Clean Development Mechanism (CDM) and Government Initiatives for Promotion of CDM Project Activities in Pakistan Syed Amjad Hussain Acting Head, CDM Cell - PowerPoint PPT Presentation

Loading...

PPT – Clean Development Mechanism (CDM) and Government Initiatives for Promotion of CDM Project Activities in Pakistan Syed Amjad Hussain Acting Head, CDM Cell PowerPoint presentation | free to view - id: 1b0f70-ZDc1Z



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Clean Development Mechanism (CDM) and Government Initiatives for Promotion of CDM Project Activities in Pakistan Syed Amjad Hussain Acting Head, CDM Cell

Description:

and Government Initiatives for Promotion of CDM Project Activities in Pakistan ... 8. Almoiz Bagasse Cogeneration Project, D. I Khan, Pakistan. ... – PowerPoint PPT presentation

Number of Views:227
Avg rating:3.0/5.0
Slides: 42
Provided by: Saa556
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Clean Development Mechanism (CDM) and Government Initiatives for Promotion of CDM Project Activities in Pakistan Syed Amjad Hussain Acting Head, CDM Cell


1
Clean Development Mechanism (CDM) and
Government Initiatives for Promotion of CDM
Project Activities in Pakistan Syed Amjad
HussainActing Head, CDM Cell
Government of Pakistan Ministry of Environment
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
2
Overview Presentation
  • Part-1
  • Climate Change/Global Warming
  • UNFCCC and Kyoto Protocol
  • CDM and CDM Project Cycle
  • Benefits from CDM
  • Types of CDM Projects
  • Government Initiatives for Promotion of CDM
    Activities in Pakistan
  • Part- 2
  • Criteria for Host Country Approval Process in
    Pakistan
  • Tax and Credit Sharing Policies
  • CDM Project Approval Process
  • CDM Projects in Pipeline in Pakistan

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
3
  • Part 1 Climate Change and CDM

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
4
Climate change/Global Warming
  • The Greenhouse Effect
  • Some gases naturally exist in the atmosphere,
    the so called Greenhouse Gases (GHGs) that form a
    blanket surrounding the earth and keeps the earth
    warmer. This is called Greenhouse Effect.
  • The Enhanced Greenhouse Effect
  • Human activities (fossil fuel burning, depletion
    of sinks like forests etc.) has been increasing
    the concentration of GHGs in the atmosphere and
    is leading to rise in temperatures. This is
    called Enhanced Greenhouse Effect.
  • Global Warming/Climate Change
  • Rise in temperatures of earth and other
    associated climatic changes as caused by the
    Enhanced Green House Effect is called Global
    Warming and in broader term Climate Change.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
5
(No Transcript)
6
Scientific Evidence of Climate Change/Global
Warming
The 4th Assessment Report of IPCC (2007) indicate
that Global temperature rises of 2 4.5 C are
almost inevitable due to increased concentration
of green house gases as caused by human
activities (fossil fuel use, land use changes
etc.). The above global warming (or in broader
term Climate Change) is expected to have serious
consequences for - Agricultural production -
Biodiversity - Heath - Sea Level rise Poor
will be most affected by the Climate Change
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
7
International Response
The United Nations Framework Convention of
Climate Change (UNFCCC) Adopted in June 1992 by
over 180 countries at the Earth Summit in Rio
de Janeiro, Brazil. The Convention was signed by
154 states (including Pakistan) and entered into
force on 21st March, 1994. UNFCCC is a
non-binding legal framework - Aims at
stabilization of GHG concentration in the
atmosphere at safe level. - To balance out the
response along mitigation and adaptation
measures
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
8
The Kyoto Protocol of UNFCCC
Adopted in Kyoto, Japan in 1997 and ratified in
February 2005 (Pakistan singed the Protocol on
11th January, 2005) The Kyoto Protocol Aims to
reduce GHG emissions by 2012 and distinguish two
types of countries Annex-I countries With
binding emission targets (industrialised
countries) Western and Eastern Europe,
Canada, Japan, New Zealand, Russia, Ukraine
etc. Non-Annex I countries With voluntary
participation (developing countries) China,
India, Pakistan, South Africa, Philippines,
Uruguay, Brazil, and other developing countries.
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
9
The Kyoto Protocol Targets
  • Under the KP the Annex- I countries have been
    given binding targets i.e. to reduce their
    combined GHG emission by 5.2 percent below their
    1990s level, between the period 2008 - 2012.

