Cdm functional overview
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CDM –Functional Overview. Senergy Global Pvt. Ltd. About Senergy Global. Provide end-to-end solutions in the CDM space. Right from PIN to end transactions. SGPL has got experience in developing renewables, energy efficiency and fuel switching CDM projects.

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Cdm functional overview

CDM –Functional Overview

Senergy Global Pvt. Ltd.


About senergy global
About Senergy Global

  • Provide end-to-end solutions in the CDM space. Right from PIN to end transactions.

  • SGPL has got experience in developing renewables, energy efficiency and fuel switching CDM projects.

  • Has registered 14 projects with the UNFCCC.

  • Has a pipeline of more than 70 projects.

  • Successfully traded & transacted more than 2million CERs/VERs/Off-Sets till date.

  • Provides renewable energy related policy & regulatory advisory services.


What we do
What We Do?

  • Develop project ideas and carries out feasibility studies

  • Prepare the Project Design Document (PDD) and the project Methodology, including baseline studies and monitoring plans

  • Guidance (presentations and documentation) for Host country approval.

  • Facilitate quicker and smoother approval by DOE in validation stage.

  • Registration of the project with the CDM Executive Board

  • Prepare monitoring reports for timely verification

  • Issuance of the CERs

  • Organise transaction of CERs


Credibility
Credibility

  • An associate of Suzlon, the largest Wind Mill manufacturer in India.

  • Commitment of service and delivery.

  • Reputed Clientele.

  • Transparency is ensured in client dealings.

  • Adherence to market responsiveness to chart favorable growth path for clients.

  • Proven track record in registering projects


Cdm the genesis
CDM : The genesis

  • United Nations Framework Convention on Climate Change (UNFCCC)

    • Ultimate objective of stabilizing global greenhouse gas concentrations in the atmosphere

    • CDM one of the flexibility mechanism defined under Art 12

  • The Kyoto Protocol

    • agreed to reduce greenhouse gases by 5.2 % below 1990 levels (2.8 to 4.8 billion TCO2e) in the commitment period 2008-2012

    • Required ratification of 55 Parties representing 55 % of industrialized countries’ emissions (US constitutes 36 %, while Russia is 17.4%) for its entry into force

    • Protocol is in force, since 16th Feb, 2005 (ratification by Russia to cross the magical 55%)


What is carbon credits or finance
What is Carbon Credits or Finance ?

  • Carbon finance, is nothing but an additional revenue stream emerging from a project based activity

    • Passes the various additionality tests

    • Meet all necessary compliances (viz. Kyoto Protocol)

    • Has a positive sustainable development impacts for the host country


Cdm india
CDM & India

  • More than 600 projects approved by MoEF

  • Total registered project globally:844

  • India: 289(34%)

  • 32 MN CERs issued to Indian projects, out of about 94 MN total issued CERs



Costs involved in cdm project
Costs involved in CDM Project

  • Cost Related to the development of the conventional project

  • Transaction Cost related to the registration of project with the CDM EB


Means of finance
Means of Finance

  • Equity Financing

  • Long Term Lending

  • Venture Capital Scheme

  • Lease Financing

  • Project Financing


Transaction costs
Transaction Costs

  • Project Proponent’s additional investment to monetize the CDM Revenues

  • It Includes

    • Costs towards consultants for developing CDM project (PDD)

    • Costs towards validation of the CDM project

    • Costs towards registration of the CDM project with EB

    • Costs towards monitoring of emission reductions

    • Costs towards verification of CERs and transaction costs


Transaction costs1
Transaction Costs

  • CDM EB deducts 2% of the CDM revenues to Adaptation fund

  • Transaction costs varies between 5% to 25% of the total revenues depending on the type and size of the project


Cer prices
CER Prices

  • Carbon market is expanding and volume of CERs expected to be transacted by 2012 is about 1.5 billion

  • Market Mechanism has kept the volatility of CER Prices

  • Most of the CER transactions happen in the secondary market where the price range of 12 – 15 Euros are in vogue.


Taxation issues
Taxation Issues

  • CERs may be accounted as an intangible asset

  • CERs may be treated as the exported commodity and thus the various sops available for the exported products can be availed

  • CDM revenue may be accounted as “Other Income” and hence normative tax can be applied

  • India is probably waiting for some accounting model to be formulated by the Annex-I countries


Cdm risks
CDM Risks

  • Risks related to the registration of the project

  • Upfront Payment of transaction costs

  • Risks related to existence of market beyond 2012


Thank you

Thank you

Thank you

Naveen S

Sr. Manager

Senergy Global Pvt. Ltd.

9th Floor, EROS Corporate Tower

Nehru Place, New Delhi – 110019

ns@senergyglobal.com