Opportunities for CDM/JI Projects

2. Opportunities for CDM/JI Projects • Renewable energy • Electricity generation and transmission • Energy efficiency • Fuel switching • Waste management • Oil and Gas • Transportation • Afforestation and Reforestation • Others...

3. Benefits for Canadian Companies • Opportunity to showcase technologies • Access new markets & investment opportunities • Commercialize climate-friendly technologies • Demonstrate environmental leadership • Future emission reduction credits = revenue stream • Help meet voluntary or legally binding GHG targets • Reduce overall cost of compliance • Canada’s current Kyoto gap is 270 megatonnes per year (this is the equivalent weight of 2000 CN Towers!!!)

4. Benefits for Host Countries • Attract investment in priority sectors • Access clean technologies • Enhance infrastructure • Upgrade energy efficiency • Improve air quality • Reduce dependence on imported fuel • Increase employment • Create source of revenue from carbon credits

5. CDM & JI Office: What We Do • Canada’s Designated National Authority (DNA) and Focal Point • Facilitate Canadian participation in CDM and JI • Approval of voluntary participation in CDM/JI projects • Strengthening relations with Project Host Countries • Facilitate development of Project Idea Notes (PINs) • Analytical and policy support to negotiations

6. CDM & JI Office: How We Do It DOMESTIC • Outreach in Canada to explain CDM/JI process; • Advising companies on market/project opportunities; • Financial and technical support for stages of project development; • Provide CDM & JI approvals

7. CDM & JI Office: How We Do It INTERNATIONAL • Outreach and missions to build awareness of Canadian capabilities; • Capacity-building support to key markets; • Conclusion of MOUs to facilitate cooperation with project host countries; • Provide training to Canadian staff at posts on CDM/JI issues.

8. CDM & JI Office: What We Have Done Office Activities for 2005 included: • Financial support for Canadian company projects in Argentina, Belize, Chili, Dominican Republic, El Salvador, India, Morocco, Panama, Russia, Senegal, Vietnam • Funds dedicated to project portfolio development (PIN & PDD) in China, India, Indonesia, Russia, South Africa, Latin America • Exhibitions at AMERICANA (Montreal) and CarbonExpo (Cologne) • Brazilian Road Show in Canada

9. CDM & JI Office: Financial Support BASE CONDITIONS • Canadian partner must apply • Certain eligible fixed costs • Office cannot fund 100% of project • Project must demonstrate "additionality" • Project must be clearly defined and bounded • Project goals must be realistically achievable

10. CDM & JI Office: Financial Support ADDITIONAL CRITERIA • Project will generate CDM/JI credits for Canada; • Project will contribute to reducing the cost of compliance with the Kyoto Protocol; • Project will use Canadian (innovative) technology; • Project is supported by host country authorities and partners (supporting documents); • Project enhances sustainable development in host country; • Project in underrepresented sector or market; • Project will leverage funds from other sources.

11. CDM & JI Office: What is Funded • Carbon Finance Assessment • Project Design Document (PDD) • Methodology Development • Baseline Development • Monitoring Plan • Project Registration and Verification

12. CDM Canadian Success Stories • Since the coming into force of the Kyoto Protocol in February 16, 2005 approximately 33 projects have been registered by the CDM EB; • Of those, three projects involved a Canadian company (TransAlta) working in Chile on Methane capture and combustion; • A number of other Canadian projects are in the final stages of preparation prior to their being registered with the CDM EB; • Numerous projects are in earlier stages of development, with the CDM/JI office providing guidance as required.

13. 18 * 15 11 22 Projects Supported by CDM/JI Office Projects include Carbon Finance Assessments, Methodologies and PDDs

14. CDM & JI Office: MOUs • The Government of Canada, through the CDM/JI office, has a number of Memorandum of Understanding (MOUs) with various countries; • These MOUs help to facilitate cooperation on CDM/JI and IET processes; • They also provide greater confidence for Canadian companies that their projects will proceed smoothly in the Host Country.

15. CDM & JI Office: Signed MOUs AFRICA: Tunisia, Uganda (project-specific), Morocco ASIA: Indonesia, China, Sri Lanka, India, Korea EASTERN EUROPE: Poland, Ukraine, Latvia, Czech Republic LATIN AMERICA: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Mexico, Nicaragua, Panama, Peru, Uruguay

16. Canada-Indonesia CDM Cooperation • Canada and Indonesia signed a Letter of Intent (LoI) to cooperate on the CDM during COP 11 (December 2005) • The LoI facilitates private sector participation in the CDM between our 2 countries • In anticipation of the LoI, Canada’s CDM & JI Office has supported: • Participation of Indonesian industry representatives in a CDM Matchmaking Session in Montreal, December 2005 • A CDM Project Development Facility in Indonesia to identify potential CDM projects

17. CDM & JI Office: Resources • UNFCCC - CDM • http://cdm.unfccc.int/ • Government of Canada’s Climate Change Web Site • www.climatechange.gc.ca/ • Government of Canada Clean Energy Portal • http://www.cleanenergy.gc.ca/index_e.asp • Industry Canada – Canadian Environmental Solutions database • www.strategis.gc.ca/ces • Natural Resources Canada – Canadian Initiative for International Technology Transfer (CIITT) • www.nrcan.gc.ca/es/etb/cetc/ciitt

18. For More Information Canada’s CDM & JI Office Climate Change and Energy Division (ESCC) Foreign Affairs Canada 125 Sussex Drive Ottawa, ON K1A 0G2 Tel: +1 (613) 944-3039 Fax: +1 (613) 944-0064 E-mail: cdm.ji@international.gc.ca Web: www.cdm-ji.ca

19. For More Information CDM contact point at the Canadian Embassy in Jakarta: Nicolas Lepage, Trade Commissioner T: (62-21) 2550-7852 F: (62-21) 2550-7812 Email: nicolas.lepage@international.gc.ca Web: http://www.international.gc.ca/jakarta/