the project proponent is given 3 months time to prepare and resubmit the revised project proposal to the Secretariat. 3.a Expert evaluation (5days) 3 NC-CDM CDM internal meeting (1day) 4 4.a 4.b 4(a) Sectoral Technical team Expert evaluation ation evaluation evaluation (5days) Application document must be completed Project design modification No 5 Secretariat receives evaluation report 21 days 6 6.a NC-CDM Stakeholder Decision-making Meeting (1day) 7 Is document completed? Yes 9 Proposal does not 8 meet criteria Source: National Comission for Clean Development Mechanism < Approval letter 8 The Secretariat eta at submits National a Commission o Approval to the project proponent. 9 If the proposed project does not meet the criteria, it may be resubmitted for National Approval after modification of the project design. 29

32 (3) DNA Approval Criteria (temporarily used) The National Commission evaluates proposed projects based on the following Sustainable Development criteria and indicators. A. Environment Criteria Environmental sustainability by practicing natural resource conservation or diversification Local community health and safety Indicators Maintain sustainability of local ecological functions Not exceeding the threshold of existing national, as well as local, environmental standards (not causing air, water and/or soil pollution) Maintaining gg genetic, species, and ecosystem biodiversity and not permitting any ygenetic pollution Complying with existing land use planning Not imposing any health risk Complying with occupational health and safety regulation There is a documented procedure of adequate actions to be taken in order to prevent and manage possible accidents B. Economy Criteria Local community welfare C. Social Criteria Local community participation in the project Local community social integrity D. Technology Criteria Technology transfer Indicators Not lowering local community s income There are adequate measures to overcome the possible impact of lowered income of community members Not lowering local public services An agreement among conflicting parties is reached, conforming to existing regulation, dealing with any layoff problems Indicators Local community has been consulted Comments and complaints from local communities are taken into consideration and responded to Not triggering any conflicts among local communities Indicators Not causing dependencies d on foreign parties in knowledge and appliance operation (transfer of know-how) Not using experimental or obsolete technologies Enhancing the capacity and utilisation of local technology Source: National Comission for Clean Development Mechanism < 30

33 Host Country CDM Approval Information The Number of Approved CDM Projects by DNA (as of 1 June 2010) Type ofproject / Year Total Methane recovery & utilization Methane avoidance Biomass Fuel switch Biogas Other renewable energies Waste gas/heat utilization Hydro Power Energy Efficiency Cement PFC reduction 1 1 N 2 O Reduction 1 1 Total Source: National Commission for Clean Development Mechanism and correspondence with Indonesian DNA CDM Relevant Information List of emission factors (OM and BM) used in CDM registered projects (as of 1 June 2010) Name of CDM Project activity it in Indonesia OM* BM* Weights CM* Darajat Unit III Geothermal Project PT Navigat Organic Energy Indonesia Integrated Solid Waste Management (GALFAD) Project in Bali, Indonesia PT. BUDI ACID JAYA Tapioca Starch Production Facilities Effluent Methane Extraction And On-site Power Generation Project in Lampung Province, Republic of Indonesia MEN-Tangerang 13.6MW Natural Gas Co-generation Project MEN Energy Efficiency Improvement Project Kabil II 11.4 MW Gas Fired Project Biogas project, BAJ Unit Biogas project, BAJ Way Jepara BAJ Gunung Agung Factory tapioca starch wastewater biogas extraction and utilization project, Lampung Province, Biogas project, BAJ Terbanggi Lahendong II-20 MW Geothermal Project BAJ Pakuan Agung Factory tapioca starch wastewater biogas extraction and utilization project, Lampung Province *OM: Operating Margin, BM: Build Margin., CM: Combined Margin 31

