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Progress of Phase I activities in Egypt

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Title: Progress of Phase I activities in Egypt


1
Progress Report on Phase I of the UNEP Project in
Egypt Capacity Building DevelopmentFor The
Clean Development Mechanism
2
Phase I Country Report Outline I. Introduction
I.1. Project background I.2. Capacity
development needs II. Country Circumstances
Relating to Cc and CDM II.1. Institutional
arrangement in the context of climate change
Country-specific institutional arrangement
and its potential linkage with this
project II.2. Prior on-going activities
related to CC II.3. Prior on-going
activities related to the CDM and perspectives
for CDM III. Country Specific Issues in Relation
With The UCCEE/UNEP Project III.1.
Institutional arrangement for the implementation
of the project III 1. 1. Focal
point III 1. 2. National
institution (Technical Support Entities)
III 1. 3. participants III.2.
Status of the contractual arrangements with
national institution (Technical Support Entity)
and MOU with government
III.3. Evaluation of institutional and overall
capacity in relation with the CD for CDM project
III 3. 1. Focal point
III 3. 2. National institution (Technical
Support Entity, TSE) III 3. 3.
National institution Iv. Status OF Objectives,
Outputs Activities In Phase I IV.1.Tasks
in Phase I completion of a work plan for phase
II? presentation of the workplan for
phase II, and description of the activities
IV.2. Outputs workshop proceedings
presentation files, work plan, etc. V. Notes From
Initial Contacts With Stakeholders Iv. List Of
Potential Participants Stakeholders In The
Project Annex-I Detailed National Work
Plan Annex-II Workshop proceedings
presentation
3
I. Introduction and objectives
  • The United Nations Environment Program (UNEP) has
    launched the project Capacity Development for
    the Clean Development Mechanism with financial
    support from the Dutch Government.
  • The UNEP Collaborating Center on Energy and
    Environment (UCCEE) is the supporting
    organization contracted by UNEP to implement the
    project.

4
General Objectives
  • generating in participating developing countries
    a broad understanding of the opportunities
    offered by the Clean Development Mechanism, and
  • developing the necessary institutional and human
    capabilities that allows them to formulate and
    implement projects under the CDM.

5
I.2. Capacity development for the CDM needs The
CD for CDM project objectives 1-Definition of
regulatory framework that supports CDM
activities, 2- Identify prospective CDM
projects, 3- Formulate investment plans, 4-
Validate CDM projects, and 5- Monitor and report
the results of CDM activities. The main
products of this preparatory phase are 1-
Establishment of a country specific strategy
approach in order to obtain the highest degree of
political support. 2- Designate an appropriate
focal point agency that will coordinate national
CDM activities and investments. 3- Prepare terms
of reference and determine the organizational
structure for the focal point agency. 4- Develop
a multi-year work plan for promoting national CDM
activities and investments. 5- The phase-I
progress depicts the previous products.
6
  • II. Country Circumstances Relating to CC and CDM
  • II.1. Institutional Arrangement in the Context of
    Climate Change
  • Governmental institutions potentially
    participating in the CDM.
  • Private Sector Institutions and NGOs in Egypt
    with CDM Potential.
  • Institutions and Authorities responsible for the
    foreign direct investment system of Egypt
  • Annex-III.( 1 ) encounters the most important
    current initiatives for GHG reduction in Egypt.

7
Existing Governmental Institutions Potentially
Participating in the CDM
8
Private Sector Institutions and NGOs in Egypt
with CDM Potential
9
Different Authorities and Their Roles
Responsibilities in the Foreign Direct Investment
System of Egypt
10
Different Authorities and Their Roles
Responsibilities in the Foreign Direct Investment
System of Egypt
11
  • II.2. Prior on-going activities related to
    Climate Change (CC)
  • The prior and on-going activities are divided
    into two main issues
  • - Policies
  • - Measures for reducing GHG emissions
  • Adopted by
  • Governmental firms and
  • Complementary voluntary activities by
    non-governmental organizations.