USA -7 EU -8
Japan -6 All Developed
Countries - 5.2
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
10
Mechanisms Under the Kyoto Protocol
The Kyoto Protocol introduces three market based
flexible mechanisms for the emissions
reduction - Joint Implementation
(JI), - Emission Trading Scheme (ETS)
and - Clean Development Mechanism (CDM)
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
11
Clean Development Mechanism (CDM)
CDM is a market based instrument under the Kyoto
Protocol of UNFCCC Assists developing
countries in sustainable development while at the
same time contributing to the ultimate objective
of the Convention. Developed countries to
support project activities that reduce GHG
emissions in the developing countries in return
for Certified Emission Reductions (CERs)/ Carbon
Credits. The CERs generated by such project
activities can be used by developed countries as
credits to meet their emissions targets under the
Protocol.
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
12
Concept of CERs/ Carbon Credits
Developing Country (Host)
Sold to Developed country ()
CERs
GHG reduction
GHG Emission Projections
Baseline Scenario
CDM Project
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
13
Eligible GHGs Reduction under Kyoto Protocol
The KPs emissions targets cover the six main
GHGs Name Formula GWP (CO2 eq.)
1. Carbon- dioxide (CO2) 1 2.
Methane (CH4) 21 3. Nitrous
oxide (N2O) 310 5. Per-
fluorocarbons (PFCs) 92,00 4.
Hydro- fluorocarbons (HFCs)
11,700 6. Sulphur hexafluoride (SF6)
23,900 Sinks (carbon
sequestration)
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
14
CDM Project Cycle
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
15
Time Required for Completion of Different
Component within CDM Project Cycle
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
16
Benefits from CDM (Carbon Finance)
(An Example)
Benefits to Host country
CDM Project (e.g., alternate energy production)
Additional Energy Production
Direct Foreign Investment Revenue
Certified Emission Reductions
Carbon Credits (Developed country Buyer)
Plus other Benefits (Jobs, Clean Env. Tech.
Transfer)
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
17
CDM Incentive for Developed Countries
Developed countries have been subjected to
legally binding emission targets..2008/12. Due
to un-localized nature of CO2it does not matter
for environment where reduction occurs. Costs of
abatement or reduction of emissions Developed
Countries U 50-100/ton (estimated) Developing
Countries U 1-15/ton Reductions of GHG is
much cheaper in developing countries.
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
18
CDM Incentives for Developing Countries
Capitalize an unvalued commodity
CERs Additional financing for local
Sustainable Development priorities and as such
has potential of Catalyzing large Foreign
Direct Investment (FDI) flows Instrument for
appropriate Technology Transfer Linkage with
local environmental issues (air pollution
etc.) Financial viability Carbon financing can
increase project Internal Rate Returns (IRRs)
between 0.5 to 50 (WB)
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
19
Types of CDM Projects
  • Unilateral, Bilateral and Multilateral CDM
    Projects are allowed in following sectors
  • Energy
  • - Renewable/alternate energy,
  • - Energy efficiency/conservation, and
  • - Fossil- fuel cogeneration
  • Waste Management
  • - Landfill gas capture
  • - Recycling
  • - Energy from solid waste etc.
  • Transportation
  • - Alternative fuel vehicles
  • - Mass transit systems
  • - Cleaner engines, CNG

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
20
Cont---
  • Industrial processes (Steel, Fertilizer, Textile
    etc.)
  • Land Use, Land Use Change and Forestry (watershed
    management, sustainable forest management,
    Afforestation and reforestation)
  • Agricultural and livestock practices
  • Any other project resulting in GHG mitigation or
    carbon sequestration.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
21
CDM Prospectus of Energy Efficiency in Industrial
Sector of Pakistan
  • The main types of EE projects are
  • Demand Side
  • Retrofit new efficient lighting,
  • Reduce energy losses in process,
  • introduce new efficient appliances
  • Supply Side
  • Improve efficiency of generator,
  • Upgrade transmission line and transformers to
    reduce losses,
  • Upgrade steam boiler for greater efficiency
  • Fuel Switching
  • Replace coal boilers with gas-fired units,
  • use Biofuels instead of diesel.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
22
CDM in Pakistan
  • Pakistan ratified Kyoto Protocol in January, 2005
  • Ministry of Environment has been declared as
    Designated National Authority for CDM D. G.
    (Env.) is the Focal Pont for DNA
  • CDM Cell has been established under DNA for
    promotion of CDM, and for policy/ technical
    support to DNA.
  • Pakistan National Operational Strategy for CDM
    has been approved in February 2006
    (www.cdmpakistan.gov.pk)
  • Pakistan has granted Host Country Approval to
    fourteen (14) CDM projects and more than 60 CDM
    projects are in process of development which
    require host country approval in future
  • Several capacity building/ awareness raising
    initiatives have been conducted under this
    project