34 Grid Emission Factor Electricity System / Region Emission Factor (tco 2/ MWH) Ex-post Ex-ante Sumatra electricity system Jamali electricity system East Kalimantan West Kalimantan Central and South Kalimantan North and Central Sulawesi Utara with Gorontalo South, West and Southeast Sulawesi Source: National Commission for Clean Development Mechanism and correspondence with Indonesian DNA Ratification Status Date of signature of Climate Change Convention Date of ratification of Climate Change Convention 5 June August 1994 Date of signature of Kyoto Protocol 13 July 1998 Date of ratification of Kyoto Protocol 3 December 2004 Establishment of DNA 21 July 2005 Source: UNFCCC < Contact Information Indonesian DNA National Commission for Clean Development Mechanism (NC-CDM) BUMN Building 18th floor, Jl. Merdeka Selatan kav. 13, Jakarta Pusat Phone: Fax: References National Commission for Clean Development Mechanism (NC-CDM) Market Mechanism Group, Institute for Global Environmental Strategies IGES Market Mechanism Group Kentaro Takahashi June 2010 Acknowledgement The valuable information and comments were provided by the Climate Change Division of State Ministry of Environment, and National Council on Climate Change of Indonesia. IGES would like to express our sincere appreciation for their extended cooperation in the development of CDM Country Fact Sheet for Indonesia. 32

35 Department of Environment Water Resource and Environment Administration, Lao Institute for Global Environmental Strategies Current Status of CDM in Lao PDR Source: WREA Summary of CDM Projects (as of 1 June 2010) Basic Information as of 1 June 2010 Project Status Num. CDM projects registered at CDM executive board 1 CDM projects approved by Lao PDR s DNA 3 CDM projects at or after the validation stage 2 CDM Project Information Type of project Afforestation & reforestation Biomass Energy efficiency Hydro power Total Total (as of 1 June 2010) Source: WREA Submit PIN Issue Letter of Non-Objection Submit PDD Issue Letter of Approval Registered to UNFCCC (DD/MM/Y) (DD/MM/YY) (DD/MM/YY) (DD/MM/YY) (DD/MM/YY) Proact International Inc /05/06 18/01/07 08/08/08 EDL Earth systems lao /08/08 01/07/09 N Nam N Ngone H d Hydropower P Project j t Nam Nhone HPC Ltd. E th systems Earth t lao l 01/03/07 J June 2007 Rubber Base Agro-forest System for Sustainable Development and Poverty Reduction Lao Thai Hua Rubber Co., Ltd. Lao Thai Hua Rubber Co., Ltd. 26/08/08 30/09/08 18/09/09 18/05/10 Nam Sim Hydropower Project ECI Nor power as 18/03/09 13/05/09 Tad Salen Hydropower Project Tad Salen Power Co., Ltd Tad Salen Power Co., Ltd 08/05/09 26/06/09 GAMUDA BERHAD GAMUDA BERHAD 15/01/09 03/03/09 Jatropha Base Agro-forest System and Biodiesel Production for Sustainable Development and Poverty Reduction Lao AgroPromotion Co., Ltd. Lao AgroPromotion Co., Ltd. 25/06/09 12/07/09 Restoring degraded lands though afforestation Lao Agro Promotion Co., Ltd. Lao Agro Promotion Co., Ltd. 04/09/09 10/09/ Name of CDM Project Energy Efficiency Improvement Project at a Beer Brewery in Lao PDR Xeset II Hydropower Project Nam TheunI Hydropower Project Total Project Proponent Project Developer Lao Brewery Co., Ltd. 1 33

36 DNA Structure, Approval Procedure, and Criteria Source: WREA (1) DNA Structure DNA Board Water Resource and Environment Administration (WREA) -chairperson, permanent representative and secretary Ministry of Planning and Investment (MOPI) Ministryi of Foreign Affairs (MOFA) Ministry of Finance (MOF) Ministry of Industry and Commerce (MOIC) Ministry of Energy and Mining (MEM) Ministry of Agriculture and Forestry (MAF) Institutional Setup DNA (Draft) WREA (Issue letter of approval) DNA Board DNA Function and Responsibilities Development of decree, guideline and criteria on CDM implementation Evaluation of CDM projects Preparation of CDM potential projects Submission of Project Idea Note/Project Design Document (PIN/PDD) to issue a formal letter of endorcement or approval by Minister of WREA Dissemination of available CDM information for public access Management and coordination of the CDM business and investment in Lao PDR DNA secretariat (DOE, WREA) Project Participant/ Proponent 34

