Project Development Guidelines and Status of CDM Activities in Pakistan

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Project Development Guidelines and Status of CDM
Activities in Pakistan
Syed Amjad Hussain Acting Head CDM Cell
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Overview of Presentation

• Part 1 Project Development Guidelines
• CDM Project Identification in Different Eligible
  Sectors
• Development of Project Idea Note (PIN)
• Preparation of Project Design Document (PDD)
• Host Country Approval
• Validation of Project
• Registration of Project
• Monitoring of Project
• Certification and Issuance of CERs
• Time Required for Different Component within CDM
  Project Cycle

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Part 2 Status of CDM Activities in Pakistan

• Government of Pakistan Initiatives for
  Strengthening of CDM in Pakistan
• Establishment of CDM Cell in the MoE.
• World Banks Project for Capacity Building for
  Development and Implementation of Carbon
  Finance Projects under Japanese Policy and Human
  Resource Development Grant (PHRD)
• Norwegian grant of US 0.67 million Project for
  Institutional Capacity Enhancement for CDM in
  Pakistan
• Hands on Capacity Building of Forest Official in
  Developing Proposals for Afforestation/
  Reforestation Project Design Documents (PDDs)
  under CDM
• MoUs for promotion and enhancement of CDM
  Project Activities in Pakistan.
• Status of CDM Projects Activities in Pakistan
• Provided Host Country Approval to 14 CDM
  Projects

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Part 1 Project Development Guidelines
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CDM Project Identification in Different Eligible
Sectors

• Unilateral, Bilateral and Multilateral CDM
  Projects are allowed in following sectors
• Energy
• - Renewable/alternate energy,
• - Energy efficiency/conservation, and
• - Fossil- fuel cogeneration
• Waste Management
• - Landfill gas capture
• - Recycling
• - Energy from solid waste etc.
• Transportation
• - Alternative fuel vehicles
• - Mass transit systems
• - Cleaner engines, CNG

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Cont---

• Industrial processes (, Fertilizer, Textile etc.)
• Land Use, Land Use Change and Forestry (watershed
  management, sustainable forest management,
  afforestation and reforestation)
• Agricultural and livestock practices
• Any other project resulting in GHG mitigation or
  carbon sequestration.

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• Development of a Project Idea Note (PIN)
• PIN provide basic information about proposed CDM
  project activities including
• General information about project
• Information about project cost
• Estimated GHGs Reduction in tons of C eq/year,
• Estimated number of CERs/year,
• Suggested crediting life time of the project
• Environmental and Socioeconomic benefits of
  project etc.
• PIN is used to obtain a letter of endorsement
  from the DNA

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• Preparation of a Project Design Document (PDD)
• Website http//cdm.unfccc.int
• Methodologies
• Baseline
• Monitoring
• Project Additionality
• Project should be additional to business as
  usual scenario
• Tool for the demonstration and assessment of
  Additionality are available for all CDM Project
  Methodologies on available at
• (http//cdm.unfccc.int/Reference/guidclarif/inde
  x.htm)

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• Host Country Approval
• Host Country Approval Criteria
• General Criteria
• Environmental Criteria
• Social Criteria
• Economic Criteria
• Technological Criteria
• Validation
• Executive Board (EB) Designated a third party
  called Designated Operational Entity (DOE)
  carried out validation for CDM Project
  Activities.
• A list of DOEs is available at
• (http//cdm.unfccc.int/Reference/guidclarif/i
  ndex.htm)

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• Registration of Project
• After Successful Validated and Host Country
  Approval
• CDM Project will register by the CDM
  Executive Board
• Monitoring of Project
• Project performance, including baseline
  conditions, is measured by the project proponent
  in the commissioning process and during on-going
  project operation.

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• Certification and Issuance
• Based on the successful compilation and
  satisfactory report of the following
• Host Country Approval
• Project Validated
• Verification of project performance,
• CERs are certified by a DOE and issued by the CDM
  Executive Board.

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Time Required for Completion of Different
Component within CDM Project Cycle
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• Part 2 CDM Activities in Pakistan

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Project Establishment of CDM Cell in the MoE

• Funding Public Sector Development Programme
  (PSDP)
• Period 3 years (July 2006 - June 2009).
• Budget Rs. 38.93 million.
• Objectives
• Strengthening of Clean Development Mechanism
  (CDM) Cell in the Ministry for implementation of
  Pakistan National Operational Strategy for CDM.
• Capacity building and awareness raising of
  public/ private stakeholders in CDM activities
  under the Kyoto Protocol of UNFCCC.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
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• Progress made so far
• CDM Cell, Ministry of Environment has organized
  the following seminars/workshops/symposiums for
  awareness and capacity building for GHGs
  Emission Reduction in Pakistan during the last
  three years
• Workshop on The Climate Change and Natural
  Resource Management in June 2007.
• Workshop on Carbon Credits Potential in Oil
  and Gas Sector of Pakistan in September 2007.
• Workshop on Carbon Credits Potential in
  Cement Industry of Pakistan in January 2008.

Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
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• Workshop on Carbon Credits Potential in Sugar
  Industry of Pakistan in April 2008.
• Workshop on Carbon Credits Opportunities in
  industry Sector of Pakistan in August 2008
• Workshop on Carbon Credits Opportunities in Wind
  Sector of Pakistan in August 2008.
• Seminar on Climate Change and Greenhouse Gases
  (GHGs ) Mitigation Options under the Kyoto
  Protocol for creating awareness among the
  student community in all Universities like
  Quaid-i-Azam University, Pir Mehr Ali Shah
  University of Arid Agriculture, Fatima Jinnah
  University, International Islamic university and
  Bahria University.
• An awareness raising seminar on Climate change
  and Clean Development Mechanism in Agricultural
  Sector of Pakistan at NARC, Islamabad.

