CDM Project Pipeline

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CDM Project Pipeline

• Auditorium, AIT Conference Center, Thailand
• 19-21 October 2005

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Outline

• CDM Pipeline in the Philippines
• CDM issues affecting the development
• of CDM projects
• C. Roles of DNA, NGO and other institutions
• D. Country specific issues
• E. Lessons Learned
• F. Conclusions

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A. CDM Pipeline in the Philippinesas of October
2005
Waste Management Projects
Renewable energy Projects
Afforestation/Reforestation Projects
Others
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Waste Management Projects

• Rocky Farms Piggery Waste Biogas Digester Project
• Waste to Energy Program for Philippine Pig Farms
• Paramount Integrated Methane Recovery and
  Electricity Generation
• Unirich Farm Corporation Methane Recovery and
  Electricity Generation
• Everlasting Farm and Sentra Farm Corporation
  Methane Recovery Generation
• Gold Farm Corporation Methane Recovery and
  Electricity Generation
• Gold Lion Farm Corporation Methane Recovery and
  Electricity Generation
• Red Dragon Farm Corporation Methance Recovery and
  Electricity Generation
• Container Corporation of the Philippines
  Wastewater Gas to Energy Project
• Tanay Municipal Landfill Gas to Energy Project
• PNOC Exploration Corporation Payatas Landfill Gas
  to Energy
• General Santos Biogas Recovery and Utilization
• CAT Waste to Energy Biogas
• Integrated Solid Waste Disposal Projects in the
  Philippines
• 50MW Victorias Baggase Cogeneration Plant
• 30MW First Farmers Cogeneration
• La Suerte Rice Mill 1MW Rice Hull Cogeneration
  Plant
• Isabela Rice Hull Power Generation / Cogeneration
  Program
• Intercity Industrial Estate 5MW Rice Hull Power
  Plant

Total 29 (63)
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Renewable Energy Projects

• 42MW North Luzon Wind Power
• 25MW North Wind Bangui Bay Project
• 21MW Wind Farm Project
• 10.8MW Talubin River Basin Hydropower Project
• 12.5MW Mindoro Mini-Hydro Power Plant Projec
• 20MW Palinpinon II Optimization Project
• San Carlos Wind Farm
• Abra de Ilog Wind Farm
• Sipanpang 1MW Hydropower
• 20 MW Nasulo Geothermal Project
• Burgos Wind Project
• CEMEX
• Chemrez
• Bio-Diesel

Total 14 (30)
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Afforestation and Reforestation

• Streambank Rehabilitation and Ecological
  Enhancement
• in Tanay Micro-Watershed Project
• Sustainable Reforestation in Tarlac

Total 3 (7)
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• Status of CDM projects in the Philippines
• Projects with Project Design Document 17
• Projects with PIN/PAD
  26
• CDM Documents under development 3
• Total 46
• Projects submitted for DNA approval 28
• Projects posted for validation
  11
• Project implemented
  1
• Note There maybe other CDM projects not
  monitored by CD4CDM

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CDM Projects posted for validation
Paramount Integrated Methane Recovery and
Electricity Generation(7,879 tCO2/yr) Unirich
Farm Corporation Methane Recovery and Electricity
Generation (3,255 tCO2/yr) Everlasting Farm and
Sentra Farm Corp. Methane Recovery Generation
(4,086 tCO2/yr) Gold Farm Corporation Methane
Recovery and Electricity Generation (3,255
tCO2/yr) Gold Lion Farm Corporation Methane
Recovery and Electricity Generation 3,255
tCO2/yr) Red Dragon Farm Corporation Methance
Recovery and Electricity Generation 1,494
tCO2/yr) DC Farm Corporation (1,494tCO2 tCO2/yr)
25MW North Wind Bangui Bay Project (76,218
tCO2/yr) Burgos Wind Power (62,872 tCO2/yr Nasulo
Geothermal Project (81,009 tCO2/yr)
PNOC Exploration Corporation Payatas Landfill
Gas to Energy (35,843 tCO2/yr)
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CD4CDM Assisted Projects
Developed PDD (2)
Other projects (22)
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Promoted and Facilitated (37)
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17
18
Provided technical Assistance (39)
Total Projects 46
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CD4CDM Assisted Projects

• Technical assistance provided by CD4CDM
• Participation of the project proponents in a
  Technical Tutorial Course conducted by CD4CDM to
  develop the Project Design Document (PDD) or the
  Project Application Document (PAD). The course
  included individual tutoring of project
  proponents in-between monthly meetings.
• Assisted project proponents in developing their
  PDD or PAD by providing technical expertise in
  terms of project cycle, baseline and monitoring
  methodologies, additionality, etc.