37 (2) DNA Approval Procedure Source: WREA (3) DNA Approval Criteria Source: WREA No Yes In-depth assessment of CDM criteria by DNA Board No Submission of Project Design Document (PDD) by project participant/ proponent Initial screening by DNA secretariat Public consultation workshop by DNA Board* Decision concerning approval or rejection of project based on report on public consultation by DNA Board 7 working days 3 working days 25 working days Sustainable Development Criteria Category 1: Environment Reduction in air pollution Reduction in water pollution Reduction in soil pollution Biodiversity conservation and protection of endangered species Rational l use of mineral resources Sustainable use of forest resources Protection of archaeological, cultural, historical and spiritual heritage and sites Category 2: Social Concrete contribution to poverty alleviation Contribution to gender equality and social inclusion Stakeholder consultation All groups, both men and women, have equal access Creation of employment in the country Improvement of community infrastructures & services Nuisance and risks for the people in the vicinity of the project area Category 3: Economic Share of project budget spent in-country Reduced dependence on imported fossil fuels Reduced dependence on imported energy Category 4: Transfer of technology and knowledge Transfer of appropriate and best available technology (BAT) Capacityp y building of local stakeholders and industries/businesses Yes 5 working Issuance of letter of days approval by WREA *The cost for the workshop must be paid by the project participant/proponent.the estimated cost is less than $5,000 per workshop. Project proponents must submit 10 copies of each following document in English and Lao to the DNA. Project Design Document (PDD) (in English only) Completed SD checklist form Executive summary Any relevant official approvals from applicable ministries, provincial governments or other authorities as required for the project Information on the environmental and social impact of the project and/or an approved environmental and/or social impact assessment if it is required under Lao law 35

38 CDM Relevant Information Ratification Status Ratification of the UNFCCC 4 April 1995 Ratification of the Kyoto Protocol 6 February 2003 Establishment of Water Resource and Environment Administration (WREA), Department of Environment (DOE) 10 April 2007 Appointment of DOE (WREA) as the DNA 15 July 2003 Source: WREA; UNFCCC related Works Lao PDR s First National Communication Lao PDR s National Adaptation Programme of Action 1 October 2000 May 2009 Source: Contact Information DNA in Lao People s Democratic Republic Department of Environment, Water Resources and Environment Administration, Prime Minister s Office of Lao PDR P.O. Box 7864 Ban Sisavad, Vientiane, Lao PDR Tel: (856-21) , Fax: (856-21) , syamphone_s@hotmail.com References Water Resources and Environment tadministration, i ti Department t of Environment, Pi Prime Minister s i Office of flao PDR Market Mechanism Group, Institute for Global Environmental Strategies CDM Capacity Building Activities in Lao PDR IGES Market Mechanism Group Keisuke Iyadomi, Chisako Urayama June 2010 Acknowledgement The valuable information and comments for CDM projects and a DNA structure in Lao PDR was provided by Department of Environment, Water Resource and Environment Administration, Lao PDR. IGES would like to express our appreciation for their support in making the CDM Country Fact Sheet of Lao PDR. 36

39 Institute for Global Environmental Strategies Department of Environment and Natural Resources Environmental Management Bureau Current Status of CDM in The Philippines Basic Information (as of 1 June 2010) Project Status Number of Projects CDM projects registered at CDM executive board [1] 41 CDM projects approved by the Philippines DNA [2] 83 New Updates Registered CDM project data DNA-approved CDM project data Project analysis by region and province in CDM Project information page Current PoA development in the Philippines in Page 8 Source: [1] IGES CDM Project Database [2] The Philippine CDM DNA Secretariat Basic Data on Registered CDM Projects (as of 1 June 2010) Registered CDM Projects Review N. of Ave. Annual Total ERs by Issued requested Projects ERs (tco 2 /y) 2012 (tco 2 ) CERs Rejected Biogas (Animal waste) 28 4, , Biogas (Waste water treatment) t t) 2 62, , Biomass Utilisation 3 58, , Cement Methane avoidance (Composting) 1 6,058 24, Methane recovery & utilization (Landfill) 2 353,166 2,735,022 30, Geothermal power 1 74, , Waste gas/heat utilization 1 61, , Wind power 1 56, ,634 64, Hydro power 1 95, , Secondary catalytic ti reduction of N 2 O emissions 1 39, , Total 41 35,955* 6,270,426 95, Source: IGES CDM Project Database * This value is not the total of average annual emission reduction of each project type, but average annual emission reduction of all the eleven project types. 37

