Nama Status & Opp -Rsm Gc - 16 Jan 14

NAMA – Status and Opportunities16 January 2014

Dr. P. Ram BabuCEO – RSM GC

Email ID: [email protected]

Experience. Expertise. Value

www.general-carbon.com

Leading player in Energy and Sustainability Services

Registered 100 CDM projects & own 4 POAs

Led more than 500 sustainability service offerings( CSR, EIAs, LCAs, CDM, Environmental Finance etc.)

• Sectors( Energy and Infrastructure, Mines and Metals, Manufacturing, Habitats, Forestry, Agriculture) and • Geographies (India, Srilanka, Thailand, Philippines, Indonesia, Nigeria, Kenya, Tanzania)• Clients (Governments, Multilaterals, UN, Business groups, NGOs)

Delivered more than 500 million USD benefits to clients

Operating across India, South East Asia and Africa

Experience . Expertise .Value


RSM International is the 7th largest network of independent audit, tax & advisory firm in the world with over USD 4 billion in fee income and presence in over 700 offices in 103 countries

RSM Astute is the 6th largest accounting and consulting group in India has 1000 people strength and located in 19 offices in 13 cities with delivery capabilities in 90+ cities

Some Clients of RSM Astute


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http://en.wikipedia.org/wiki/File:BDB_logo.jpg



Some RSM GC Clients for Energy and Sustainability Service Offerings


Some more clients…..

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Thought leaders & Press coverage Carbon market –

♦ Point Carbon Americas, NY♦ Point Carbon, Amsterdam ♦ Africa Carbon Forum, Kenya

Renewable energy♦ REC Conclaves across India♦ Euromoney – Renewable

energy finance conference Clean technology

♦ Renewtech India♦ EU Chambers of Sustainable

Development & Yes Bank♦ Cleantech♦ Hydro Power Convention

Expertise. Experience. Value


Our Service OfferingsEnergy Energy Audit / Energy Management

Systems [ISO 50000) Renewable Energy Purchase

Obligation (RPO) / Renewable Energy Certificate (REC) Advisory and Trading

PAT Advisory and ESCerts Trading RE Power Contracting and Trading

Sustainability CSR – Companies Act 2013 Environmental and Social Assessments Carbon and Water Foot printing &

International Certifications [ ISO, CDP ] GHG ER Projects/Programs /Policies

[CDM, VCS, PoA, GS] Business Responsibility Reporting

[Under SEBI Regulations] Sustainability Reporting[GRI etc. ] Sustainability ERP Tools and

Performance Improvement

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Our Service Offerings

Public Policy Support in Climate Change- Mitigation and Adaptation

Establishing Environment and Energy Market Infrastructure

Sustainability Media and Communications

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NAMA – Status


Introduction

Cancun COP 16, December 2010, parties agreed that♦ “developing country Parties will take nationally appropriate mitigation actions

(NAMA) in the context of sustainable development, supported and enabled by technology, financing and capacity-building, aimed at achieving a deviation in emissions relative to .business as usual. emissions in 2020”

♦ developed country Parties shall provide enhanced financial, technological and capacity-building support for the preparation and implementation of NAMA

♦ set up a registry to record NAMA seeking international support and to facilitate matching of finance, technology and capacity-building support to these actions

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Introduction …contd

highlights from summary of report ‘Guidance for NAMA Design: Building on Country Experiences’ – UNFCCC, UNEP, UNDP – 2013

♦ NAMAs do not represent a legal obligation under the UNFCCC. NAMAs are voluntary actions taken by developing countries to reduce GHG emissions to levels below those of “business as usual” (BAU).

♦ NAMAs generally support and are aligned with sustainable development as interpreted by the host country, including any existing Low Emissions Development Strategy.

♦ Since this is the case, and since NAMAs benefit from this alignment with existing policies and priorities, they will often be driven by priorities other than emissions reduction.

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♦ Existing development objectives and priorities may be re-evaluated placing additional emphasis on options for emission reductions.