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
23
Project Establishment of CDM Cell in the MoE
  • Funding Public Sector Development Programme
    (PSDP)
  • Period 3 years (July 2006 - June 2009).
  • Budget Rs. 38.93 million.
  • Objectives
  • Strengthening of Clean Development Mechanism
    (CDM) Cell in the Ministry for implementation of
    Pakistan National Operational Strategy for CDM.
  • Capacity building and awareness raising of
    public/ private stakeholders in CDM activities
    under the Kyoto Protocol of UNFCCC.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
24
  • Progress made so far
  • CDM Cell, Ministry of Environment has organized
    the following seminars/workshops/symposiums for
    awareness and capacity building for GHGs
    Emission Reduction in Pakistan during the last
    three years
  • Workshop on The Climate Change and Natural
    Resource Management in June 2007.
  • Workshop on Carbon Credits Potential in Oil
    and Gas Sector of Pakistan in September 2007.
  • Workshop on Carbon Credits Potential in
    Cement Industry of Pakistan in January 2008.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
25
  • Workshop on Carbon Credits Potential in Sugar
    Industry of Pakistan in April 2008.
  • Workshop on Carbon Credits Opportunities in
    industry Sector of Pakistan in August 2008
  • Workshop on Carbon Credits Opportunities in Wind
    Sector of Pakistan in August 2008.
  • Seminar on Climate Change and Greenhouse Gases
    (GHGs ) Mitigation Options under the Kyoto
    Protocol for creating awareness among the
    student community in all Universities like
    Quaid-i-Azam University, Pir Mehr Ali Shah
    University of Arid Agriculture, Fatima Jinnah
    University, International Islamic university and
    Bahria University.
  • An awareness raising seminar on Climate change
    and Clean Development Mechanism in Agricultural
    Sector of Pakistan at NARC, Islamabad.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
26
  • Following workshops have been planned in
    provincial headquarters and industrial hubs of
    Pakistan in all CDM eligible sectors for
    awareness raising and enhancement of CDM project
    activities for national sustainable development
    and controlling environmental pollution.
  • 1) Steel Industry of Pakistan
  • 2) Textile Industry of Pakistan
  • 3) Alternate and Renewable Energies
  • 4) Waste Management Sector of Pakistan
  • 5) Power Sector of Pakistan
  • 6) Paper and Pulp Industry of Pakistan
  • Given Host Country Approval to 14 CDM Projects

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
27
CDM Capacity Building Initiatives
Project Name World Banks Project for Capacity Building for Development and Implementation of Carbon Finance Projects under Japanese Policy and Human Resource Development Grant
Period 18 Months
Budget US 0.57 million
Aims and Objectives 1. Strengthening of institutional framework and enabling environment to promote public and private participation in the carbon market. 2. Training/Workshops for enhancement of capacities of local stakeholders (public institutions, private investors, NGOs etc.) in CDM project development. 3. Support CDM project preparation and development in priority sectors Energy, waste management, industries, forest and agriculture).
Progress Made so Far The Action Plan for the project has already been prepared. The institutional and financial arrangements for the execution of project have been approved. Capacity building workshops have been organized
Current Status Consultant Firm i.e. WINROCK International has been hired. And is in process of implementation

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
28
(Cont)
Project Name Institutional Capacity Enhancement for CDM in Pakistan.
Period 18 months
Total Cost US 0.674 million
Project Implementation Grant from Royal Norwegian Embassy through United Nations Industrial Development Organization (UNIDO)
Objectives To build institutional capacities in Pakistan for addressing climate change through enhancement of the DNA/CDM in the Ministry of Environment for better management of CDM process and increasing the capacity of CDM Project developers 2. To tape the GEF funding to give a kick-start to initiating the process of developing second national communication to UNFCCC. 3. To tape donor funds to initiate the process of developing national policy/ action plan for climate change mitigation and adaptation as envisaged under national environmental policy.
Progress Made so Far Ministry of Environment, UNIDO and Economic Affairs Division have approved the project documents.
Current Status The project is in process of implementation now
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
29
(Cont)
Project Name Hands on Capacity Building of Forest Official in Developing Proposals for Afforestation/ Reforestation Project Design Documents (PDDs) under CDM
Period 2007- 2009
Total Cost Rs. 9.84 million
Funding Swiss Agency for Development Cooperation through Inter- Cooperation, and Ministry of Environment
Objectives To build capacity of Provincial Forest Departments to develop and manage CDM projects in forestry sector o Pakistan.
Progress Made so Far Three training sessions have been organized National Definitions have been developed of CDM forestry Draft Project Design Documents have been completed 5 A/R CDM Projects will be readily available in May-June, 2009.
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
30
Memorandum of Understanding (MoU)
  • Government of Pakistan has signed a Memorandum of
    Understanding (MoU) on Cooperation in CDM with
    Japanese Carbon Fund (JCF) through Japan Bank for
    International Cooperation (JBIC) has been signed
    in July 2008.
  • Government of Pakistan has signed a Memorandum of
    Understanding (MoU) in August 2008 with CAMCO
    International for the realization of CDM projects
    in Pakistan.
  • A number of similar MoU for promotion and
    enhancement of CDM Project Activities in Pakistan