40 CDM Project Information 28 Number of projects Luzon The number of registered CDM projects by province (as of 1 June 2010) Region Province Total Biogas Biomass Methane Methane Wind avoidance recovery Power Luzon 33 & Tarlac 10 utilization Bulacan 6 Rizal 6 Batangas 3 Cavite 3 Metro Manila 3 Ilocos Norte 1 Number of projects Laguna 1 2 Nueva Ecija 1 Quezon Visayas 4 Manila Negros Occidental 2 Mindanao Negros Oriental 2 Biomass N2O Geothermal 5 decomposition power Misamis Oriental 4 Davao 1 Visayas Source: IGES CDM Project Database Note: some projects are conducted in several locations and therefore the total in a region does not necessarily the same as the total of all provinces in a region. Mindanao Number of projects Biogas Hydro Power Waste gas/heat utilization 38

41 CDM Project Information Summary of Barrier Analysis for Biogas (Animal Waste) Barrier Typical arguments for barriers from PDD Investment barrier Lack of knowledge and experience with a biological treatment of animal wastewater technology prevents investment to the project Unfair financing treatment accorded to renewable energy technologies, which is shorter repayment periods than conventional energy in the host country The current system represents the lowest cost option, with the only cost being the opportunity cost of alternative land use. Technological barrier Barrier due to prevailing practice A biological treatment of animal wastewater technology is a new and relatively unknown technology in the host country. The predominant technology for piggery wastewater treatment in the Philippines is a lagoon-based system. Anaerobic digestion systems are perceived as relatively high risk, being based upon the function of a biological system that is neither 100% characterised, nor performance guaranteed. The highest priority for commercial farms is the management of their waste discharges to simply maintain compliance with local regulation. From the project farm operator s perspective, the existing lagoon system is a cheap and sufficient way to clean the wastewater. Note: The listed arguments are based on the PDDs of registered biogas (Animal waste) projects in the Philippines. The list does not involve all arguments described in the documents. Benchmark rate information in the registered CDM projects Project type Benchmark type Benchmark rate Reference Hydro power Treasury Certificate+Risk 11.0% Peso-denominated Philippine government bond as of 16 Aug premium 2007 expiring in March 2011 Methane recovery & utilization Government bond rate 7.1% Asian Bond On line quotation of May 24th 2007 Geothermal power NA 13.2% NA Wind power NA 13.2% NA Source: IGES CDM Investment analysis database 39

42 DNA Structure, Approval Procedure and Criteria (1)DNA Structure (2)DNA Approval Procedure DENR Secretary CDM Steering Committee TEC for Energy-Related Project Activities DOE CDM NATIONAL APPROVAL PROCESS BASIC STEPS Chairperson: DENR Undersecretary & alternate Members & alternates: Department of Energy, Department of Science and Technology Private Sector (c/o the Philippine Chamber of Commerce and Industry) NGO (c/o the Philippine i Network on Climate Change) TEC for Afforestation & Reforestation ti Project Activities TEC for Waste Management Project Activities Step 4 Project Approval/ Non- Approval DNA Head (Secretary of DENR) EMB- DENR Step 1 Project Application Project Proponent Step 2 Project Evaluation TEC Step 3 Project Endorseme nt CDM Steering Committee Project Application Monitoring CDM Secretariat FMB- DENR CDM Secretariat EMB- DENR Source: DENR Administrative Order No (August 31, 2005), Chapter III CDM National Approval Process Source: DENR Administrative Order No (August 31, 2005), Annex V, Organizational Structure of the DENR as the Designated National Authority Designation of the Philippine DNA for CDM Executive Order No. 320, series of 2004: Designating the Department of Environment and Natural Resources (DENR) as the National Authority for the Clean Development Mechanism Promulgation of the Rules and Regulations Governing the Implementation of Executive Order No. 320, series of /6/ /8/31 (Signature) 2005/9/7 (Effectivity) Application Fees and Processing Time Fees (Peso) Filing Fees 600 CDM Project Activities Not Considered Small Scale Small-Scale CDM Project Activities Target Time (Working Days) 10, , Source: DENR Administrative Order No Section 10.1 and Annex I on Schedule of Fees 40

