Title: CDM in the Philippines: Avoiding carbon emissions Achieving sustainable development
1CDM in the PhilippinesAvoiding carbon
emissionsAchieving sustainable development
- Capacity Development for CDM
- (CD4CDM) Side Event
- COP 10, Bueños Aires, Argentina
- La Rural centro de exposiciones
- 11th December 2004
2Contents
- 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
3ProcessDNA in the Philippines
4Executive 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
5Proposed SYSTEM FOR CDM NATIONAL APPROVAL
Approving Authority
Review Endorsement
6Proposed CDM Steering Committee
DENR Department of Environment Natural
Resources DOE Department of Energy DOST
Department of Science Technology
7Proposed Support Institutions
- CDM Secretariat
- Environmental Management Bureau (EMB) Central
Office - Technical Evaluation Committee (TEC)
- For Energy Projects
- Lead Agency Department of Energy (DOE)
- For Waste Management Projects
- Lead Agency National Solid Waste Management
Commission (NSWMC) - For Forestry Projects
- Lead Agency Forest Management Bureau (FMB)
8Proposed 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 development criteria 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.
9Proposed 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 overall sustainable development impact of a
Proposed Project must be positive.
10List 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
11List 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
12List 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
13DNA Approval Process
Submission of application documents
Verification / Confirmation
Payment of processing fee
Endorsement to appropriate evaluation committee
Monitoring Form
Assessment of project documents using the
National Evaluation Protocol (NEP)
with revisions
w/o revisions
Resubmission of revised project documents
Reassessment using the NEP
Submission of an Evaluation Report
Convening of the CDM Steering Committee
Assessment of Evaluation Report
Endorsement Report
Reviewing and issuance of Letter of Approval or
Disapproval
Releasing of Letter of Approval or Disapproval
and recording of all processed documents
14DNA Approval Processing Time (35 to 45 Working
Days)
15Documentary 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
16Contents of the Project Application Document (PAD)
- General Description of the Project Activity
- Demonstration of Additionality
- Identification of Baseline and Monitoring
Methodology - Identification of Baseline
- Duration of Project Activity/Crediting Period
- Calculation of GHG emission reductions
- Contact information of project proponent
17Sustainable Development Impact Assessment (SDIA)
- Presents the sustainable development impacts of
the Proposed Project in terms of economic,
environmental and social effects. - Contains a comparative analysis of the
sustainable development impacts of the baseline
case and the Proposed Project. - Identifies mitigation measures of significant
negative impacts, and measures to monitor major
sustainable development impacts.
18Drafts downloadable
- Draft Rules and Regulations
- Draft Templates PAD, SDIA, National Evaluation
Protocol - Downloadable from
- www.klima.ph/cd4cdm
19II. Projects
20News 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
21NORTHWIND POWER PROJECT 25 MW Bangui Bay, Ilocos
Norte
22Bagasse 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
23FIRST FARMERS SUGAR MILL 30 MW Talisay City,
Negros Occidental
24Baseline Scenario First Farmers Sugar Mill
CO2e Emissions
Baseline scenario CO2 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
25Project Activity First Farmers Sugar Mill
26- First Farmers Sugar Mill (30 MW)
- Key Benefits
- Reliable and secure electricity supply
- Reduction in local SOX and NOX emissions
- Open burning of cane residues on the field will
no longer be practiced - Demonstration of advance clean combustion and
efficient generation technology
27Project Financing First Farmers Sugar Mill
Total Project Costs US 60 million
Sources Equity (from Bronzeoak Group, Zabaleta
Co. and others) Debt (from local and
global investment banks and private
sectors) Carbon Finance
28Project Proponent First Farmers Sugar Mill
29Waste 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
30CENTRAL AZUCARERA DE TARLAC (CAT) Waste to
Energy (2 MW) Hecienda Lusita, Tarlac City
31Baseline Scenario Central Azucarera de Tarlac
(CAT) Distillery Waste to Energy Plant
CO2e Emissions
Baseline scenario CO2e 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
32- Central Azucarera de Tarlac (CAT) Distillery
Waste to Energy Plant - Key Benefits
- Reduction in wastewater contaminants
- Recover biogas, a renewable fuel
- Community development projects for people in the
surrounding barangays (i.e micro lending
programs)
33Project Proponent CAT Distillery Waste to Energy
Project
34Wind 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
35NORTH LUZON WIND POWER PROJECT 42 MW Burgos,
Ilocos Norte
36Baseline Scenario North Luzon Wind Power Project
CO2 Emissions
Baseline scenario CO2 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
37Project Activity North Luzon Wind Power Project
38- North Luzon Wind Power Project (Phase I)
- Key Benefits
- Reduce the countrys dependence and purchase of
imported fuels - Increased employment opportunities
39Project Financing North Luzon Wind Power Project
Sources Equity (PNOC-EDC) Debt
(JBIC) Carbon Finance
40Project Proponent North Luzon Wind Power Project
41Wind Power
- San Carlos Wind Farm
- Total installed capacity of 30 MW
- Estimated emission reduction potential of 39,694
tCO2 annually (2006) and 52,685 tCO2 annually
(starting 2007)
42SAN CARLOS WIND FARM 30 MW San Carlos City,
Negros Occidental
43Baseline Scenario San Carlos Wind Farm
CO2 Emissions
Baseline scenario CO2 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
44Project Activity San Carlos Wind Farm
45- San Carlos Wind Farm
- Key Benefits
- Reduction of electricity rate per consumption
- Ushers eco-tourism in the area and other
livelihood projects - Reduce the countrys dependence and purchase of
imported fuels - Increased employment opportunities
46Project Financing San Carlos Wind Farm
Sources Equity (30 of project costs)
Debt (70 of project costs)
47Project Proponent San Carlos Wind Farm
48Carbon 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
49Tanay Micro Watershed Project Tanay, Rizal
50Project Proponent Tanay Watershed Project
51Maraming 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_at_ateneo.edu
- www.klima.ph/cd4cdm