Canada’s CDM & JI Office: Role & Activities Presentation by Jane Desbarats Winnipeg, Manitoba

1. Canada’s CDM & JI Office: Role & Activities Presentation by Jane Desbarats Winnipeg, Manitoba March 14, 2003 Program Manager Canada’s CDM & JI Office ESCC/DFAIT

2. Overview • CDM and JI Policy Context • Office mandate, objectives, and strategy • Key Accomplishments • Project Facilitation • Linkages with Other Programs • Near Term Focus

4. Benefits of CDM and JI for the host country • Attracting investment in priority economic sectors • Air quality improvements and health benefits • Access to clean technologies • Improved energy efficiency • Infrastructure improvements and increased employment • Mitigation of climate change • Reduced dependence on imported fuel • Revenues from credits

5. CDM Criteria • Contributes to the sustainable development of the host country • Results in emission reductions that would not have happened otherwise • Generates real, measurable and long-term climate change mitigation benefits • Approved by parties involved

6. JI- Kyoto Criteria • Credits earned from 2008 onward • Results in emission reductions that would not have happened otherwise • Generates real, measurable and long-term climate change mitigation benefits • Approved by parties involved • Project hosted by another Annex I country • Two Tracks: depends on level of Party’s compliance with the Protocol’s participation requirements • Track I: host Party meets all KP participation requirements • Track II: host Party does not meet all KP participation requirements, of if host country chooses • Requires independent third party verification

7. CDM Project Cycle Project Idea- Approval by Parties Does it fit with Kyoto Criteria? Validation by OE/ registration by EB Issuance of Certified Emission Reductions (CERs) by EB Verification and Certification by OEs Monitoring by entities

8. Background of CDM Executive Board • Supervisory body of the CDM, established at COP 7 • 20 members (10 members and 10 alternates) • Meetings no less than three times per year • Mandate • accreditation of the Operational Entities. • project registration • approval of new methodologies for baselines & monitoring • issuance of CERs • establishment and maintenance of the CDM registry • report on regional distribution of CDM activities

9. CDM and JI Office Mandate • Act as national focal point for CDM and JI • Develop and disseminate information • Link with other Canadian and international programs • Facilitate Canadian participation • Facilitate project development • Provide technical guidance to companies • Provide funding support • Conclude bilateral agreements • Project approval • Provide analytical and policy support to negotiations

10. Budget and staff • Started in Sept. 1998 with small budget • Increased capacity under AP2000 • Total budget $25.25Mn over 5 years • Currently have 10 staff • technical expertise • regional expertise • language expertise • trade promotion expertise

11. Objectives • Objectives • Strengthen Canada’s capacity to use Kyoto Mechanisms • Facilitate Canadian participation and assist companies in obtaining credits • Credits back to Canada from CDM & JI projects towards obligations in the 1st commitment period. • Overall Strategy • Initial focus - building awareness and outreach; advising companies; identifying markets; facilitating MOUs • Current focus - project-specific activities to reduce transactions costs

12. Criteria for funding of proposals • Results in CDM or JI credits for Canada • Addresses issues or barriers around CDM or JI projects • Enhances business opportunities for Canadian companies • Solidifies partnerships with active countries • Paves the way for future initiatives in the host country • Leverages resources

13. Key Accomplishments • International Outreach • Bilateral Agreements • Engaging the Posts • Domestic Outreach • Project facilitation • Communications Activities

14. International Outreach (examples) • Canadian CDM workshops in 15 countries • covering key regions (Latin America, Asia, Africa, Eastern Europe) • Presentations at several Regional workshops • in Latin America , Africa and Asia • Participation in 6 federal or provincial trade missions • (Team Canada, IC; Alberta climate change missions) • Support to several climate change initiatives • Small Projects Facilitation Centre- Pembina Institute • Analytical work on carbon forest sequestration methodologies • Delphi group, CERI demonstration projects in S. America

15. Bilateral agreements • 10 MOUs completed: Poland, Ukraine, Latvia, Korea, Chile, Colombia, Costa Rica, Nicaragua,Tunisia, Uganda (project specific) • Statements of Intent with Mexico and China include cooperation on CDM/JI • 9 MOUs underway: Argentina, Ecuador, Brazil, El Salvador, Guatemala, Panama, Kenya, Sri Lanka, Bulgaria • Discussions underway with Kazakhstan, Romania, China

16. Canadian Embassies • Awareness Building at Posts • training Posts during outreach • pre-departure CDM/JI briefings yearly • briefings at Globe and Americana • Greater engagement of posts in key countries • Working Groups • Project identification • Project facilitation • Regular contact with CDM focal points • Working closely with Climate Change Technology Promotion Officers

17. Domestic Outreach • National Workshops (2000,2002, 2003), Ottawa • Yearly regional Roundtables: Halifax, Montreal, Toronto, Calgary, Edmonton, Vancouver, Winnipeg • Globe and Americana • Ongoing dissemination of information • website • database (approx 750 organizations) • phone calls and e-mail • company visits

18. Communications Activities • Brochure • Website • Database of companies • E-mail messages: • Project opportunities • EB decisions • PCF related updates • Compilation of focal points • Publications: • French CDM guide; • Summary document on COP 7 Decisions • A Guide to Establishing National Authorities

19. Project Facilitation • 13 Market studies completed • 5 Feasibility studies for CDM project viability • 19 Baseline studies,monitoring plans,PDD

20. Interest in CDM and JI • Many projects being explored by Canadian entities • Energy efficiency: • Includes Fuel Switching, Transportation • Landfill gas capture • Renewables • Includes Hydro, Solar, Biomass, Wind • Sequestration • Interest includes: Emitters, Non-emitters • Need to ensure that credits are brought back to Canada.

21. Near term Activities • Latin America & Caribbean – focus on Mexico, Chile, Brazil, Central America • Asia - focus on India and China • explore opportunities in Korea and Indonesia • Africa & Middle East – focus on Egypt, • build on capacity in the Maghreb countries • Economies in transition – focus on Russia, Ukraine, and Kazakhstan, • build on existing efforts in Poland, and explore potential in Bulgaria and Romania

22. Linkages with Other Programs • TEAM: Baselines for 2 projects • http://www.climatechange.gc.ca/team/ • Canadian Initiative for International Technology Transfer • http://www.nrcan.gc.ca/es/etb/cetc/ciitt/htmldocs/about_ciitt_e.html • NRCAN’s Technology Promotion Officers • AP2000 International technology Initiative • http://www.climatechange.gc.ca/english/actions/action_fund/techno.shtml • CIDA’s Climate Change Development Fund • http://www.acdi-cida.gc.ca/climatechange • World Bank PCF & 2 new funds • http://www.prototypecarbonfund.org • Regional Development Banks • OECD, IEA, UNDP

23. For more information ... Canada’s CDM & JI Office Climate Change and Energy Division (AEC) Department of Foreign Affairs and International Trade 125 Sussex Drive Ottawa, ON K1A 0G2 Tel: (613) 944-3039 Fax: (613) 944-0064 E-mail: cdm.ji@dfait-maeci.gc.ca Web: www.dfait-maeci.gc.ca/cdm-ji/