43 (3)DNA Approval Criteria Economic Dimension Criteria Sustainable development benefits and the legal capacity to participate serve as the bases for evaluating an application. SUSTAINABLE DEVELOPMENT BENEFITS DESCRIPTION (SDBD): Project Level Indicators (Examples) Local companies to be contracted for the construction, implementation Number of workers from the host community (skilled and unskilled, contractual and permanent employment, Provide livelihood and other economic competitive packages) opportunities in the community Livelihood opportunities Finance schemes for sustainable alternative livelihood. Provide proper safety nets and compensatory Measures to address the replacement of lost assets, loss of livelihood opportunities as a result of the project measures for affected stakeholders Safety nets and compensatory measures as a result of operation/implementation risks and potential hazards Promote the use of cleaner, more efficient and environment-friendly technology in the sector Transfer of appropriate technology (describe actual technology, extent of its application in the sector, dependability/reliability/efficiency and expected technological problems and how to address such problems) Provide new financial resources Social Dimension Provide education and training which build the capacities of local stakeholders In addition to the estimated foreign capital inflow received from an Annex I country and the reduction in expenditures for a particular item as a result of the project, include the amount of savings to be generated and the amount of funds therefrom to be allocated for other purposes for the improvement of the host community such as setting up of development funds for sustainable programs for disadvantaged sectors / groups, employee benefits, etc. Frequency and types of training i (social, technological, l entrepreneurial, etc.) for the project s labor force and the host communities Frequency of educational tours for academe, related industries and other interested parties on the technology, impacts of climate change and CDM visits/tours/lectures conducted per month Scholarships for deserving local stakeholders Provide vulnerable groups access to local resources and services Promote local participation in the project activity Environmental Dimension Improve local environmental quality Comply with environmental policies and standards Access to local resources (fishing grounds, forests, water, etc.) Supply of and access to basic needs (water, food, electricity, medical outreach, etc) for affected vulnerable groups. Level of coordination with and participation of various sectors, social development strategies, integration with the community Measurable indicators to show the improvement in local environmental quality other than the GHG emission reduction schedule of surveys, inventories and other monitoring tools Stability and treatment of any form of waste coming from the project. Present and expected level of compliance with all applicable environmental policies and standards (EIA, air, water, land use and forestry, natural habitat and protected areas, waste hazardous, etc.) vis-à-vis historical data Concrete efforts of the project to promote sustainable strategies and programs for the use of natural resources in and Promote sustainable use of natural resources around project site (water, forests, etc.) Source: Joyceline A. Goco (2006) Host Country Approval Process: Initial Experiences (presentation) 41

44 Required Application Documents for Requesting Host Country Approval 1. Letter of Intent [1] 2. Application Letter (template available at the Philippine DNA website) 3. Project Design Document (PDD) 4. Required Attachments (1) Sustainable Development Benefits Description State project level indicators. If there are existing sustainable development-related programs as mandated under Philippine laws, rules and regulations as a result of the core or base project, the related CDM project activity should be able to provide new sustainable development benefits on top of these programs. (2) Proof of Legal Capacity [2] (3) Supporting Documentation of Stakeholders Consultation (4) Environmental Compliance Certificate / Certificate of Non-Coverage [3] (5) Copies of other permits, certificates and clearances as applicable (e.g. Permit to Discharge, Clearance from the Fertilizers and Pesticides Authority, etc.) (6) Evidence of adequacy of supplies critical to the project activity and proof that other users are not unduly disadvantaged (e.g. copy of final contracts with suppliers of biomass/feedstock) (7) Evidence of the coverage of agreement between the CDM project developer and the project owner-proponent (Responsibilities, Liabilities, Benefit Packages, etc.) (8) Results of Feasibility Study, if any (9) Notarization (accountability statement original copy) (10) 10 Printed copies and 2 electronic copies of the complete set of application documents (including maps, charts, photos, etc.). To facilitate the filing of applications, applicants are advised to seek an appointment with the CDM Secretariat for the initial verification of completeness of documents prior to reproduction. [1] UNFCCC CDM Executive Board 41, Annex 46: Guidance on the demonstration and assessment of prior consideration of the CDM [2] Host country authorization is required in order to open accounts in the CDM registry. The following proof/s that the Philippine project proponents possess the legal capacity to participate in, and undertake the proposed CDM project activity, must be submitted: Charter / SEC Registration, Articles of Incorporation, latest/updated General Information Sheet, valid Business Permit, Certificate of Good Standing and No Pending Cases, Company Profile and Management Experience [3] The following projects are not required to acquire an ECC under Presidential Decree No. 1586: a.) Family dwellings / residential units; b)barangay b.) Micro-Business enterprises under Republic Act 9178; c.) Projects that are existing or operational prior to 1982 and has not expanded in terms of production, process or area; not stopped for at least two years since 1982; with technology / production method or manufacturing process / operation used prior to 1982 and were not modified; with project facilities or structures prior to 1982 that were not changed or added to; and d.) Other projects classified as Certificate of Non-Coverage (CNC) under the Categorization Matrix of the Procedural Manual. Source: CDM Secretariat, EMB-DENR (2006) Documentary Requirements 42

