CDM and SSN: A winning combination

1. CDM and SSN:A winning combination

2. SSN and CDM Creating partnerships between South, South and North countries through the opportunity of the Clean Development Mechanism to combat adverse climate change, and to promote Sustainable Development, best practice, and capacity enhancement in the developing world.

3. The SouthSouthNorth project • The SouthSouthNorth Project is a capacity building initiative helping four southern countries to learn from the experience of developing CDM projects • We operate in Brazil, South Africa, Indonesia, and Bangladesh

4. An SSN introduction • In this presentation we will highlight some fundamental points regarding, • the Clean Development Mechanism • and illustrate what SSN seeks to achieve

5. TRADE with the SOUTH :THE CDM • The CDM, or Clean Development Mechanism, is a unique trade instrument • Through it, SOUTH countries (without targets) can elect to assist NORTH countries (with targets) to achieve their target at a lower cost • How is this done?

6. A CDM project: Investment funds Emitter in NORTH Emitter in SOUTH COST $ COST $ Emission Reduction credits Target level of emissions Achieved level of emissions

7. Countries and emitters • A CDM Project activity can either be a contract between countries or emitters themselves: Holland Costa Rica Philips Local Landfill Project

8. In summary… • The SOUTH project developer receives investment from the NORTH investor/purchaser • And in return assists the NORTH investor/purchaser to reach its target at a lower cost • This is TRADE: there must be a difference between the cost to the investor and the price to the developer

9. The project activity… • Must reduce GHG’s against a validated baseline • This baseline represents what the emissions would have been without the CDM project taking place • Each ton CO2 equivalent reduced in this way becomes a CERTIFIED REDUCTION CERTIFICATE, which is tradable

10. And… • The NORTH emitter wins by achieving a portion (no more than 50%) of its target at a lower cost • The SOUTH emitter wins by receiving investment funds to improve technology and performance • The world wins through a reduction of GHG’s • And…

11. The host country… • It is a requirement of the Kyoto Protocol that the host country must first satisfy itself that any CDM project will contribute to its SUSTAINABLE DEVELOPMENT • So the host country wins in this way • Well, that, at least, is the idea… • But a lot has gone wrong

12. SD: the challenge • Setting SD rules is complex • Many developers want deal flow without restrictions: a race to the bottom? • Some CDM projects will result in job losses • Government may be stuck in the middle • Should there be thresholds? • And anyway, with the US out, is there a carbon market?

13. CDM projects: the cycle • The CDM project is a component of a development project • It is based on a PROJECT DESIGN DOCUMENT (PDD) • The PDD is a prediction of the “carbon offset” which the CDM component will achieve • This prediction is then validated, approved, registered and transacted

14. The Project Cycle illustrated CERs Owner and Stakeholder Groups Project Design Approval by DNA Validation by OE Verification and Issuance Registration by Exec Board Monitoring Implementation

15. CDM milestones DNA : approves project for Sustainable Development CDM Administrative Bodies Owner and Stakeholder Groups OE = Operational Entity eg: accredited auditor Validates project design Project Design Approval by DNA Exec Board = of the CDM Registers Project Validation by OE Registration by Exec Board Monitoring Verification and Issuance By the OE Issues CER’s

16. So what can the CDM achieve? • The South can help the North meet its targets • In return the South can promote its path towards sustainable development • The South can choose its projects, the timing, the investors, and so forth • So…the CDM could achieve a great deal

17. The SSN Project Our organisation, our work

18. We are about… • Viable, commercial, and transactable CDM projects • People focused sustainable development • Capacity development and learning

19. We are monitored by HELIO INTERNATIONAL Bangladesh Office Brazil Office Indonesia Office Our principal funder is the Government of the Netherlands South Africa Office Central Office We are first a SOUTH organisation…

20. Our structure…

21. Object 1: assist project owners to develop CDM projects

22. We assist project developers: • By providing a technical team with expertise for each project activity • By assisting with approval, validation, registration and transaction • By providing a portion of the transaction costs • By providing project facilitators • By sourcing investors/purchasers • In this way maximizing benefits to southern hosts

23. Object 2: work with governments • We are in close co-operation with all four governments to assist them in developing criteria and indicators, and a procedure, for the approval of CDM projects • We are also assisting all four governments to develop internal capacity for the Designated National Authority offices • We are facilitating consultative meetings between governments and stakeholders

24. Object 3: develop a CDM guide • Our CDM guide will be based on actual experiences gained from developing CDM projects • The Guide has 64 modules and can be used in various formats and for various audiences • It will contain template documents • It will be web, CDROM and trainer-event based • It will be for all to use

25. Helio helps us to monitor our projects, • To develop Monitoring and Verification Protocols • And to develop a number of trained CDM monitors

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