Canada’s CDM & JI Office: Role & Activities

Presentation by Jane Desbarats Winnipeg, Manitoba

March 14, 2003

Program Manager Canada’s CDM & JI Office

ESCC/DFAIT

Overview

• CDM and JI Policy Context• Office mandate, objectives, and strategy• Key Accomplishments• Project Facilitation• Linkages with Other Programs• Near Term Focus

Activ ities Im plem ented Jo intlyP ilo t p ha se la un che d in 19 95T o ga in p ra c tica l exp e rie n ce

N o c re d its

Benefits of CDM and JI for the host country

• Attracting investment in priority economic sectors• Air quality improvements and health benefits• Access to clean technologies• Improved energy efficiency• Infrastructure improvements and increased

employment• Mitigation of climate change• Reduced dependence on imported fuel• Revenues from credits

CDM Criteria

• Contributes to the sustainable development of the host country

• Results in emission reductions that would not have happened otherwise

• Generates real, measurable and long-term climate change mitigation benefits

• Approved by parties involved

JI- Kyoto Criteria

• Credits earned from 2008 onward• Results in emission reductions that would not have happened

otherwise• Generates real, measurable and long-term climate change

mitigation benefits• Approved by parties involved• Project hosted by another Annex I country • Two Tracks: depends on level of Party’s compliance with the

Protocol’s participation requirements – Track I: host Party meets all KP participation requirements– Track II: host Party does not meet all KP participation

requirements, of if host country chooses• Requires independent third party verification

CDM Project Cycle

Approvalby

Parties

Validation by OE/

registrationby EB

Project Idea-Does it fit with Kyoto Criteria?

Monitoringby entities

Verification and

Certificationby OEs

Issuance of Certified Emission Reductions (CERs) by EB

Background of CDM Executive Board

• Supervisory body of the CDM, established at COP 7 • 20 members (10 members and 10 alternates) • Meetings no less than three times per year• Mandate

– accreditation of the Operational Entities.– project registration– approval of new methodologies for baselines &

monitoring– issuance of CERs– establishment and maintenance of the CDM registry– report on regional distribution of CDM activities

CDM and JI Office Mandate

• Act as national focal point for CDM and JI– Develop and disseminate information– Link with other Canadian and international programs

• Facilitate Canadian participation– Facilitate project development– Provide technical guidance to companies– Provide funding support– Conclude bilateral agreements

• Project approval • Provide analytical and policy support to negotiations

Budget and staff

• Started in Sept. 1998 with small budget • Increased capacity under AP2000

– Total budget $25.25Mn over 5 years• Currently have 10 staff

– technical expertise– regional expertise– language expertise– trade promotion expertise

Objectives

• Objectives– Strengthen Canada’s capacity to use Kyoto Mechanisms

• Facilitate Canadian participation and assist companies in obtaining credits

• Credits back to Canada from CDM & JI projects towards obligations in the 1st commitment period.

• Overall Strategy– Initial focus - building awareness and outreach; advising

companies; identifying markets; facilitating MOUs– Current focus - project-specific activities to reduce

transactions costs

Criteria for funding of proposals

• Results in CDM or JI credits for Canada• Addresses issues or barriers around CDM or JI

projects• Enhances business opportunities for Canadian

companies• Solidifies partnerships with active countries• Paves the way for future initiatives in the host country• Leverages resources

Key Accomplishments

• International Outreach

• Bilateral Agreements

• Engaging the Posts

• Domestic Outreach

• Project facilitation

• Communications Activities

International Outreach (examples)

• Canadian CDM workshops in 15 countries – covering key regions (Latin America, Asia, Africa, Eastern

Europe)• Presentations at several Regional workshops

– in Latin America , Africa and Asia• Participation in 6 federal or provincial trade missions

– (Team Canada, IC; Alberta climate change missions)• Support to several climate change initiatives

– Small Projects Facilitation Centre- Pembina Institute– Analytical work on carbon forest sequestration methodologies– Delphi group, CERI demonstration projects in S. America

Bilateral agreements

• 10 MOUs completed: Poland, Ukraine, Latvia, Korea, Chile, Colombia, Costa Rica, Nicaragua,Tunisia, Uganda (project specific)

• Statements of Intent with Mexico and China include cooperation on CDM/JI

• 9 MOUs underway: Argentina, Ecuador, Brazil, El Salvador, Guatemala, Panama, Kenya, Sri Lanka, Bulgaria

• Discussions underway with Kazakhstan, Romania, China

Canadian Embassies

• Awareness Building at Posts– training Posts during outreach– pre-departure CDM/JI briefings yearly– briefings at Globe and Americana

• Greater engagement of posts in key countries– Working Groups– Project identification– Project facilitation– Regular contact with CDM focal points

• Working closely with Climate Change Technology Promotion Officers

Domestic Outreach

• National Workshops (2000,2002, 2003), Ottawa• Yearly regional Roundtables: Halifax, Montreal,

Toronto, Calgary, Edmonton, Vancouver, Winnipeg• Globe and Americana • Ongoing dissemination of information

– website

– database (approx 750 organizations)

– phone calls and e-mail

– company visits

Communications Activities

• Brochure• Website• Database of companies• E-mail messages:

– Project opportunities– EB decisions– PCF related updates

• Compilation of focal points• Publications:

– French CDM guide; – Summary document on COP 7 Decisions– A Guide to Establishing National Authorities

Project Facilitation

• 13 Market studies completed

• 5 Feasibility studies for CDM project viability

• 19 Baseline studies,monitoring plans,PDD

Interest in CDM and JI• Many projects being explored by Canadian

entities– Energy efficiency:

• Includes Fuel Switching, Transportation– Landfill gas capture– Renewables

• Includes Hydro, Solar, Biomass, Wind

– Sequestration– Interest includes: Emitters, Non-emitters– Need to ensure that credits are brought back to

Canada.

Near term Activities

• Latin America & Caribbean – focus on Mexico, Chile, Brazil, Central America

• Asia - focus on India and China– explore opportunities in Korea and Indonesia

• Africa & Middle East – focus on Egypt,– build on capacity in the Maghreb countries

• Economies in transition – focus on Russia, Ukraine, and Kazakhstan, – build on existing efforts in Poland, and explore

potential in Bulgaria and Romania

Linkages with Other Programs• TEAM: Baselines for 2 projects

– http://www.climatechange.gc.ca/team/• Canadian Initiative for International Technology Transfer

– http://www.nrcan.gc.ca/es/etb/cetc/ciitt/htmldocs/about_ciitt_e.html• NRCAN’s Technology Promotion Officers• AP2000 International technology Initiative

– http://www.climatechange.gc.ca/english/actions/action_fund/techno.shtml

• CIDA’s Climate Change Development Fund– http://www.acdi-cida.gc.ca/climatechange

• World Bank PCF & 2 new funds– http://www.prototypecarbonfund.org

• Regional Development Banks• OECD, IEA, UNDP

For more information ...

Canada’s CDM & JI OfficeClimate Change and Energy Division (AEC)

Department of Foreign Affairs and International Trade

125 Sussex Drive

Ottawa, ON K1A 0G2

Tel: (613) 944-3039

Fax: (613) 944-0064

E-mail: cdm.ji@dfait-maeci.gc.ca

Web: www.dfait-maeci.gc.ca/cdm-ji/