45 Host Country CDM Approval Information Number of Approved CDM Projects by the Philippine DNA (as of 1 June 2010) Type of project Total Biogas (Animal waste) 46 Biogas (Waste water treatment) 4 Landfill gas recovery & utilization 4 Biomass 11 Methane avoidance 3 Geothermal power 2 Hydro power/ Rehab of hydro plant 6 Cement (alternative fuel) 2 Waste gas/heat utilization 1 Wind power 2 Secondary Catalytic Reductions N 2 O 1 Transport (retrofitting) 1 Total 83 Source: The Philippine CDM Secretariat, Environmental Management Bureau, of the Department of Environment and Natural Resources (EMB-DENR) Guidance/Clarification from DNA Interim Guidelines on the conduct of stakeholders consultation under DAO [1] Minimum Contents of the Documentation of Stakeholders Consultation: Proof of Written Announcement / Invitation, List of Participants containing complete names, specific organizations and sectors/affected groups represented, signatures, Minutes of Proceedings with a section on stakeholder profiling; photos and presentation materials as annexes, Summary of Issues and Concerns Raised, Proposed Measures to Address Issues and Concerns, Site / Vicinity Map Guidelines governing the evaluation of CDM A/R project activities [2] 1.The CDM Afforestation and Reforestation project activity may be implemented in all open/denuded areas prior to 1990 and at present, either public or private land; 2.The provision on the requirements needed for the TEC Evaluation for the public and private land; 3.The qualified applicant must be a holder of existing and operating tenurial agreement and for non-holder, they must be granted a waiver by the tenured holder and board resolution in case of proclamation to undertake CDM A/R project activities in the area; 4.The FMB Secretariat shall see to it that the processing of the documents for each project proposal is within the prescribed evaluation period which shall not exceed five (5) days for small-scale project and nine (9) days for largescale project. [1] Philippines DNA website Technical Resources, Interim Guidelines for the Conduct of the Stakeholders Consultations [2] FMB Circular No

46 CDM Relevant Information Ratification Status The UNFCCC Date of signature Date of ratification 12 June August 1994 Date of entry into force 31 October 1994 The Kyoto Protocol Date of signature 15 April 1998 Date of ratification 20 November 2003 Date of entry into force 16 February 2005 National Communication First National Communication 19 May 2000 Source: Ratification Status in the UNFCCC webpage Current PoA development in the Philippines As of 2 June, two small-scale Programme of Activities (PoAs) in the Philippines are under validation. One is biogas (animal waste) PoA developed by Land Bank of the Philippines (LBP) and the other is newly developed energy efficiency (CFL distribution) PoA by Department of Energy (DOE) of the Philippines. (Source: IGES CDM Programme of Activities iti (PoA) Database To promote PoA development in the country, IGES hosted Capacity Building Workshop for the Coordinating Entity of the Programmatic CDM (PoA), with Ateneo School of Government (ASOG), in Manila on 26 January The EMB-DENR was invited as an important partner and also provided the venue for the workshop. Questions and comments from the participants represented their positive attitude for the PoA. IGES will continue to assist PoA development in the Philippines. ( Contact Information The CDM Secretariat / the CDM Helpdesk Environment Management Bureau of the Department of Environment and Natural Resources Address: 2/F, HRDS Building, EMB, DENR Compound, Visayas Avenue, Diliman, Quezon City, 1116 Republic of the Philippines Trunkline: (+632) local 2109 Direct: (+632) Fax: (+632) joy.goco@yahoo.com, gmerilo@yahoo.com IGES Market Mechanism Group Chisako Urayama, Kazuhisa Koakutsu June 2010 Acknowledgement Data and information on Philippine CDM projects for DNA approval was provided by the EMB-DENR. The valuable information and comments to this issue of CDM Country Fact Sheet received from EMB-DENR were greatly appreciated. 44

