20120717 role of dna to promote cdm

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Role of DNAs in promoting CDM

Contents

1. DNA roles and responsibilities in the CDM

2. What does promoting the CDM means?

3. Potential role of DNAs to promote CDM in their countries

4. Current status of CDM in Mongolia and some experience

5. Conclusion

6. Some additional information for Asia-Pacific DNAs

1. DNA roles and responsibilities in the CDM

Formal role of host country DNAs in the CDM1. To assess sustainable development contribution of CDM projects (to

ensure that the CDM project is contributing to sustainable development)

2. To issue letter of approval

Clean Development Mechanism has 2 objectives:1. To help developed countries to fulfill their commitments to reduce GHG

emissions 2. To assist developing countries in achieving sustainable development

In accordance with the CDM modalities and procedures, Parties participating in the CDM shall designate a national authority for the CDM. The registration of a proposed CDM project activity can only take place once approval letters are obtained from the designated national authority of each Party involved, including confirmation by the host Party that the project activity assists it in achieving sustainable development.

2. What does promoting CDM mean?PROMOTE-[def] to encourage the popularity, sale, development or existence of something. (Cambridge dictionary)

PROMOTING CDM

Increase awareness on CDM

Workshop and seminars

Information dissemination

through media, news and publications

Consultation and advice

Facilitating CDM project implementation

Legal and regulatory environment

Capacity building and training

Supplying standard/default

values such as GEF

Improving the CDM process

Improving the CDM rules and regulations

Decreasing cost and time required

Standardization

To inform about existence of CDM

To decrease burden on developing a CDM project

To improve existing CDM

3.Potential role of DNAs to promote CDM in their countries

3.Potential role of DNAs to promote CDM in their countries (2)

PROMOTING CDM

Increase awareness on CDM

Workshop and seminars

Information dissemination

through media, news and publications

Consultation and advice

Facilitating CDM project implementation

Legal and regulatory environment

Capacity building and training

Supplying standard/default

values such as GEF

Improving the CDM process

Improving the CDM rules and regulations

Decreasing cost and time required

Standardization

To inform about existence of CDM

To decrease burden on developing a CDM project

To improve existing CDM

DNAs can provide input, and share

their experience to further improve the

mechanism

DNAs can identify the target group

and communicate with them effectively

-Clear, transparent rules and regulations for LoA-Recommendation on automatic additionality-SB proposal ( operationalizing QA system)-Other (GEF, Benchmark)

3.Potential role of DNAs to promote CDM in their countries (3)

FIRST AND FOREMOST

1. To be able to carry out the formal responsibilities in an efficient and transparent manner.

2. To help project developers to utilize opportunities provided by the EB in full (SB, GEF, loan scheme, automatic additionality etc.,)

EXTRA ROLES DNAS CAN/SHOULD TAKE

3. Cooperate with professional organizations to build capacity on CDM by assisting in identifying stakeholders and local needs

4. Facilitate cooperation and communication between different stakeholders

5. Give feedback on practical problems for implementing the CDM

4.1 CDM in Mongolia

Mongolia ratified UNFCCC in 1993

(non-Annex 1 party)

Mongolia ratified Kyoto Protocol in

1999

CDM National Bureau establlshed

under MNET as CDM DNA of

Mongolia in 2004

3 conditions for

implementing CDM projects

Law on air

revised(2010)

CCCO established Feb.2011

CDM National Bureau

MNET IN CHARGE OF:1.coordinating and implementing NAPCC2. CC related policy formulation3.Coordinting CC adaptation and mitigation activities in Mongolia4.Fulfillling responsibilities under the UNFCCC and Kyoto protocol5.Supervision of CDM National Bureau

4.1 CDM in Mongolia (2)

4; 57%2;

29%

1; 14%

Approved project type

RenewableEnergy efficiencyBiofuel

Project Status Num.

CDM projects registered at CDM executive board 4

CDM projects approved by DNA 7

CDM projects at or after the validation stage 2

Registered CDM Projects

RejectedNum. of

projects

Average annual emission

reduction(tCO2)

Total ERs by 2012 (tCO2)

Amount of issued CERs

(tCO2)

Review Conducted

Hydro Power 2 30,000 302,173 15,354 0 0

Wind Power 1 178,778 0 0 0 0

Energy Efficiency 1 11,904 83,328 0 0 0

Total 4 62,670 385,501 15,354 0 0

4.1 CDM in Mongolia (3)

Name of CDM Project Activity

Type of Project

Supplemental

Info.