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• Following workshops have been planned in
  provincial headquarters and industrial hubs of
  Pakistan in all CDM eligible sectors for
  awareness raising and enhancement of CDM project
  activities for national sustainable development
  and controlling environmental pollution.
• 1) Steel Industry of Pakistan
• 2) Textile Industry of Pakistan
• 3) Brick Industry of Pakistan
• 4) Paper Processing sector of Pakistan
• 5) Waste and Effluent Management/Tanners
• Given Host Country Approval to 13 CDM Projects

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CDM Capacity Building Initiatives

Project Name World Banks Project for Capacity Building for Development and Implementation of Carbon Finance Projects under Japanese Policy and Human Resource Development Grant
Period 18 Months
Budget US 0.57 million
Aims and Objectives 1. Strengthening of institutional framework and enabling environment to promote public and private participation in the carbon market. 2. Training/Workshops for enhancement of capacities of local stakeholders (public institutions, private investors, NGOs etc.) in CDM project development. 3. Support CDM project preparation and development in priority sectors Energy, waste management, industries, forest and agriculture).
Progress Made so Far The Action Plan for the project has already been prepared. The institutional and financial arrangements for the execution of project have been approved. Capacity building workshops have been organized
Current Status Consultant Firm i.e. WINROCK International has been hired. And is in process of implementation
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(Cont)
Project Name Institutional Capacity Enhancement for CDM in Pakistan.
Period 18 months
Total Cost US 0.674 million
Project Implementation Grant from Royal Norwegian Embassy through United Nations Industrial Development Organization (UNIDO)
Objectives to build institutional capacities in Pakistan for addressing climate change through enhancement of the DNA/CDM in the Ministry of Environment for better management of CDM process and increasing the capacity of CDM Project developers 2. To tape the GEF funding to give a kick-start to initiating the process of developing second national communication to UNFCCC. 3. To tape donor funds to initiate the process of developing national policy/ action plan for climate change mitigation and adaptation as envisaged under national environmental policy.
Progress Made so Far Ministry of Environment, UNIDO and Economic Affairs Division have approved the project documents.
Current Status The project is in process of implementation now
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(Cont)
Project Name Hands on Capacity Building of Forest Official in Developing Proposals for Afforestation/ Reforestation Project Design Documents (PDDs) under CDM
Period 2007- 2009
Total Cost Rs. 9.84 million
Funding Swiss Agency for Development Cooperation through Inter- Cooperation, and Ministry of Environment
Objectives To build capacity of Provincial Forest Departments to develop and manage CDM projects in forestry sector o Pakistan.
Progress Made so Far Three training sessions have been organized Draft Project Design Documents have been completed National Forest Definition for implementation of A/R CDM Projects Activity have been developed
Clean Development Mechanism Cell,
Ministry of Environment, Government of Pakistan
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Memorandum of Understanding (MoU)

• Government of Pakistan has signed a Memorandum of
  Understanding (MoU) on Cooperation in CDM with
  Japanese Carbon Fund (JCF) through Japan Bank for
  International Cooperation (JBIC) has been signed
  in July 2008.
• Government of Pakistan has signed a Memorandum of
  Understanding (MoU) in August 2008 with CAMCO
  International for the realization of CDM projects
  in Pakistan.
• A number of similar MoU for promotion and
  enhancement of CDM Project Activities in Pakistan

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Provided Host Country Approval to 14 CDM Projects

• Catalytic Nitrous oxide Abatement at the Tail Gas
  End of Pakarab Fertilizers (Pvt.) Ltd, Multan.
  The project got registered with CDM Executive
  Board in November 2006.
• Cattle Waste Management, Landhi Cattle Colony,
  Karachi, Pakistan.
• 84 MW New Bong Escape Hydropower Project in Azad
  Jammu and Kashmir.
• Pakarab Fertiliser Co-generation Power Project.
• Generator Change Project at Maple Leaf Cement
  Company Limited.
• Fuel Switch and Energy Efficiency Project at
  Prosperity Weaving Mills Limited.
• Construction of additional cooling tower cells at
  AES Lal Pir (Pvt) Limited, Muzaffar Garh,
  Pakistan.
• 8. Almoiz Bagasse Cogeneration Project, D. I
  Khan, Pakistan.

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• 9. Fuel Switch to a less Carbon Intensive Fuel at
  S. Fazalilahi and Sons Pvt Limited, Pakistan.
• 10. Community-Based Renewable Energy Development
  in the Northern Areas and Chitral, Pakistan.
• 11. Gul Ahmed Combined Cycle Gas Turbine Project,
  Karachi, Pakistan.
• 12. Composting of Organic Content of Municipal
  Solid Waste in Lahore, Pakistan.
• Biogas-based Cogeneration Project at Shakarganj
  Mills Ltd., Jhang, Pakistan .
• Installation of natural gas based cogeneration
  system at Century Paper Board Mills Ltd.,
  Lahore, Pakistan,

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• Expected Benefits from these 14 CDM Projects in
  Pakistan
• Foreign direct investment US 345 million
• GHG Reduction 3.35 million tones per annum
• Other sustainable development, social, economic
  and environmental benefits to Pakistan.

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CDM Projects in Pipeline

• More than 60 CDM Projects are in Pipeline in
  different sectors
• Energy (Efficiencies/Renewable/alternate
  energy) 35 Projects
• Waste Management/Industrial Processes
  20 Projects
• Afforestation/Reforestation CDM 05 Projects

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THANK YOU