CDM Opportunities and Institutional Capacity

Enhancement for CDM in Pakistan by UNIDO

United Nations
Industrial Development Organization
Presented by:
Muhammad Matloob Khan
National Expert (CDM), UNIDO
29-30th Sept’08, Sheraton Hotel, Karachi
 Contents of The Presentation

1. Kyoto Protocol: Options & Opportunities

2. CDM Statistics
3. CDM Activities in Pakistan
4. UNIDO’s Climate Change CDM Capacity Building Programmes
Team
Major Components
Examples
Potential Partners
CDM Project Activities
5. UNIDO’s Strategy to Develop CDM Project
 Kyoto Protocol: Options & Opportunities

Options for Developed Countries

1. Reduce GHG themselves (High Cost )
2. Reduce GHG in Developing countries (Low Cost )
(Clean Development Mechanism)
KP “Flexibility Mechanisms”
1. Emission Trading (Article 17)
2. Joint Implementation (Article 6)
3. Clean Development Mechanism (Article 12)
Opportunities for Developing Countries
CDM projects Benefits to both Annex-I and Non Annex-I countries
1. Implemented in Non Annex-I countries by Annex-I Countries through
financial and technical assistance
2. Annex-I fulfill reduction commitments by purchase of Certified Emission
Reductions (CERs)
 CDM Projects: A Win Win Situation

Project
Project Host
Host Project
ProjectInvestor
Investor

Additional
AdditionalFinancial
Financial Cost
CostEffective
Effective
Resources
Resources Emission
EmissionReductions
Reductions

Advanced International
InternationalTrade
Tradeinin
AdvancedTechnology
Technology
Transfer Environmental
EnvironmentalGoods
Goods
Transfer

Achieve
AchieveSustainable
Sustainable Increased
IncreasedCommercial
Commercial
Development
Development Interactions
Interactions

$$$$$$$$$$$$$
$$$$$$$$$$$$$ $$$$$$$$$$$$$
$$$$$$$$$$$$$
 Average Annual CERs/Reductions and Number of
CDM Projects by Top 16 of Non Annex-I Countries
Sr # Country CERs/Reduction No of Projects
s
1 China 113,346,790 245
2 India 31,068,449 355
3 Brazil 19,282,867 143
4 Republic of Korea 14,599,555 19
5 Mexico 7,367,437 105
6 Chile 4,325,867 25
7 Argentina 4,121,351 14
8 South Africa 2,557,984 14
9 Indonesia 2,556,908 16
10 Qatar 2,499,649 1
11 Malaysia 2,479,529 29
12 Egypt 1,794,907 4
13 Nigeria 1,496,934 1
14 Israel 1,180,521 12
15 Peru 1,153,322 12
16 Pakistan 1,050,000 1
UNFCCC
 CDM Statistics
Registered Project activities
by host party. Total: 1,130
 CDM Statistics
Expected average annual CERs from
registered projects by host party. Total: 219,831,493
 CDM Activities in Pakistan

11 January, 2005
Pakistan deposited its instrument of accession to the Kyoto Protocol.
Ministry of Environment assigned the task to work as Designated National
Authority (DNA).
August, 2005
A CDM Cell was established to support the DNA in the Ministry of
Environment.
February, 2006
Approval of National CDM Operational Strategy.
27TH April, 2006
Approval of First CDM project by DNA, large N2O reduction from nitric
acid production (investor: Mitsubishi, Japan) estimating 1 million CERs
annually.
November, 2006
First CDM Project was registered with UNFCCC
June 2008
UNIDO Project: Institutional Capacity Enhancement for CDM in Pakistan
 UNIDO’s Climate Change Team

UNIDO HQ

1. Industrial Energy Efficiency Branch (IEE)

2. Industrial Promotion and Technology Branch (IPT)

Activities cover all developing countries and countries with economies

in transition
 UNIDO’s Capacity Building Programmes

Major Components

1. Technical capacity building

Identification of Projects
Baseline and Additionality Analysis
Preparation on PDDs
For details
(http://www.unido.org/en/doc/3941)
2. Assessment of mitigation options
3. Survey of technology needs
4. Promotion of CDM/JI projects
5. Global and local conferences/workshops
6. Information and networking (i.e. databases)
 UNIDO’s Capacity Building Programmes

