Joint Implementationby the Netherlands

Maurits HenkemansMinistry of Economic Affairs Netherlands 26-5-2004 Moscow

Who is buying?In percent of volume purchased

USA4%

Canada13%

Australia & New Zealand

1%

Japan23%

Other EU3%

Netherlands30%

PCF26%

2002-2003

Intended realisation by the NetherlandsInstrument Contracted Planned Erupt1-3 8 Cerupt 8 Fin InstitutionsCAF (CDM) 10WB (PCF/IFC) CDM 31EBRD (JI) 6Rabo CDM 10Part PCF CDCF 4 Sub Total 77

ERUPT 4/5 JI (WB) CDM option 23

Total 100

What is Needed for JI in Russia? Ratification of Kyoto Protocol Responsible Minister that can sign

letter of Approval (before 27 June) Implementation article 5, 7 and 8

Kyoto Good Portfolio of CO2 reduction

Projects Public awareness /Transparency and

Dialog

Lead Time Impact on CDM and JI

20062003 2008 2012

Operating

Operating

Wind, Efficiency, Waste to Energy

Large Hydro, Geothermal, Coal to Gas Power

Second Commitment Period Rules and Targets Need to be decided by 2006 to ensure continuity in CDM Market Development

5 year average

Pre-feasibility

Pre-feasibility

= Start Construction

Following Issue’s I want to discuss

Dutch climate policy Dutch/Russian JI cooperation What is needed for JI and GIS Conclusions

Dutch Climate Policy

Get a CO2 World Market for Efficient Climate Policy

-6% CO2 reductions in period 1990 - 2008/2012 40 Mton a year 50% national instruments 50% flexible instruments (JI/CDM en ET)

Dutch JI/CDM Programme 2004

Budget 200 mln EURO for JI Min of Economic Affairs

Budget 350 mln EURO for CDMMin of Environment

In accordance with EU/OECD/Kyoto rules

Target CO2 price 3-5 EUR

Target 100 Mton CO2 (35% JI/65% CDM)

For 100 Mton CO2 we follow five roads JI Buy ERU’s by ERUPT (ERU-

Procurement Tender) CDM Buy CER’s by CERUPT Buy ERU’s and CER’s by PCF Contract with WB/EBRD/IFC and other

commercial Banks.. International Emissions Trading

(Between Governments as last resort)

We are well on track!!

Dutch Approach to JI

First track JICountry in compliance art 5.7 and 8 Second track JIValidation by Independent EntityAccreditation IE by Supervisory Board Dutch approach start with JI Second

then first trackJI Credits before 2008 change in AA

2008/2012 use Trading art 17

Why start with JI?

Political more attractive to start with real projects

Good for Russian Companies Investor countries get used to

decision structure in Russia

Conclusions

The Dutch and EU companies and Governments interested in

- Gas and Oil from Russia - Interested in JI credits Investment in Energy sector needed JI and GIS can help Russian

Companies Quick decisions needed otherwise

money goes to CDM

$0t/Co2

$1t/Co2

$2t/Co2

$3t/Co2

$4t/Co2

$5t/Co2

$6t/Co2

$7t/Co2

$8t/Co2

$0/tC

$5/tC

$10/tC

$15/tC

$20/tC

$25/tC

Options

Non verified ERs

Third-Party verified

Verified and Kyoto compatible

Government approved permits

Carbon prices on past transactions

Based on data provided by Natsource for the PCF, June 2001.

Pro’s and Con’s for JI in Russia

No clear counterpart No institutions Investment climate not positive

Big JI potential Positive for Russian Companies Foreign interest for JI EU trading demand for JI not ET!

More info about Dutch JI and CDM and ET policy

www.carboncredits.nl

l.j.m.blansonhenkemans@minez.nl