CDM Criteria & Roadmap for CDM Project Development

1. CDM Criteria & Roadmap for CDM Project Development For Workshop on January 28th – 29th, 2005

2. Improvements in energy efficiency through upgrading currently employed technologies Introduction of advanced technologies that are more efficient Use of renewable energy sources wherever feasible to bring down the carbon content of the grid, to provide sustainable energy, and as a decentralised energy source at remote areas MITIGATION OPTIONS IN THE ENERGY SECTOR IDENTIFIED ARE :

3. MITIGATION POTENTIAL Source: Based on modeling exercises reported in Rana, A. and Shukla, P.R. (2001), Ghosh et al. (2001); Garg A. Shukla, P.R. (2002), and ALGAS (1998)

4. Developed Country What is CDM } Emissions to be reduced Developing Country Investments No emission reduction commitments Total GHG Emissions Total GHG Emissions Carbon Credits

5. Such activities should be Approved by the Govts. of the participating Parties be host country driven May involve private / or public entity Environmental integrity is a must Economic efficiency for cost effectiveness Equity Implementation of such projects should result in social, environmental, economic and technological well-being - the four pillars of sustainable development CDM PROJECT ELIGIBILITY

6. Energy Renewables: Wind, solar, hydro, biomass, geothermal Power Generation: Combined Cycle turbines, clean coal technology Fuel Switching: Natural Gas, methane, biomass & biogas Co-generation: Sugarcane, chemical processes Types of CDM Projects

7. Industry Efficiency: Boilers. Motors, lighting Cogeneration-chemical, metellurgy, paper Retrofits Production Process Waste Fuel Recovery – including landfills Types of CDM Projects

8. PROJECT CONCEPTUALIZATION IDENTIFICATION AND ORGANIZATIONTARGET BENEFICIARIES AND NETWORKING PARTICIPATORY PROJECT DEVELOPMENT -identify stakeholder, position, interestexpected argument-choose appropriate technologies PROJECT CYCLE PROJECT FUND SOURCING / FINANCING PROJECT PLANNING -integrating sustainable development goals of the region / site specific PROJECT IMPLEMENTATION -an agreed time frame -an agreed monitoring and verification arrangement; the organization to monitor-establish emission baseline PERIODIC MONITORING AND EVALUATION-emission reduction

9. CDM PROJECT CYCLE Implementing Agencies Project Idea Note (PIN) / Project Concept Note (PCN) PD/CCC Baseline & Additionality M&V Plan EIA St. Consul Contracts DNA; Investor Host / Investor approval PDD PD/CCC Validation OE Participation EIA Baseline & ER M&V Plan EB Registration Financing & Implementation PD On-site Inspection Review Monitoring GHG Reductions Verification Report Monitoring PD Verification Certification OE EB 9

10. Participation is voluntary, approved by each party involved Additional to any that would occur in the absence of certified project activity Project fulfills the criteria of financial additionality Reduction of emissions should be real, measurable and should have long time benefits Project should contribute to the sustainable development of the host country CDM PROJECTSSome Important Aspects

11. CDM PROJECT CYCLE Implementing Agencies Project Idea Note (PIN) / Project Concept Note (PCN) PD/CCC DNA; Investor Host / Investor approval

12. Name of the project Ownership details of project sponsors Project Description Status of Project Clearances Financing details of the projects Total CDM contribution sought IRR and DSCR with & without CDM revenue Estimate of GHG abetment Sustainable development criteria Project Risks PIN/PCN

13. CDM PROJECT CYCLE Implementing Agencies Project Idea Note (PIN) / Project Concept Note (PCN) PD/CCC Baseline & Additionality M&V Plan EIA St. Consul Contracts DNA; Investor Host / Investor approval PDD PD/CCC

14. Project Description Promoter Details Baseline Additionality Sustainable Development Criteria Monitoring Plan Financial Status PROJECT DESIGN DOCUMENT

15. CDM PROJECT CYCLE Implementing Agencies Project Idea Note (PIN) / Project Concept Note (PCN) PD/CCC Baseline & Additionality M&V Plan EIA St. Consul Contracts DNA; Investor Host / Investor approval PDD PD/CCC Validation OE Participation EIA Baseline & ER M&V Plan EB Registration

16. Validation of CDM Projects Validation is a process of independent evaluation of a project activity by a designated Operational Entity (OE) against the requirements of the CDM on the basis of the PDD. Registration Registration is the formal acceptance of a validated project as a CDM project by the Executive Board. Registration is the prerequisite for verification, certification and issuance of the CERs

17. CDM PROJECT CYCLE Implementing Agencies Project Idea Note (PIN) / Project Concept Note (PCN) PD/CCC Baseline & Additionality M&V Plan EIA St. Consul Contracts DNA; Investor Host / Investor approval PDD PD/CCC Validation OE Participation EIA Baseline & ER M&V Plan EB Registration Financing & Implementation PD Monitoring PD

18. Project Participants, as part of the PDD provide a monitoring plan: Based on previously approved methodology/new methodology Determined by DoE as appropriate to circumstances of the project activity Reflects good monitoring practice A monitoring report in accordance with monitoring plan is to be submitted to the DoE for verification MONITORING

19. CDM PROJECT CYCLE Implementing Agencies Project Idea Note (PIN) / Project Concept Note (PCN) PD/CCC Baseline & Additionality M&V Plan EIA St. Consul Contracts DNA; Investor Host / Investor approval PDD PD/CCC Validation OE Participation EIA Baseline & ER M&V Plan EB Registration Financing & Implementation PD On-site Inspection Review Monitoring GHG Reductions Verification Report Monitoring PD Verification Certification OE EB

20. Verification Verification is the periodic independent review and determination by DoE of the monitored reductions by sources of greenhouse gases that have occurred as a result of the CDM project activity Certification Certification is the written assurance by the DoE that the project activity achieved the reductions in anthropogenic emissions by sources of GHGs as verified

21. Certification Report constitutes request to EB for issuance of CERs equal to verified amount of reductions of GHGs ISSUANCE OF CERTIFIED EMISSION REDUCTIONS

22. MINIMUM TRANSACTION COST ASSOCIATED WITH CDM PROJECT CYCLE

23. Effective way to reduce transaction costs Several projects bundled together to share transaction costs and CER benefits Projects should have: Similar technology Be in the same geographical area Preferably have the same project owner, but not necessary Bundling

24. Thank You