12
  • II.2.1. Prior activities related to Climate
    Change
  • The following are the activities related to the
    climate change and prior to the CDM.
  • a. Egypts Climate Change National Action Plan
    (ECCNAP)
  • The project deals with both the assessment of
    Egypts vulnerability to the adverse impacts of
    climate change as well as the assessment of the
    potential GHG mitigation.
  • Within the assessment GHG mitigation, the project
    has been providing an in-depth coverage of the
    financial, environmental, social and economic
    impacts of a set of seven energy efficiency
    technologies.
  • These technologies are fuel substitution,
    co-generation, combustion control, waste heat
    recovery, efficient lighting, use of renewable
    energy and steam condensate recovery.

13
  • Egypt Climate Change National Action Plan
    ECCNAP final objective
  • Building capacity for Egypt to respond to UNFCCC,
    it was
  • Strengthening Egypts capacity to comply with the
    requirements of the UNFCCC,
  • Institutionalizing the national communication to
    comply with the UNFCCC, and
  • Contributing to the emergence of Egyptian
    approaches and responses to the UNFCCC.

14
  • Approaches
  • Training of experts,
  • Setting-up of seminars, workshops and studies
    related to climate change, and
  • Establishing close links with regional UNEP/GEF
    projects in general and taking part in
    international training programs

15
  • C. Egypts Initial National Communication on
    Climate Change
  • The Initial National Communication on Climate
    Change (NCCC) was issued in the year 1998 as a
    necessary document for evaluation of Egypts
    inventory of green house gases.
  • It is one of the main documents on which the
    National Strategy Study (NSS) on clean
    development mechanism (CDM) was based.

16
  • II.2.2. On-going activities related to Climate
    Change
  • These initiatives can be classified into
  • Institutional, (encountered in item II.1)
  • Technical and
  • Strategic initiatives.

17
a. Institutional Initiatives The Institutional
Initiatives are encountered in item II.1,
Institutional arrangement in the context of
climate change
18
  • b. Technology/Market Initiatives
  • Technology Cooperation Agreement Pilot Project
    (TCAPP)
  • Acknowledging technology transfer as one of its
    highest priorities, Egypt is focusing on such
    initiatives as the Technology Cooperation
    Agreement Pilot Project (TCAPP), in cooperation
    with the U.S. Country Studies Program.
  • The TCAPP is chartered to develop consensus among
    key Egyptian organizations on a set of high
    priority, climate-friendly, technology issues
    aimed at successful commercialization.
  • Results are expected to produce candidate
    technology transfer areas for consideration under
    the guidance of the National Climate Change
    Committee. Market development plans for selected
    technologies are currently underway.

19
  • Promotion of Wind Energy for Electricity
    Generation
  • This is an active program within the Ministry of
    Electricity and Energy, through the New and
    Renewable Energy Authority.
  • Supported by many international donors, this
    project aims at installing 600 MW of wind turbine
    by the year 2010.
  • The first 300 MW is already contracted through
    different donors, and most of them are scheduled
    to be operating by 2006.

20
  • Fuel Cell Bus Demonstration Project
  • Funded by the GEF, the UNDP is currently
    supporting fuel cell bus projects in Cairo, The
    demonstration in Cairo features eight fuel cell
    buses with associated hydrogen production and
    supply facilities.
  • The program will run for five years, with three
    years devoted to driving, monitoring and testing
    performance.
  • Service is targeted for implementation in the
    year 2001.
  • With a focus on technology transfer, Egypt hopes
    to expand the success of this demonstration in
    its transportation fleet.

