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Alternative Energy Promotion Center

Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

Clean Development Mechanism (CDM) and Activities of Climate & Carbon Unit (CCU/AEPC)
Prem Kumar Pokhrel Climate & Energy Program Officer Climate and Carbon Unit Alternative Energy Promotion Center
25 March 2012 Orientation Workshop to DEEU/S, RRESC-Chitwan

International responses for Climate Change p g


First Climate Conference in 1979: recognized climate change as a g g serious problem, endorsed a plan to establish World Climate Program under joint responsibility of WMO, UNEP & International Council of Scientific Union Establishment of IPCC in 1988: by WMO & UNEP for providing technical data, forecasts & S i tifi evidence f climate change. t h i ld t f t Scientific id for li t h Released 1st Assessment Report in 1990. UNFCCC: UN general assembly approved the start of treaty negotiations in December 1990. In 1992, UNFCCC was signed by 154 countries in Rio summit.
Alternative Energy Promotion Center
Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

25 March 2012

Kyoto Protocol Negotiation y g


May 1992 Adoption of United Nations Framework Convention on Climate Change

Mar 1994

Entry into force of UNFCCC

Dec 1997

Adoption of the Kyoto Protocol ( p y (CDM, JI, Emission Trading) , , g)

Nov 2001

Operational rules and Procedures of CDM (Marrakech Accord)

Dec 2005

Entry into force of the Kyoto Protocol

Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

25 March 2012

Introduction to CDM

A project based mechanism Project must be in a developing country

Kyoto Protocols only market incentive to mitigate emissions in developing countries Assist Annex I in meeting their targets through offset mechanism (Ceiling to reduce by 5.2% below 1990 level) Assist non-Annex I in achieving sustainable development

Developed (Annex I) Country

Dual objective

Sales Proceeds

Carbon Credits

Project must provide emission reductions h P j id i i d i that are additional to any that would occur in the absence of the certified project activity CDM Executive Board tasked with supervision E ti B d t k d ith i i
25 March 2012

Developing Country (GHG Reduction Project)

Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

Clean Development Mechanism p

Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

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CDM Project Cycle j y


Project Design Document (PDD) / Project Information Note (PIN) Validation Baseline Studies Host Country Approval Registration Stakeholder consultations, Public comment

Implementation
Independent Third Party Project Participants Designated Operational E i D i dO i l Entity CDM Executive Board Host country - DNA Public/Stakeholders Alternative Energy Promotion Center
Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

Monitoring and Reporting

Verification

Certification

25 March 2012

CDM Projects Potential Sectors j


1. Energy industries (renewable / non-renewable sources) 2. 2 Energy distribution 3. Energy demand 4. Manufacturing industries 5. Chemical industries 6. Construction 7. Transport 8. Mining/Mineral production
Alternative Energy Promotion Center
Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

9. Metal production 10.Fugitive emissions from fuels (solid, oil and gas) 11.Fugitive emissions from production and consumption of HFC and SF6 12.Solvents use 13.Waste handling and disposal 14.Afforestation and reforestation 15.Agriculture

25 March 2012

Eligible Greenhouse Gases for CDM g


Greenhouse Gas

GWP
1 21 310 9500 11700 23900

Kgs/CER g
1000 47.6 3.22 0.11 0.08 0.04 0 04

Carbon dioxide CO2 Methane CH4 Nitrous Oxide N2O Per Fluoro Carbons PFC Hydro Fluoro Carbons HFC Sulphur Hexa Flouride SF6

GWP Global Warming Potential Tradable Commodity: Certified Emission Reduction (CER) = 1000 kg CO2 (equivalent)
Alternative Energy Promotion Center
Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

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Registered CDM Projects Country wise g j y


Countries No. of Projects

China India Brazil Mexico Malaysia Vietnam Indonesia Nepal Others j Total Projects
Alternative Energy Promotion Center
Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

