Climate Change, Kyoto Protocol and CDM Status and Prospects in Nepal

1. Climate Change, Kyoto Protocol and CDM Status and Prospects in Nepal Khum Raj Punjali Joint Secretary/Chief of Environment Division Dilip Khatiwada Mechanical Engineer/Asst. Spokesperson Ministry of Environment, Science & Technology Government of Nepal

2. Presentation Overview • Environment Sector Initiatives • Climate Change Vulnerability!!! • Back Ground: UNFCCC and Kyoto Protocol • Policy Focus and Priority Areas • DNA Structure • Potential CDM Projects • CDM projects and CERs • Areas of Concerns

3. Environmental Sector Initiatives • Establishment of the Ministry of Population & Environment, 1995; Merged in Ministry of Environment, Science and Technology, 2005 • Environment Protection Act (1997) and Environment Protection Regulation (1997) • Signatory of the various international environmental conventions/protocols ( Total 19: like Basel, UNFCCC, UNCCD, Montreal, Kyoto etc.); Focal point of MEAs • Promotion of Clean and Environment-Friendly Energy Technology (biogas, solar, micro-hydro, wind): AEPC • Provision of Environmental Planning (EIA/IEE) • Standard Formulation, Pollution Control and Prevention • Cooperation, Collaboration and Networking with INGO/NGO, Academic Institutions (Climate Change Network Nepal), Public-Private Partnership • Dissemination of environmental information, Awareness Creation, and HRD

4. Climate Change Vulnerability!!! • Nepal’s vulnerability to Climate Change and Global Warming: • Fragile Mountain Ecosystem • Prone to Natural Disasters • Landlockedness • Poverty – additional cost for adaptation • Major river systems are either glacial origin or in the impact zones • Climate change major challenge to livelihood of people • Agro-based (monsoon based) economy

5. Background: UNFCCC and KP UNFCCC • Nepal signed UNFCCC on 12 June 1992 , ratified on 2nd May 1994 and entry into force in Nepal 31 July 1994 • Nepal has been participating in all COPs and other subsidiary meetings • Nepal’s contribution to global emission by 0.025% only • First INC Report prepared with GEF/UNEP assistance: July 2004 and shared with Parties Kyoto Protocol • Deposition of Instrument of Accession: 16 September, 2005 • Entry into force in Nepal: 14 December, 2005 CDM • MOEST is DNA: 22 December 2005 • Constitution of DNA (11 member steering committee): 17 April 2006

6. Policy Focus and Priority Areas Tenth Plan (2002-07) Policy Focus • Carbon trade for resource management and for poverty reduction • Promotion of the use of environment-friendly technologies, cleaner production, energy efficiency, clean energy, and alternative energy • Implementation of multilateral environmental agreements (MEAs) including UNFCCC Priority Areas • Agriculture, Sustainable Management of Natural Resources and Biodiversity • Development of Rural Infrastructures and Rural Energy • Development of Tourism, Water Resources • Human Resource Development and Women Empowerment • Strengthening of Local Bodies, NGOs and CBOs • Environment Conservation and Promotion etc.

7. Structure of DNA Ministry of Environment, Science and Technology (MoEST) Steering Committee Chairman: Secretary, MoEST Members: MOF, MFSC, MOICS, MOLTM, MLD, MOWR, MOAC, Experts (2) (NGO, private, academic and banking sectors) Member-Secretary: Joint-Secretary, MoEST Secretariat of DNA Member-Secretary (Joint-Secretary) Technical Advisory Committee Environment Assessment Section Environmental Standards and Monitoring Section Environment Promotion and Awareness Section

8. Simplified Decision-Making Process for CDM Projects Promoter/ Developer Project Idea Note (PIN)/ Project Design Document (PDD) Processing by DNA Secretariat, MoEST Meeting of the Steering Committee Decision on PIN/PDD by MoEST

9. Potential CDM Projects in Nepal Renewable Energy • Biogas • Micro-Hydro • Solar PV (Tuki-Mara) • Improved Water Mills • Improved Cooking Stoves Transporation • Electric Tempo (Safa Tempo) • Trolley Bus • Electric Trams and Trains Hydropower • Substitution of Fossil Fuels • Export to India Industry • Cement Industries and other energy intensive industries • Brick Kilns Agriculture and Forestry

10. SN Name of the Project CERs in 10 Years Status 1 Biogas Support Program Activity 1 and 2 938,830 Registered at CDM EB 2 AEPC/REDP – Micro Hydro Power Project 377,550 PDD completed, negotiation going on with buyer 3 Improved Water Mill 137,383 PIN completed PREGA Initiatives (Promotion of Renewable energy, energy efficiency and greenhouse gas abatement ) 4 Sisdol Landfill gas to energy project 238,239 PDD completed 5 Vertical Shaft Brick Kiln Activity 1 45,045 PDD completed 6 System of Rice Intensification (SRI) 1,707,522 PDD completed 7 Solar Tuki (lighting) 82,000 PIN prepared 8 Improved Cooking Stove 1,200,000 PIN prepared 9 Safa Tempo – transportation 61,000 PIN prepared 10 Biodiesel 242,283 PIN prepared 11 Ethanol 254,843 PIN prepared 12 Solar Water Heater 97,736 PIN prepared 13 Cement 210,974 PIN prepared 14 Trolley Bus in Ring Road, Kathmandu 42,988 PFS completed 15 West Seti Hydropower for export (WS) 22,932,223 PFS completed 16 Electric Train – (E-W highway) 2,081,464 PFS study completed CDM projects and CERs CER= cerified emission reduction

11. Areas of Concerns • Capacity Building (Negotiation Skills, Project Development, DNA Strengthening) • Transaction Cost for CDM projects preparation and documentation • Mainstreaming CDM in Development Planning and Poverty Reduction • Generating Data & Information, Technology Transfer and Sharing • Targeting CDM in Rural Areas • Developing Regional Voice with Common Understanding on Regional Issues

12. Thank You !!!