21
  • Other Projects are
  • Hybrid-Electric Bus Technology in Egypt
  • Natural Gas Motorcycles
  • Methane Recovery from Landfills
  • The Integrated Solar Thermal/Natural Gas Power
    Plant at Kuraymat
  • The Energy Efficiency Improvement and Emissions
    Reduction Project
  • Fuel Switching

22
C. Other Activities in Egypt for GHG Emissions
Reduction Egyptian Energy Efficiency Council
(EEC) programs The Energy Efficiency council
(EEC) is a voluntary consortium of public and
private sector organizations associated with the
generation, distribution, and use of energy
resources in Egypt. The council currently
includes 12 organizations representing seven
Ministries and two organizations representing the
views and interests of the private sector. Its
aim is to oversee the development of a national
energy efficiency strategy that will be used as a
roadmap to increase Egypts efficient use of its
natural resources.
23
  • d. Overview on Current GHG Emissions in Egypt and
    Projection of Emissions Until 2017
  • The latest comprehensive inventory of GHG
    emissions and sinks (removals) for Egypt has been
    compiled for the fiscal year 1990/1991 (July 1st,
    1990 June 30, 1991).
  • The net GHG emissions of Egypt in 1990 were
    106,608 Gg of CO2 equivalent, while the total GHG
    sinks in the land use sector recorded 9,900 Gg of
    CO2 equivalent. CO2 is the main greenhouse gas in
    Egypt. It represented about 72 of the total GHG
    emissions in 1990.
  • The main emitters of GHG in Egypt are fuel
    combustion in the energy (22), industry (21),
    transport (18), sectors.
  • The total energy-related emissions (All energy)
    are responsible for 71 of the total GHG
    emissions.
  • Therefore, the sectors energy production,
    industry and transport are the primary target for
    GHG emission reductions measures.

24
Sector Percentage Share of Net GHG Emissions,
1990/1991 Source Extracted from OECP (1998)
25
The estimation of Egypts GHG emission projection
until 2017 for the all energy sector is based on
the SNAP project at OEP. For the waste sector,
the GHG emission growth rate was estimated at
1.6 annually based on the assumed annual average
population growth rate.
GHG Emission Projection for all Sectors (in 1000
Gg of CO2 equivalent)
26
C S C U S T o n C
Marginal Abatement Cost Curve for Egypt
27
Summary of Technologies, Saved Carbon and Cost of
Saved Carbon
28
  • Main comments about
  • The Energy Efficiency technologies Previous
    studies (such as SNAP, 1997 and ECEP, 1998) also
    support the current results.
  • Implementing the energy efficiency in different
    sectors in Egypt may result in GHG reduction
    between 1 to 2 million Ton C under the
    conservative and optimistic scenarios
    respectively.
  • The waste management sector
  • Renewable energy,
  • The transportation projects
  • LULUCF activities,

29
1.2.2 Analysis for International Market for
Certified Emission Reductions (Demand)
Principal Results of the CERT Model in the
Standard Scenario
30
Egypt's Position in the International GHG Offset
Market
Standard, 100, Medium 70 and low 50 sail of
GHG emissions
31
  • II.3.Prior on-going activities related to the
    CDM and perspectives for CDM
  • The National strategy study (NSS) on CDM
  • Institutional Needs for the Implementation of CDM
    in Egypt
  • National CDM Committee and CDM Unit
  • As for the institutional framework, two levels of
    coordination are proposed, the first is a
    national committee for CDM and the second is CDM
    implementation unit.
  • The mandate of such a CDM unit will include the
    following
  • Undertaking CDM activities as pertains to
    awareness and promotion
  • Issuing guidelines for the proposed CDM projects
    as well as following up CDM project activities
    initiated in Egypt
  • Acquiring various approvals and permits on behalf
    of CDM investors without having them go through a
    timely and tiresome process themselves. This will
    lower transaction costs considerably and thus, be
    instrumental in catalyzing CDM projects in Egypt
    and
  • Liaise and coordinate with line ministries and
    governmental agencies to prepare position papers
    for Egypt on CDM and representing Egypt in
    international meetings and conferences in this
    field
  • Coordinating technical capacity building
  • Facilitating pilot CDM projects and build
    relations with potential CDM investors.

