CDM Europe Bongaerts - TU...

Demand for CDM projects in Europe

Jan C. BongaertsMBA IMRE Conference KNUST

Kumasi, Ashanti Region24 – 27 March 2009

German Environment Ministryposition on CDM

• Since December 2005 the German Emissions Trading Authority (DEHSt) at theFederal Environment Agency (UBA) has approved more than 100 climateprotection projects in developing and newly industrialising countries, based on theClean Development Mechanism (CDM) pursuant to the Kyoto Protocol. This makesthe CDM one of the most important climate protection instruments, aside fromemissions trading, for companies in Germany.

• Federal Environment Minister Sigmar Gabriel commented on the results of thestart‐up phase presented by the UBA. "The CDM has matured. Companiesresponded to the incentives to incorporate climate protection into theiroperations abroad more quickly than we expected. The demand generated by theEU emissions trading scheme has contributed to creating a global carbon marketwhich actively includes developing countries in climate protection. I consider thisparticularly important regarding the negotiations on a follow‐up agreement to theKyoto Protocol."

Berlin, 17.11.2008

Basic information about the CDM


• Klimaschutzprojekte des Mechanismus für umweltverträgliche Entwicklung (Clean Development Mechanism ‐ CDM) wirken unterstützend bei der Bekämpfung des Klimawandels. Sie gehören zu den flexiblen Kyoto‐Mechanismen und beruhen auf Artikel 12 des Kyoto‐Protokolls. Industrieländer können ihren Minderungs‐ oder Stabilisierungsverpflichtungen laut Kyoto‐Protokoll nachkommen, indem sie CDM‐Klimaschutzprojekte in weniger entwickelten Ländern finanzieren oder durchführen. Auch Unternehmen können sich an CDM‐Projekten beteiligen. CDM‐Projekte zielen neben der Treibhausgasminderung zudem auf eine nachhaltige Entwicklung in den Gastgeberländern. Als Gastgeberländer von CDM‐Projektenkommen nur Länder in Frage, die nicht als Industriestaaten in Annex B des Kyoto‐Protokolls genannt sind.

• Die Durchführung der CDM‐Projekte wird vom CDM‐Exekutivrat (CDM Executive Board) überwacht. Dieses Organ des Kyoto‐Protokolls ist mit vielfältigen Aufgaben beim Klimasekretariat der UN‐Klimarahmenkonvention in Bonn angesiedelt und gibt für die erfolgreiche Ausführung von CDM‐Projekten die entsprechenden Zertifikate aus, so genannte Certified Emission Reductions (CER).


• Climate protection projects within the mechanism of the flexible instruments of the Kyoto Protocol (Article 12) relating to CM allow industrial countries to meettheir reduction or stabilisation objectives according to the Protocol throughinvestments in climate protecion projects in less developed countries.

• Private companies are allowed to participate in such CDM projects. Next to a redcution of Greenhouse gase emissions, these CDM projects also aim at sustainable development in host countries. These are non‐industrialized countriesmentioned in Annex B of the Kyoto Protocol.

• The implementation of CDM project is monitored by the CDM Executive Board. This is an administrative body within the Secretariat of the UNFCC in Bonn (Germany). It issues so‐called Certified Emission Reductions (CER) certificates forsuccessful CDM projects.


• Investing states must meet the following criteria in order to be able to benefit from the issuance of CER certificates resulting from CDM projects (See MarrakeshDecisions, Decision 17/CP.7 F Number 31):


• Ratification of the Kyoto Protocol• Calculate Assigned Amount Units, AAU, according to

Annex B of the Kyoto Protocol• Establishment of a national system for the estimation of

greenhouse gas emissions and capture in sinks• Establishment of a computer based national register• Submission of emissions inventories on an annual basis• Einreichung zusätzlicher Informationen über den

Assigned Amount.

