New Potentials for Renewable Energy projects in the Balkans through CDM

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New Potentials for Renewable Energy projects in
the Balkans through CDM

• Anita Kodzoman
• UNDP Macedonia
• Zagreb, 18th March 2008

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Regional distribution of CDM projects
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Number () of CDM projects in each category of
types and CERs until 2012 from CDM projects in
each sector
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CDM Country Sellers (2006)
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Status of ratification of the UNFCCC and the
Kyoto Protocol

• Albania
• UNFCCC - 03 October 1994
• Kyoto Protocol - 01 April 2005
• Bosnia and Herzegovina
• UNFCCC -07 September 2000
• Kyoto Protocol - 16 April 2007
• Macedonia
• UNFCCC -28 January 1998
• Kyoto Protocol -  18 November 2004

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• Montenegro
• UNFCCC - 23 October 2006
• Kyoto Protocol - 04 June 2007
• Serbia
• UNFCCC 12 March 2001
• Kyoto Protocol - 19 October 2007

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National Communications to UNFCCC and Designated
National Authorities

• Albania
• Second National Communication in progress
• DNA established
• Bosnia and Herzegovina
• Initial National Communication started
• DNA not established yet
• Macedonia
• Second National Communication in final phase
• DNA established
• National CDM Strategy for the first commitment
  period adopted

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• Montenegro
• Initial National Communication started
• DNA not established yet
• Serbia
• Initial National Communication started
• DNA not established yet

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Ongoing and planned CDM activities

• Albania
• MoU with the Italian Government (May 2005, Annex
  in April 2007)
• Portfolio of potential CDM projects developed
  and presented to interested Italian companies
  Call for expression of interest for co-financing
  feasibility studies for selected CDM projects
• Austrian Development Assistance
• Building Albanias capacity to access carbon
  finance (package of rules and procedures for CDM
  approval and DNA functioning development of
  baseline for energy and forestry sectors,
  National Strategy for positioning Albania in the
  carbon market
• Two PDDs developed for SHPP with support of
  Austrian companies

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Ongoing and planned CDM activities

• KfW
• Initial assessment on potential CDM projects in
  carbon sequestration through regeneration of
  forests around Prespa Lake
• World Bank Bio Carbon Fund
• Carbon sequestration through assisted natural
  regeneration of highly degraded land

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Ongoing and planned CDM activities

• Macedonia
• MoU with the Italian Government signed (2005,
  Annex in 2007)
• Portfolio of potential CDM projects developed
  and presented to interested Italian companies
  Call for expression of interest for co-financing
  feasibility studies for selected CDM projects
• MoU with the Government of Slovenia signed (2007)
• National CDM Strategy for the first commitment
  period 2008 2012 adopted by the Government
• UNDP capacity building projects and MoU with
  potential project proponent on Biogas Power Plant
  for the MDG Carbon Fund

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Priority Areas Potential CDM projects

• Rehabilitation of large power plants (St Petka
  (Matka 2) 36 MW hydropower project -60,060
  CERs/yr a total of over 1.26 million CERs over
  21 yrs
• Rehabilitation of Bitola thermo plant (three 225
  MW coal-fired units)
• Fuel Switching to Natural Gas - Toplifikacija 340
  MW natural gas powered cogeneration project
  (approximately 785,000 tCO2eq/year A total of
  16.5 million CERs over 21 yrs. )
• CHP for District Heating Rehabilitation of the
  system in Skopje and Negotino

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• Industrial Efficiency Improvements
• Okta Oil Refinery - waste heat/gas collection and
  utilization projects
• Hydro Power Rehabilitation of seven small
  run-of-river hydropower plants (An average of
  25,272 CERs/yr).
• Geothermal Energy City of Kocani geothermal
  central heating system project
• Drisla (City of Skopje) Landfill Gas (LFG)
  Collection and Flaring project (CERs to be
  generated is an average of 71,918 per year)

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Summary of carbon potentials

• Serbia
• Sector Carbon potential per
• year, kt, CO2
• Industry 2000
• Transport 2800
• Building 6500
• Other 1200
• Waste sector Manure treatment 410
  500
• LULUCF 500

