10th CTI Seminar: Programmatic Approaches of JI and CDM: Business Opportunities for Emission Reduction
10th CTI Seminar: Programmatic Approaches of JI and CDM: Business Opportunities for Emission Reduction
2-3 November 2009, Zeuthen, Germany
[Summary Report]
[Brief Summary]
The 10th CTI Seminar on Programmatic Approaches of JI and CDM: Business Opportunities for Emission Reduction took place on November 2-3, 2009 in Seehotel Zeuthen, Berlin-Zeuthen, Germany. The seminar was initiated under the framework of the Clean Technology Initiative (CTI) and sponsored by the German Federal Ministry of Environment, Nature Conservation and Nuclear Safety. It was organized by DIW Econ GmbH in cooperation with the PoA Support Center of the Kreditanstalt für Wiederaufbau (KfW).
The seminar provided an opportunity for policy makers, financial institutions, companies from oil, gas, utilities and agricultural sectors, DNAs/NFPs, governmental authorities and project developers to learn about and to exchange existing experiences in the field of idea generation, development and implementation of programmatic JI/CDM projects. Moreover, the seminar raised awareness about existing and potential programmatic JI/CDM project opportunities in East European EU Member States, Russia and Ukraine, as well as in Azerbaijan, Serbia and Central Asia, and promoted interest in programmatic flexible mechanisms among large industry representatives, banks and governments of the targeted regions. Furthermore, the seminar was designed to inform the participants about additional business opportunities offered by programmatic JI/CDM projects, best PoA practices, methodologies and options for financing PoA project ideas. The seminar also discussed the challenges of PoAs and the opportunities for overcoming existing barriers. (For more details of the program see Seminar Agenda in Annex 1.)
Overall, 51 participants took part in the seminar. The largest group of participants represented DNAs/NFPs and National Agencies. Two other important groups of participants were local financial institutions and companies from the energy and agricultural sectors, which have sufficient capacities to become initiators and operators of programmatic JI/CDM projects in the future. (The list of participants is included in Annex 2.) During the two-day workshop, participants heard 24 presentations and were offered an opportunity to set up and to participate in business-to-business meetings to discuss the specifics of their on-going or potential PoA projects with investors, technology developers and PoA experts and to agree upon opportunities for cooperation.
The seminar presentations and discussions have shown that up to now the targeted countries have achieved very different levels of success in setting up a political, institutional and economic framework for the development and implementation of programmatic JI/CDMs. Professional level discussions also raised the topic of the requirements and challenges for the development and implementation of programmatic approaches to JI and CDM.
Most countries still do not have an established procedural plan for the approval of PoAs. Among all of the presented PoA projects and project ideas in the targeted regions, the Polish programmatic JI project on increasing the energy efficiency of private and public buildings operated by the Polish BOS bank has achieved the furthest development by passing the stage of governmental approval. Along with Poland, Ukraine, which has had multiple successful experiences with the implementation of conventional JI projects, currently put itself ahead by working on the development of a procedural plan for approval of PoAs. Many countries face the issue of lacking financing for their PoA projects. Latvia, as the party to Annex B of the Kyoto Protocol, uses funds available from Green Investment Schemes to sponsor programmatic activities which result in the reduction of GHG emissions. The government of Czech Republic has also newly started the program on utilisation of GIS funds to support small scale projects which lead to the reduction of GHG emissions.
Overall, most projects and project ideas which were presented during the seminar such as the distribution of energy efficient lamps in Ukraine and Uzbekistan, the production of biogas from cow manure in Mongolia, or the building of small hydro power stations in Kazakhstan indicated that programmatic approaches to JI and CDM are only at very nascent stages of their development in the targeted regions. The countries need sufficient help from the international community in improving their capacities and capabilities for the development and implementation of PoAs. The cooperation of international and national authorities, as well as of all other actors who are involved in the process of development and implementation of PoA projects is necessary to overcome the numerous barriers to the successful usage of programmatic flexible mechanisms such as the lack of financing opportunities, substantial business risk, the lack of governmental involvement, lengthy approval processes, the complexity of PoA development and implementation procedures, as well as low interest in using energy efficient technologies among private households and businesses.
Despite the existing barriers to the successful development of PoAs, the seminar participants considered JI/CDM PoAs very interesting instruments for reducing GHG emissions in the future. The participants also conveyed optimism about the future development of projects under the framework of programmatic flexible mechanisms in the post-Kyoto future. However, they expect the upcoming COP 15 in Copenhagen to clarify the direction in which this development should take place.
A detailed description of the results of the seminar including all presentations will be presented in a respective seminar brochure, which will be available soon.
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