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CDM Basics
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What is
Kyoto
Protocol and CDM?
A
series of international negotiations started during the late
1980s owing to concerns regarding climate change. The United
Nations Framework Convention on Climate Change (UNFCCC) was
signed at the United Nations Conference on Environment and
Development in Rio de Janeiro in 1992. The Convention
established the Conference of Parties (COP) / Meeting of
Parties (MOP) as its supreme body with the responsibility to
oversee the progress towards the aim of the convention.
Subsequently, during COP 3 in Kyoto, Japan, a legally
binding set of obligations for 38 industrialized countries
and 11 countries in Central and Eastern Europe was created,
to return their emissions of Greenhouse Gases (GHGs) to an
average of approximately 5.2% below their 1990 levels over
the commitment period 2008 – 2012. This is called the Kyoto
Protocol, which amidst a host of uncertainties finally came
into force on 16 February 2005. |
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What are
Kyoto’s
Flexibility Mechanisms?
The Kyoto Protocol recognizes six main
greenhouse gases, each with different impact on the global
climate – carbon dioxide, Methane, Nitrous Oxide,
Hydro-fluorocarbons, Perfluorocarbons, and Sulphur
Hexafluoride. The common ‘currency’ of the Kyoto Protocol
targets is one metric tonne of carbon dioxide equivalent
(tCO2-e). Based on the principle that the effect on the
global environment is the same regardless of where GHG
emissions reductions are achieved, countries may meet their
targets through a combination of domestic activities and use
of the Kyoto Protocol ‘Flexibility Mechanisms.’ These are
designed to allow Annex I countries to meet their targets in
a cost-effective manner and to assist developing countries
in particular to achieve sustainable development. There are
three Kyoto Protocol Flexibility Mechanisms -- Joint
Implementation - JI (Article 6); Clean Development Mechanism
- CDM (Article 12); and International Emissions Trading -
IET (Article 17). |
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What is CDM?
Clean Development Mechanism (CDM) is one of the flexible
mechanisms following the Kyoto Protocol. Article 12 of this
protocol states all the regulating framework of the CDM. The
CDM offers industrialized countries the possibility to
engage in economically and environmentally competitive
emission reduction projects in developing countries. Through
the CDM, certified emission reductions (CERs) will be
generated. Projects that will be implemented through the CDM
have to fulfill additional criteria that will be defined by
a national framework of the host countries (developing
countries, where the project will be implemented). A CDM
project has a pre-defined project-cycle that was defined by
the UNFCCC, the official executive institution concerning
these questions. India is seen as one of the Non-Annex I
countries offering the largest potential for CDM
development, besides
China
and Brazil. |
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What types of projects can be undertaken under CDM?
-Renewable energy
-Energy efficiency (waste management, industrial processes,
switching to alternative fuels, oil/gas) |
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What is CDM project development?
Any developer can initiate and implement a CDM project if
there exists any emission reduction potential or an option
to sequester carbon. To get it accredited as a CDM project,
several requirements must be fulfilled such as following a
pre-defined project cycle, preparation of certain documents
(PCN, PDD, Monitoring plan etc.); highlighting certain
characteristics like “additionality” criteria in terms of
emission reductions, social and economic aspects, approval
from certain institutions in the host country Designated
National Authority (DNA); and validating and contacting
buyer country DNA. Companies typically hire a consultant to
facilitate the process of a CDM project development. |
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What is feasibility check of a CDM project?
The preliminary assessment aims at giving the project
developer an idea, if basic requirements to be a CDM project
are fulfilled. This is done in terms of regulative
compliance and in an economic feasibility check. The
preliminary assessment will not be sufficient to find an
investor. |
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What is Project Concept Note (PCN) and Project Design
Document (PDD)?
The PCN demonstrating a complete planning of a project in
terms of all required CDM criteria is given to interested
parties that may buy/invest in CERs from the project. If
buyer is subsequently interested, he signs a letter of
intention to buy all or a certain amount of emission
reductions (ER). PDD is the principal document used by
project participants to get a CDM project approved. Its
format is outlined in Appendix B of the Modalities and
Procedures of the CDM. |
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What is Designated National Authority?
The Seventh Conference of Parties (COP-7) to the UNFCCC
decided that parties participating in CDM should designate a
National Authority for CDM and as per the CDM project cycle,
a project proposal should include written approval of
voluntary participation from the Designated National
Authority of each country and confirmation that the project
activity assists the host country in achieving sustainable
development. Accordingly, the Central Government constituted
the National Clean Development Mechanism (CDM) Authority for
the purpose of protecting and improving the quality of
environment in terms of the Kyoto Protocol. |
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What about Designated Operational Entity?
