Presentacin de PowerPoint

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How can CDM foster investment in Clean Energy
Technologies in developing countries? A
perspective from Latin America Climate Change
and Sustainable Development An International
Workshop to Strengthen Research and
Understanding7 8 April, 2006, New Delhi,
India
Alejandra López Carbajal Ministry of Environment
and Natural Resources Mexico
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FRAMEWORK

• Article 2 of the UNFCCC
• The ultimate objective of the Convention is to
  achievethe stabilization of greenhouse gas
  concentrations in the atmosphere at a level that
  would prevent dangerous anthropogenic
  interference with the climate system.
• Article 12 of the Kyoto Protocol
• The purpose of the Clean Development Mechanism
  shall be to assist Parties not included in Annex
  I in achieving sustainable development and in
  contributing to the ultimate objective of the
  Convention, and to assist Parties included in
  Annex I in achieving compliance with their
  quantified emission limitation and reduction
  commitments.

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STATE OF THE CARBON MARKET as of april 3, 2006

• REGISTERED PROJECTS 150
• CERs EXPECTED BY 2012 340 million
• HOST COUNTRIES 30
• BUYER COUNTRIES 13
• ISSUED CERS 4.173 million
• CER PRICE
• 4-6 Euro for medium-risk forwards
• 8 Euro for low-risk forwards
• 11-14 Euro for registered projects
• 15 Euro for Gold Standard registered projects
• 15-17 Euro for issued CERs

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REGISTERED PROJECTS BY ANNEX I PARTY () as of
apr 3, 2006, UNFCCC
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REGISTERED PROJECT ACTIVITIES BY HOST PARTY ()
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EXPECTED AVERAGE ANNUAL CERS FROM REGISTERED
PROJECTS BY HOST PARTY
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DISTRIBUTION OF REGISTERED PROJECTS BY SCOPE
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REGISTERED PROJECT ACTIVITIES BY REGION ()
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AXIS FOR FOSTERING CLEAN ENERGIES THROUGH THE CDM

• International Cooperation
• Capacity Building
• Financing
• Technology

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CAPACITY BUILDING

• Main obstacles
• Weak institutional frameworks (bureaucracy, lack
  of experience, insufficiency of human resources)
• Uncertainty of local procedures
• Lack of experience and interest for small-scale
  projects development
• Low interest on RE and EE projects into the CDM

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HIDROELECTRIC PROJECT IN RIO BLANCO, HONDURAS

• Generation 22.25 GWh
• Emission factor 0.8 Tco2/KWh
• Price of tCO2e US 2.60
• Reduction of emissions 22,250 KWh 0.8 17,800
  tCO2e/y
• Counterpart Government of Finland
• Registered January 11, 2005

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SEED INVESTMENTS

• Hydroelectric Project La Gloria
• Annual Generation 48.19 GWh
• 20,464 tCO2e/y
• Hydroelectric Project Cuyamapa
• Annual Generation 27.2 GWh
• 38,552 tCO2e/y
• Hydroelectric Project El Cangrejal
• Annual Generation 149.7 GWh
• Hydroelectric Project San Juan
• Annual Generation 6 MW
• Hydroelectric Project Xacbal
• Source Grupo Terra, Proyecto Hidroeléctrico Río
  Blanco, Honduras C.A., Taller Regional sobre el
  financiamiento de proyectos MDL, 20 marzo 2006,
  Ciudad de Mèxico

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FINANCING

• Main obstacles
• High transaction costs (investment and
  development of projects)
• RE projects require higher investments for
  electricity generation (subsidies to conventional
  energy)
• Lack of risk capital for the first stages of
  projects
• Lack of awareness, information and experience by
  the financing sector (public and private)
• Uncertainty of the value of CERs

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THE ARGENTINIAN CARBON FUND

• Objectives
• Promote national and foreign investments in clean
  technologies
• Improve national capacities for CDM
• Promote public and private partnerships to
  develop CDM projects (including local
  administrations)
• Complement carbon funds from the supply side
• Promote and develop investment projects (funding
  for project preparation, and support and
  assistance for carbon transactions)
• Facilitate a sustained flow of CERs
• Improve CERs prices for project proponents

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PROJECT SCOPE OF THE ACF

• Created September 1st, 2005
• Assistance to /- 100 projects
• 1st call closed December, 2005
• Source Hernán Carlino, Políticas e instrumentos
  de desarrollo el Fondo Argentino de Carbono,
  Taller Regional sobre el financiamiento de
  proyectos MDL, 20 marzo 2006, Ciudad de Mèxico

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TECHNOLOGY

• Main obstacles
• Lack of access to affordable RE technologies
• Adaptation of technologies to national needs
• Insufficient security for electricity generation
  by RE
• Lack of awareness and information (EE)

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PROGRAMMATIC CDMTHE INTELLIGENT USE OF ENERGY

• Waste
• Efficiency
• Domestic Renewable Energies
• 6,493.9 PJ
• National consumption of energy

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ENERGY EFFICIENCY PROGRAMMES

• ENERGY EFFICIENCY IN THE FEDERAL GOVERNMENT
• Objective
• Establishment of a programme for the rational
  and efficient use of energy in Federal Government
  buildings.
• Current development Results (Jan 06)
• Buildings 1700 Savings 20 (2000 levels)
• Area 5 million m2
• REGULATION
• Objective
• Regulation of systems and products that offer a
  significant potential of energy savings due to
  their consumption of energy and number of unities
  produced and commercialized.
• Current development Results (Jan 06)
• Existing norms 18 Avoided consumption 45,600 GWh
• In process 3 Avoided generation 52,700 GWh
• Avoided demand 2,844 MW
• CO2 emissions reductions 30,000 million tons

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OTHER PROGRAMMES

• Owned State Enterprises (FIDE/LFC)
• States and Municipalities (ESCO)
• Private sector (Large and small scale/ ESCO)
• Households (Public awareness)

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CONCLUSIONSOPPORTUNITIES

• Learning by doing process
• Innovative financing Carbon Funds
• Sale of CERs improves the projects Internal Rate
  of Return (IRR) additional revenues
• Bundling and unilateral CDM for small-scale
  projects
• Programmatic CDM
• RE lower environmental impacts and EE win win
  solutions
• High potential of RE and EE - wide variety of
  projects
• Clean energies are an integral part of any future
  energy system
• Nature of Climate Change
• UNFCCC and CDM objectives

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CONCLUSIONSCHALLENGES

• Overcoming excedeed expectations of CDM (RE
  market GEF ODA CDM Governmental policies)
• Complementing the current state of the carbon
  market low hanging fruits
• Specifics of renewables projects themselves
  (economic, regulatory, technic, institutional,
  financing)
• Different circumstances within developing
  countries (CDM priorities, identification of
  project opportunities)
• Enhancement of an emergent and innovative market
• Certainty post-2012 (global carbon market/prices
  stabilisation)

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www.semarnat.gob.mx www.ine.gob.mx alejandra.lope
z_at_semarnat.gob.mx