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Programme of ActivitiesLessons learnt &

PoAs as a chance for CDM Host Countries

UNFCCC Joint Coordination Workshop

12-13 March 2011, Bonn

Perspectives GmbH, Hamburg

Marc André Marr

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PoA specific challenges

Implementation of PoAs

Suitability of CE and interdependencies

DNA related challenges

Very limited or no experience with PoAs

Methodology related challenges

PoA specific requirements and limited suitability (e.g. combination)

Reducing transaction costs?

PoA initially involves higher CDM transaction costs

DOE liability

Result: Contrary to initial idea of the PoA concept “Reduce transaction costs”

Stakeholder interaction and interrelations

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PoA idea Two PoAs for newly built mini-

hydro power plants for rural electrification (replacing diesel generation)

PoA Case StudyMini hydro-power Africa

Current status Support for Coordinating Entity Business model finalized Project developers identified PoA Idea Notes finished Incentive scheme developed Terms of references Support in promotion material

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Business Model of the PoA

Rural Electrification Agency will be Coordinating Entity

Supports CPA developers Administers the PoA Responsible for monitoring

CPA developers Construct and operate the projects Conduct on-site monitoring (metering)

Financial institutions Providing soft loans

PoA Case StudyMini hydro-power Africa

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Key advantages of the PoAs

Enable projects that would otherwise never be realized

No access to finance Insufficient capabilities &

capacities

Support rural electrification in a sustainable way

Lowering the risks for investors and carbon buyers due to established framework

PoA Case StudyMini hydro-power Africa

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Main challenges of the PoAs

Institutional framework with interrelations and dependencies

Setting up a business model which enables a high participation and being operable

High level of standardization required

PoA Case StudyMini hydro-power Africa

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What PoAs can achieve

PoAs enable project activities that otherwise would not be realized

PoAs can significantly

Reduce transaction costs

Save time from initial idea to CER issuance

Lower the risks for investors and CER buyers

PoAs are able to set the basis for NAMA development

PoAs can be an attractive additional CDM option

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What is required for enable a greater use of PoAs?

Increased stakeholder interaction => PoA Working Group

Solution oriented approach

Identify and develop methodological simplifications

Standardization; default factors

Combination of methodologies (pick and choose)

PoA specific methodologies

Clear guidance on Liability (currently playground for DOEs)

Opportunities for up-front financing

Support from UNFCCC (e.g. clear statement, guidelines, case studies)

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Thank you!

Perspectives GmbH

Marc André MarrHead of Carbon Project Services

marr@perspectives.cc