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• Sector Carbon potential per
• year, kt, CO2
• Renewable
• Small hydro 800
• Biomass 2300
• Solar N/A
• Wind 1300
• Geothermal 650
• Grand Total 19.700

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• Bosnia and Herzegovina
• Bosnia and Herzegovina Biomass Energy for
  Employment and Energy Security Project - The
  project objective is to avoid 120,000 tonnes
  CO2eq over 15 years, by retrofitting or
  installing biomass-fired boilers in 20 schools
• Montenegro
• N/A

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Review requested

• Project 1412 Rehabilitation of six Hydro Power
  Plants in the Republic of Macedonia
• Host Party - Elektrani na Makedonija (ELEM)
• Other Parties Involved - Mitsubishi UFJ
  Securities Co., Ltd., Japan
• Sectoral scopes - Energy industries (renewable
  - / non-renewable sources)
• Methodologies Used - Consolidated methodology
  for grid-connected electricity generation from
  renewable sources
• Amount of Reductions - 200,334 metric tonnes CO2
  equivalent per annum

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UNDP approach to promote leverage carbon finance
for sustainable development

• Step 1
• Remove barriers to direct investments in
  Climate-friendly technologies (EFR, GEF, ODA,
  foundations)
• Analysis of key barriers for targeted sectors
• Initiation of policy dialogue with regulatory
  authorities on barrier removal strategies
• Development of sector-specific strategies
• Implementation of barrier removal activities

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• Step 2
• Establishment of efficient host-country
  procedures for CDMJI review and approval (EFR,
  ODA)
• Knowledge management platform on CDM rules for
  bio-carbon
• South-South cooperation
• Assistance in establishment of DNA, CERs
  ownership rights and approval procedures for
  bio-carbon projects
• Praining for DNA staff and decision-makers
• Public awareness raising workshops

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• Step 3
• Provision of project management services to
  individual project developers (carbon finance)
• Identify priority sector to maximize the
  development dividend ( biomass, AR and bio-fuels
  production, bio-methanation, energy efficiency
  etc.)
• Development of demonstration projects with MDG
  Carbon
• Compilation, analysis and dissemination of
  experiences and lessons learnt

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MDG Carbon Facility

• Objective
• Broadening access to carbon finance by enabling a
  wider range of developing countries to
  participate, particularly those countries which
  are presently under-represented
• Promoting emission reduction projects which
  contribute to the MDGs, yielding additional
  sustainable development and poverty reduction
  benefits
• The Facilitys compliance activities
  represent an innovative collaboration between
  UNDP and an international financial services
  provider, Fortis Bank (Fortis), offering
  prospective emissions reduction projects a
  comprehensive one-stop-shop package of services
  

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Overview of UNDP and Fortis roles in the MDG
Carbon Facility

• UNDP
• To offer project development services, including
  performing due diligence, providing technical
  assistance for CDM or JI project approval, and
  establishing the monitoring system for the
  projects emission offsets.
• FORTIS Bank
• To provide carbon banking services,
  comprised of purchasing and marketing the
  emission offsets generated by the Facilitys
  projects

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FORTIS
MDG Carbon Facility CDM Activities
UNDP
UNDP
Purchase of Carbon Credits
Technical Assistance in project development
CDM Projects
The MDG Carbon Facility (i) provides technical
assistance, to CDM projects and (ii) purchases
the credits generated by these CDM projects
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Project Types Targeted By The MDGCarbon Facility

• A wide range of project types that meet
  development objectives will be eligible for the
  Facility. Initial screening has indicated the
  potential for attractive projects based on
  diverse mitigation technologies, including
  renewable energy, energy efficiency, fuel
  switching, agricultural waste management and
  bio-fuels, and capture of fugitive emissions from
  landfills.

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Categories not eligible for MDG Facility

• Nuclear energy
• Large- scale hydropower
• Geo-sequestration (including enhanced oil
  recovery)
• Shifting of electric power loads
• Capture and destruction of industrial gases.

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• Thank you
• For more information anita.kodzoman_at_undp.org