CDM Project Pipeline Auditorium, AIT Conference Center, Thailand 19-21 October 2005.

CDM Project Pipeline

Auditorium, AIT Conference Center, Thailand19-21 October 2005

Outline

A. CDM Pipeline in the Philippines

B. CDM issues affecting the development

of CDM projects

C. Roles of DNA, NGO and other institutions

D. Country specific issues

E. Lessons Learned

F. Conclusions

Waste Management ProjectsRenewable energy ProjectsAfforestation/Reforestation ProjectsOthers

A. CDM Pipeline in the Philippinesas of October 2005

Waste Management ProjectsRocky Farms Piggery Waste Biogas Digester ProjectWaste to Energy Program for Philippine Pig FarmsParamount Integrated Methane Recovery and Electricity GenerationUnirich Farm Corporation Methane Recovery and Electricity GenerationEverlasting Farm and Sentra Farm Corporation Methane Recovery GenerationGold Farm Corporation Methane Recovery and Electricity GenerationGold Lion Farm Corporation Methane Recovery and Electricity GenerationRed Dragon Farm Corporation Methance Recovery and Electricity GenerationContainer Corporation of the Philippines Wastewater Gas to Energy ProjectTanay Municipal Landfill Gas to Energy ProjectPNOC Exploration Corporation Payatas Landfill Gas to EnergyGeneral Santos Biogas Recovery and UtilizationCAT Waste to Energy BiogasIntegrated Solid Waste Disposal Projects in the Philippines50MW Victorias Baggase Cogeneration Plant30MW First Farmers CogenerationLa Suerte Rice Mill 1MW Rice Hull Cogeneration PlantIsabela Rice Hull Power Generation / Cogeneration ProgramIntercity Industrial Estate 5MW Rice Hull Power PlantBoracay ReStore Wind-Biogas HybridDigester Anaerobic Baffled ReactorIntegrated Strategy for Transport and Waste ManagementCapture from Anaerobic Digestion of Pig and Livestock ManureMethane Capture in Metro Manila DumpsiteBiogas Project in Southern Christian CollegeReduction of Nitrous Oxide D&C Farm CorporationbPig City

Total: 29 (63%)

Renewable Energy Projects42MW North Luzon Wind Power25MW North Wind Bangui Bay Project21MW Wind Farm Project10.8MW Talubin River Basin Hydropower

Project12.5MW Mindoro Mini-Hydro Power Plant

Projec20MW Palinpinon II Optimization ProjectSan Carlos Wind FarmAbra de Ilog Wind FarmSipanpang 1MW Hydropower20 MW Nasulo Geothermal Project Burgos Wind ProjectCEMEXChemrezBio-Diesel

Total : 14 (30%)

Afforestation and ReforestationStreambank Rehabilitation and Ecological Enhancement in Tanay Micro-Watershed ProjectSustainable Reforestation in Tarlac

Total: 3 (7%)

Status of CDM projects in the Philippines:

• Projects with Project Design Document : 17• Projects with PIN/PAD : 26• CDM Documents under development : 3

Total : 46

• Projects submitted for DNA approval : 28

• Projects posted for validation : 11

• Project implemented : 1

Note: There maybe other CDM projects not monitored by CD4CDM

CDM Projects posted for validationParamount Integrated Methane Recovery and Electricity Generation(7,879 tCO2/yr)Unirich Farm Corporation Methane Recovery and Electricity Generation (3,255 tCO2/yr)Everlasting Farm and Sentra Farm Corp. Methane Recovery Generation (4,086 tCO2/yr)Gold Farm Corporation Methane Recovery and Electricity Generation (3,255 tCO2/yr)Gold Lion Farm Corporation Methane Recovery and Electricity Generation 3,255 tCO2/yr)Red Dragon Farm Corporation Methance Recovery and Electricity Generation 1,494 tCO2/yr)D&C Farm Corporation (1,494tCO2 tCO2/yr)

25MW North Wind Bangui BayProject (76,218 tCO2/yr)Burgos Wind Power (62,872 tCO2/yrNasulo Geothermal Project (81,009 tCO2/yr)

PNOC Exploration Corporation Payatas Landfill Gas to Energy (35,843 tCO2/yr)

CD4CDM Assisted Projects

Promoted andFacilitated (37%)

Provided technicalAssistance (39%)

Other projects (22%)

Developed PDD (2%)

17

18

10

Total Projects: 46

1

Technical assistance provided by CD4CDM:

• Participation of the project proponents in a Technical Tutorial Course conducted by CD4CDM to develop the Project Design Document (PDD) or the Project Application Document (PAD). The course included individual tutoring of project proponents in-between monthly meetings.