1860 800 201 136 106 106 75 6 646 3936

25 March 2012

CDM Projects eligibility j g y

All kinds of projects cannot be eligible for CDM, it should be additional, b dditi l baseline should b clear and should h li h ld be l d h ld have contribution on sustainable development. Additionality: F Micro L Additi lit For Mi Level project <5 MW no need t l j t MWd to show additionality for LDC Sustainable d S t i bl development: Th protocol specifies th t th l t The t l ifi that the purpose of the CDM is to assist Non-Annex I Parties in achieving sustainable development. CDM project activities must be hosted by the NA-I Parties

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Concept of Emission Reduction and Additionality

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Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

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The Additionality Tool y

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Small Scale CDM Projects j

Type I p j yp project activities: Renewable energy p j gy project activities shall have a maximum output capacity of 15 MW (or an appropriate equivalent) Type II project activities: E T j t ti iti Energy efficiency project which ffi i j t hi h reduce energy consumption, on the supply and/or demand side, shall be limited to those with a maximum output of 60 GWh/y (or an appropriate equivalent) Type III project activities: Other project activities (methane related) shall be limited to those that result in emission reductions of less than or equal to 60 kt CO2 equivalent annually
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Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

Program of Activities (PoA) CDM g ( )


PoA P A

CPA 1 CPA 2

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CCU & activities

Leverage the carbon mitigation and climate change g g g adaptation potential of existing and future Renewable Energy technologies and programs. Promote district l P t di t i t level renewable energy-based mitigation l bl b d iti ti and adaptation activities by overseeing and coordinating gy (DCEPs). ) District Climate and Energy Plans ( Support the Government of Nepal in formulating national policies as part of Low Carbon Development Strategy. Act as a knowledge center on clean energy, carbon finance and climate change. .
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Activities

Support to p p pp prepare DCEP and g guidelines in three pilot districts (Ilam, Makwanpur, Mustang) Renewable energy related CDM projects development- Bi d l t Biogas, Mi Micro-hydro h d ICS PoA Improved Water Mill PoA Solar Home System PoA Training for DEEU/S & other stake holders

Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

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AEPC CDM Projects j


NameofProjects No.of systems bundled 9,708 9,688 448 ( (428) ) 20,254 20,348 Annual A l 20,000 Expected ER/year Project Status Proponent Registered&CERissued Registered&CERIssued Registered d Registered Registered Finalstageofvalidation Fi l f lid i Final stageofvalidation FinalStageofValidation Registered RegisteredunderVCS Undervalidation 17 BiogasSupportProgram NepalActivity1 BiogasSupportProgram NepalActivity2 MicrohydroPromotion h d BiogasSupportProgram NepalActivity3 BiogasSupportProgram NepalActivity4 NepalBiogasSupportProgramPoA N l Bi S P P A 30,203tCO2e AEPC 31,875tCO2e AEPC 40,800tCO2e AEPC 51,086tCO2e AEPC 50,363tCO2e AEPC 2.49tCO2e/pl AEPC 2 49 CO2 / l AEPC ant/yr 113,128 tCO2e AEPC

PromotionoftheImprovedCookingStove(ICS) Annual Nepal 38,000 PromotionoftheImprovedWaterMills(IWM) Nepal ImprovedCookingStoveproject BiogasGoldStandardProject


Alternative Energy Promotion Center

8,000 22,930 7,500

38,699tCO2e AEPC 28,000tCO2e CRT/N WWF Nepal


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ICSCDMprojects3projects Mainstream Supply to Rural Areas of Nepal 75000ICS Making Renewable Energy

SDC

Role of DEEU/S, RRESC ,

Monitoring of CDM projects developed by AEPC Awareness raising Integrate CC activities in district planning process Coordinate with related local GoN offices, NGOs and other key stakeholders in p y planning, budget allocation, g, g , implementation & monitoring of CC activities Reporting on CDM activities to AEPC
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Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

Thank You !!!


Contact: Prem.pokhrel@aepc.gov.np P kh l@

Alternative Energy Promotion Center


Making Renewable Energy Mainstream Supply to Rural Areas of Nepal

25 March 2012

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