♦ NAMA financing1.Unileratal NAMA – receive domestic financing through redirection of existing lines of

financing within country2.Supported NAMA – use domestic sources to leverage international funding, ideally from

institutions that are already active in the country

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♦ NAMA Vs CDM – fundamental difference in the context

♦ NAMAs hold out the promise of scaled-up mitigation efforts by and in developing countries on a voluntary basis, free of the constraints of a project-by-project approach.

♦ They can be designed as instruments that support or deliver existing national development goals while at the same time causing the emission of lower amounts of greenhouse gases.

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Differences between CDM and NAMA

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Differences between CDM and NAMA

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Relation between Low Emission Development Strategy (LEDS) and NAMA

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Example of using LEDS fot NAMA identification in Indonesia

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International NAMA Facility

Background

♦ At COP-18 in Doha 2012, Germany and the UK announced to jointly provide € 70m of initial funding, open for other donors

♦ External consultation process with NAMA experts in the beginning of 2013 to ensure a robust governance structure and robust NAMA criteria

♦ First Call for NAMA Support Project Outlines published on July 10, 2013, closed on September 2, 2011

♦ A first pilot programme will be supported in Mexico (EcoCasa Programme) to demonstrate the type of support, which the Facility has been designed for

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International NAMA Facility

Means of Support

♦ Support for the implementation of parts of NAMAs (NAMA Support Projects) via the full range of development cooperation instruments

♦ financial support instruments (grants, concessional loans and guarantees)

♦ and where closely aligned with financial instruments, technical cooperation instruments (e.g. capacity building)

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International NAMA Facility Governance Structure

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Selection of NAMA Support Projects Process

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Selection of NAMA Support Projects General Eligibility Criteria

♦ applied at the first step of the selection process to assess all outlines submitted to the NAMA Facility for support.

♦ ensure that outlined NAMA support projects fulfil the essential requirements for their later implementation through financial and technical support instruments.

♦ Outlines need to fulfill all eligibility criteria in order to be further considered.

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Selection of NAMA Support Projects Criteria for Qualified Delivery Organsations

♦ Delivery Organization, organizations need to1. be legal entities, and2. Be not for profit organizations be not for profit organisations, public institutions or

international organisations (financial cooperation: for profit institutions also eligible) and♦ Show a proven track record of:

1. International presence (n/a to national development banks working in cooperation with organization that does have an international track record); and

2. Expertise in the field of climate change mitigation; and

3. Experience with the implementation of ODA and of programs/projects > € 5 Mio (for consortiums, this criterion applies to the financial cooperation DO only); and

4. Experience in working with governments and other public institutions;♦ Be able to recruit staff in the respective partner countries (for TC projects only)

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Selection of NAMA Support Projects Ambition Criteria

♦ applied to all outlines for NAMA support projects, which have successfully been assessed against the eligibility criteria

♦ ensure that the NAMA Facility supports the most ambitious projects available♦ assessed on a point-grade system to allow a ranking of all submitted NAMA support

projects

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Example - THE MEXICAN SUSTAINABLE HOUSING NAMA

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Example - THE MEXICAN SUSTAINABLE HOUSING NAMA …contd

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NAMA Registry – webpage (http://www4.unfccc.int/sites/nama/SitePages/Home.aspx)

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NAMA Pipeline as on 1 January 2014 has 41 projects

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Pipeline produced by Jorgen Fenhann, UNEP Riso Centre; [email protected]


Potential NAMAs for India Background

♦ India has already declared that it would voluntarily reduce the ‘emissions intensity’ of its GDP by 20-25% by 2020 compared to 2005 levels

♦ National Action Plan for Climate Change, PAT, REC etc.♦ An in-house analysis by RSM-GC revealed that declared measures are insufficient to meet

declared emission intensity reduction goal (against following conclusion by Planning Commission - Low Carbon Strategies for Inclusive Growth – May 2011)

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NAMA – Opportunities

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• PAT and RPO/REC are covering only about 20% of the required emission reductions to meet the

goal of 24% Emission Intensity reduction (from 2005 levels) by 2020.

• At present RPO/REC and PAT are the only rigorous tractable mechanisms to achieve and track

emission reduction.

• The majority of emission reductions (the balance 80%) are therefore in effect left to arise from

initiatives which are not subject to well defined reporting and monitoring requirements.