• Assisted project proponents in developing their PDD or PAD by providing technical expertise in terms of project cycle, baseline and monitoring methodologies, additionality, etc.


Promotion or facilitation provided by CD4CDM:

• Participation of the project proponents in various training workshops conducted by CD4CDM;

• Inclusion of the CDM projects in the promotional activities of CD4CDM like 2004 Manila Carbon Forum and the 2005 Carbon Expo held in Cologne, Germany;

• Close coordination with the proponents in terms of CDM methodologies and updates.


B. CDM issues affecting the development of CDM projects

Barriers:

• Hesitancy in investing in CDM projects by local and foreign investors;

• Lack of baseline data;

• High transaction cost in terms of CDM documentation (PDD preparation);

• High transaction cost of validation and certification;


Barriers:

EB developments (i.e. decisions, approval of methodologies, etc) which are lagging behind developments in the market;

Insufficient local and regional validators;

Present political issues faced by the country;

Changes in government officials involved in the process


Solutions:

• Advocacy to CER buyers like Japan to invest in underlying finance;

• Advocacy to financial institutions to use CERs and ERPAs to improve credit ratings of project proponents and act as bundlers for small scale CDM projects;

• On-going project to establish baseline data for energy projects;

• Continuous capacity building for project proponents and local consultants to develop CDM documents;

Solutions:

• Presence of local validators will lower validation cost;

• Provision of lower application fee and shorter processing time for small scale projects in the national approval process to lessen transaction cost;

• Continuous capacity building for all the institutions involved in the CDM national approval process;


A. Designated National Authority (DNA)

• Formulates and develops a national CDM policy;

• Develops the criteria, indicators, standards, systems and procedures, and evaluation tools;

• Undertakes the assessment of proposed CDM projects;

• Monitors the implementation of CDM projects;

C. Roles of different institutions/ groups in CDM

B. Non- government Organization

• Ensures that the sustainable development (SD) impacts of the proposed CDM project are in line with the SD objectives of the country;

• Develops and promotes CDM projects with high SD impacts;

• Participates in the CDM approval process of the National Authority through its representative in the CDM Steering Committee;

C. Roles of different institutions/ groups in CDM (cont.)

• C. Financial Institutions

• Provide underlying finance for the development of CDM projects (local or foreign investment);

• Potential project developer for projects in their loan portfolio;

• Potential bundlers of small scale CDM projects;

• Brokers for CERs;

• Financial advisers to project proponent


• D. Consultancy Groups/ Academe

• Provide technical assistance in the development of feasibility studies and CDM documents such as the PDD;

• Assist in packaging the CDM projects;

• Provide expertise in drafting legal contracts such as Emission Reduction Purchase Agreement (ERPA);

• The academe conducts research on possible baseline and monitoring methodologies


Promulgation of the Rules and Regulations of the National Approval Process;

Streamlined and transparent National Approval Process;

High awareness on CDM by significant stakeholders such as, government, financial institutions, project developers, environmental consultants, etc;

Presence of CER buyers

D. Country specific developments and observations

Good number and variety of CDM projects in the pipeline;

Presence of capacity building assistance from various funding agencies;

Growing interest in forestry;

Pilot projects getting off the ground (e.g. first wind farm, first landfill gas capture;

The government is giving priority to the development of renewable energy sources due to rising cost of oil

D. Country specific developments and observations

E. Lessons Learned

It is important for any capacity building project to work closely with the focal agency such as DENR to coordinate efforts and maximize resources;

It is good to maintain linkages with all the players involved in CDM (project proponents, NGOs, financial institutions, govt. agencies, consultancy groups, etc.);

Co-organizing events and activities with other institutions and group associations is cost-effective;

Participation in international forum such as the Manila Carbon Forum and the Carbon Expo are good opportunities to promote CDM projects and generate interests from potential investors;

E. Conclusions

The CD4CDM, in coordination with the Inter-Agency Committee on Climate Change (IACCC) has significantly contributed to the development of CDM capacity in the Philippines. 78% of the monitored potential CDM projects in the Philippines received assistance from the Project, ranging from actual technical assistance to facilitation and promotion.

CD4CDM also helped in the promotion of Philippine CDM in various international forum.

Maraming Salamat!

Marina T. MallareProject Coordinator

Capacity Development for CDMklima-Climate Change Center

Manila ObservatoryTelefax: +63 2 [email protected]

www.klima.ph/cd4cdm

CDM Project Pipeline Auditorium, AIT Conference Center, Thailand 19-21 October 2005.

Documents

Transcript of CDM Project Pipeline Auditorium, AIT Conference Center, Thailand 19-21 October 2005.