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CERUPT The Experiences so far

CERUPT The Experiences so far. Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment. Objective of the presentation. Provide insight into: -The features of CERUPT: a tender! -The experiences with CERUPT: -Preparations -Results -Lessons learned.

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CERUPT The Experiences so far

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  1. CERUPT The Experiences so far Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment

  2. Objective of the presentation • Provide insight into: • -The features of CERUPT: a tender! • -The experiences with CERUPT: • -Preparations • -Results • -Lessons learned

  3. The features of CERUPT: a tender (1) • Kyoto and Marrakech CDM requirements: • -Define WHAT: the “product”: CER • -how is it produced? • -how is its quality guaranteed? • -Relevant aspects (1): • -Emission reductions • -Baseline setting • -Sustainable development • -Stakeholder involvement

  4. The features of CERUPT: a tender (2) • -Relevant aspects (2): • -Validation and registration • -Verification, certification and issuance • -Host country and donor country involvement (DNAs) • -Designated Operational Entities (DOEs) • -Executive Board Ruling …….

  5. The features of CERUPT: a tender (3) • EU Procurement Guidelines • -Define HOW: identify the purchase modalities • -Public procurement • -General and specific terms of the Emission Reduction Purchase Agreement (ERPA)

  6. The features of CERUPT: a tender (4) • -Relevant aspects: • -A two-stage procedure • -Expressions of Interest, proposals • -CERUPT programme manager: Senter -Check by an independent Advisory Expert Committee on CDM • -”VROM” takes the final decision • -Selection and contract awarding criteria • -No negotiation! • -Price by competitive bidding

  7. CERUPT: A two-stage procedure (1) • -Stage 1: Selection • -Focus on the Supplier • -Exclusion criteria • -Financial standing • -Technical capacity • -Initial project screening based on a PIN (Letter of Endorsement required)

  8. CERUPT: a two-stage procedure (2) • -Stage 2: Contract awarding • -Focus on the Proposal • -Feasibility of the project • (financial close) • -Volume and price • -Technology preferences (implementation of sustainable development)

  9. Experiences with CERUPT (1) • 1) Preparations (September-November 2001): • -CLEAR: Requirements EU Procurement Guidelines • -UNCLEAR: “Modalities and procedures for the CDM” • 2) Launch on 1 November 2001 • -Resulted in 78 Expressions of Interests covering all relevant regions and technologies (31 January 2002)

  10. Experiences with CERUPT (2) • 3) Results: • -26 proposals qualified for the awarding stage (deadline: 26 September 2002) • -”VROM” Decision that 18 proposals will be awarded (13 March 2003) • -Central and Latin America (11) • -South-East Asia (7) • -Africa (-)

  11. Experiences with CERUPT (3) • Technologies and volumes: • Central and Latin America: • Biomass, Energy Efficiency, Geothermal, Hydro, Landfill, Wind (ca. 7,7 Mton) • (Panama: 3,4 Mton) • South East Asia: • Biomass, Geothermal, Wind (ca. 8,8 Mton) • (Indonesia: 5,4 Mton)

  12. Experiences with CERUPT (4) • Proceeds of CERUPT: 10-16,5 Mton CO2 (?) • ERPAs will contain conditions precedent: • -Financial close • -National regimes on stakeholder consultation • -Executive Board approval .... • External Factors: • -Extreme wheather events • -Political instability ....

  13. Experiences with CERUPT (5) • 4) Lessons Learned: • No discrimination among suppliers, transparency, competition: development of the carbon market • However: • Rigid deadlines, No negotiations, Drop out of projects

  14. Initial conclusions • -For the time being NO CERUPT-2! • -Based on initial experiences CERUPT and other Dutch CDM implementation instruments • -Government Change in The Netherlands • -Gain experience with other tracks of the CDM Purchase Programme • -Relevance for the post-Kyoto era?

  15. Questions/observations on CERUPT? • -Policy related: VROM • CDM.DNA@minvrom.nl • -Implementation of the current tender: Senter • www.carboncredits.nl

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