32
Facilitating pilot CDM projects and build
relations with potential CDM investors. The
proposed CDM Unit will be responsible for the
day-to-day activities of CDM. It will be the
executive secretariat of the National Committee
on Climate Change in the area of CDM. This
Committee nonetheless, will be regarded as the
executive board or policy-making body for the CDM
in Egypt. As for other institutional and
logistical prerequisites, Egypt has to look for
international broker firms to promote for CDM
projects and carry out matchmaking with Egyptian
partners. Nonetheless, financial auditing firms
in Egypt can play a role in various CDM related
activities. They require, however, intensive
capacity building in this field in terms of
awareness, skills and human resources. Many of
these firms can utilize the expertise and
experience of their international partners and
alliances in the area of CDM. This will
inevitably lead to strengthening and enhancing
the domestic skills and capabilities of those
auditing firms in the field of CDM project
related activities and services.
33
Egyptian non-governmental organizations can play
an important and instrumental role in
implementing CDM projects in Egypt. Accordingly,
this role needs to be strengthened and
encouraged. One general recommendation
regarding institutional, legal and technical
prerequisites is that there is a pressing need
for capacity building for CDM related activities
in Egypt. This is required for the various
agencies and institutions acting as stakeholders
in the investment process in Egypt. It is also
urgently needed to advise the Egyptian
Accreditation Council, (EGAC) to take the
necessary actions for recognition of national
institutions. The CDM project cycle mainly
consists of project validation, monitoring,
verification and may be certification on both
national and regional basis. This recognition
requires capacity building for the national
institutions to meet the required qualifications
of operational entities set forth within the CDM
decision adapted at COP-7.
34
Tasks to be carried out prior to the initiation
of the CDM project Table ( 5 ) summarizes the
tasks to be carried out prior to the initiation
of the CDM project cycle activities. These tasks
can be conducted by the following options Option
(1) through which government agencies play the
only or main role in fulfilling such task. Option
(2) whereby the private sector and NGOs play the
only or main role in fulfilling such task. Table
5 Tasks to be Carried Out Prior to the
Initiation of the CDM Project Cycle Activities
35
Tasks in the CDM Project Cycle Project
eligibility measures, National and
international Validation Registration is the
formal acceptance of a validated project as a CDM
project Monitoring is the systematic surveillance
and measurement of after being implemented
aspects related to the implementation and the
performance of a CDM Verification is the
periodic independent review and ex-post
determination by a designated international
entity of the emission reductions by sources
and/or enhancements of removals by sinks that
have occurred because of a specific
project. Certification is the written assurance
by a designated international entity that during
the verification period a project has achieved
the stated emission reductions and/or removals by
sink in compliance with all project performance
criteria. A Certified Emission Reduction (CER)
unit shall be equal to one metric ton of CO2
equivalent emissions reduced or sequestered
arising from a CDM project. Issuance is the
formal release of CERs based on a certification
by a designated international entity.
International entities shall certify the emission
reductions resulting from a validated project
upon request from a project participant.
36
CDM Project Cycle Flow Chart
37
A Note on Transaction Cost The transaction costs
and any rent seeking in CDM projects should be
minimized as much as possible in order to achieve
a more efficient and cost-effective CDM mechanism
in Egypt. The anticipated CDM unit will, through
its one stop shop, facilitating and
coordination role be to a large degree
responsible for low transaction costs in CDM
projects. wherever this issue need to be
addressed on more global level under UCCEE/UNEP
project and on national level at the time of
implementation of phase II.
38
Options in CDM Design Arrangements for
International CDM Co-operation Unilateral CDM
Bilateral and Multilateral CDM Groups of Small
Projects Fast Track for Small Projects
39
  • III. Country Specific Issues In Relation With The
    UCCEE/UNEP Project
  • Objectives Assigned to the Work Plan
  • Through the period from 2003 to 2005, it is
    required to realize the following objectives
  • Establishment, development of an operational
    Designated National Authority Of CDM
  • Awareness enhancement
  • Capacity development among relevant national
    stakeholders
  • Development of a pipeline of marketable CDM
    projects, this shopping list includes all the
    necessary documentation for soliciting
    investments. The package will be dynamically
    overviewed and updated.
  • The Designated National Authority (DNA) is a part
    of a National well-planned institutional setting.
    The following are the suggested institutional
    arrangements.