Examples
1. Developing National Capacity to Implement CDM projects in Africa
(1999/2001)
Congo, Ghana, Kenya, Nigeria, Senegal, Tanzania, Zambia, Zimbabwe

2. Capacity Mobilization to Enable Industrial Projects under the CDM

in Nigeria (2000/2004)
2 Project Idea Notes (PINs& PDDs completed with PINs accepted by the
World Bank PCF)

3. Developing National Capacity to Implement CDM projects in

ASEAN (2001)
Indonesia, Malaysia, Philippines, Thailand and Vietnam
 UNIDO’s Capacity Building Programmes

Examples

4. Engaging the private sector in Clean Development Mechanism (1999-

2003)
Brazil and South Africa
Developed comprehensive CDM Investment guides
Brazil: (http://www.unido.org/ file-storage/ download?file_id =11229)
SA: (http://www.unido.org/file-storage/download?file_id=12074)

5. Forum “CDM and the Kyoto Protocol: Opportunities for Japan in Asia”
Tokyo, June 2002
UNIDO/MRI Collaboration
http://www.unido.org/userfiles/ Pemblet P /UNIDO_MRI_Report. pdf
 Institutional Capacity Enhancement
for CDM by UNIDO

Potential Partners
Ministry of Environment (DNA/CDM Cell)
Other Ministries/Departments working on GHG mitigation
Private Sector (CCI)
CDM Project Development Companies/Consultants
International & National Financial Institutions
DOEs, CER Brokerage Companies/Consultants
International Carbon Credit Markets
CDM Project Technology Providers
R & D Organizations and Institutes
Academia
UNIDO Focused CDM Project
Activities in Pakistan

Sr.# Sector
A Energy
1 Renewable/ Alternate energy
2 Energy Efficiency
3 Cogeneration
4 Gas Flaring and Recycling
B Waste Management
1 Landfill Gas Capture
2 Recycling/Composting
3 Solid Waste to Energy
UNIDO Focused CDM Project
Activities in Pakistan

Sr.# Sector
C Industrial Processes
1 Sugar
2 Cement
3 Fertilizer

4 Textile

5 Paper & Pulp

6 Steel

7 Bricks
UNIDO Focused CDM Project
Activities in Pakistan

Sr.# Sector
D Transportation
1 BRT, MRT, Systems

E Land use and Forestry

1 Afforestation
2 Reforestation

F Agriculture and Livestock

Practices
Cattle Waste
Rice Fields
 Distribution of CDM Project Activities by Scope
Sr. # Sectoral Scope* Reg.
Projects
1 Energy industries (renewable - / non-renewable) 791
2 Waste handling and disposal 290
3 Fugitive emissions from fuels (solid, oil and gas) 113
4 Agriculture 87
5 Manufacturing industries 75
6 Chemical Industry 38
7 Energy Demand 18
8 Fugitive emissions from halocarbons and sulphur 17
hexafluoride
9 Mining/Mineral Production 8
10 Transportation 2
11 Metal Production 2
12 Afforestation/Reforestation 1
Total Projects
UNFCCC

* Note that a project activity can be linked to more than one sectoral scope
Distribution of CDM Project Activities by Scope
 UNIDO’s Strategy to
Develop CDM Project
Government
Governmentofof Capacity International
CapacityBuilding
Building International
Pakistan
Pakistan Partners/Investors
Partners/Investors
Project
ProjectIdea
IdeaNote
Note Partners,
Partners,
Investors
Investors
Project
ProjectDesign
Design Consultants
Consultants
Document
Document

DNA/CDM
DNA/CDM Technical
Technical
Stakeholders
Stakeholders Secretariat
Secretariat Committees
Committees

UNFCCC
UNFCCC
Executive
ExecutiveBoard
Board

Commissioning
Commissioningofof CERs
CERsto
toInvestors
Investors
CDM
CDMProject
Project
 Way Forward

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approachtowards
towardsKyoto
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andClimate
Climate
Change
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activities
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and financial
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about
CDM
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expertsand
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informationabout
aboutincentives
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investors

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CDM for Prosperity @ GHG Mitigation

Thank You
Muhammad Matloob Khan
National Expert (CDM)
United Nations
Industrial Development Organization
35-B, College Road, F-7/2,
Islamabad, Pakistan.
Tel: +92 51 2655091-2 Cell: +92 301 5056597
Web: www.unido.org.pk
Email: matloob.khan@unido.org.pk