47 Institute for Global Environmental Strategies Thailand Greenhouse Gas Management Organization Current Status of CDM in Thailand Basic Information (as of 1 June 2010) Project Status The Number of Projects CDM projects registered at CDM executive board 35 CDM projects approved by the Thai DNA 107 CDM projects at or after the validation stage 119 Source: IGES CDM Project Database < UNFCCC < /cdm.unfccc.int/index.html>, Thailand Greenhouse Gas Management Organization (TGO) < Last updated d on 29 April Thailand Greenhouse Gas Management Organization (TGO) is the Designated National Authority (DNA) in Thailand and was established on 6 July Prior to the establishment of the TGO, the Office of Natural Resources and Environmental Policy and Planning (ONEP) was the DNA office. So far, Thailand issued Letter of Approval (as of June 2010) to 107 projects. Among those projects, 35 projects had been registered at the CDM Executive Board. Most of the projects in Thailand are either biomass energy generation or biogas energy generation by utilizing waste water from pig farm, palm oil mill, and tapioca mill. Basic Data on CDM Projects (as of 1 June 2010 ) Registered CDM Projects N. of Average Annual Rejected Total ERs by 2012 Amount of Review projects Emission Reduction (tco 2 ) (tco 2 ) issued CERs Conducted Biogas (Wastewater Treatment) 19 58,637 5,950, ,546 1 Biogas (Animal Waste) 4 25, ,426 Biomass (Bagasse) g 3 85,690 1,965,827, 3 Biomass (Rice Husk) 3 44, , ,678 1 Methane recovery & utilization 2 82, ,837 1 Waste heat utilization 2 36, ,908 N 2 O reduction 1 142, ,719 1 Biomass (EFB) 1 106, ,929 Total 35 59,878* 10,886, , Source: IGES CDM Project database < * This value is not the total of average annual emission reduction of each project type, but average annual emission reduction of all the seven project types. 45

48 CDM Project Information List of registered CDM projects in Thailand (as of 1 June 2010) Name of CDM Project Activity Type of Project Source: GES CDM Project Database Thailand Greenhouse Gas Management Organization (TGO) < Last updated on 29 April Host Party DNA Approval Date (DD/MM/Year) UN Registration Date (DD/MM/Year) Annual ERs (tco2/y) Total ERs by 2012 (tco2) V.P. Farms Pig Manure Methanisation, Methane Recovery and Energy Production Project Biogas (Animal waste) 18/02/ /02/ ,131 88,617 Power Prospect 9.9MW Rice Husk Power Plant Biomass (Rice husk) 04/03/ /02/ , ,772 Decha Bio Green Rice Husk Power Generation 7.5MW Biomass (Rice husk) 23/07/ /02/ ,237 84,711 Siam Cement (Thung Song) Waste Heat Power Generation Project, Thailand (TS5 Project) Siam Cement (Ta Luang) Waste Heat Power Generation Project, Thailand (TL5&6 Project) Eiamburapa Company Ltd. Tapioca starch wastewater biogas extraction and utilization project, Sakaeo Province, Kingdom of Thailand Bangna Starch Wastewater Treatment and Biogas Utilization Project Southern Palm Wastewater Treatment and Electricity Generation in Suratthani, Thailand Kitroongruang Biogas Energy Project Srijaroen Palm Oil Wastewater Treatment Project in Krabi Province, Thailand Bionersis Project Thailand 1 Wastewater Treatment with Biogas Technology in a Tapioca Processing Plant at P.V.D. International Company Limited, Thailand Biogas project, Cargill Siam Borabu Wastewater Treatment with Biogas Technology in a Tapioca Processing Plant at Roi Et Flour Company Limited, Thailand Green Glory Wastewater Treatment and Electricity Generation in Suratthani, Thailand Waste gas/heat utilization 14/05/ /02/ ,262 87,567 Waste gas/heat utilization 14/05/ /02/ , ,341 Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Methane recovery & utilization (landfill gas recovery & utilization) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) 14/07/ /12/ , ,467 14/07/ /11/ , ,044 15/01/ /10/ ,622 60,521 15/02/ /10/ ,328 55,307 21/05/ /10/ ,429 64,692 25/12/ /09/ , ,965 14/07/ /09/ , ,099 21/05/ /09/ , ,301 14/07/ /09/ , ,610 15/01/ /08/ ,916 55,012 46

