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Future Development

Future Development. UNFCCC Joint Workshop . March 2011. Ciska Terblanche. Content. Introduction CDM and Risk Future Development. Introduction. To propose future improvements a thorough understanding of the complexities of the existing system is critical

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Future Development

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  1. Future Development UNFCCC Joint Workshop March 2011 Ciska Terblanche

  2. Content • Introduction • CDM and Risk • Future Development

  3. Introduction • To propose future improvements athoroughunderstanding of the complexities of the existing system is critical • Reflect on the multi-facetted objectives of CDM and assess whether we are achieving the “clean development” objective compared to simply” emission reductions” from existing operations • Question what can realistically be achieved by CDM and then focus on developing mechanisms to achieve this

  4. Current Status: CDM & RISK • Business require a relatively stable environment for investment • Increased Project Risk associated with any normal project when it contains a CDM component • Access to Finance – proof • The time from CDM initiation to issuance is typically 4 years

  5. Private Sector vs. S/M Enterprises Private • CDM projects are associated with high reputational risk • One unsuccessful project could potentially damage the international reputation of a company S/M Enterprises • Cost and Development time

  6. Future Approaches Suggested General • Methodologies and the processes it involves are critical to make the CDM process more efficient • Valuable if people involved in Methodology processing and approval have project development experience • Approach that Methodology developer/Project developer is guilty until proven innocent needs to change • Materiality of methodology components & parameters should be assessed and methodologies should be constructed with this in mind

  7. Future Approaches Suggested • Step Change in the Approach in which methodologies are developed and applied • The structure and principles adopted inexisting methodologies should not necessarily be used as a basis for approving new ones • Monitoring approachescould to be standardised in a rational way, focusing more on taking into account materiality • Apply the concept of ‘clean development’, i.e. focus on Green field projects and not only on switching from an existing more carbon intensive regime to a less carbon intensive regime • Financial analysis is moving further away from what is used in reality for decision making – this needs to be addressed

  8. LDCs, Resource Distribution and Electrification, Clean Development • Positive list of equipment that are additional by default • 1.4 billion people have no access to electricity, 99% in developing countries • Sub-Saharan Africa the electrification rate is 31% (IEA 2010) • Fossil fuel distribution concentrated in developing countries • One can quite safely assume that as countries develop they will utilise their primary fossil fuel resources

  9. Thank You Ciska Terblanche +27828985750

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