Danish CDM Project Development Facility in Indonesia

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Danish CDM Project Development Facility in
Indonesia

• Søren Varming
• Senior consultant, Climate Change, SV Carbon

Contact sv_at_svcarbon.com
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Danish Climate Strategy

• Published by Danish Government in February 2003
• Key issue Introducing Kyoto Mechanisms to
  achieve cost efficiency
• Balance between domestic action and buying of
  credits defined in economic terms

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Uncoupling of economic growth and CO2-emissions
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Share of Renewable Energy in Denmark
Red Share of electricity Blue Share of total
energy
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Bilateral collaboration in focus

• Government purchases through pipelines of
• Ministry of Foreign Affairs Bilateral
  collaboration on CDM in Malaysia, Thailand,
  Indonesia, China and South Africa
• Environmental Protection Agency JI-projects in
  Eastern Europe
• Multilateral Carbon Funds A Danish Fund in the
  World Bank
• An MoU between Denmark and Indonesia was signed
  by Ambassador Andersen and Minister Witoelar on
  July 27, 2005

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Huge CDM potential in Indonesia

• 125 - 300 million ton CERs in the period
  2008-2012
• Could create a value of 625 -1200 million USD via
  sales large local benefits for sustainable
  development
• Opportunities in many sectors
• Cement
• Oil and gas
• Pulp and paper
• Steel
• Palm Oil
• Electricity
• Energy saving
• Etc

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How to develop a CDM project?
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Benefits of participating

• You get a new income stream for your project
  with no risk for you
• Danida takes all the CDM related risk
• Danida takes all the trouble getting the paper
  work done
• Preparing a Project Design Document
• Getting the PDD validated
• Getting an Indonesian National Approval
• Getting the registration at the CDM Executive
  Board
• Danida buys the CERs when they are delivered

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Criteria for participating (1)

• The underlying project must be technical and
  financial viable
• The technical design
• Financial viability/project financing
• Legal and commercial status of the project
• The project should be likely to be approved as
  CDM project
• Contribution to sustainable development
• Likelihood of being additional
• Existence of baseline methodology
• The project proponent capable to implement the
  project
• Technical and management capability
• Financial solidity of the company

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Criteria for participating (2)

• Projects should ideally be of more than 30,000
  ton CER/year
• Only projects that have not been implemented
• The Royal Danish Embassy prefers a mix of
  projects, geographically, technically
• The Royal Danish Embassy will select the best
  suited projects

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The formalities
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Next steps

• A number of workshops will be organised giving
  more information on the Project Development
  Facility
• If you have a project already then contact the
  project secretariat to get a template for a
  Project Idea Note (PIN)
• We will assist you in filling in the PIN

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Contact

• Secretariat of Danish CDM Project Facility
• c/o Royal Danish Embassy
• Menara Rajawali 25th Floor,Jl. Mega Kuningan,
  Jakarta 12950Telephone [phone] ext 114
• or
• 62 21 72801172 ext 306Fax [phone]
• E-mail danish-CDM-facility_at_pelangi.or.id
• Website http//danish.cdm.or.id