40
  • III.1. Institutional Arrangement For The
    Implementation Of The Project
  • A suggested regulatory framework that supports
    CDM activities is defined in the following
    arrangements.
  • III.1.1. Focal point
  • The Egyptian Environmental Affairs Agency (EEAA),
    through its Climate Change Unit (CCU), is the
    official technical focal point for climate change
    activities in Egypt. In this capacity, the
    EEAA/CCU is also identified as the Focal Point
    Agency (FPA) for the duration of the present
    project.
  • At some time in the future, a CDM Unit (also
    referred to in UNFCCC terms as a Designated
    National Authority (DNA)) is expected to be
    established. The establishment and development of
    this CDM Unit or DNA is a principal objective of
    the project.

41
  • III.1.2. National institution (Technical Support
    Entity)
  • A Technical Support Entity (TSE) will be assigned
    to implement certain project tasks on behalf of
    the FPA, under direct contract to the UNEP
    Collaborating Center on Energy and Environment
    (UCCEE). The entity UCCEE is the supporting
    organization contracted by UNEP to implement the
    present project.
  • The relationship of the TSE to the FPA is
    specified in a Memorandum of Understanding
    between the FPA (EEAA/CCU) and the TSE, while the
    assignment for the remainder of the project will
    be decided towards the end of Phase 1). The MoU
    between FPA and TSE will also refer to the
    contractual relationship of the TSE to the UCCEE.
    The draft MoU is attached as Appendix 3.
  • Technical support on methodological issues
    related to the CDM will also be provided to the
    FPA and TSE by the Regional Center (APEX in the
    case of the region in question).

42
Suggested relations between the main entities
involved in the CDM activities
43
  • For the first year, the CDM Unit is suggested to
    be consist of
  • A full-time executive director
  • A secretariat consisting of an expert for
    training and public relation including mass
    media, an economist, preferably with technical
    background.
  • The direct human resources needed for the CDM
    Unit itself for the first two years are estimated
    within 3-5 staff. They are supposed to be
    assigned primarily by EEAA. After initiation of
    CDM projects for implementation, it is expected
    to be self-funded by local and foreign partners
    of CDM.
  • The technical support for CDM regulatory
    framework is planned to be supplied by Technical
    Support Entity (TSE). The following are criteria
    for the selection of the national institution for
    conducting the project activities at national
    level.
  • 5 to 10 years experience in conducting Climate
    Change studies
  • A good knowledge of the CDM related issues and
    stakes at national and international levels
  • Capacity to undertake focused technical studies
    and researches relevant to CDM
  • Expertise (or capacity to mobilize expertise) in
    the main areas concerned by CDM (Energy,
    Industry, Forestry, Agriculture, waste)
  • Capacity to undertake capacity development
    programs
  • Capacity to undertake and handle training
    programs and workshops
  • A minimum of five years experience in conducting
    mitigation assessments
  • Capacity to liaise and coordinate between the
    experts involved in the activities of the project
    at national level
  • Capacity to mobilize the stakeholders to be
    targeted by the project
  • Capacity to liaise with the national authorities
    in charge of the climate change and CDM
    activities

44
  • Suggested Role of the Designated National
    Authority (DNA) for CDM in the Implementation of
    the CDM Work Plan
  • The national committee for CDM is expected to
    recommend the policies, submit them to the EEAA
    committee for approval and forming the CDM
    implementation unit and follow up of
    implementation to cover the following tasks
  • Preparation of the scope of work and putting
    rules for current work of the CDM-Implementation
    Unit.
  • Studying and reviewing of Egypts NSS for
    preparation of the CDM project packages.
  • Approving the plans, follow up the implementation
    of the CDM activities broken down in the modules
    above, while the implementation work is expected
    from the CDM implementation unit.
  • Suggesting the legislations required for CDM
    implementation facilitation.
  • Preparing intergovernmental agreements
    (memorandum of understanding) with possible
    investor countries or institutions for the
    implementation of CDM projects.

