Senter Internationaal ERUPT

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Carboncredits.nl

• A higher return on investments in renewable
  energy and energy efficiency
• Adriaan Korthuis
• February 2002
• www.carboncredits.nl

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The next 20 minutes...

• Dutch Climate policy
• Essentials Carboncredits.nl

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Senter

• Agency of the Dutch government
• Programme implementation, a/o
• CO2 reduction plan
• Co-operation with emerging markets
• Export finance
• 700 staff
• EUR 1 000 million

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Dutch Climate policyCommitment and
cost-effectiveness

• Committed to 6 percent reduction 50 Mtonne /
  year
• Domestic costs lt EUR 150 / tonne
• Kyoto mechanisms lt EUR 10 / tonne
• Joint Implementation
• Clean Development Mechanism
• International Emission Trade
• Start early
• develop the market, take the risk
• set the standard, enjoy attractive prices

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Dutch JI/CDM framework

• Buying carbon credits
• Carboncredits.nl
• World Bank, EBRD, IFC etc.
• Facilitation
• Guidelines for baseline setting and validation
• MOUs with host countries
• Capacity building in host countries

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Essentials of Carboncredits.nl

• The Dutch goverment buys Carbon credits through
  JI and CDM
• NOW!
• Legal basis
• Kyoto / Marrakech product definition
• EU procurement rules how we buy

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Carboncredits.nl - why participate?

• Investors selling carbon credits
• higher return on investment
• improved financing conditions
• Host country governments approving transfers
• attract foreign investment
• decrease pollution
• contribute to obligations under Kyoto Protocol
• Government of The Netherlands buying carbon
  credits
• attractively priced carbon credits

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Carboncredits.nl

• Public tender
• No preference for Dutch companies!
• Requirements
• feasible project
• validated baseline
• host country approval
• Criteria
• price per carbon credit
• feasibility of the delivery

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Project types

• renewables (solar, wind, biomass, hydro)
• Fuel switch (oil to gas, coal to gas)
• energy efficiency (lighting, insulation, process
  optimisation)
• forestry (JI only)
• waste processing (land fill gas extraction)

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Higher return on projects

• Price per carbon credit EUR 3 - EUR 6
• 5 - 10 percent of investment cost for energy
  projects,
• up to 25 percent of investment cost for forestry
  projects
• gt 50 percent of investment cost for waste
  projects

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Technics calculation of ERUs
Emission level
Baseline
Carbon credits to be sold
Emission by the project
time
2000
2008
2012
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Does it work?CDM tender 2001

• first call for expressions of interest just
  closed
• lots of interest all over the world
• selection next months

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Does it work?JI tender 2000

• 4 contracts, EUR 26 million, 3,.25 million tonne
  CO2
• Romania - district heating
• Poland - wind
• Romania - small hydro power
• Czech Republic - small biomass boilers

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District heating Targoviste (Romania)

• New CHP 26 MWe
• rehabilitate boilers and network
• shut down lignite plant
• 1.5 million tonnes CO2 reduced, EUR 14 million

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ERUPT 2000Technologies
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ERUPT 2000Countries
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Actions

• Senter
• Assessment of submissions
• Determine most promising markets
• Invest in sustainable relationship
• Companies
• become involved
• express your interest
• submit project ideas

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2002

• JI tender op until 4 March
• Maybe new tenders ahead
• more info www.carboncredits.nl