Survey of applications for CDM Projects by German companies to the German competent authority – as of

2nd March 2009

CDM Projects by German companies approved by the German competent authority – as of 2nd March 2009

Survey of applications for CDM Projects by German companies to the German competent authority – as of

2nd March 2009


DNA = Designated National Authority

Example of an agreement about CDM between the German Minister of Environment and a Representatrive Body of a Developing Country

Four MOUs on CDM signed byGermany

„Memorandum of Understanding“ zwischen der Bundesrepublik Deutschland und Ägypten

„Memorandum of Understanding“ zwischen der Bundesrepublik Deutschlandund Mexiko

„Memorandum of Understanding“ zwischen der Bundesrepublik Deutschland undder Republik Peru

„Memorandum of Understanding“ zwischen der Bundesrepublik Deutschlandund der Republik Tunesien

German companies involved in CDM ‐Participants of Carbon Expo 2008

Projekt Portfolio: India

• The first project portfolio for India contains 67 individual projects and three programmatic CDM projects. Interested parties will have theopportunity to speak with Indian project partners and representativesfrom GTZ India at a Carbon Bazaar to be held in New Delhi from 28 – 29 April 2009. GTZ India will be setting up these business‐to‐business talksahead of time. For more information and to secure an appointment, please contact Ms. Pamposh Bhat:

Ms. Pamposh BhatDirector, Climate ChangeS‐35, First Floor, Panchsheel ParkNew Delhi ‐ 110017. IndiaTel/Fax: +91‐11‐4061 0031/0031/0032E‐Mail: [email protected], [email protected]: www.gtz.de, www.cdmindia.com

From a total of 67 projects –Management by GTZ

Selection of CDM projects in Indiaopen for German companies as selected by GTZ

Selection of CDM projects in Indiaopen for German companies as selected by GTZ

The UNFCCC CDM Bazaar is a Web‐based facility which serves as a platformfor exchange of information on Clean Development Mechanism (CDM) project opportunities.

The CDM Executive Board, at its 21st meeting, in discussing work on theregistration of CDM project activities and related issues as part of theCDM Management Plan, decided to “Make publicly available relevant information, submitted to it for this purpose, on proposed CDM projectactivities in need of funding and on investors seeking opportunities, in order to assist in arranging funding of CDM project activities, as necessary”. In response to this mandate, the United Nations Framework Convention on Climate Change (UNFCCC) Secretariat and the UNEP RisoeCentre on Energy, Climate and Sustainable Development (URC) havelaunched and manage the UNFCCC CDM Bazaar.

The UNFCCC CDM Bazaar covers supply of and demand for CDM projects, i.e. the actions taken by project sellers, buyers and service providers (in a broad sense). The key objective of the Bazaar is to facilitate the creationof an efficient global CDM market through sharing information related to project activities and transactions of Certified Emissions Reductions (CERs) among stakeholders worldwide.

