33 Asset Management - Ensuring Predictability

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33 Asset Management - Ensuring Predictability
12 March 2011, Bonn
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Ensuring Predictability

• Whats working
• CDM/JI knowledge built
• Capacity building
• Infrastructure
• What is not working
• Uncertainty
• Subjective element

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Ensuring Predictability

• Two approaches for project developers and
  investors to judge UNFCCC
• Thumbs up Well done for setting it up and
  building the capabilities (meths, DOEs, DNAs)
• Critical reviews of projects and issuances,
  waiting times, uncertainty, suspensions
• What we need is a little more TLC
  transparency/Longevity/Certainty Consistency
  (Deutsche Bank Climate Change Advisors)

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Ensuring Predictability

• Climate change will not disappear from the
  worlds agenda
• Concern/risk for UNFCCC
• IF the systems can not adjust with the increasing
  level of knowledge within the UNFCCC
• IF such overhaul is not fully supported
• THEN the market will move on
• Bilateral agreements
• New carbon market mechanisms
• New auditing procedures
• The market needs clarity to drive significant
  investment and subsequently large amount of
  emissions reductions.
• But the market will not wait indefinitely for
  changes to existing mechanism it will find
  alternative routes

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Ensuring Predictability

• Suggestions
• Use the existing knowledge built in the UNFCCC
  (EB, Meth panel, DOEs, DNAs etc)
• Pre-select and approve project types per region
  (whitelists)
• Set clear PDD instructions per project type
• No further additionally tests (as project type is
  already pre-approved)
• Pure procedural check if project followed
  instructions before registration
• Yearly verification to ensure environmental
  integrity
• Include project types like forestry and REDD to
  ensure volumes can be achieved without N2O and
  HFC projects
• Simple, clear for everybody, no subjective
  approvals

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Ensuring Predictability

• Simplicity is the Ultimate Sophistication by
  Leonardo Da Vinci
• Does not mean the problem is simple
• The UNFCCC has the unique capabilities and
  knowledge to really change the mechanisms to make
  it simpler
• If it doesnt do so, the market will increasingly
  look for and create alternative mechanisms

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Contact
Walle Oppedijk van Veen 33 Asset
Management Commercial Manager Tel
31-(0)70-34 61 734 GSM 31-(0)6-22317941 Ema
il w.oppedijkvanveen_at_33assetmngt.com
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