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Kommunalkredit Public Consulting GmbH
Oliver WALTER
The Austrian JI/CDM Programme
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Programme Management
Programme Management

• Kommunalkredit Public Consulting (KPC)
• Implementing the Austrian JI/CDM Programme
• on behalf of the Austrian Ministry of
  Agriculture and Forestry, Environment and Water
  Management

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Kommunalkredit Public Consultingis managing the
Austrian JI/CDM Programme

• Private company specialised in environmental
  consulting
• 100 subsidiary of Kommunalkredit Austria AG, an
  Austrian special purpose bank for public finance
• Appointed for management of the Austrian JI/CDM
  Programme
• by the Austrian Ministry of Agriculture,Forestry,
  Environment and Water Management
• Purchasing of emission reduction on behalf of the
  Austrian government

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Main aim and Means
Main Aim Closing the gap between the Austrian
Kyoto target and national emission reduction
potential Means - Purchase of ERUs/CERs from
JI/CDM projects - Investment in Carbon Funds
and Facilities - Facilitate Project Development
by funding project- related immaterial costs
(PDD, Monitoring etc.)

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Memoranda of Understanding MoU

• Competence Austrian Federal Minister of
  Agriculture, Forestry, Environment and Water
  Management
• Host Country Ministry
• Aim Basic agreement on co-operation Facili
  tation of project implementation
• Contents Prioritised project
  categories Basic agreement on transfer of CERs
  ERUs

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Eligible Project Categories

• Energy efficiency projects
• Combined heat and power installations
• Fuel switch to renewables or less carbon
  intensive fuels
• Renewable energy production plants (hydro, wind,
  biomass, biogas etc.)
• Avoidance or recovery of landfill gases
• Waste management measures
• Other industrial gases N2O, HFC, SF6

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124 Projects in Pipeline

• Status June 2006
• Project Pipeline
  124 projects
• Invitation for Negotiations 40 projects
• Expression of Interest (PIN) 82 projects
  
• ERPA/finalised negotiation 18
  projects

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Austrian JI/CDM Programme Geographical
distribution
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Call for Projects - Approval Procedure

• PIN/PDD submission
• Offer ERUs/CERs
• LoNO/LoA

FIRST STEP
Project evaluation
SECOND STEP

• Negotiations (price, delivery schedule, risk
  sharing, etc.)
• Project approval ERPA

Negotiations
PROJECT IMPLEMENTATION

• Generation of ERUs/CERs
• Transfer to Austria payment

Current 4th Call for JI/CDM Projects
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ERPA Negotiation

• Terms of Negotiations
• Term sheet Initial position of the buyer/seller
• Approach Quick, flexible, meeting needs of both
  parties
• Communication Meetings, conference calls, site
  visits, etc.
• Scope of Negotiations
• Delivery of emission reductions (amount, emission
  reductions before 2008, additional emission
  reductions etc.)
• Delivery default (incl. compensations and
  penalties)
• Baseline risk
• Payment
• Price

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Support for Immaterial Costs (IC)

• Application Stage
• After Invitation for PDD - development
• Scope
• PDD dev.
• Baseline Study
• Monitoring Plan
• Validation etc.
• Amount
• 50 of immaterial project costs with a cap on
• EUR 40,000.

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Specific Features Benefits

• Rating AAA buyer
• Excellent relationships to governments and
  UNFCCC
• Flexibility within the tendering procedure
• Continuous approval and negotiation procedure
• Prepayment is possible (up to 30 of contract
  value)
• Possibility of financial support for PDD
  development, Baseline
• Study, Monitoring Plan, Validation, etc.
• No specific country restriction
• Establishment of long term relationships with
  reliable sellers

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Funds and Facilities
Community Development Carbon Fund (CDCF))
Community Development Carbon Fund
(CDCF) Responsible institution World
BankProject type Small Scale CDM
ProjectsRegional focus Least developed
countriesInvestment volume 5 mill.
US Responsible institution EcoSecuritiesProj
ect type Small Scale CDM ProjectsRegional
focus Latin and South American
countriesInvestment volume 1,250,000 t CO2e at
a fixed price
Austrian CDM Project Procurement and CER Sale
Facility
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Austrian JI/CDM Programme Project Examples
Technology Host Country Emission Reductions Purchased
Joint Implementation Joint Implementation Joint Implementation
Hydro Bulgaria 1,000,000 tCO2e (100)
Wind Estonia 200,000 tCO2e (100)
Biogas Hungary 160,000 tCO2e (100)
Wind Hungary 350,000 tCO2e (100)
N2O Decomposition Hungary 2,000,000 tCO2e (50)
Landfill Gas New Zealand 125,000 tCO2e (100)

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Austrian JI/CDM Programme Project Examples
Technology Host Country Emission Reductions Purchased
Clean Development Mechanism Clean Development Mechanism Clean Development Mechanism
Landfill Gas Brazil (16) 1,500,000 tCO2e
Landfill Gas China (62) 1,125,000 tCO2e
Wind China (100) 600,000 tCO2e
Hydro China (100) 500,000 tCO2e
Hydro Colombia (100) 220,000 tCO2e
N2O Decomposition Egypt (75) 3,900,000 tCO2e
Biomass India (100) 147,000 tCO2e
Biomass India (100) 244,000 tCO2e
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Upcoming workshops and conferences

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• 26-27 October 2006 Carbon Expo Asia, Beijing,
  China
• 06-17 November 2006 COP 12 and COP/MOP 2 in
  Nairobi, Kenya
• 25-26 January 2007 Austrian JI/CDM Workshop,
  Vienna, Austria

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Austrian JI/CDM Programme www.ji-cdm-austria.at
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www.ji-cdm-austria.at
THANK YOU!