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CD4CDM Assisted Projects

• Promotion or facilitation provided by CD4CDM
• Participation of the project proponents in
  various
• training workshops conducted by CD4CDM
• Inclusion of the CDM projects in the
  promotional
• activities of CD4CDM like 2004 Manila Carbon
• Forum and the 2005 Carbon Expo held in
  Cologne,
• Germany
• Close coordination with the proponents in terms
  of
• CDM methodologies and updates.

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B. CDM issues affecting the development of CDM
projects

• Barriers
• Hesitancy in investing in CDM projects by local
  and foreign investors
• Lack of baseline data
• High transaction cost in terms of CDM
  documentation (PDD preparation)
• High transaction cost of validation and
  certification

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B. CDM issues affecting the development of CDM
projects

• Barriers
• EB developments (i.e. decisions, approval of
• methodologies, etc) which are lagging behind
• developments in the market
• Insufficient local and regional validators
• Present political issues faced by the country
• Changes in government officials involved in the
  process

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B. CDM issues affecting the development of CDM
projects

• Solutions
• Advocacy to CER buyers like Japan to invest in
  underlying finance
• Advocacy to financial institutions to use CERs
  and ERPAs to improve credit ratings of project
  proponents and act as bundlers for small scale
  CDM projects
• On-going project to establish baseline data for
  energy projects
• Continuous capacity building for project
  proponents and local consultants to develop CDM
  documents

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B. CDM issues affecting the development of CDM
projects

• Solutions
• Presence of local validators will lower
  validation cost
• Provision of lower application fee and shorter
  processing time for small scale projects in the
  national approval process to lessen transaction
  cost
• Continuous capacity building for all the
  institutions involved in the CDM national
  approval process

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C. Roles of different institutions/ groups in CDM

• Designated National Authority (DNA)
• Formulates and develops a national CDM policy
• Develops the criteria, indicators, standards,
  systems and procedures, and evaluation tools
• Undertakes the assessment of proposed CDM
  projects
• Monitors the implementation of CDM projects

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C. Roles of different institutions/ groups in CDM
(cont.)

• B. Non- government Organization
• Ensures that the sustainable development (SD)
  impacts of the proposed CDM project are in line
  with the SD objectives of the country
• Develops and promotes CDM projects with high SD
  impacts
• Participates in the CDM approval process of the
  National Authority through its representative in
  the CDM Steering Committee

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C. Roles of different institutions/ groups in CDM
(cont.)

• C. Financial Institutions
• Provide underlying finance for the development of
  CDM projects (local or foreign investment)
• Potential project developer for projects in their
  loan portfolio
• Potential bundlers of small scale CDM projects
• Brokers for CERs
• Financial advisers to project proponent

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C. Roles of different institutions/ groups in CDM
(cont.)

• D. Consultancy Groups/ Academe
• Provide technical assistance in the development
  of feasibility studies and CDM documents such as
  the PDD
• Assist in packaging the CDM projects
• Provide expertise in drafting legal contracts
  such as Emission Reduction Purchase Agreement
  (ERPA)
• The academe conducts research on possible
  baseline and monitoring methodologies

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D. Country specific developments and observations

• Promulgation of the Rules and Regulations of the
  National Approval Process
• Streamlined and transparent National Approval
  Process
• High awareness on CDM by significant stakeholders
  such as, government, financial institutions,
  project developers, environmental consultants,
  etc
• Presence of CER buyers

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D. Country specific developments and observations

• Good number and variety of CDM projects in the
  pipeline
• Presence of capacity building assistance from
  various funding agencies
• Growing interest in forestry
• Pilot projects getting off the ground (e.g. first
  wind farm, first landfill gas capture
• The government is giving priority to the
  development of renewable energy sources due to
  rising cost of oil

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E. Lessons Learned

• It is important for any capacity building project
  to work closely with the focal agency such as
  DENR to coordinate efforts and maximize
  resources
• It is good to maintain linkages with all the
  players involved in CDM (project proponents,
  NGOs, financial institutions, govt. agencies,
  consultancy groups, etc.)
• Co-organizing events and activities with other
  institutions and group associations is
  cost-effective
• Participation in international forum such as the
  Manila Carbon Forum and the Carbon Expo are good
  opportunities to promote CDM projects and
  generate interests from potential investors

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E. Conclusions

• The CD4CDM, in coordination with the Inter-Agency
  Committee on Climate Change (IACCC) has
  significantly contributed to the development of
  CDM capacity in the Philippines. 78 of the
  monitored potential CDM projects in the
  Philippines received assistance from the Project,
  ranging from actual technical assistance to
  facilitation and promotion.
• CD4CDM also helped in the promotion of Philippine
  CDM in various international forum.

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Maraming Salamat!

• Marina T. Mallare
• Project Coordinator
• Capacity Development for CDM
• klima-Climate Change Center
• Manila Observatory
• Telefax 63 2 426-0837
• marina_at_observatory.ph
• www.klima.ph/cd4cdm