Morten PedersenDeputy Programme Director

Danish Environmental Protection AgencyClimate Change Division

Denmark - an ’early mover’

• Denmark among the first countries to actively support and make use of the flexible mechanisms.

• Marrakech Accords adopted in 2001.• We want to help create a market for private

investments in JI and CDM.• The Danish government allocated the first funds for JI

in May 2002 - 17 mill. Euro.• From 2003 27 mill. Euro for JI and CDM every year.• Additional funds available for capacity building in host

countries.

Danish Procurement Programme for JI

DanishCarbon.dk:

• 8 contracts 4.935.626 tonnes CO2 , 2 mill tonnes CO2 as options. 4 are implemented and generating emission reductions.

• 2 Contracts without LOA 1,21 Mill tonnes CO2

• Expected for Indirect contracts 2.85 to 3.7 mill. tonnes CO2. So far one contract in JI-countries under the NEFCO Testing Ground Facility.

DanishCarbon.dk

• 20 - 25 JI-projects under development.

• Have received LoE / LoI.

• PDD developed or under elaboration

• A number of projects have been determined.

Biomass Energy in Romania720,000 tons CO2e

Biomass Energy in Romania

Implemented in Five Towns

Biomass Energy in Romania

• Total investment: 15,1 mill. USD.• Baseline: Replaces fossil fuels, reduces methane

emissions by using sawdust instead of dumping.• Determined by SGS.• Main barrier: Securing financing, establishing baseline

for methane emissions, securing daily monitoring.• Status: Implemented, first verified emission reductions

delivered.• Determined by DNV.

The project hosts

• Project hosts are making investment decisions and taking a lot of risks.

• Important that project hosts feel confident that the flexible mechanisms are successful.

• Without trust in the financial contribution from the mechanisms a lot of good projects will not happen.

• Rules and procedures must be both simple and stable to help build this trust.

Recommendations for further work of JISC

• Important to create flexible and efficient rules.

• Learn from the experience of CDM. These rules are widely known and used.

• Fair definition and treatment of ’early movers’. The treatment of ‘early movers’ will set the mood for future decisions about JI projects.

Recommendations for further work of JISC

• The Independent Entities will have a key role in JI. Important to have a credible accreditation procedure. But also important not to make the procedure to bureaucratic.

• Recommend a fast-track accreditation for companies that are already accredited as DOEs under the CDM.

• Not necessary to have separate accreditations for determination of PDDs and of monitoring reports.

Conclusion

• Impressed with the work of the JISC so far.

• High degree of commitment.

• Very ambitious work-programme for this year.

• Important to come to decisions and to find flexible solutions.

• High hopes for the future work of JISC!

For further information

Please contact:

Morten Pedersenmp@mst.dk

www.DanishCarbon.dk