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
31
  • Part 2 Criteria for Host Country Approval in
    Pakistan

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
32
Criteria for Host Country Approval
  • Consistency with the national laws and
    sustainable development policies, strategies and
    plans.
  • No obligation of the GoP to the investors other
    than CERs.
  • Environmental Criteria
  • Significant reduction in the emissions of GHGs
  • Conservation of local resources and/or
    improvement of the local environment.
  • Social Criteria
  • Poverty alleviation, jobs creation, benefits to
    local communities etc.
  • Economic Criteria
  • Positive impact on balance of payments (not
    result in net increase in external debt burden),
    cost effective.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
33
Tax and Credit Sharing Policies
  • No income tax or duty on transfer/ sale of CDM
    emission credits
  • Credits to be awarded fully to the project
    sponsors
  • Banks and other financial institutions to be
    encouraged to provide special incentives to CDM
    Project Proponents

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
34
Project Approval Process
  • Project proponent has to submit CDM Project
    Design Documents (PDDs) to the DNA.
  • Mr. Jawed Ali Khan, Director General
    (Environment), Focal Person of DNA
  • The Submitted CDM project will be evaluated
    according to National CDM Criteria.
  • Letter of approval will be issued by DNA within
    one month of the project submission.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
35
Host Country Approval to 14 CDM Projects
  • Catalytic Nitrous oxide Abatement at the Tail Gas
    End of Pakarab Fertilizers (Pvt.) Ltd, Multan.
    The project got registered with CDM Executive
    Board in November 2006.
  • Cattle Waste Management, Landhi Cattle Colony,
    Karachi, Pakistan.
  • 84 MW New Bong Escape Hydropower Project in Azad
    Jammu and Kashmir.
  • Pakarab Fertiliser Co-generation Power Project,
    Multan
  • Generator Change Project at Maple Leaf Cement
    Company Limited, Mianwali.
  • Fuel Switch and Energy Efficiency Project at
    Prosperity Weaving Mills Limited.
  • Construction of additional cooling tower cells at
    AES Lal Pir (Pvt) Limited, Muzaffar Garh,
    Pakistan.
  • 8. Almoiz Bagasse Cogeneration Project, D. I
    Khan, Pakistan.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
36
  • 9. Fuel Switch to a less Carbon Intensive Fuel at
    S. Fazalilahi and Sons Pvt Limited, Karachi
  • 10. Community-Based Renewable Energy Development
    in the Northern Areas and Chitral, Pakistan.
  • 11. Gul Ahmed Combined Cycle Gas Turbine Project,
    Karachi.
  • 12. Composting of Organic Content of Municipal
    Solid Waste in Lahore.
  • Biogas-based Cogeneration Project at Shakarganj
    Mills Ltd., Jhang.
  • Installation of natural gas based cogeneration
    system at Century Paper Board Mills Ltd.,
    Lahore.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
37
  • Expected Benefits from these 14 CDM Projects in
    Pakistan
  • Foreign direct investment US 345 million
  • GHG Reduction 3.35 million tones per annum
  • Other sustainable development, social, economic
    and environmental benefits to Pakistan.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
38
CDM Projects in Pipeline
  • More than 60 CDM Projects are in Pipeline in
    different sectors
  • Energy (Efficiencies/Renewable/alternate
    energy) 35 Projects
  • Waste Management/Industrial Processes
    20 Projects
  • Afforestation/Reforestation CDM 05 Projects

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
39
Ways Forward for Promotion of CDM Projects in
Pakistan
  • There is need of identification and assessment of
    CDM potential in all CDM eligible sectors of
    Pakistan
  • Need more Awareness raising workshop/Seminars
  • Capacity building initiatives for Project Design
    Documents (RDD) for both public and private
    sectors need to enhance CDM Projects activities
    in Pakistan
  • Development of policies to encourage CDM projects
    in all relevant sectors
  • Development of a strong supportive
    institutional framework
  • Develop Programmatic and Bundling Approaches for
    CDM Potential sectors of Pakistan
  • Enhance the portfolio of potential CDM Project
    through public/ private partnership like
    development of linkages among all stakeholders of
    CDM

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
40
Contact DNA- Pakistan
  • Clean Development Mechanism Cell
  • Ministry of Environment, Govt. of Pakistan
  • 4th Floor, ENERCON Building,
  • Sector G - 5/ 2, Islamabad.
  • Ph 051-9205510
  • Fax 051-9245533
  • Email cdmcellpakistan_at_gmail.com
  • Web www.cdmpakistan.gov.pk

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
41
THANK YOU
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
About PowerShow.com