Services of DOE are required in the validation and
verification phases. The project cycle requires a validation
by a first DOE in the pre-registration phase and a
verification of a second DOE before the issuance of the CER.
Small scale CDM projects require one DOE only. |
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What is the institutional framework for CDM?
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- Developing country: Project Developer
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- Annex-1 country: Buyer, Investor
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- Approval of project: Designated National
Authority (DNA)
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- An institution that verifies the essential
prerequisites for CDM projects: Operational
Entity (OE)
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- An institution which certifies the emission
reduction:
Operational Entity (OE)
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- An institution which issues CERs: Executive
Board (EB) |
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What is CDM project cycle?
Step-1: Identify a project idea
Step-2: PIN and PDD development
Step-3: Approval by DNA
Step-4: Validation by OE/Registration by EB
Step-5: Monitoring by entities
Step-6: Verification and certification by OEs
Step-7: Issuance of CERs by EB |
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What is the procedure for submitting CDM Project Reports to
the National CDM Authority?
The National CDM Authority is a single window clearance for
CDM projects in India. The project proponents are required
to submit one soft copy of Project Concept Note (PCN) and
Project Design Document (PDD) through online form and 20
hardcopies each along with two CDs containing all the
information in each of them. The project report and CDs
should be forwarded through covering letter signed by the
project sponsors. The project report submitted should be
properly bound. The National CDM Authority examines the
documents and if there are any preliminary queries the same
are asked from the project proponents. The project proposals
are then put up for consideration by the National CDM
Authority. The project proponent and his consultants are
normally given about 10-15 days notice to come to the
Authority meeting and give a brief power point presentation
regarding their CDM project proposals. Members seek
clarifications during the presentation and in case they feel
that some additional clarifications or information is
required from the project proponent the same is informed to
the presenter. Once the members of Authority are satisfied,
the Host Country Approval (HCA) is issued by the
Member-Secretary of the National CDM Authority. |
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What
are the eligibility criteria for CDM?
The purpose of the clean development mechanism
(CDM) is
defined in Article 12 of the Kyoto Protocol to the United
Nations Framework Convention on Climate Change. The CDM has
a two-fold purpose: (a) to assist developing country Parties
in achieving sustainable development, thereby contributing
to the ultimate objective of the Convention, and (b) to
assist developed country Parties in achieving compliance
with part of their quantified emission limitation and
reduction commitments under Article 3. The project proposal
should establish the following in order to qualify for
consideration as CDM project activity:
Additionalities
- Emission Additionality: The project should lead to real,
measurable and long term GHG mitigation. The additional GHG
reductions are to be calculated with reference to a
baseline.
- Financial Additionality: The procurement of Certified
Emission Reduction (CERs) should not be from Official
Development Assistance (ODA)
Sustainable Development Indicators
It is the prerogative of the host Party to confirm whether a
clean development mechanism project activity assists it in
achieving sustainable development. The CDM projects should
also be oriented towards improving the quality of life of
the poor from the environmental standpoint. Following
aspects should be considered while designing CDM project
activity:
- Social well being: The CDM project activity should lead to
alleviation of poverty by generating additional employment,
removal of social disparities and contribution to provision
of basic amenities to people leading to improvement in
quality of life of people.
- Economic well being: The CDM project activity should bring
in additional investment consistent with the needs of the
people.
- Environmental well being: This should include a discussion
of impact of the project activity on resource sustainability
and resource degradation, if any, due to proposed activity;
bio-diversity friendliness; impact on human health;
reduction of levels of pollution in general
- Technological well being: The CDM project activity should
lead to transfer of environmentally safe and sound
technologies that are comparable to best practices in order
to assist in upgradation of the technological base. The
transfer of technology can be within the country as well
from other developing countries also
Baselines
The project proposal must clearly and transparently describe
methodology of determination of baseline. It should confirm
to following:
- Baselines should be precise, transparent,
comparable and
workable
- Should avoid overestimation
- The methodology for determination of baseline
should be homogeneous and reliable
- Potential errors should be indicated
- System boundaries of baselines should be
established
- Interval between updates of baselines should be
clearly described
- Role of externalities should be brought out
(social, economic and environmental)
- Should include historic emission data-sets
wherever available
- Lifetime of project cycle should be clearly
mentioned
The project proponent could develop a new methodology for
its project activity or could use one of the approved
methodologies by the CDM Executive Board. For small scale
CDM projects, the simplified procedures can be used by the
project proponent. The project proposal should indicate the
formulae used for calculating GHG offsets in the project and
baseline scenario. Leakage, if any, within or outside the
project boundary, should be clearly described. Determination
of alternative project, which would have come up in absence
of proposed CDM project activity should also be described in
the project proposal. |
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Contribute Content on CDM |
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Commerce
of CDM Projects |
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The CDM revenue has its attractiveness in that it is
additional to the normal stream of income from the project
activity and does not affect the later in any way. This
diversification of the revenue streams helps in minimizing
the risks associated with the project itself. This income
stream from selling the creditable emission reductions from
emission reduction projects have beneficial effect on the
project’s financial structure. In the Indian context for
instance, CDM revenue from a wind electric generator
typically helps the promoter to at least meet his annual
operation and maintenance costs.
