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Danish CDM Project Development Facility in Indonesia

Danish CDM Project Development Facility in Indonesia. Søren Varming Senior consultant, Climate Change, SV Carbon. Contact: sv@svcarbon.com. Danish Climate Strategy. Published by Danish Government in February 2003 Key issue: Introducing Kyoto Mechanisms to achieve cost efficiency

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Danish CDM Project Development Facility in Indonesia

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  1. Danish CDM Project Development Facility in Indonesia Søren Varming Senior consultant, Climate Change, SV Carbon Contact: sv@svcarbon.com

  2. Danish Climate Strategy • Published by Danish Government in February 2003 • Key issue: Introducing Kyoto Mechanisms to achieve cost efficiency • Balance between domestic action and buying of credits defined in economic terms

  3. 150 125 100 75 50 1988 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 GDP CO2-emission Primary Energy Supply Uncoupling of economic growth and CO2-emissions

  4. Share of Renewable Energy in Denmark Red: Share of electricity Blue: Share of total energy

  5. Bilateral collaboration in focus • Government purchases through pipelines of • Ministry of Foreign Affairs: Bilateral collaboration on CDM in Malaysia, Thailand, Indonesia, China and South Africa • Environmental Protection Agency: JI-projects in Eastern Europe • Multilateral Carbon Funds – A Danish Fund in the World Bank • An MoU between Denmark and Indonesia was signed by Ambassador Andersen and Minister Witoelar on July 27, 2005

  6. Huge CDM potential in Indonesia • 125 - 300 million ton CERs in the period 2008-2012 • Could create a value of 625 -1200 million USD via sales + large local benefits for sustainable development • Opportunities in many sectors • Cement • Oil and gas • Pulp and paper • Steel • Palm Oil • Electricity • Energy saving • Etc

  7. Danida Project Development Facility Implementation Danida buys CERs Pre-feasibility Feasibility study Financial closure Operation Project Validation PDD Development Registration Monitoring PIN Project timeline CERs issued Conditional Host Country Approval Final Host Country Approval How to develop a CDM project?

  8. Benefits of participating • You get a new income stream for your project – with no risk for you • Danida takes all the CDM related risk • Danida takes all the trouble getting the paper work done • Preparing a Project Design Document • Getting the PDD validated • Getting an Indonesian National Approval • Getting the registration at the CDM Executive Board • Danida buys the CERs when they are delivered

  9. Criteria for participating (1) • The underlying project must be technical and financial viable • The technical design • Financial viability/project financing • Legal and commercial status of the project • The project should be likely to be approved as CDM project • Contribution to sustainable development • Likelihood of being additional • Existence of baseline methodology • The project proponent capable to implement the project • Technical and management capability • Financial solidity of the company

  10. Criteria for participating (2) • Projects should ideally be of more than 30,000 ton CER/year • Only projects that have not been implemented • The Royal Danish Embassy prefers a mix of projects, geographically, technically • The Royal Danish Embassy will select the best suited projects

  11. The formalities

  12. Next steps • A number of workshops will be organised giving more information on the Project Development Facility • If you have a project already then contact the project secretariat to get a template for a Project Idea Note (PIN) • We will assist you in filling in the PIN

  13. Contact Secretariat of Danish CDM Project Facility c/o Royal Danish Embassy Menara Rajawali 25th Floor,Jl. Mega Kuningan, Jakarta 12950Telephone: +62 21 576 1478 ext 114 or +62 21 72801172 ext 306Fax: +62 21 576 1535 E-mail: danish-CDM-facility@pelangi.or.id Website: http://danish.cdm.or.id

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