CDM in the Philippines: Avoiding carbon emissions Achieving sustainable development

1. CDM in the Philippines:Avoiding carbon emissionsAchieving sustainable development Capacity Development for CDM (CD4CDM) Side Event COP 10, Bueños Aires, Argentina La Rural centro de exposiciones 11th December 2004

2. Contents • Process • DNA institutional structure • National approval criteria • Flowchart of the approval process • Documentary requirements for the proposed project proponent • Projects • Bagasse cogen • Waste to energy • Wind power • Reforestation

3. Process:DNA in the Philippines

4. Executive Order No. 320 • By the President of the Philippines • 25th June 2004 • Designating the Department of Environment and Natural Resources (DENR) as the National Authority for the Clean Development Mechanism

5. DENR CDM Steering Committee PROJECT APPLICATIONS CDM SECRETARIAT TECHNICAL EVALUATION COM. ENERGY/ ENERGY EFFICIENCY TECHNICAL EVALUATION COM. WASTE MGMNT TECHNICAL EVALUATION COM. LULUCF Proposed SYSTEM FOR CDM NATIONAL APPROVAL Approving Authority Review & Endorsement

6. Proposed CDM Steering Committee DENR = Department of Environment & Natural Resources DOE = Department of Energy DOST = Department of Science & Technology

7. Proposed Philippine CDM National Approval Criteria • A Proposed Project shall be given national approval if it assists the Philippines in achieving sustainable development. • A Proposed Project shall be assessed using sustainable developmentcriteria which are meaningful from a project level perspective and are in line with the Philippine Agenda 21. • A Proposed Project shall be evaluated using criteria for the three dimensions encompassing sustainable development: economic, environmental and social.

8. Proposed Philippine CDM National Approval Criteria • Project level indicators, quantitative and/or qualitative shall be used to identify the sustainable development impacts of a Proposed Project. • Measures to mitigate significant negative impacts of a Proposed Project must be identified. • Methods to monitor the major sustainable development impacts of a Proposed Project must be identified. • The overallsustainable development impact of a Proposed Project must be positive.

9. List of Sustainable Development Criteria A. Economic Dimension • Generates sustainable employment of local community • Provides livelihood and other economic opportunities in the community • Provides proper safety nets and compensatory measures for the affected minority • Uses cleaner, more efficient and environment-friendly technology

10. List of Sustainable Development Criteria B. Environmental Dimension • Complies with environmental policies and standards • Provides local environmental benefits • Promotes sustainable use of natural resources • Protects and conserves local biodiversity

11. List of Sustainable Development Criteria C. Social Dimension • Provides measures to alleviate poverty • Provides education and training which build the capacities of local stakeholders • Provides vulnerable groups access to local services • Promotes local participation in the project

12. Submission of application documents Verification / Confirmation 5 working days Payment of processing fee Endorsement to appropriate evaluation committee Monitoring Form Assessment of project documents using the National Evaluation Protocol (NEP) 15 working days with revisions w/o revisions Resubmission of revised project documents 15 working days Reassessment using the NEP 10 working days Submission of an Evaluation Report Convening of the CDM Steering Committee 10 working days Assessment of Evaluation Report Endorsement Report Reviewing and issuance of Letter of Approval or Disapproval 5 working days Releasing of Letter of Approval or Disapproval and recording of all processed documents DNA Approval Processing Time (35 to 45 Working Days)

13. Documentary requirements for proposed project proponent • Project Application Document (PAD) • More than a PIN but less than a PDD • Sustainable Development Impact Assessment (SDIA) • Documentation of Stakeholders’ Consultation Downloadable from www.klima.ph/cd4cdm

14. II. Projects

15. News flash!!! • 1st ERPA for the Philippines signed, 9th December 2004 • 25 MW Wind Farm Project • Northern Luzon • Biggest wind farm in Southeast Asia • 15 wind turbines • CER Buyer: WB Prototype Carbon Fund • 356,000 tCO2e for 10 years

16. NORTHWIND POWER PROJECT 25 MW Bangui Bay, Ilocos Norte

17. Bagasse Cogeneration Plants – Grid Connected • First Farmers Sugar Mill (30 MW) • Estimated emission reduction of 54,457 to 133,466 tCO2e annually • Victorias Sugar Mill (50 MW) • Estimated emission reduction of 258,583 tCO2e annually • Bogo-Medillin Sugar Mill (25 MW) • Estimated emission reduction of 35,400 tCO2e annually

18. Baseline Scenario: First Farmers Sugar Mill CO2e Emissions Baseline scenarioCO2 emissions (that would occur) • Diesel, bunker fuel, external electricity purchased (sugar mill); fossil fuels supplied to the Visayas Grid 54,457 to 133,466 tCO2 annually CO2 emissions reduction CDM project (Bagasse Cogeneration Plant) CO2e emissions (observable) Years

19. Project Proponent: First Farmers Sugar Mill

20. Waste to Energy Project • Central Azucarera de Tarlac (CAT) Distillery Waste to Energy Plant • Methane capture from waste water • 2 MW power plant for use by the sugar mill • Estimated emission reduction potential of 54,000 tCO2e annually

21. Baseline Scenario: Central Azucarera de Tarlac (CAT) Distillery Waste to Energy Plant CO2e Emissions Baseline scenarioCO2e emissions (that would occur) • Waste water coming from the distillery 54,000 tons of CO2 annually CO2 emissions reduction CDM project (CAT Waste to energy) CO2e emissions (observable) Years

22. Project Proponent: CAT Distillery Waste to Energy Project

23. Wind Power • North Luzon Wind Power Project (Phase I) • Total installed capacity of 42 MW • Estimated emission reduction potential of 78,300 tCO2 annually • Aims to address the power supply shortfall projected for the Luzon grid by 2008 • Benefits the whole province of Ilocos Norte

24. Baseline Scenario: North Luzon Wind Power Project CO2 Emissions Baseline scenarioCO2 emissions (that would occur) • Coal-based power plants supplying the Luzon Grid 78,300 tons of CO2 annually CO2 emissions reduction CDM project (North Luzon Wind Power) CO2 emissions (observable) Years

25. Project Proponent: North Luzon Wind Power Project

26. Wind Power • San Carlos Wind Farm • Total installed capacity of 30 MW • Estimated emission reduction potential of 39,694 tCO2 annually (2006) and 52,685tCO2 annually (starting 2007)

27. Baseline Scenario: San Carlos Wind Farm CO2 Emissions Baseline scenarioCO2 emissions (that would occur) • Fossil fueled power plants supplying the Visayas grid 39,694 tCO2 (2006) 52,685 tCO2 (starting 2007) CO2 emissions reduction CDM project (San Carlos Wind Farm) CO2 emissions (observable) Years

28. Project Proponent: San Carlos Wind Farm

29. Carbon Sequestration • Tanay Micro Watershed Project • Reforesting 70 ha of private land • Establishing 25 ha of agroforestry farms in public land • Sequestering 5,000 to 12,000 tCO2 from the atmosphere in 20 years

30. Project Proponent: Tanay Watershed Project

31. Maraming salamat! • Roberto C. Yap, Ph.D. Environmental Economist klima Climate Change Center Manila Observatory Philippines Tel +63 2 426-6144 Fax +63 2 426-6070 rcyap@ateneo.edu www.klima.ph/cd4cdm