CDM Project Financing
Per
the
Guidebook to
Financing CDM Projects
report by EcoSecurities, financing requirements of a CDM project depend on the
project type. For instance, the capital costs of renewable
energy projects can vary from around US$1,000/MW for
generation of electricity from landfill gas to US$10,000/kW
for solar home systems using photovoltaic cells. Likewise,
the costs during the planning of a CDM project can vary
significantly depending on specific feasibility studies that
may be required (e.g. at least 12 months of wind resource
monitoring for a wind turbine project), as well as
country-specific, technology-specific and location-specific
requirements for permits and licenses, environmental impact
assessment and stakeholder consultation. Finally, costs
during operation can vary from very low levels for some
renewable energy projects using free resources such as the
sun and wind, to relatively high levels for projects
dependent on purchase of fuel or other inputs.
Here are a few general observations about CDM project
financing:
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CDM-specific project costs are usually smaller than the non-CDM
specific project costs
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The largest cost is incurred at construction (including
purchase of plant and equipment, etc)
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Annual operation costs are usually low in relation to
construction costs, although they may exceed construction
costs over the lifetime of the project
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Costs during the planning stage are usually financed by
equity
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Costs during construction may be financed in a variety of
ways – for example by various combinations of equity and
debt
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CDM projects may have ‘conventional’ revenue streams (such
as electricity sales, or sales of other outputs) in addition
to CER revenues
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Costs during operation are covered by the conventional
revenue (if any) and CER revenue of the project
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Remaining conventional and CER revenues are used first to
repay debt (if any) and lastly to provide a return on equity
Typical CDM-specific Project Costs
In addition to the costs that would be incurred by a project
regardless of whether or not it was registered as a CDM
project, certain specific costs are associated with the
various stages of the CDM project cycle, as set out below:
|
Activity |
Cost
(large-scale, US$) |
Cost
(small-scale, US$) |
Type of cost |
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Planning Phase |
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Initial
feasibility study, i.e. PIN |
5,000 to 30,000 |
2,000 to 7,500 |
Consultancy fee
or internal costs |
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Project Design
Document (PDD) |
15,000 to
100,000 |
10,000 to 25,000 |
Consultancy fee
or internal costs |
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New methodology
(if required) |
20,000 to
100,000 |
20,000 to 50,000 |
Consultancy fee
or internal costs |
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Validation |
8,000 to 30,000 |
6,500 to 10,000 |
DOE fee |
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Registration fee
(advance on SOP-Admin) |
10,500 to
350,000* |
0 to 24,500** |
EB fee |
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Total CDM-specific
costs – planning phase |
38,500 to
610,000 |
18,500 to
117,000 |
- |
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Construction
Phase |
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Construction,
plant, and equipment |
Variable,
depending on project type |
Contractors fee |
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Installation of
monitoring equipment |
Usually minimal
relative to total plant & equipment cost |
Contractors fee |
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Total CDM-specific
costs – construction phase |
Usually minimal
relative to total plant & equipment cost |
- |
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Operation Phase |
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Un Adaptation
Fund fee |
2% of CERs |
2% of CERs |
EB fee |
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Initial
verification (including system check) |
5,000 to 30,000 |
5,000 to 30,000 |
DOE fee |
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Ongoing
verification (periodically) |
5,000 to 25,000 |
5,000 to 25,000 |
DOE fee |
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Share of
proceeds to cover administration expenses (SOP-Admin) |
The fee paid at
registration is effectively an advance that will be
‘trued up’ against actual CERs issued over the crediting
period (if different to emission reductions projected at
registration). SOP-Admin is not capped. |
EB fee |
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Total CDM-specific
costs – operations phase |
Variable –
minimum 2% of CERs plus 5,000/year (if verification
undertaken annually) |
- |
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*US$0.10/CER for the first 15,000 CERs per year and US$0.20/CER
for any CERs above 15,000 CERs per year (max US$350,000).