• Zero Emissions Technologies, S.A.Spain

Cemcor Energy Deutschland GmbHGermany

Puraction srlItaly

Portuguese Carbon FundPortugal

West Carbon AGGermany

PURACTION srlITALY

J.P. Morgan, Environmental MarketsUK

Meteor Clean Energy FundUnited Kingdom

• Belgian JI/CDM Purchase ProgramBelgium

RBS Sempra Energy Europe LtdUK

FINANCE CARBONEFRANCE

infiniti uk ltdUK

StatoilHydro New EnergyNorway

TrafiguraUK / Switzerland

KBS Handels GmbHAustria

BlueSources SASwitzerland

Repay InternationalNetherlands

Climat MundiFrance

• ELECTRA Deutschland GmbHGermany

Anemone Green Capital JV PartnerSwiss

DONG EnergyDenmark

V‐Carbon International LimitedUK

Mitsui & Co., Ltd.Plane Tree CapitalUK

Constellation Energy Commodities Group, Inc.UK

GreenOrbit LimitedUnited Kingdom

Triple‐Energy ASNorway

General Energy Capital Co, Ltd.UK

EnBW Trading GmbHGermany

cdmEnviros Ltd.United Kingdom

Spectron Energy Services LtdLondon, United Kingdom

KO BrokersUK london

Energy Changes Projektentwicklung GmbHAustria

ESBI Carbon SolutionsIreland

• Ravin TulcidasPortugal

KlimaInvest Management Holding GmbHGermany

Asja BVSwitzerland

Utsläppsrätt.se through EmissoSweden

Ecolutions Carbon India Pvt Ltd.Germany

Standard Chartered BankUnited Kingdom

Off7Portugal

MARADANFrance

• Climate Corporation Emissions Trading GmbHAustria

c4c ltd ‐ concepts for carbonSwitzerland

Nuon (Dutch Energy Company)The Netherlands

South Pole Carbon Asset Management Ltd.Switzerland

Green Initiative Carbon Assets S.A. (GICA S.A.)Switzerland

Öko‐Institut e.V.Germany

Revonergy PlcEngland

BOT GroupPoland

Deutsche BankUK

MGM International

Eneco Energy Trading BvThe Netherlands

• Unión Fenosa Generación, S.A.Spain

• Crown Carbon FundUK

Dresdner KleinwortUK

• Boston Energy PartnersPoland

• Citigroup (Citigroup Global Markets Limited)United Kingdom

• Carbon Saver LtdUK

Moser ConsultingAustria

Bunge Emissions GroupBritish Virgin Island

CO2 SolutionsSpain

CentricaUK

JP Morgan ChaseUK

Drax Power LimitedUnited Kingdom

Č,EZ, a.s.Czech Republic

FACTOR CO2 INTEGRAL TRADING SERVICESSPAIN

theoffsetcompanyUK

Global Carbon Capital Ltd.UK

BNP ParibasFrance

Edison S.p.A.Italy

China Carbon N.V.Netherlands

Luso Carbon FundPortugal

Mercuria Energy Trading SASwitzerland

Great China district branch of Atmoguard GmbH Switzerland

• Unión Fenosa Generación, S.A.Spain

• Crown Carbon FundUK

Dresdner KleinwortUK

Boston Energy PartnersPoland

• Citigroup (Citigroup Global Markets Limited)United Kingdom

• Carbon Saver LtdUK

Bunge Emissions GroupBritish Virgin Island

CO2 SolutionsSpain

CentricaUK

JP Morgan ChaseUK

Drax Power LimitedUnited Kingdom

Č,EZ, a.s.Czech Republic

FACTOR CO2 INTEGRAL TRADING SERVICESSPAIN

theoffsetcompanyUK

Global Carbon Capital Ltd.UK

BNP ParibasFrance

Moser ConsultingAustria

Country study Senegal

The EB could not register the following project activities:(a) “Optimization of steam consumption in the process by installation of free flow falling film finisher evaporator and retrofit to the chemical recovery boiler in CacharPaper Mill of Hindustan Paper Corporation Limited” (1475) submitted for registration by the DOE (DNV) because the project participant and DOE failed to substantiate the additionality of the project activity, in particular the serious consideration of the CDM in the decision to proceed with the project activity.(b) “Hot air generation using renewable biomass fuel for spray drying application at H. & R. Johnson (India) Ltd, Kunigal” (1545) submitted for registration by the DOE (TÜV‐SÜD) because the project participant and DOE failed to substantiate the additionality of the project activity, in particular that benefits of the CDM were a necessary element of the original decision to invest in the project activity.The EB will also issue CERs to Mysore Cements Limited for their "Portland Slag Cement CDM project” (0711), if the project participant and the DOE (SGS) submit a revised monitoring report and a corresponding revised verification report, and a new request for issuance as appropriate, which include:(i) Clarification on the distance between the source of additives and the project plant submitted in response to the request for review; and(ii) Annual grid emission factor based on the available data, in accordance with the monitoring plan and the methodology.

• Metropolitan Bank and Trust Company (Metrobank) has signed a memorandum on business collaborationwith Sumitomo Mitsui Banking Corporation (SMBC), a wholly‐owned subsidiary of Sumitomo MitsuiFinancial Group Inc., one of Japan’s largest listed banks, for possible carbon credits business in thePhilippines.

• The memorandum aims to promote the explorat ion and development of Clean Development Mechanism(CDM) projects in the Philippines, supported by Metrobank’s strong client base and SMBC’s technicalexpertise and ex tensive overseas network.

• “The tie‐up with Metrobank is in line with our plan to accelerate business especially in Southeast Asianregion,” said Hiroyuki Kaki ta, SMBC General Manager of the Environmental Products Department in Tokyo.SMBC i s continuously expanding its network to explore CDM projects with i ts partner banks in Europe,South America, and Russia.

• Under the agreement, SMBC will disseminate the CDM concept to Metrobank’s employees and clients.From its client base, Metrobank will explore potential CDM projects that can be presented to SMBC forevaluation.

• “Japan has a big demand for carbon credits, and is looking at countries such as the Phil ippines from whichto source these credits” explained Metrobank Execut ive Vice President Vicente Cuna Jr. “Further, with therecent passing of the Phi lippine Renewable Energy Bil l, more companies are expected to venture intoCDM projects to take advantage of the tax breaks and other perks available to renewable energyprojects.”

• Under the collaboration, Metrobank and SMBC seek to provide the opportuni ty and the technical supportto help clients, especially in the renewable energy sector, benefit from the additional revenues thatcarbon credits can bring to thei r businesses.

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