Jakob Forman

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Jakob Forman Programme Coordinator Danish
Environmental Protection Agency Division of
Climate Change
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Wrap up of experiences of DEPA

• It is hard to fit a demand side project into the
  normal rules and procedures of the Joint
  Implementation.
• Project development costs
• Who is the project owner?
• Where do the emission reductions take place?
• Re-bouncing effect
• Monitoring
• Financing

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Double counting within the heat and power sector

• A potential problem for demand side Joint
  Implementation is the double counting issue.
• EU Commission guidelines
• provide that projects influencing directly or
  indirectly facilities included in the national
  allocation plan cannot be double counted.
• Each country can make a set aside, where EU
  allowances are taken from for instance the
  heating sector or the power sector.

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General experience

• Specific for Romania Municipalities are not
  allowed to get involved and economically support
  private house owner associations. The are often
  limited to look at supply and distribution.
• Some municipalities are very keen on going ahead
  others are very hesitant or even reluctant.
• It is difficult when we look in a particularistic
  manner at specific initiatives. We cant go in and
  say that we want a project with insulation and
  rehabilitation of apartments only.
• Often we will need to look at the broader system
  of for instance district heating or power supply.
• Conclusion There is no one-size fits all
  solution.

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What is on the table for the future?

• Bundling
• DEPA has succeeded in bundling project activities
  within the supply side.
• Resita a project package
• Programmatic Joint Implementation
• Different from a policy which can create
  perverse incentives

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What is on the table for the future?

• Green Investment Scheme
• The greening of national selling of AAUs
• Romania and other countries are working on a
  Green Investment Scheme.
• It is not really transparent how initiatives will
  be credited
• Question of real reductions?
• Monitoring?
• Private sector cannot use the AAUs for compliance
• Not on the table in the Danish Ministry of the
  Environment. If considered in the future we will
  have to put up some criteria to facilitate
  environmental integrity.

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Carbon Credits through Carbon Funds
Carbon Finance at the World Bank
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Carbon Credits through projects - Results

• 11 contracts signed on JI projects
• 6.4 mio. tons CO2 reductions/credits.
• 1.2 mio. tons CO2 reductions/credits in two
  Russian projects
• 2 mio. tons CO2 credits as options on existing
  contracts.
• 15-20 projects in the pipeline including some CDM
  projects

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Five projects fully implemented generating
emission reductions

• Biomass Energy in 5 cities in Romania
• Geothermal Energy in Oradea and Beius in Romania
• Agropolychim N2O-reduction Project in Bulgaria
• Lovochemie N2O-reduction Project in the Czech
  Republic
• Zakopane Methane Utilisation Project in Poland

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For more information
www.DanishCarbon.dk and www.danishcdm.dk