45
  • III.1.3. Participants
  • Participants can be defined as the Consulting
    engineers, representatives from private
    enterprises and other stakeholders receive
    training in key GHG abatement technologies, CDM
    methodologies and project cycle.
  • Capacity Development Among Relevant National
    Stakeholders
  • Define steps to assist local firms in developing
    capacity for project validation, verification and
    certification.
  • Develop a database for local firms having
    capacities for CDM project implementation,
    validation and verification.
  • Resources are expected to be provided through the
    available climate change donor funding, later
    fees will cover the training costs. These
    activates are to be carried out by existing
    institutions such as training university centers
    and CDM technology suppliers.

46
Awareness Enhancements Activities The following
is the suggested list of activities required for
awareness raising 1. Definition of the targeted
groups, e.g. technology suppliers for CDM
consulting engineers and registration of
interested parties in database. 2. Communication
with the key players through networking and
publications and seminars. 3. Participation and
presentations in existing conferences, industry
fairs and other suitable forums (industry
associations, NGOs, etc.). Organizing between 2
to 3 workshops annually for investors and
candidate project hosts for promotion of GHG
reduction through CDM. Emphasis will be laid on
the private sector and the use of existing
structures. The CDM unit will mandate most
activities to specialized companies, governmental
and non-governmental institutions, making optimal
use of existing skills, manpower and networks.
Resources needed for the CDM unit staff is
supposed to be allocated by governmental
contribution. Funding of activities and campaign
is expected to stem from governmental
contributions (also in kind), foreign donations
and contribution by CDM customers.
47
Development of A Pipeline Of Marketable CDM
Projects 1. This module consists of
establishment of feasibility studies for 1-3 most
promising CDM project candidates in Egypt. The
studies include the assessment of the technical
and financial project feasibility, the evaluation
of the eligibility under CDM, the evaluation of
environmental and socio-economic impacts and the
assessment of the proposed financing schemes.
2. The studies should be carried out in close
cooperation with potential investors and
candidate project host. Resources for project
package preparation are suggested to be funded by
potential investors and candidate project host
while supported by governmental in kind
contributions.
48
III.2. Status of the contractual arrangements
with national institution (Technical Support
Entity) and MOU with government Currently there
is a preliminary acceptance for entities that
will be sharing in the institutional setting for
the second phase of the project. Official
documents will be coming into force by issuance
and acceptance of the present report as the
coming logical step towards CDM implementation.
49
III.3. Evaluation of institutional and overall
capacity in relation with the CD for CDM
project The Focal point capacity The Egyptian
Environmental Affairs Agency (EEAA), through its
Climate Change Unit (CCU), is the official
technical focal point for climate change
activities in Egypt. In this capacity, the
EEAA/CCU is also identified as the Focal Point
Agency (FPA) for the duration of the present
project. In this concern, the EEAA/CCU has the
full capacity for taking the responsibility of
the FPA. National institution (Technical Support
Entity) For the present phase, Tabbin Institute
for Metallurgical Studies TIMS assumed the
responsibilities for the phase I of the present
project. Tabbin Institute, TIMS has a long
experience in the energy efficiency work and
environmental issues. Tabbin Institute, TIMS was
contracted by EEAA for implementation of the NSS
on CDM. National institution (complementary
institutions for CDM) Egypt has a lot of
governmental and non-governmental entities that
are eligible for sharing in the CDM activities.
These entities are well defined in item (II.1)
50
  • Complementary Outputs Suggested To The Work Plan
  • Implementation of the first pilot project,
    establishment of national criteria and baseline
    for CDM
  • A published annual Egyptian CDM report,
  • An annual training package on CDM activities

