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The Netherlands CDM Purchase Programme; Its Challenges and Barriers

The Netherlands CDM Purchase Programme; Its Challenges and Barriers. Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment. Objective of the presentation. -The “over all” Dutch climate change policy UN FCCC and Kyoto Protocol

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The Netherlands CDM Purchase Programme; Its Challenges and Barriers

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  1. The Netherlands CDM Purchase Programme;Its Challenges and Barriers Reginald Hernaus Ministry of Housing, Spatial Planning and the Environment

  2. Objective of the presentation • -The “over all” Dutch climate change policy • UN FCCC and Kyoto Protocol • -Experiences and expectations of the Dutch CDM Purchase Programme • Requirements for CDM • -Challenges andBarriers

  3. 1) The “over all” Dutch Climate Change policy • -Signature and Ratification of UN FCCC and the Kyoto Protocol done • -Reduction target for emissions of greenhouse gases: -6% (2008-2012) compared with 1990 levels • -200 Million Tonne of CO2 equivalent • -”50% domestically and 50% internationally”

  4. Clean Development Mechanism • -Triple objective of Article 12 of the Kyoto Protocol: • Achieving sustainable development in “NA1Cs” • Contributing to the ultimate objective of the UN FCCC • Achieving compliance with reduction commitments of “A1Cs” • Netherlands CDM objective: 67 Mton CO2!

  5. 2) The Dutch CDM Purchase Programme • -Multi-track approach: • -Procurement (CERUPT) • -Framework Purchase Agreements with: • * MFIs (IFC, IBRD and CAF) • * PFIs (Rabobank) • -Bilateral CER Purchase Agreement (BCPA): focus on South East Asia • -Small Scale CDM projects (CDCF)

  6. Requirements for CDM schemes(1) • Participation requirements for All Parties pursuant to the Marrakech Accords: • Voluntary participation (Para 28) • Designation of a National Authority for the CDM (Para 29) • Party to the Kyoto Protocol (Paras 30 and 31 (a)

  7. Eligibility requirements for Annex 1 Parties: -Calculated assigned amount -National system for estimation of emissions/removals by sinks -National Registry -Annual submission of inventories, etc. Requirements for CDM schemes(2)

  8. The role of “VROM”and the host countries (1) • -CDM project cycle require the involvement of both the host and the donor country • -”Approval of each Party involved” LoA, DoA: • Voluntary participation • Sustainable Development (*) • “Transfer” of an agreed amount of CERs • Non-”ODA”-bility statement (**) • Kyoto and alternative regime

  9. The role of “VROM” and the host countries (2) • -Pro-active: “VROM” may facilitate the submissions of LoAs by means of bilateral talks or a MoU! • Features of a MoU: • -Intension for a long standing cooperation • -Not legally binding • -A quantified insight into the potential for CDM cooperation with VROM • -Support underlying activities, willingness to purchase CERs, if projects qualify

  10. The role of “VROM”and the host countries (3) • -MoU: No prerequisite for CDM cooperation but a means to facilitate the submission of a LoA! • -Results so far: • -Panama, Costa Rica, Colombia, El Salvador, Guatemala, Uruguay, Nicaragua, Honduras, Bolivia, Mexico • Amount of Mton CO2 eq vary per MoU: 5- 30 Mton

  11. Impact of the Dutch CDM Programme • CDM Project activities: • Sectors: • -Renewables (wind, hydro, biomass) • -Energy efficiency (fuel switch) • -Waste recovery (methane) • Regions: • -Latin-America, South-East Asia

  12. Challenges (1) • -Entry into force of the Kyoto Protocol! • -“Stirr up” the carbon market! • -Need to “promote equitable geographic distribution at regional and subregional level”!: • C(osta Rica) or C(hina) Development Mechanism? • C(ameroon) Development Mechanism?

  13. Challenges (2) • -Tackle Africa!: start with more advanced regions? • -Executive Board Ruling available and in development! • -The baseline methodologies, as applied under the Dutch CDM Purchase Programme, accepted by the Executive Board will be key!!

  14. Business opportunities • -CERs represent a new commodity • -Unprecedented • -No discrimination (WTO/EU Government Procurement Rules) • -Sustainable enterpreneurship • -EU Emission Trading Directive (Linking Directive)

  15. CDM a living issue! No time to waste! • For the latest developments: • WWW: CDMINFO.NL • For any remarks and/or questions: • Email: CDM.DNA@minvrom.nl

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