By Mr. OUK Navann, Cambodian Climate Change Office, Ministry of Environment

1. Asian regional Workshop on capacity development for the clean development mechansmait, thailand october 19-21, 2005Project Pipelines:Status and Bottlenecks By Mr. OUK Navann, Cambodian Climate Change Office, Ministry of Environment

2. Presentation Outline • Projects developed by/with support from CD4CDM • Bottlenecks faced and addressed • Role of DNA, NGOs and other institutions • Other observations: • Lessons learnt by CD4CDM institutions during the last 3 years • Impact of CD4CDM project • Conclusion

3. 1- Projects developed by/with support from CD4CDM (1/2) • Angkor Biocogen Project (PDD) • Rice husk cogeneration project of 1.5 MW • Avoid release 315,000 Ton CO2 equiv. over 7 years • Marubeni Renewable Energy Development and Rubber Plantation (PIN) • Mondolkiri highlands, NE Cambodia • Small-size hybrid systems of wind and solar power generation with a total of 1.4MW • Annual CO2 emission reductions: 2,759 Ton CO2/yr • Methane Recovery Project from Stung Meanchey Landfill (PIN) • Methane capture and flaring or use for energy • Reduce 858,000 Ton CO2 equiv. over 10 years • National Biodigester Programme, Cambodia (PIN) • Reduce CH4 capture and burning for energy cooking • Reduce CO2 from the burning of non-renewable fuel wood • Possibly reduce N2O emission from existing chemical fertilizer use. • Install 17, 500 family sized biogas plants which will reduce 512,000 Ton CO2 equiv. over 7 years • GERES CFSP Improved Cookstove • Dissemination of 18,000 improved cookstoves saving emissions from use less wood fuel • Avoid release of 67,000 Ton CO2e over 10 years • NEDO solar PV hybrid projects • 109kw Solar PV-mini hydro project Kompong Cham • 120kW Solar PV-biogas project Kompong Som • Over 20 mini and micro hydro projects • Country hydropower potential is high.

4. 1- Projects developed by/with support from CD4CDM (2/2) • Status • Angkor Biocogen Project (PDD) • Marubeni Renewable Energy Development and Rubber Plantation project (PIN) • Methane Recovery Project from Stung Meanchey Landfill (PIN) • National Biodigester Programme, Cambodia (PIN) • Type of Assistances • Training • Technical assistance and advice • Provision of guidance material • Facilitation/promotion • Assessment • Networking

5. 2. Bottlenecks faced and addressed • Sovereign risks => insurance • New international legal framework => clarify rules • Inadequate legal framework of host countries => establish legal framework • Uncertainty beyond first commitment period => improve commitment to COP/MOP negotiations • Price uncertainty, no disclosure of CERs prices => disclose CER market prices • Illiquid and complex market => more projects approved in shorter timeframe, improve CDM registration and approval processes • Difficulties for host countries to monitor and verify SD benefits => Conditional approval based on SD performance, requirement of DOE to verify SD performance • Lack of funding for the EB to function => immediate payments from Annex-1 countries. • High transaction cost => bundling of small scale CDM projects

6. 3- Role of DNA, NGOs and other institutions • Role of DNA: • Providing a point of contact for national policies and procedures (Training and consultation) • Developing a portfolio of CDM projects and promoting, facilitating CDM investment • Developing the rules and procedures for approval, including national sustainable criteria, assessment against SD • Reporting on CDM activity in country • Issuing host country Letters of Approval • Role of NGOs: • project developer/implementation • public comments • Information provider • Role of other institutions/private sector: • project developer/implementation • information provider

7. 4. Other observations:country specific issues, nature of projects • Limited previous studies or researches related to CDM project identification • Lack of capacity in identification and developing a project • Land tenure issues • Conflict of interest among government institutions • Project developers still struggling to find a financing means • A well-established institutional has not yet set up, no one-stop shopping • Most identified CDM projects are small scale • Contractual issues is still evolving.

8. 5. Lessons learnt by CD4CDM institutions during the last 3 years • Governance-related issues, which are beyond DNA control, can affect CDM implementation • Difficult to find CDM project developers due to under-developed private sector • Lack of locally available technology and companies make CDM difficult • Face-to-face meeting with potential project developers is useful in identifying potential CDM projects, but time consuming.

9. 6- Impact of CD4CDM project • A. Percentage of project developed with the assistance from CD4CDM project to the number of CDM projects being developed in the country: 100% • B. Percentage of national approval project with the assistance from CD4CDM project to the total approved project: 0% • C. Percentage of UNFCCC validated projects with the assistance from CD4CDM project to the total UNFCCC validated projects in the country: 0% • Remark:There is one project developed with the assistance from CD4CDM project is still under UNFCCC validation process.

10. 7. Conclusion • Cambodia is preparing through CD4CDM Project / CDM-ICS Project / EU-Asia Context Project to: • Generating a broad understanding of the CDM and creating an enabling business and regulatory environment for CDM among related governments’ institutions (Raising awareness of CDM and opportunity) • Developing institutional capability and human capability in related governments’ institutions (approval body and approval process) • Work with private industry to develop a ‘pipeline’ of projects.

11. THANK YOU VERY MUCH FOR YOUR ATTENTION !!! Questions/Comments? Mr. Ouk Navann Cambodian Climate Change Office Ministry of Environment Tel/Fax: 855 23 218 370 H/P: 855 12 846 599 E-mail: navannouk@yahoo.com www.camclimate@online.com.kh