51
Investor Relations and Monitoring of
International Offset Market
  • Continuously monitoring of the size, prices and
    characteristics of the international GHG offset
    market.
  • Continuously monitoring of the international and
    national GHG related regulations and procedures
    such as the UNFCCC, GHG taxes and levies, trading
    systems etc. to early identify demand for CERs.
  • The public relation expert will handle the
    investor relations.
  • Development and continuous update of a short list
    of possible foreign investors.
  • Publishing flyers and articles for the promotion
    of CDM projects in Egypt.
  • Establishment of communication channels with
    commercial attachees in the Egyptian Embassies
    and the Ministry of Foreign Affairs.
  • Presentation of CDM projects opportunities in
    Egypt at international conferences e.g. by
    holding side events at the COPs.
  • Pro-active approach to possible investor
    institutions, such as PCF, the Dutch Center
    CERUPT programme, commercial carbon funds and
    carbon brokers.
  • The investor relation activities will be carried
    out in close cooperation with existing investment
    institutions such as GAFI, FEI. Funding of
    activities is expected to stem from governmental
    contributions (also in kind) and foreign
    donations.

52
CDM Handbook for Egypt Evaluation / Feedback /
Corrections 1. All outputs of other modules are
to be reported to a central coordination office
in the CDM implementation unit. 2. The
performance indicators of all the modules are to
be developed. 3. A comparison on regular
intervals of the performance indicators will lead
to a fair evaluation of the whole components of
CDM system. 4. Relevant corrections have to be
suggested by the coordination office and
feed-backed to the National CDM committee. For
transparency and justice this module must be
funded by national governmental fund.
53
Iv. Status of objectives, outputs activities in
phase I Objectives, outputs and activities in
phase-I are realized. Tasks and outputs targeted
are achieved. The present report with appendices
encounters the main outputs. IV.1.Tasks in phase
I completion of a work plan for phase II?
presentation of the workplan for phase II, and
description of the activities Tasks declared in
the Memorandum of understanding between the
Egyptian Environmental Affairs Agency (EEAA) and
the Tabbin Institute for Metallurgical Studies
(TIMS) regarding Phase 1 of the UNEP project
Capacity Development for the Clean Development
Mechanism, Ref 6 are completed. Annex-I
encounter the work plan. The work plan is
represented in the workshop held in Dec 17-18,
2002. The concerned parties, EEAA, APEX and TIMS
as well as Egyptian stakeholders were represented
in the workshop. The work plan earns a
preliminary concurrence between the concerned
parties, EEAA, UNEP representative, APEX and the
technical support entity of phase I, TIMS. The
plan as observed from the concerned parties is
completely in line with the recommendations and
preliminary time expectations of the issued NSS
on CDM. The work plan as declared in Annex-I
encounter a detailed description of the
activities. IV.2. Outputs workshop proceedings
presentation files, work plan, etc. The present
progress report declares the main required
outputs as defined in the statement of work of
phase I, the preparation phase of the project.
Appendices encounter the details. Annex-I
encounters the Detailed National Work Plan of
phase II. Annex-II encounters the Workshop
proceedings presentation files.
54
  • V. Notes From Initial Contacts With Stakeholders
  • Regarding the discussions held in the workshop
    held in Dec 17-18, 2002, the following are the
    main outputs
  • The First National Workshop on CD for CDM was
    held in the Federation of Egyptian Industries
    (FEI) in Cairo on 17-18/12/2002 as a result of
    cooperation between EEAA TIMS (E2RC) with the
    assistance of UCCEE APEX-Regional Center for
    North Africa and the Middle-East (Tunisia).
  • The participants declared their requirement to
    participate in the future discussions for
    determining the baseline, in receiving training
    on the CDM topics, in networking, etc.
  • The necessary integration cooperation between
    the different International Funds in Egypt in
    order to avoid any contradictions between the
    ongoing projects.
  • The participants highlighted the awareness of the
    donors in dealing with projects by starting with
    reviewing the previous works dealing with their
    projects. They focused on the specific nature of
    the CDM project, which depends upon the desire of
    different parties to work together in a specific
    project, accepted from a certain authority
    according to certain criteria. They clarified the
    definition of CDM market as a relationship
    between seller buyer, who will make use of the
    DNA if exists in the country, otherwise this
    country will be unattractive as a result of high
    transaction cost.
  • The participants requested the representation of
    the private sector or NGOs in the DNA. The
    request earned a general acceptance.
  • It is accepted to start implementation by the
    lowest carbon price projects with respect to the
    international price despite the quantity of
    carbon emission is low.
  • The necessity of enlarging the law of investment
    by adding new articles regarding the investment
    in CDM projects. The taxes on these projects
    should also be considered. The growing role of
    commercial representatives in the Egyptian
    Embassies abroad in this concern (spreading the
    projects) has to be considered. A general stress
    was raised upon the importance of the
    participation of the Investment Authorities in
    the activities of the CD projects, whether by
    changing or renewing the existing laws or by
    training on the new issues to attract more and
    more projects.
  • Small-scale projects with high emission are of
    big concern. They can be collected in bundles.
    This is suitable in Egypt for the case of
    foundries. But, care must be taken with regard to
    the transaction costs. In this concern there was
    a question regarding the definition limits of
    these projects.
  • Dr. Amous clarified that there will be no project
    financed 100 through the CDM (about 20 from the
    donors and 80 from other international and/or
    national investors). This will be the role of
    bankers to get involved in the process by
    training them
  • A declaration was raised to the stakeholders that
    the NSS on CDM contains the study of the carbon
    inventory of Egypt and the situation of Egypt in
    the international market of carbon abatement.
    Also, it contains a vision bout the organization
    of the DNA, the role of the TSE, capacity
    building, staffing of the technical secretariat,
    the role of EEAA the role of other
    stakeholders.

