- Landfill Gas Utilization and the Clean Development Workshop - 6 September 2005

- Landfill Gas Utilization and the Clean Development Workshop-

6 September 2005 Bali Hilton International

Nusa Dua, Bali

Presented by

Ms. Yamada FumikoExpert Staff

New Energy and Industrial Technology Development Organization (NEDO)

Jakarta Office

Japan’s Financial SchemesJapan’s Financial Schemesfor Promoting CDM Projectsfor Promoting CDM ProjectsJapan’s Financial SchemesJapan’s Financial Schemesfor Promoting CDM Projectsfor Promoting CDM Projects

22

ContentsContentsContentsContents

1. Japan Kyoto Mechanisms Acceleration Programme (JKAP):

A Facilitator for CDM Project Development

2. Feasibility Studies

3. Upfront Payment

* Cont. by Mr. Matsushita’s presentation

33

Japan Kyoto Mechanisms Acceleration Japan Kyoto Mechanisms Acceleration Programme (JKAP)Programme (JKAP)Japan Kyoto Mechanisms Acceleration Japan Kyoto Mechanisms Acceleration Programme (JKAP)Programme (JKAP)

JBIC Financing

GEC/NEDO

CDM/JI Project F/S

JBIC SAPROF PDD

Assistance, etc.

JETRO Business Matching Support

MOE/NEDO Uprfront Payment Programme for CDM/JI Projects

NEXI Export

Insurance

JCF Development of

CDM/JI Procurement of

Credits

MOFA, METI, MOE

Objective: Facilitating cooperative CDM/JI projects between Japan and host countries.

44

Feasibility StudiesFeasibility StudiesProject Development AssistanceProject Development Assistance

Feasibility StudiesFeasibility StudiesProject Development AssistanceProject Development Assistance

JAPAN

ProjectDevelopers

Incl.Japanese

partner

Potential Project

In host country

PDD development and Study Implementation Cost

up to JPY25M

Financial assistance for a Feasibility Study (F/S) covers:

Requirement:Any International consortium must include a Japanese partner to be eligible

Budget：JFY 2004: 1.7 Billion yen (US$16M)JFY 2005: 1.8 Billion yen (US$17M)

Financial assistance for F/S costs

Organization: NEDO & GEC

55

Upfront PaymentUpfront PaymentUpfront PaymentUpfront Payment

JAPANESEGOV.

Project Developer

Incl.Japanese

partner

CDM/JI projectin host country

Type A: Preliminary costs (PDD development, validation and registration costs, etc.)

Type B: Project expenses (equipment costs, etc.)

Type C: Post project review costs (monitoring, verification and certification costs, etc.)

Financial assistance for project development with up-front payment covers either one of the following:

Requirements:

1. A portion of credits generated from emission reduction project that is proportional to the amount of the financial assistance should be transferred to Japan.

2. Any international consortium must include a Japanese partner to be eligible.

Budget for FY 2005:

5.7-8.0 Billion yen (US$54-76M)

Fair price to be determined on a project-by-project basis according to project risk, delivery risk, market price trends, etc.

Credit price:

Up to 50 % up-front payment of total project cost

CER

CER

CDM EB

CertificationReport

Program Administrators: METI, NEDO, MOE

66

Project Type: Energy Efficiency, Renewable Energy, GHG Reduction, incl. Methane

Capture and Utilization, HFC decomposition, N2O reduction, etc. (Sink projects are excluded.)

Acceptance of Applications in 2005: Feasibility Studies: (1) May (Closed) (2) September Upfront Payment: (1) April-May (Closed) (2) July-August (3) November (4) TBA

(Additional program details are available upon request.)

Feasibility StudiesFeasibility Studies& Upfront Payment & Upfront Payment (Supplementary Explanation)(Supplementary Explanation)

77

　　　・ Equipment and construction costs ＝ US$30M 　　　　→ Maximum amount of upfront payment: US$30M×50% ＝ US$15M 　　　・ ERs = 0.4 Mt-CO2/Year 　・ Starting year of the crediting period: 2007　　　・ Estimate of credits for the 1st commitment period:

0.4 Mt-CO2×6 years ＝ 2.4 Mt-CO2

If an applicant requests the maximum upfront payment (50%):

① If credit price ＝ US$4 ／ t-CO2

→ Available “Upfront payment” = US$4×2.4 Mt-CO2 = US$9.6M (32%)

② If credit price ＝ US$ ７／ t-CO2

→ Available “Upfront payment” = US$7×2.14 Mt-CO2 ＝ US$15M (50%)

Upfront Payment-Scenario I: Energy Efficiency Project　

88

　　　　　　　　 Applicants

US$10MDesign and partial manufacturing of equipment

2005 　　　 2006 　　 2007 2008 ～2012

US$20M

Manufacturing and installation completed

Issuance of credits

The 1st commitment period

Japanese Government

Upfront payments: 　 US$5M US$10M

Order EquipmentSCENARIO 1-②:

Manufacturing and installation of equipment

Upfront Payment-Energy Efficiency Project (cont.)

99

　　　・ Equipment and construction costs ＝ US$12M　　　　→ Maximum amount of upfront payment: US$12M×50% ＝ US$6M 　　　・ ERs 1.5 Mt-CO2/Year　　　・ Starting year of the crediting period: 2007　　　・ Estimate of credits for the 1st commitment period:

1.5Mt-CO2×6 years ＝ 9 Mt-CO2

If an applicant requests the maximum upfront payment (50%):

① If credit price ＝ US$4 ／ t-CO2

　　→ Available “Upfront payment” = US$4×1.5 Mt-CO2 ＝ US$6M (50%)

② If credit price ＝ US$7 ／ t-CO2

　　→ Available “Upfront payment” = US$7×0.86Mt-CO2 ＝ US$6M (50%)

Upfront Payment-Scenario II: Decomposition of N2O Project

1010

US$6M

2005 　　　 2006 　　 2007 2008 ～2012

US$6M

Issuance of credits

The 1st commitment period

　　　　　　　 Applicants

Japanese Government

Upfront payments: US$3M US$3M

Design and partial manufacturing of equipment

SCENARIO 2-②:Order

EquipmentManufacturing and installation

completed

Manufacturing and installation of equipment

Upfront Payment:Decomposition of N2O Project (cont.)

1111

Thank youhttp://www.kyomecha.org/e/index.html

Comments and inquiries should be forwarded to:

[email protected] in Energy & Environment Policy Department, NEDO Japan

or

[email protected], [email protected]

in NEDO Jakarta