K.A.K. Kasturiarachchi Global Affairs Division Ministry of Environment and Natural Resources Sri Lanka

1. Clean Development Mechanism in Sri Lanka K.A.K. Kasturiarachchi Global Affairs Division Ministry of Environment and Natural Resources Sri Lanka

2. Location of Sri Lanka

3. Introduction to the Climate Change Activities • Ratified UNFCCC in 1994 • First National Communication submitted 2000 • Green house Gas Inventory -1995 • 58 Studies are being conducted • Center for Climate Change Studies Established at Met. Department

4. Breakdown of overall GHG emission in Sri Lanka – 1994 Source- Initial National Communication-2000-Under the UNFCCC

5. CDM & Sri LankaImportant initiatives taken by Sri Lanka • Acceded the Kyoto Protocol on 3rd September 2002. • Established Designated National Authority for the CDM project activities. • Prepared a national framework policy on CDM • Establishment of two national CDM study centers at two leading Universities.. • National strategy study on climate change (To be started soon).

6. Structure of the Designated National Authority Secretary / Environment and Natural Resources CDM Project Developers CDM Study Centers NGO’s Climate Change Secretariat-DNA Government Agencies Private Sector CDM Expert Committee

7. CDM Project Development Process in Sri Lanka • Project developer identifies a project and prepares the project Identification Note (PIN). 2. If possible identify a buyer to buy Certified Emission Reductions (CERs). 3. Project developer submits the PIN to the DNA/CCS 4. DNA issues the letter of approval or project approval in principle. 5. Once PIN is approved project developers prepare the PDD. 6. Project developer submits the Project Design Document (PDD) to the DNA.

8. Cont… 7. Project developer pays PDD evaluation cost to DNA. 8. DNA submits the PDD to the CDM Expert Committee for recommendation. 9. The Expert Committee send the PDD to a suitable expert for review. 10. Expert Committee make recommendation to the DNA. 11. DNA submits the Expert Committee recommendation to the Secretary for approval. 12. DNA issue the host country approval.

9. Partners of the National Expert Committee on CDM • Ministry of Environment and Natural Resources • Ministry of Power and Energy • Ministry of Agriculture • Ministry of Science and Technology • Ministry of Industries • Forest Department • Meteorology Department • Universities • Ministry of Transport and Highways • Private Sector • Non Governmental Organization • Colombo Municipal Council

10. National Policy on Clean Development Mechanism • Objective • To contribute to sustainable development through developing and establishing the institutional, financial, human resources and legislative framework necessary to participate in Clean Development Mechanism (CDM) activities under the Kyoto Protocol while developing a mechanism for trading “Certified Emissions Reductions” (CER) and “Removal Units” (RMU) earned through CDM activities.

11. Policy Principles • Participation in CDM projects shall be in line with existing sectoral policies. • CDM projects shall have tangible national impacts and will contribute to the national sustainable development agenda. • CDM will be used to encourage sector investments in climate-friendly development activities. • CDM projects shall be designed so as to contribute to the improvement of the environment and the welfare of the society as a whole. • CDM Projects shall be encouraged to include elements that would contribute to poverty reduction and employment generation.

12. Policy Principles Cont. • CDM Projects shall promote and encourage the inward transfer of new, proven, affordable and relevant technologies. • CDM Projects that address National Environmental issues will be especially encouraged. • CDM projects shall be approved through a participatory and transparent process that involves a detailed assessment of their economic, social and environmental benefits and their relevance to local needs and priorities. • CDM projects shall recognize the rights of the people of Sri Lanka in relation to all emissions, exercised through the Government of Sri Lanka. • Applicants for approval of CDM projects will meet the costs associated with the evaluation of their applications by making such payment to the Secretariat as the Authority may determine.

13. POLICY STATEMENTS • Institutional Framework • The Ministry of Environment & Natural Resources - National Focal Point for UNFCCC & the Kyoto Protocol. • The Climate Change Secretariat (CCS) -Designated National Authority (DNA) for CDM activities. • A National Experts Committee (NEC) - evaluate CDM project and make recommendations to the Authority. • A national CDM study Centre - advising project proponents and the CCS on all issues on CDM. • The Ministry shall establish an Emissions Trading Exchange (ETX).