The minimum shown here has been calculated as 15,000 CERs/year
over a single 7-year crediting period.
**
As for large scale, unless total annual average emission
reductions over the crediting period are below 15,000
tCO2-e, in which case no fee is payable. Maximum calculated
as 25,000 CERs/year over 7-year crediting period.
Notes:
In
addition to the costs shown above, a number of governments
may charge a fee for the approval of a CDM project.
While most of the costs listed above are one-off costs
incurred during the planning phase of the project, the costs
of ongoing verification and the SOP Admin fees are incurred
whenever issuance of credits for a project is required.
It
should be noted that the upper ends of the cost ranges, in
particular for large-scale PDDs and new methodologies,
represent a ‘worst case’ scenario where an extremely large,
complex project is being developed. On the other hand, the
upper end of the range for registration costs represents a
project with annual emission reductions of 182,500
tCO2-e/year over a 10-year crediting period, which is not
unusual and is far exceeded by some of the larger projects.
Therefore, for large projects with emission reductions
beyond this level, SOP-Admin fees will eventually exceed the
up-front registration fee.
Sources: CCPO, 2005; UNEP, 2004 and EcoSecurities Market
Information.
Finance Availability for CDM Projects
Planning phase:
- Government tenders and carbon funds: which will often pay
a proportion of these costs in return for a contract to
purchase some or all of the resulting CERs (see section 7
below for information on both government and private sector
funds)
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Private sector CDM project developers: who may cover part
or all of the CDM-specific costs in return for a contract to
purchase some or all of the resulting CERs
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Project hosts: either public or private sector entities
which provide their own internal funds to develop projects
with which they have an association as, for example,
landowner, fuel supply provider, or off-taker of the non-CER
outputs of a project
Construction phase:
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Lenders: who may provide limited recourse debt to
relatively large projects with secure revenue streams and
relatively low risks, or to other projects with recourse to
a financially strong sponsor
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Private sector CDM project developers: who may be able to
finance (usually smaller) projects with their own equity
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Project hosts: who may be able to finance (usually smaller)
projects from their own internal funds
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Equipment suppliers: who may provide assets on lease or
credit
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CER buyers: who may provide up-front payments against
future CER deliveries
Financing Models for CDM Projects
|
Model |
Explanation |
Advantages |
Disadvantages |
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Conventional
project financing |
Even though CDM
projects face a number of structural challenges in
obtaining any form of financing, and particularly bank
debt, some projects do qualify for conventional
financing. |
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Ability to raise large amounts of capital
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Improved rate of return on equity
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Limited or no recourse to the assets of the project
sponsors |
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Costs and time taken to obtain finance
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Contracts must be with credit-worthy
counterparties
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Delayed returns on equity |
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100% equity
investment by a private sector developer |
A more common
financing model involves specialized CDM project
developers investing directly in CDM projects in return
for part or full ownership of the resulting CERs. |
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Speed of
financing
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Simplicity of
financing
plan
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Low risk to
the
project host
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‘Loss of control’
over the
project
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High cost of finance
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Corporate
financing by project host
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In essence,
corporate financing by the project host is much the same
as 100% equity financing by a CDM project developer, the
difference being that the project host assumes the role
of the CDM project developer. |
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Project host retains all of the CER revenue from
the project
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Financing may be raised more rapidly
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Lack of expertise
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Equipment lease
financing
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A loan from the
equipment supplier, secured over the equipment itself
(which remains in the ownership of the equipment
supplier, until and unless sold to the project host or
developer at an agreed stage in the contract). |
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Reduced up-front expenditure and closer match
between lease payments and project revenue
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Management of equipment performance risk |
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Limited ability to make modifications to
equipment
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Relatively high cost of capital
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Supplier credit
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Supplier (or
vendor) credit is similar to equipment lease financing,
insofar as it involves financing provided by suppliers
of goods and services to the project. |
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Widespread availability
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Deferred payment for up-front capital expenditure |
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Relatively high cost of capital
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Up-front
payments |
This is
effectively a loan provided by the CER buyer. If it is
secured only against future delivery of CERs, it is high
risk, as it is exposed to all of the same risks as any
conventional loan at the same stage, but without the
ability to seize the assets of the project (other than
having legal title to the CERs) in the event of
non-payment. Consequently, most CER buyers would charge
a relatively high interest rate, or may require a
guarantee or other security. |
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Repayment of up-front capital expenditure can be
brought forward
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Relatively rapid and low cost due diligence by
CER buyers
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(Possibly) less conservative view of CDM-specific
risks
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Risk allocation towards buyer
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Lower net CER revenue for project host/developer
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May not solve problem of obtaining finance for
construction
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Low interest
loans or debt from Development Banks |
There are a
number of development banks with lending programs in the
non-Annex I countries that can function as ‘lenders of
last resort’ to projects which would otherwise have
difficulty obtaining finance. (e.g., World Bank, ADB,
African Development Bank) |
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Lender of last resort
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Stable currency (low interest loan is in a stable
currency e.g., euro or US dollars)
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Support with CDM component |
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Loans must fit the objectives of the lending
program
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Stringent due diligence
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Micro-credit |
Micro-credit is
similar to traditional bank debt finance, but aimed at
providing very small amounts of credit to lenders with
limited ability to pay, particularly in rural areas of
developing countries.
