UNEP/DCC – CDM Capacity Building Initiative – Nigeria

1. UNEP/DCC – CDM Capacity Building Initiative – Nigeria PDD Capacity Building Workshop Durando Ndongsok S2 Services Bolade Soremekun BAS Consulting

2. Content UNEP/DCC – CDM Capacity Building Initiative – Nigeria The aim of the UNEP/DCC program BAS and S2 Services CDM development over time CDM development cycle VVM vs VVS Difference between PIN and PDD PDD development cycle Selected CDM tools Suggested selection criteria Project selection timeline

3. The aim of the UNEP/DCC program UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Select viable CDM projects • Support development of: • 6 PINs • 2 PDDs ready for validation • The process is “learning-by-doing” so projects owners are trained to develop projects themselves • The program is financed by UNEP and DCC

4. BAS Consulting UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Clean Development Mechanism and Climate Change • Identification and Development of potential CDM project opportunities • Climate change mitigation strategies • Renewable Energy and Clean Technologies • Advisory and Business Development on Renewable Energy Technologies • Feasibility studies and business plans • Waste Management and Environmental services • Advisory and development of energy policy and regulation • Rural electrification Policies and Regulations • Capacity Building and Events Management • Training and Capacity Building in RE and Environment

5. S2 Services UNEP/DCC – CDM Capacity Building Initiative – Nigeria S2 Services Sarl (S2) is a group of engineers, managers and experts with worldwide experiences striving to bridge sustainable development between the western world and Sub-Saharan Africa The main founders of S2 are Africans who have studied and worked for many years in western countries and Europeans who have shown interest in Sustainability and Sub-Saharan Africa as Business host Over 5 years experience in CDM development throughout Africa Offices in Germany, and Cameroun Partners with BAS in Nigeria.

6. BAS – S2 Services Cooperation UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Mixed team of well aware Europeans and Africans, • The speed to cope with the western’s way of doing business • The patience to navigate successfully throughout the hurdles presented by business development in Nigeria and Africa • BAS and S2 Services SARL partnershipprovides international dimension and Africanwidepresencenecessary in CDM • Offices in Germany, Lagos, and Douala

7. CDM over the time UNEP/DCC – CDM Capacity Building Initiative – Nigeria • 1997 – 2005 • Kyoto Protocol signed in 1997 • Marrakech accords in 2001 • CDM entered into 2005 • 2005 – 2008 – 2012 • CDM development • 2008 – 2012: first phase EU ETS • Price of a CER hit 24 Euro in 2008 • CER traded at 1 Euro today • Beyond 2012 • UN bodies (UNFCCC, UNEP etc.) continuing to support CDM development • Australia, China, Japan, South Korea etc. all putting in place trading schemes • Good interest for LDCs and African CERs • EB rule now: voluntary cancellation of CERs in the log (CERs becoming VERs???)

8. CDM development cycle UNEP/DCC – CDM Capacity Building Initiative – Nigeria

9. VVM vs VVS UNEP/DCC – CDM Capacity Building Initiative – Nigeria • EB65 adopted a new “procedure” for CDM development • Validation and Verification Manual is changed by Validation and Verification Standard (ALL FORMS ARE CHANGED!!!) • A bundle of 3 manuals replacing 24 manuals (VVS, PS –Project Standard and PCP – Project Cycle Procedure) • Enhance consistency • Improve quality • Increase efficiency • Compulsory to follow the VVS track from Feb. 1, 2013 • See this http://cdm.unfccc.int/Reference/Notes/reg/reg_note43.pdf

10. Difference between PIN and PDD UNEP/DCC – CDM Capacity Building Initiative – Nigeria • PIN = Project Idea Note • No UNFCCC template exist (so not in procedures and not compulsory) • Result of preliminary assessment • Important for DNA to endorse the project • BUT very important to get a grip on CDM chances • PDD = Project Design Document • The all-in-one document where “everything” about the project is said • Have guidelines and templates • DNA gives Host Country Approval based on PDD • PoA-DDs and CPA-DDs are slightly different

11. PDD Development Cycle (1/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Methodology development or selection • Is there an approved methodology? • Can I develop a new methodology if not? • Is the project belonging to any CDM type? • Applicability criteria • Look carefully if criteria are all met • If not, change the meth OR request for clarification or deviation • Baseline estimation • What will happen without the implementation of the project • not always what is happening now • CERs estimation • Baseline Emissions – Project Emissions – Leakage (if leakage considered) • Need of tools

12. PDD Development Cycle (2/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Additionality • Is the project doable without carbon credits • Caution, there is new tool to demonstrate additionality • CDM consideration (there is a procedure for this) • Monitoring • What are all parameters monitored during the project and how are they going to be monitored • Environmental impact assessment • Stakeholder consultation • The project has to be accepted by neighboring populations • The “neighbors” usually depends on the boundary of the project

13. Selected CDM tools UNEP/DCC – CDM Capacity Building Initiative – Nigeria Tool for the calculation of grid emissions factor (for renewable and other energies projects) Tool for the emissions from solid waste disposal sites (for MSW) Tool for project emissions from flaring (gas flaring, landfill gas flaring) Sampling manual (from KfW) (for CFL, solar, cook stoves etc. distribution) Tool for calculation of non renewability of the biomass (for cook stoves mainly)

14. Suggested selection criteria for UNEP/DCC sponsored projects for PDD development (1/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria • If PDD Development has started • What stage • Form used (VVM or VVS?) • Size: Volume of Carbon Credits (CERs) • Is the CDM worth the effort? • For e.g. if project is < 10.000 CERs/y and finance very high, then not viable for CDM • But small scale projects will be given due consideration • Consistent with Nigerian Sustainability Criteria as developed by the DCC: • Real and verifiable emissions reduction • Economic growth protection and increased income • Environmental and financial benefits (EIA is a must) • Technology transfer

15. Suggested selection criteria for UNEP/DCC sponsored projects for PDD development (2/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Available Methodology • Is there an approved CDM meth? • If not, is it possible to develop one? And is it worth the effort? • PIN/Preliminary Assessment • Is there a PIN already? • Has the project applied already for endorsement of DNA? • Commercial Viability/Business Plan • Is there a feasibility study and business plan? • Is project going to generate revenue? • Are investors interested in the project? • Level of Knowledge of CDM by project promoter

16. Projects assessment and selection timeline UNEP/DCC – CDM Capacity Building Initiative – Nigeria • Please send your projects documents to us: • Feasibility study • Business plan • Or clear project description • Until November 6, 2012 • To: • Bolade Soremekun • b.soremekun@basconsultingltd.com • Durando Ndongsok • d.ndongsok@s2-gmbh.com • We could request more information during assessment • Selected projects informed latest November 9, 2012 • Workshop to start PIN/PDD development November 14-15 in Lagos

17. Thanks for your attention BAS Consulting Bolade SOREMEKUN Tel: +234 80 34 49 96 70 b.soremekun@basconsultingltd.com S2 Services Durando NDONGSOK Tel: +237 99 00 80 27 d.ndongsok@s2-gmbh.com UNEP/DCC – CDM Capacity Building Initiative – Nigeria