14. Criteria • The CCS through NEC shall ensure that the project developers follow the guidelines of the IPCC and the UNFCCC • Government shall not be held responsible for delivery of the CER and RU contracted by CDM projects. • CDM projects shall be subject to the Environment Impact Assessment (EIA) process and other applicable laws, as relevant.

15. Eligibility • CDM Project proposals shall be evaluated based on their feasibility and national benefits. • Proponents of CDM projects shall be entities incorporated in Sri Lanka • Small CDM projects - Bonn Agreement adopted at the (COP-6).

16. CDM Sectoral Opportunities

17. The key sectors for the implementation of CDM projects • Energy • Industry • Transport • Waste Management • Agriculture • Forestry Management • Plantations • The government may decide priority sectors for CDM projects from time to time.

18. Proposed CDM project Proposals and Concept Papers in Sri Lanka Project Proposal • Bambarabatu Oya mini hydro power plant-3.2MW-Vidullanka Limited. • 50MW Wind power plant at puttalam- Largerwey Windturbine International. • Colombo Organic Waste Treatment Plant- Biolan (pvt) Ltd. • 20MW Wind power plants in Narakkalliya- Senok Trade Combine Ltd. • Mini hydro power projects- Eco-power Ltd. a) Alupola, Badulu Oya, Weli Oya, Arattana- 13.3MW b) Magal Ganga – 9.9MW c) Hapugastenne & Hulu Ganga – 13.55MW

19. Concept Papers • Power Generation and Manufacture of Coconut Shell Charcoal – 8MW by Sri Recogen Limited. • Availing to Carbon Credit for Proposed Denro and Hydro Power Project- 6MW by Lanka Transformers, Ltd. • Reduction of Carbon Emission, Environmental Improvement, and Community Development through briquetting of saw dust in the Lunawa/ Bolgoda area- by Coast Conservation Department, Central Environmental Authority, Seth Sevana Foundation. • Carbon Trading for Rubber Growers – Rubber Research Institute. • Disposal of Solid Waste Generated in the City of Colombo – by Free Lanka Plantation.

20. PINs submitted for approval • Wind power plant by Senok Trade Combine Ltd. • Mini Hydropower Project by Free Lanka (pvt) Ltd • Atabage small hydropower project • Gatembe small hydropower project by Environment Management Lanka (pvt) Ltd. • Wind power plant by Largerway Wind Turbine International in partnership with the Central Finance Company Ltd. • Power Generation & Manufacture of coconut shell charcoal

21. Cont… • Reduction of carbon emission, Environmental Improvement & community Development through briquetting of saw dust in the lunawa / Bolgoda area by Coast Conservation Dept., Central Environmental Authority, Seth sevana Foundation.

22. Cont… • Availing to Carbon Credit for proposed Dendro and Hydro power project by Lanka Transformers Ltd. • Biomass Power Plant by Energeon Power (pvt) Ltd. • 300MW Wind power projectDAVIDS & M Engineering (pvt) Ltd.

23. Request for approval from EB • Mini hydro power projects- Eco-power Ltd. a) Alupola, Badulu Oya, Weli Oya, Arattana- 13.3MW b) Magal Ganga – 9.9MW c) Hapugastenne & Hulu Ganga – 13.55MW

24. Further Measures Needed

25. Future Programme • Trainning and Capacity Building in Private and Public Sector • Setting up the minimum requirements for CDM projects • Clear guidelines on priority areas for projects • Producing a list of non-eligible activities • Development of Baselines for Various Sector

26. Future Programme Cont.. • Setting up an infrastructure for promoting and handling CDM projects • Developing a full programme to promote and actively seek out CDM projects. • Efficient and transparent procedures for processing project applications. • Procedure for registering and monitoring in-country project activities,

27. Future Programme Cont.. • Procedures for authorizing verification organizations that validate and certify CDM projects. • Clear guidelines on the selection, • Information about project and financial opportunities to in-country project developers. • Identify promising project types and associated social, economic and environmental impacts.

28. Possible challenges, CDM & Sri Lanka • Over Estimating the CDM Potential. • Over Estimating the CDM Revenue. • No Market access • Approval Procedures Not Acceptable to Private Sector • Lack of knowledge. • No easy access to new information. • Fear of adopting new technologies.

29. Thank you