Approval Date (Y/M/D)

Annual ER

(tCO2/yr)PPs

(Host Country)PPs

(Others) Status

Durgun Hydropower Project in Mongolia Hydro Power New

reservoir 2006/10/2 30,400Energy Authority,

Mitsubishi UFJ

Securities Co., Ltd.

Issued CERs are 14,468 tCO2

Taishir Hydropower Project in Mongolia

HydroPower

Newreservoir 2006/10/02 29,600 Energy

Authority

Mitsubishi UFJ

Securities Co., Ltd.

Amount of 1st and 2nd issued CERs are 886tCO2

A retrofit programme for decentralised heating stations in Mongolia

Energy Efficiency Supply side 2006/04/27 11,904

Prokon Nord Energiesysteme GmbHMongol Zuukh XXI ltd.

Registered

Salkhit wind Farm Wind Power

Total 49.6MW

2011/11/11(reissuance)

178,778 Clean Energy LLC, Mongolia Registered

Maikhan small hydropower project in Mongolia

Hydro Power Run of river 2010/12/09 36,377 Usny Erchim

Co.,Ltd.Before validation

Pellet and briquette plant in Mongolia Biomass Others 2011/03/21 19,436 NTIC Co.,Ltd EnBW Trading

GmbHUnder validation

MicroEnergy Credits-Microfinance for Clean Energy Product Lines-Mongolia

Energy Efficiency

Program of Activity 2012/04/30 61,656 Xacbank LLC

MicroEnergy Credits (CME)

Under validation

Approved projects from Mongolian DNA

4.2 Mongolian experience: To promote CDM in Mongolia

CDM NB has co-organized more than 30 trainings on CDM (in 4 cities of Mongolia) between 2010-2012 in cooperation with World Bank, ADB

and IGES

Training materials are compiled and available on the website

4.2 Mongolian experience: To promote CDM in Mongolia(2)

Members receive

notification for updates

through their email

2010.12.27 2011.1.30 2011.3.5 2011.4.8 2011.5.12 2011.6.15 2011.7.20 2011.8.23 2011.9.26 2011.10.300

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Series1Daily hits

4.2 Mongolian experience: To promote CDM in Mongolia (3)

Grid emission factor for CES has been calculated

and uploaded on the website along with

underlying data and calculations

PROMOTIONAL MATERIALS

4.2 Mongolian experience: To promote CDM in Mongolia (4)

Barrier Historical significance Current significance

Size – transaction cost barrier

Medium High

Type – methodological complication barriers

High High

CDM consultant barrier Low Low

Institutional barrier High / prohibitive Very Low / none

Documentation barrier Medium/low Medium/High

Financing barrier High Medium/High

Awareness barrier Medium/High Very Low

Demand barrier None High

Source: Carbon Finance in Mongolia 2011 publication

Barriers for implementing CDM in Mongolia

5. Conclusion

DNAs can play an important role in promoting CDM in their countries in the below field

–awareness raising –decreasing some burdens for developing CDM project (GEF, benchmarks)–providing input to improve current CDM (on the ground experience)

[email protected] be used for:

i. Experience sharingii. Input collection for various purposes (EB meeting etc., )

ONLINE DISCUSSION FORUM FOR ASIA-PACIFIC DNAs is under

operation

82 members from over 30 countries

Input from Asia-Pacific DNAs for the next EB meeting

(collected through online forum)

Validation of National Grid Emission Factors (GEF) Problem: Data confidentiality.  How to validate National GEFs calculated by DNAs? DNAs may not be able to provide underlying data due to data confidentiality issue according to local regulations other than just give assurances (or show it in office) that the GEF is calculated according to latest tool.  But PPs and DOEs claim that according to the latest VVM it is necessary for them to obtain/see the data and calculation . How to solve this issue (conflict between local and international rules and regulations)?Some of the DNAs in our region requested for clarification regarding whether the VVM/VVS really requires DOEs to do as the above?Some would like to request EB to take this issue into account and propose some solution such as make an option to allow DOEs to accept emission factors published by DNAs without further validation if there is a statement from DNA that it was calculated according to the latest tool applicable. Perhaps with a possibility that EB can request validation if they find the number really doubtful.Some additional information: Even though this issue had been discussed during 11th DNA forum, seems like there is no related development since then. (Below presentation highlights draft procedure for validation of National GEF, but it seems there is no approved procedure or guidance yet.)

Thank you very much for your attention!!!

www.cdm-mongolia.com

[email protected]