49 Name of CDM Project Activity Thachana Palm Oil Company Wastewater Treatment Project in Thailand Univanich TOPI Biogas Project Catalytic N2O Abatement Project in the tail gas of the Caprolactam production plant in Thailand Siam Quality Starch Wastewater Treatment and Energy Generation Project in Chaiyaphum, h Thailand CYY Biopower Wastewater treatment plant including biogas reuse for thermal oil replacement and electricity generation Project, Thailand Jiratpattana Biogas Energy Project Chao Khun Agro Biogas Energy Project Chumporn applied biogas technology for advanced waste water management Univanich Lamthap POME Biogas Project Cassava Waste To Energy Project, Kalasin, Thailand (CWTE project) Surat Thani Biomass Power Generation Project in Thailand Type of Project Biogas (Wastewater treatment) Biogas (Wastewater treatment) Host Party DNA Approval Date UN Registration Date Annual ERs (tco2/y) Total ERs by 2012 (tco2) 21/05/ /08/ ,844 79,698 23/04/ /08/ , ,187 N 2 O reduction 18/02/ /06/ , ,719 Biogas (Wastewater t treatment) t t) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) Biogas (Wastewater treatment) 14/07/ /04/ , ,459 14/07/ /03/ , ,708 18/02/ /03/ ,726 93,891 18/02/ /03/ , ,826 28/08/ /02/ ,448 91,287 04/03/ /02/ , ,573 18/02/ /01/ , ,145 Biomass (EFB) 28/08/ /05/ , ,929 Ratchaburi Farms Biogas Project at Veerachai Farm Biogas (Animal waste) 26/10/ /03/ , , Ratchaburi Farms Biogas Project at Nong Bua Farm Biogas (Animal waste) 26/10/ /03/ ,958 77,318 Ratchaburi Farms Biogas Project at SPM Farm Biogas (Animal waste) 26/10/ /03/ , ,983 Jaroensompong Corporation Rachathewa Landfill Gas to Energy Project Methane recovery & utilization (landfill gas recovery & utilization) 28/08/ /03/ , ,872 Phu Khieo Bio-Energy Cogeneration project (PKBC) Biomass (Bagasse) 30/01/ /10/ , ,792 Dan Chang Bio-Energy Cogeneration project (DCBC) Biomass (Bagasse) 30/01/ /10/ , ,341 Khon Kaen Sugar Power Plant Biomass (Bagasse) 30/01/ /07/ , ,694 A.T. Biopower Rice Husk Power Project in Pichit Biomass (Rice husk) 30/01/ /06/ , ,537 Korat Waste To Energy Biogas (Wastewater treatment) 30/01/ /06/ ,843 3,108,427 47

50 Number of registered projects by province (as of 1 June 2010) Biogas Biomass Methane Waste heat N2O recovery & utilization reduction utilization Total North 1 1 West 3 3 Central North Central North-East West East North-East East South South Benchmark rate information in the registered CDM projects Project type Biogas Biomass Waste gas/heat utilization Benchmark type Benchmark rate Reference Local commercial lending rate 6.56% NA Weighted average of Return on Equity 8.52% Stock Exchange of Thailand (SET) & Bank of Thailand (BOT) Weighted average cost of capital (WACC) 8.68% NA IPP industry hurdle rate 15% Ayudhya Securities Public Company Limited Government bond rate + Risk premium Weighted average cost of capital (WACC) IPP industry hurdle rate 9.69% 11.70% 15% Government bond rate:4.98%, Risk premium: 4.71% NA Ayudhya Securities Public Company Limited Return on the capital asset 11.95% NA Source: IGES CDM Investment analysis database < > 48