CDM and SSN: A winning combination

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CDM and SSNA winning combination
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SSN and CDM

• Creating partnerships between South, South and
  North countries through the opportunity of the
  Clean Development Mechanism to combat adverse
  climate change, and to promote Sustainable
  Development, best practice, and capacity
  enhancement in the developing world.

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The SouthSouthNorth project

• The SouthSouthNorth Project is a capacity
  building initiative helping four southern
  countries to learn from the experience of
  developing CDM projects
• We operate in Brazil, South Africa, Indonesia,
  and Bangladesh

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An SSN introduction

• In this presentation we will highlight some
  fundamental points regarding,
• the Clean Development Mechanism
• and illustrate what SSN seeks to achieve

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TRADE with the SOUTH THE CDM

• The CDM, or Clean Development Mechanism, is a
  unique trade instrument
• Through it, SOUTH countries (without targets) can
  elect to assist NORTH countries (with targets) to
  achieve their target at a lower cost
• How is this done?

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A CDM project
Investment funds
Emitter in NORTH
Emitter in SOUTH
COST
COST
Emission Reduction credits
Target level of emissions
Achieved level of emissions
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Countries and emitters

• A CDM Project activity can either be a contract
  between countries or emitters themselves

Holland
Costa Rica
Local Landfill Project
Philips
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In summary

• The SOUTH project developer receives investment
  from the NORTH investor/purchaser
• And in return assists the NORTH
  investor/purchaser to reach its target at a lower
  cost
• This is TRADE there must be a difference between
  the cost to the investor and the price to the
  developer

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The project activity

• Must reduce GHGs against a validated baseline
• This baseline represents what the emissions would
  have been without the CDM project taking place
• Each ton CO2 equivalent reduced in this way
  becomes a CERTIFIED REDUCTION CERTIFICATE, which
  is tradable

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And

• The NORTH emitter wins by achieving a portion (no
  more than 50) of its target at a lower cost
• The SOUTH emitter wins by receiving investment
  funds to improve technology and performance
• The world wins through a reduction of GHGs
• And

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The host country

• It is a requirement of the Kyoto Protocol that
  the host country must first satisfy itself that
  any CDM project will contribute to its
  SUSTAINABLE DEVELOPMENT
• So the host country wins in this way
• Well, that, at least, is the idea
• But a lot has gone wrong

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SD the challenge

• Setting SD rules is complex
• Many developers want deal flow without
  restrictions a race to the bottom?
• Some CDM projects will result in job losses
• Government may be stuck in the middle
• Should there be thresholds?
• And anyway, with the US out, is there a carbon
  market?

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CDM projects the cycle

• The CDM project is a component of a development
  project
• It is based on a PROJECT DESIGN DOCUMENT (PDD)
• The PDD is a prediction of the carbon offset
  which the CDM component will achieve
• This prediction is then validated, approved,
  registered and transacted

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The Project Cycle illustrated
CERs
Owner and Stakeholder Groups
Project Design
Approval by DNA
Validation by OE
Verification and Issuance
Registration by Exec Board
Monitoring
Implementation
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CDM milestones
DNA approves project for Sustainable
Development
CDM Administrative Bodies
Owner and Stakeholder Groups
OE Operational Entity eg accredited auditor
Validates project design
Project Design
Approval by DNA
Exec Board of the CDM Registers Project
Validation by OE
Registration by Exec Board
Monitoring
Verification and Issuance
By the OE Issues CERs
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So what can the CDM achieve?

• The South can help the North meet its targets
• In return the South can promote its path towards
  sustainable development
• The South can choose its projects, the timing,
  the investors, and so forth
• Sothe CDM could achieve a great deal

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The SSN Project

• Our organisation, our work

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We are about

• Viable, commercial, and transactable CDM projects
• People focused sustainable development
• Capacity development and learning

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We are first a SOUTH organisation


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Our structure
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Object 1 assist project owners to develop CDM
projects
BRAZIL SOUTH AFRICA INDONESIA BANGLADESH
Thermo Power Plant Energy Production through the using of waste gas (bio- gas) and bio-diesel (methyl ester) Bundled housing project over 3000 low cost houses Geo-thermal power plant with Unocal Rural solar homes system with Grameen for 50000 houses
Bio-diesel (methyl ester) Production from Residual Vegetable Oil Landfill project aimed at the recovery collection of LFG for subsequent use as thermal or electrical energy Transport project in Yokjakarta Electric vehicle project in Dhaka
Thermo Power Plant through a semi dry Anaerobic Bio-digestion technology Landfill project aimed at the recovery collection of LFG for subsequent use as thermal or electrical energy
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We assist project developers

• By providing a technical team with expertise for
  each project activity
• By assisting with approval, validation,
  registration and transaction
• By providing a portion of the transaction costs
• By providing project facilitators
• By sourcing investors/purchasers
• In this way maximizing benefits to southern hosts

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Object 2 work with governments

• We are in close co-operation with all four
  governments to assist them in developing criteria
  and indicators, and a procedure, for the approval
  of CDM projects
• We are also assisting all four governments to
  develop internal capacity for the Designated
  National Authority offices
• We are facilitating consultative meetings between
  governments and stakeholders

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Object 3 develop a CDM guide

• Our CDM guide will be based on actual experiences
  gained from developing CDM projects
• The Guide has 64 modules and can be used in
  various formats and for various audiences
• It will contain template documents
• It will be web, CDROM and trainer-event based
• It will be for all to use

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• Helio helps us to monitor our projects,
• To develop Monitoring and Verification Protocols
• And to develop a number of trained CDM monitors

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