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Clean Development Mechanism Implementation by the Netherlands. Lex de Jonge Ministry of Housing, Spatial Planning and the Environment (VROM). Netherlands’ interest in CDM. Dutch Kyoto target: reduce 200 Mton CO2 50% international (= 100 Mton CO2): Clean Development Mechanism (CDM)

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clean development mechanism implementation by the netherlands

Clean Development MechanismImplementation by the Netherlands

Lex de Jonge

Ministry of Housing, Spatial Planning and the Environment (VROM)

netherlands interest in cdm
Netherlands’ interest in CDM
  • Dutch Kyoto target: reduce 200 Mton CO2
  • 50% international (= 100 Mton CO2):
    • Clean Development Mechanism (CDM)
    • Joint Implementation (annex 1 countries)
  • Government finances CDM and JI
  • 2 Objectives CDM:
    • Contribute to sustainable development
    • Purchase CO2 at reasonable price and acceptable risk
4 tracks for implementing cdm
4 tracks for implementing CDM
  • International multilateral financial institutions: IFC, World Bank, IDB, ADB, CAF and other development banks
  • Procurement tender by Dutch agency Senter: CERUPT (closed 31 January 2002)
  • Private financial institutions (under discussion)
  • Bilateral between countries (under consideration)
balancing interests reducing risks
Balancing interests / reducing risks
  • Apply Marrakech (CoP7) rules and procedures
  • Most policy risks are on VROM
  • Dutch CDM financing is additional to ODA
  • Price between US$ 2 and US$ 5/ton CO2, depending on level of sustainability
  • Guaranteed payment, on delivery
  • Criteria for reliable project financing
  • Detailed information www.cdminfo.nl
commitment of all parties
Commitment of all parties
  • National Focal Points for CDM (obligatory)
  • Documents:
    • Letter of No Objection (LoNO) Host Country  Intermediary
    • Letter of Endorsement (LoE) Host Country  Project Sponsor
    • Memorandum of Understanding (MoU) Host Country  Netherlands
    • Letter of Approval (LoA), obligatoryHost Country  all partiesinvolved
    • Declaration of Approval (DoA), obligatory Netherlands  Host Country
capacity building
Capacity Building
  • Budgets and responsibilities of VROM and Development Cooperation are separated
  • VROM budget: purchase CO2 credits and inevitable project related preparation costs (= Project Related Capacity Building)
  • No separate activity (unless no CDM interest)
  • Development Cooperation: Institutional Capacity Building
  • Coordination Development Cooperation - VROM, but no obligations to sell CDM credits exclusively to VROM