Introduction CDM

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Introduction CDM Sri LankaImportant
initiatives taken by Sri Lanka

• Acceded the Kyoto Protocol on 3rd September 2002.
• Established Designated National Authority for the
  CDM project activities.
• Prepared a national framework policy on CDM
• Establishment of two national CDM study centers
  at two leading Universities..
• National strategy study on climate change (To be
  started soon).

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• Important developmental sectors that are closely
  linked with greenhouse gas emission and climate
  change
• Industrial
• Agriculture
• Energy
• Waste sector
• Transport
• Plantation
• Energy
• The primary energy sources in Sri Lanka
• Biomass
• Petroleum
• Hydro-electricity

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(Source Meier et al. 1996) (Source
Energy Conservation Fund1996)
Figure 1. Primary Energy Supply in Sri Lanka
(1991 1999)  
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Sri Lankan CDM potential

• Projected electricity demand in 2010 - 18800 GWh
• Additional energy requirement - 13200 GWh (Some
  of these energy may be produced as CDM projects
• Existing scrub and chena lands 1.7 million ha
  (Part of this can be used for CDM

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National Policy on Clean Development Mechanism

• Objective
• To contribute to sustainable development through
  developing and establishing the institutional,
  financial, human resources and legislative
  framework necessary to participate in Clean
  Development Mechanism (CDM) activities under the
  Kyoto Protocol while developing a mechanism for
  trading Certified Emissions Reductions (CER)
  and Removal Units (RMU) earned through CDM
  activities.

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Policy Principles

• Participation in CDM projects shall be in line
  with existing sectoral policies.
• CDM projects shall have tangible national impacts
  and will contribute to the national sustainable
  development agenda.
• CDM will be used to encourage sector investments
  in climate-friendly development activities.
• CDM projects shall be designed so as to
  contribute to the improvement of the environment
  and the welfare of the society as a whole.
• CDM Projects shall be encouraged to include
  elements that would contribute to poverty
  reduction and employment generation.

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Policy Principles Cont.

• CDM Projects shall promote and encourage the
  inward transfer of new, proven, affordable and
  relevant technologies.
• CDM Projects that address National Environmental
  issues will be especially encouraged.
• CDM projects shall be approved through a
  participatory and transparent process that
  involves a detailed assessment of their economic,
  social and environmental benefits and their
  relevance to local needs and priorities.
• CDM projects shall recognize the rights of the
  people of Sri Lanka in relation to all emissions,
  exercised through the Government of Sri Lanka.
• Applicants for approval of CDM projects will meet
  the costs associated with the evaluation of their
  applications by making such payment to the
  Secretariat as the Authority may determine.

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POLICY STATEMENTS

• Institutional Framework
• The Ministry of Environment Natural Resources -
  National Focal Point for UNFCCC the Kyoto
  Protocol.
• The Climate Change Secretariat (CCS) -Designated
  National Authority (DNA) for CDM activities.
• A National Experts Committee (NEC) - evaluate CDM
  project and make recommendations to the
  Authority.
• A national CDM study Centre - advising project
  proponents and the CCS on all issues on CDM.
• The Ministry shall establish an Emissions Trading
  Exchange (ETX).

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Partners of the National Expert Committee on CDM

• Ministry of Environment and Natural Resources
• Ministry of Power and Energy
• Ministry of Agriculture
• Ministry of Science and Technology
• Ministry of Industries
• Forest Department
• Meteorology Department
• Universities
• Ministry of Transport and Highways
• Private Sector
• Non Governmental Organization
• Colombo Municipal Council

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Criteria

• The CCS through NEC shall ensure that the project
  developers follow the guidelines of the IPCC and
  the UNFCCC
• Government shall not be held responsible for
  delivery of the CER and RU contracted by CDM
  projects.
• CDM projects shall be subject to the Environment
  Impact Assessment (EIA) process and other
  applicable laws, as relevant.

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CDM - Structure of the Designated National
Authority
Secretary / Environment and Natural
Resources



CDM Project Developers
CDM Study Centers
NGOs
Climate Change Secretariat-DNA
Government Agencies
Private Sector
CDM Expert Committee
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Possible challenges, CDM Sri Lanka

• Over Estimating the CDM Potential.
• Over Estimating the CDM Revenue.
• No Market access
• Approval Procedures Not Acceptable to Private
  Sector
• Lack of knowledge.
• No easy access to new information.
• Fear of adopting new technologies.

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Proposed CDM project Proposals and Concept
Papers in Sri Lanka

• Project Proposal
• Bambarabatu Oya mini hydro power
  plant-3.2MW-Vidullanka Limited.
• 50MW Wind power plant at puttalam- Largerwey
  Windturbine International.
• Colombo Organic Waste Treatment Plant- Biolan
  (pvt) Ltd.
• 20MW Wind power plants in Narakkalliya- Senok
  Trade Combine Ltd.
• 9 Mini hydro power projects- Eco-power Ltd.
• a) Alupola, Badulu Oya, Weli Oya, Arattana-
  13.3MW
• b) Magal Ganga 9.9MW
• c) Hapugastenne Hulu Ganga 13.55MW

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Concept Papers

• Power Generation and Manufacture of Coconut
  Shell Charcoal 8MW by Sri Recogen Limited.
• Availing to Carbon Credit for Proposed Denro and
  Hydro Power Project- 6MW by Lanka Transformers,
  Ltd.
• Reduction of Carbon Emission, Environmental
  Improvement, and Community Development through
  briquetting of saw dust in the Lunawa/ Bolgoda
  area- by Coast Conservation Department, Central
  Environmental Authority, Seth Sevana Foundation.
• Carbon Trading for Rubber Growers Rubber
  Research Institute.
• Disposal of Solid Waste Generated in the City of
  Colombo by Free Lanka Plantation.

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Constraints

• 1.      Lack of strategic approach to analyse
  the CDM potential of various sectors
  including marginal abatement costs of carbon
  abatement and clear understanding of the size of
  CDM market of various sectors for making macro
  level policy decisions
• 2.      Inadequate awareness on CDM concept and
  its benefits to the country at all levels
  particularly at highest political decision making
• 3.      Inadequate or lack of institutional
  structures both private and public sector in
  order to address the various CDM project
  development cycles which require a participation
  of multi-stakeholders including enabling legal
  environment
• 4.      Inadequate or updated national technical
  capacity for the CDM project development and in
  sufficient human resources in the sector
• 5.      Lack of CDM market strategy for the
  effective participation of international market
  including strong negotiation skills and legal
  capacity
• 6.      Inadequate financing mechanism for CDM
  project development and investment

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Future Programme

• Tanning and Capacity Building in Private and
  Public Sector
• Setting up the minimum requirements for CDM
  projects
• Clear guidelines on priority areas for projects
• Producing a list of non-eligible activities
• Development of Baselines for Various Sector

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Future Programme Cont..

• Setting up an infrastructure for promoting and
  handling CDM projects
• Developing a full programme to promote and
  actively seek out CDM projects.
• Efficient and transparent procedures for
  processing project applications.
• Procedure for registering and monitoring
  in-country project activities,

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Future Programme Cont..

• Procedures for authorizing verification
  organizations that validate and certify CDM
  projects.
• Clear guidelines on the selection,
• Information about project and financial
  opportunities to in-country project developers.
• Identify promising project types and associated
  social, economic and environmental impacts.

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