Gitanjali Chandarpal Caribbean Community Climate Change Centre

1. POTENTIAL FOR REGIONAL CDM PROGRAMME OF ACTIVITIES IN THE CARIBBEAN GitanjaliChandarpal Caribbean Community Climate Change Centre CDM Capacity Building Workshop Belmopan , Belize 14th July, 2011

2. Towards a Programmatic CDM Approach..... There are several barriers to wide scale adoption of CDM • CDM projects: • Too complex and bureaucratic • Lengthy Process • High front-end costs • High administrative costs • Emission reduction occurs at a single site • Project cannot be expanded after project registration • Innovative solutions - part of reform debate • Programmatic CDM !

3. A Programme of Activities (CDM-PoA) • A voluntary coordinated action by a private or public entity • Private or public entity coordinates and implements any policy/measure or stated goal (example, incentive schemes and voluntary programs). • It leads to GHG emission reductions or increases net GHG removals by sinks that are additional to any that would occur in the absence of the PoA, via unlimited number of CDM program activities (CPAs).

4. CDM-POA ……What is It ? A PoA is made up of CDM Programme Activities (CPAs). Multiple CPAs can be included under a PoA at the time of registration and additional CPAs can be added at any point in the life of the PoA.

5. TYPES OF PROGRAMMES

6. CDM-POA ……What is It ? • A programme rather than a project activity. • One Coordinating Managing Entity (CME) that coordinates/manages the PoA. • This entity does not necessarily implement the GHG reduction activities but rather provides the framework and incentives for others to do so. • The CME communicates with the CDM Executive Board on all matters, including the registration of CERs. • The CME must ensure that double counting does not occur, i.e. activities in the program are not registered as a separate CDM project activity, nor are they part of another registered CDM program.

7. CDM-POA ……What is It ? What does the CME Do? • Is accredited by DNA as a voluntary party • Develops the PoA PIN & PDD • Establishes procedures for project entry to the programme and confirms eligibility. • Submits PoA PDD and CPA PDDs to DOE • Coordinates sale of credits and initial & periodic verification.

8. CDM-POA ……What is It ? • Physical boundary of a PoA can extend beyond the boundary of a single host country • “The physical boundary of a PoA may extend to more than one country provided that each participating non-annex I host Party provides confirmation that the PoA, and thereby all CPAs, assists it in achieving sustainable development” • Each country submits a letter of approval • Letter of Approval states a PoA, and • Each CPA contributes to sustainable development

9. CDM –POA…Why is it Important ? Barriers to regular CDM project implementation……especially in Caribbean Region Source: UNFCCC, Overview of CMP Decisions related to Regional Distribution Forum for the Latin America and Caribbean Santo Domingo, 11-12 October 2010-Lucy Waruingi, Regional Distribution and DNA Support, SDM, UNFCCC

10. CDM –POA…Why is it Important ? • Barriers in the Caribbean • Level of GHG emissions is very low – difficult for region to attract interest . However Caribbean countries should start to develop and implement mitigation plans (NAMAs to be considered ) • Capacity for large single project is still lagging behind Bundling of projects as Programmatic CDM Projects both within a country and among two or more countries is one way to enhance attractiveness for CDM Projects

11. CDM –POA…Why is it Important ? Reduce transaction costs for very small-scale projects (particularly important for energy efficiency and renewable energy projects ) Allows unlimited number of identical project activities to be registered within a single Programme Project Design Document (PDD) A range of different initiatives and programmes can be combined so that there is only one PDD Individual participants do not need design and submit documentation Lowers transaction costs-save time, money, and effort

12. CDM –POA…Why is it Important ? A number of activities submitted as CPAs over the lifetime of the POA Each CPA has a different crediting period Flexible schedule: The activities can take place in many different locations over a period of up to 28 years

13. What Do the Participants Do? • Develop PDDs for their project activity, following the template provided by the PoA. • Submit the PDDs to the CME for onward transmission to the EB • Are responsible for monitoring of the emissions reductions. • Receive the CERs from their project activity (or a share of same)

14. Types and Technologies of Existing POAs Source: Presentation on Programmatic CDM by Xianli Zhu, UNEP Risoe Centre24-28, Jan 2011, Pacific Regional CDM Capacity Building Workshop , Fiji