55
Annex-I Detailed National Work Plan Suggested
Work Plan For The Implementation Of Phase 2 Of
The Project In Egypt A period of three years is
assigned for the present project phase number two
for implementation. It starts from 2003 and ends
at 2005. The following figure illustrates the
suggested work plan. Figure ( 1 ) Work plan
for the implementation of phase 2 of the project
in Egypt (ATTCHED)
56
  • Annex-II Workshop proceedings, participants
    presentation files
  • The Report on the First National Workshop on
    Capacity Development (CD) for the Clean
    Development Mechanism (CDM), TIMS, Cairo
    18/12/2002 is attached.
  • Presentation files are attached.
  • A list of participants is attached.

57
Annex-III Important issues Annex-III. 1. Current
Initiatives for GHG Reduction Currently, many
donors initiatives are being implemented. These
initiatives can be classified into institutional,
technical and strategic initiatives. The
coordination between these initiatives and CDM
activities could support or contribute to
specific needs for CDM realization in Egypt.
Also, lessons learnt from donor funded projects
may help in replicating these projects as CDM
projects. The following are examples of these
initiatives 1. Institutional Initiatives a.
National Committee on Climate Change An
inter-ministerial committee was formed in 1997
representing a wide range of governmental and
non-governmental stakeholders. b. Climate
Change Capacity Building Phase II This initiative
is a continuation of the previous GEF-assisted
Capacity Building Project aimed at
institutionalizing climate change issues on a
national level. This second phase focuses on
assessing technology needs for adaptation
measures for coastal zones, agriculture, and
water resources. Other activities include
studying impacts on coral reefs and human health,
and assessing technology needs to alleviate
negative effects. 2. Technology/Market
Initiatives 1. Technology Cooperation Agreement
Pilot Project (TCAPP) b. Promotion of Wind
Energy for Electricity Generation c. Fuel Cell
Bus Demonstration Project d. Hybrid-Electric Bus
Technology in Egypt e. Natural Gas Motorcycles f.
Methane Recovery from Landfills g. The Integrated
Solar Thermal/Natural Gas Power Plant at
Kuraymat h. The Energy Efficiency Improvement and
Emissions Reduction Project i. Fuel Switching
Details of technology/market initiatives are
given in item (II. 2.2). 3. Other Activities in
Egypt for GHG Emissions Reduction 1. Egyptian
Energy Efficiency Council (EEC) programs 1.
Egypts National strategy study on CDM Project
and Ideas
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