Need for New Options for GHG ER market mechanisms• The advantage of PAT, RPO/REC kind of market mechanisms in comparison to pure command &

control and tax measures are that the emission reduction initiatives are led by private sector with little but important role of the government and

• the results are continuously monitored and progress is tracked and amenable to mid course corrections

Potential NAMAs for India


Potential NAMAs for India …contd

Simple adjustment to PAT and Linkage to EUETS beyond 2012♦ The entities covered under the PAT may be covered by this new mechanism too♦ PAT reporting requirements may be altered to include reporting of the GHG emissions. Main

modification that may be required is to address the GHG coefficients of energy sources and the accounting rules compatibility with the good practices of GHG accounting at the entity level (EUETS or GRI GHG Protocol or ISO 14064)

♦ The targets for the entities may be drawn from average of GHG intensity data available from EUETS. Or else, new targets could be determined based on the country requirements and sector realities. The entities will be required to meet the targets, with excess of emission reductions over target, giving rise to credits which can be used by those who fall short of target on a three year block basis

♦ Additionally, the excess credits or credits generated after exceeding 1.x of target can find their way into EUETS through provisions made available with a special bilateral arrangement with EUETS. EU has articulated willingness to such schemes from Non Annex I countries.

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GHG reporting Requirement and demonstration of alignment with National Ambition

♦ A government notification in South Africa requires that the identified entities report GHG inventory annually and disclose their plans to meet national ambition. In our case, such a national ambition can be 25% reduction in GHG intensity from 2005 levels by 2020

♦ The emission reduction plans can also be that of procuring offsets from project based mechanisms located in the supply chains. By this, the identified entities (large industry) will work with SMEs (and benefit SME by tech/expertise transfer) to shore up their long term sustenance.

♦ Offsets generated from the agriculture and community based projects may be also allowed in this mechanism.

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Emission Reductions through Modal shift and Linkage to EUETS♦ As per the report “ Low Carbon Strategies for Inclusive Growth, Planning Commission of

India , 2011”, the opportunity of emission reduction from modal shift in goods transportation is 3% and this can be substantially enhanced if role of shipping as a means of domestic goods movement is enhanced.

♦ The funds from Government of India’s Clean Technology Fund can be utilized to build the infrastructure (ports, jettys, berths, conveyors etc) to enhance domestic goods movement by ships.

♦ The industry (imines and metals, cement etc. identified in the interim report) may be incentivized by granting credits if they achieve reduction of GHG intensity goods (raw material and products) movement beyond a reduction target.

♦ The GHG ERs generated by such modal shift can be part of a bilateral agreement with EU or Japan

♦ The methodology available within CDM can be deployed and shipping initiatives can be structured as a Program of activities

♦ Such a possibility was well received by Indian Ship Owners Association and DG Shipping.35



Waste Management at Local Governments and GHG emission reductions

♦ Inadequate domestic waste management continues to be a problem in many cities and problems. This is a major source Methane emission which can be reduced by cost effective interventions

♦ Local bodies can be made responsible for GHG reporting and achievement of GHG targets of the local body per capita of serviced population.

♦ A provision be made that performing better than the target be rewarded with GHG credits which can be used by others falling short to meet target.

♦ The project based emission reductions undertaken by such local bodies can be made eligible to generate credits that are admissible in a domestic GHG mechanism of an Annex I country (EU/Japan/Canada)

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NAMA4CD- Clean Energy and Clean Water for Communities

♦ Align CSR Spend arising out of New Companies Act with GHG Mitigation♦ Efficient Cook stoves and Zero Energy Water purifiers for communities through

CSR Spend♦ Align Health Insurance companies to offer discounts on premium ♦ The whole program’s initiation, coordination and last mile funding by NAMA-

finance

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Energy Efficiency in SMEs

♦ Public Policy driving sustainability- SEBI & PSEB♦ Requires Responsible Supply Chain and product Stewardship♦ Align the above with EE in SME clusters- auto supply chains♦ The whole program’s initiation, coordination and last mile funding by NAMA-

finance

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Nama Status & Opp -Rsm Gc - 16 Jan 14

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