15. AREAS, SECTORSANDACTIVITIES-PROGRAMMATIC CDM APPROACH Rural ElectrificationDemand side managementTourismMunicipal electrificationSanitary LandfillsReforestation

16. Opportunities in the Caribbean • Case Study: Belize-San Benito Poite Solar Power Project • Government led programme to: • Support installation of solar panels and storage batteries in homes and municipal centre • Produces many social benefits • Carbon dioxide emissions reduced: • 61.9 metric tons of carbon dioxide avoided if diesel generator had been installed instead • 996 metric tons of carbon dioxide avoided if grid was extended to village and trees were cut through forest for power lines • 24.27 metric tons carbon dioxide emission avoided annually from not using grid • Activity can be replicated to other villages communities where they have no access to the grid Rural Electrification

17. Opportunities in the Caribbean Solar Photovoltaic Guyana and Suriname - Solar photovoltaic systems are presently used primarily in hinterland regions where grid power is not available and buildings are far apart Belize and the Bahamas - Have several small islands or cayes which are inhabited and where stand-alone conventional electrical energy is impractical or very expensive to operate. These communities can also benefit from solar power Rural Electrification Solar Photovoltaic used in health centres, communities and homes for lighting, small appliance loads, water pumping and productive cottage industries

18. Opportunities in the Caribbean Hydropower – Guyana (Use of micro-hydro facilities)Total hydropower potential of approximately 7,000 MW67 potential sites identified Rural Electrification

19. Opportunities in the Caribbean Trinidad Contemplating upgrade of municipal street lighting: 1)By replacing existing fixtures with more efficient lighting 2)Supplying electrical energy through use of stand alone solar panels Intervention would be undertaken in systematic manner through routine maintenance programme Activity could produce significant reduction in GHG emissions and can readily be duplicated in every country in the Caribbean Municipal Electrification Region often affected by tropical cyclones which typically destroy the electrical grid. This would also provide opportunities to replace municipal lighting with solar street lights.

20. Opportunities in the Caribbean Belize Project quantified emissions avoided by replacing incandescent light bulbs with compact fluorescent bulbs in communities in Belize 8, 724 metric tons of carbon dioxide avoided annually Activity can be replicated in communities in the Caribbean Attractive for island states where energy is generated using imported petroleum Demand Side Management

21. Opportunities in the Caribbean CCCCC’S Caribbean Carbon Neutral Tourism Program (CCNTP) • Objectives are to devise ways of attracting new sources of financing for: • Scaling-up of low carbon investments in the tourism sector; • Reducing the sector’s vulnerability to climate change. • One component of project is an assessment of the carbon footprint of the tourism sector and evaluation of appropriate approaches/technologies to reduce its footprint • Four countries are serving as pilot sites for the Program – • Bahamas, Belize, Guyana and Trinidad and Tobago. • Activities could be bundled together under a PoA and promoted in carbon market Tourism

22. Opportunities in the Caribbean —Very few in the Caribbean-mainly municipal dumpsites —Methane generated occasionally ignites and burns for several days exacerbating cardiovascular conditions —Methane is also a potent greenhouse gas —Belize is presently developing a CDM project proposal to construct a sanitary landfill and capture and flare the methane generated. —Estimated that such landfill will generate 60,081 metric tons of methane over the lifetime Activity could be replicated in several countries and bundled as Programmatic CDM Sanitary Landfills

23. Opportunities in the Caribbean Belize, Guyana and Suriname Large forests with deforested areas due to: ◦Illegal encroachment ◦Illegal logging ◦Slash and burn practices Haiti Severe deforestation because biomass is harvested for energy These four countries and a limited few in the Caribbean could benefit from a Programmatic CDM approach in afforestation/reforestation Afforestation /Reforestation

24. Conclusion PoAs offer new opportunities for developing CDM Projects in Caribbean Activities with most potential for development of Programmatic CDM activities: ◦Rural electrification ◦Demand side management ◦Municipal electrification These show the most potential for replication and could be the subject of activities for several years attracting more participants as the results of the interventions are promoted across the region.

25. Further Information UNFCCC Website:http://cdm.unfccc.int/UNEP Risoe Centre:http://uneprisoe.org/ or http://cdmpipeline.org/Visit the CCCCC Website : http://caribbeanclimate.bz/

26. Thank You