UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO s Initiatives for

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO’s Initiatives for CDM in Pakistan Power-Gen PAK 2009 3 rd International Conference on Power Generation Pearl Continental Hotel, Lahore December 10, 2009 By Muhammad Matloob Khan Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION The Kyoto Protocol and CDM Kyoto Protocol 1. 2. 3. December 1997 (COP 3 RD negotiations finalized the KP) 2005 (Came into Force) 2008 - 2012 (First Commitment Period) Significance: Kyoto Protocol legally binds developed countries to reduce GHG emissions by an average of 5. 2% relative to 1990 level. KP Mechanisms for the Emissions Reduction: 1. 2. 3. Joint Implementation (JI), Emission Trading Scheme (ETS) and Clean Development Mechanism (CDM) Reducing poverty through sustainable industrial growth

What types of projects can qualify for CDM? A project should meet three essential requirements to qualify as a CDM project: 1. 2. 3. Reduce emissions below the level in the absence of the project Be located in a developing country Provide benefits that contribute to sustainable development in the country.

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CDM Projects: A Win Situation Project Host Project Investor Additional Financial Resources Cost Effective Emission Reductions Advanced Technology Transfer International Trade in Environmental Goods Achieve Sustainable Development Increased Commercial Interactions $$$$$$$$$$$$$ Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CDM Potential in Pakistan Renewable Energy Abatement Potential (million tones/year) Large Hydro (25, 641 MW) Wind Energy Grid connected small Hydro Small Hydro (Off-grid) (45 MW) Bagasse Cogeneration (760 MW) Solar Home Systems Total 56. 15 12 5. 6 0. 276 1. 66 0. 05 75. 736 Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CDM Statistics: An Eye Opener Country No of Projects Expected Annual CERs Issued by Host Party Expected Revenue @ $10/CER (mill. ) Total Projects 1907 325, 088, 616 354, 732, 105 3547 China 670 191, 648, 047 168, 497, 713 1685 India 469 37, 009, 966 72, 205, 866 722 Brazil 165 20, 867, 610 36, 080, 536 360 Republic of Korea 34 14, 862, 859 46, 740, 758 467 Mexico 119 9, 333, 467 6, 077, 360 60 Chile 35 4, 682, 271 3, 987, 952 40 Pakistan 3 1, 280, 167 1, 723, 570 17. 2 Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CDM Statistics: Registered Projects Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CDM Project Cycle: Steps towards CERs Reducing poverty through sustainable industrial growth

CDM Project: Is it a complex business? Financial Feasibility Technical Design Conventional Project Feasibility (Finance Consultant) (Technology Consultant) Carbon Revenue (CERs) GHG Considerations CDM PDD (CDM Project Developer)

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Programme of activities (Po. A) Rules ØPo. As and CPAs at large and small‐scale level ØA Po. A contains one or many CDM Programme Activities (CPA), which can be successively added during the lifetime of the Po. A POA Managing Entity Facilitates a policy /measure or goal Achieve the emission reductions CPA Implementer Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Advantage of Po. As Compared to bundling of small‐scale projects into one single CDM project, the Po. A has significant benefits: Ø The individual project activities need not to be defined in advance Ø The exact sites of the project activities (CPAs) need not to be defined in advance Ø The individual project activities can be included into the Po. A at any time without the need for further registration Ø Aggregation of SSC can go beyond SSC limits Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO’s CDM Initiative in Pakistan 1. Institutional Strengthening of DNA/CDM Cell and other Institutions 2. Carbon Market Development in the Country to tap out the opportunities from Kyoto and non-Kyoto markets 3. Training of Human Resources 4. Support for CDM Project Development 5. Information and Awareness on CDM 6. Promotion of Climate Change Mitigation and Adaptation activities Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION BASIC FACTS AND FIGURES Established 17 November 1966 171 Member States 650 Staff Members 42 Field offices 19 Investment and Technology Promotion Offices 42 Resource Efficient and Cleaner Production Centers 9 Technology and Research Centers General Conference and Industrial Development Board Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO’s CDM Initiative in Pakistan Focused Industrial Sectors in Pakistan Sr. # A 1 2 3 4 5 B 1 2 3 Sector Energy Renewable/ Alternate energy Efficiency Energy Distribution Cogeneration Gas Flaring and Recycling Waste Management Landfill Gas Capture Recycling/Composting Energy from Solid Waste Sr. # C 1 2 3 4 5 6 7 D 1 Sector Industrial Processes Sugar Cement Fertilizer Textile Paper & Pulp Steel Bricks Transportation BRT, MRT, Systems Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Things to Do Capacity building of the public, private and financial sector about CDM opportunities Dissemination of information about incentives of the CERs to local private investors To encourage private sector initiatives to invite the international investors and donors for the CDM Projects Easy financing at low interest rates to Introduce CDM Projects Reducing poverty through sustainable industrial growth

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION UNIDO-Pakistan CDM Programme: Turning Potential into Projects Thank You Please Contact: Muhammad Matloob Khan United Nations Industrial Development Organization House # 35 -B, College Road, F-7/2 Islamabad, Pakistan www. unido. org. pk Matloob. khan@unido. org. pk Reducing poverty through sustainable industrial growth