CDM????

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• CDM????
• The CDM market

??CDM??????????Training Material Building
Capacity for the CDM in China
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?????Demand and supply
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????????Kyoto Protocol Commitments
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CER?????CER demand and supply

• ????Projections
• ??CDM??????150?????????
• Present CDM supply estimated to 150 mill.
  tonnes CO2e per year
• ?????350-500?????????
• Demand with present commitments 350-500
  mill. tonnes CO2e per year
• ???2000-4000?CDM??
• Demand equals 2000-4000 CDM projects!
• Source World Bank, IEA, IETA

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???Hot air
Source Various
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??????????Project types by host country
Source Point Carbon
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?????????Project types by sector
Source Point Carbon
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??I??Annex I country
Source Point Carbon
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CERs ???Supply of CERs
Source Point Carbon
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??CERs????? Current Buyers of CERs (1)

• Multilateral Funds / Government Funds
• Prototype Carbon Fund (US 180 million)
• Community Development Carbon Fund (US 100
  million)
• World Bank Bio-Carbon Fund (US 100 million)
• Government Funds
• Dutch Government C-ERUPT Program
• Finnish CDM/JI Pilot Program ( 20 million)
• Sweden International Climate Investment Program
  CDM
• Austria JI/CDM Procurement Program
• Italian CDM fund
• Through Commercial/Development Banks
• Rabo Bank (Dutch Government)
• Japanese Bank of International Cooperation (Japan
  CDM Fund - 4 billion yen)
• Development Bank of Japan (Japan CDM Fund - 3
  billion yen
• German KfW Bank group (10 million )

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??CERs????? Current Buyers of CERs (2)

• Through Multilateral Institutions
• World Bank (The Netherlands Clean Development
  Facility - 70 million)
• IFC (IFC-Netherlands Carbon Facility - 44
  million)
• Through Bilateral Transactions (signed MOUs)
• Canadian Government with Colombia and Chile
• Dutch Government with Bolivia, Colombia,
• Uruguay and Ecuador
• Danish CDM Portfolio - Honduras, Malaysia
• EU-ETS businesses
• Bilateral agreements to meet EUETS commitments
• CER Brokers
• Evolution Markets, CO2e.com, Natsource,
  Ecosecurities

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??CERs???Current price of CERs

• PCF
• US3.0-3.5
• premium of US0.5 per ton of CO2e for projects
  with developmental components (e.g. Colombia Wind
  Farm)
• CERUPT
• renewable energy 5.5
• biomass energy - 4.4
• energy efficiency - 4.4
• fuel switch and methane - 3.3
• average price - 4.73
• Finnish Government
• small-scale - 2.47-3.2

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???????CER?? CER value of case study projects
?? Project ?? Type CER?/? CERs/Y ??CER?? Assumed CER Value CER??/? CER Revenue/y
?? HouMa EE 137,000 5 US/t 685,000 US
?????? HuitengxileWind Farm RE 51,430 5 US/t 257,150 US
??LFG Anding LFG Recovery LFG 40,000 5 US/t 200,000 US
??CMM Huainan CMM CMM 178,000 5 US/t 890,000 US
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CDM????CDM transaction cost

• ??????? Pre-operational Phase
• ?????? Search Costs
• ???? Negotiation Costs
• ???? Validation Costs
• ???? Registration Costs
• ?????? Operational Phase
• ???? Monitoring Costs
• ???? Certification Costs

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CDM????CDM transaction costs
????????
??????
??????????????? Prices decrease as experience and
projects are aggregated
Source Various