Micro-credit is
typically applicable to (very) small scale CDM projects.
(e.g. solar water heaters, bio-digesters, more efficient
cook stoves) |
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Easy access to finance
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Limited scale
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High interest rate
|
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CER Derivatives |
An alternative
to up-front payment for CERs would be for the project
developer to sell a call option on delivery of a certain
amount of CERs at an agreed price, on an agreed future
delivery date. This would mean that the developer would
have an obligation to sell that volume of CERs to the
buyer, at the agreed price, if the buyer should choose
to exercise the option at the delivery date. The buyer
has the right but is under no obligation to exercise the
option. |
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Up-front cash availability |
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Limited scale since the option value is usually
small in relation to the underlying CER value
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High transaction cost
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Securitization
of CERs |
Another option
for alternative financing could be to ‘securitize’ a
supply of CERs by forming an SPV which owns the legal
title to the CERs, and issuing bonds on the SPV to
individual investors (usually done with the help of an
investment bank or specialized securities company). |
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May reduce baseline, certification, and country
risk due to diversification of risk through bonds issue |
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Viable for only large projects
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Source: Guidebook to
Financing CDM Projects, EcoSecurities BV, 2007. |
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Carbon
Market |
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Per the World Bank’s
State and
Trends of the Carbon Market 2007 report, Carbon
transactions are defined as purchase contracts whereby one
party pays another party in return for greenhouse gas (GHG)
emissions reductions or for the right to release a given
amount of emissions that the buyer can use to meet its
compliance – or corporate citizenship – objectives vis-à-vis
climate change mitigation. Payment is made using one or more
of the following forms: cash, equity, debt, convertible debt
or warrant, or in-kind contributions such as providing
technologies to abate GHG emissions. Carbon transactions can
be grouped into two main categories:
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Allowance-based transactions, in which the buyer
purchases emission allowances created and
allocated (or auctioned) by regulators under cap-and-trade
regimes, such as Assigned Amount Units
(AAUs)
under the Kyoto Protocol, or EUAs under the European Union
Emissions Trading Scheme
(EU
ETS).
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Project-based transactions, in which the buyer
purchases emission credits from a project that can
verifiably demonstrate GHG emission reductions compared with
what would have happened
otherwise. The most notable examples of such activities are
under the CDM and the JI mechanisms of
the Kyoto Protocol, generating CERs and ERUs respectively.
The carbon markets can be segmented in a number of different
ways: chief among these being, compliance or non-compliance,
and mandatory or voluntary markets. Buyers largely engage in
carbon transactions because of carbon constraints (current
or anticipated) at international, national or sub-national
levels. Markets can also be segmented by size and value: the
Kyoto Protocol is the largest potential market and the EU
ETS, a “tributary” scheme, has spawned a thriving market in
the trade of allowances and for the import of project-based
reductions. The main compliance buyers are:
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European private buyers interested in the EU ETS,
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Government buyers interested in
Kyoto
compliance,
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Japanese companies with voluntary commitments under the
Keidanren Voluntary Action Plan,
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U.S. multinationals operating in
Japan
and Europe or preparing in advance for the Regional
Greenhouse Gas Initiative (RGGI) in the Northeastern U.S.
States or the California Assembly Bill 32
establishing a state-wide cap on emissions,
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Power retailers and large consumers regulated by the New
South Wales (NSW) market in Australia,
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And North American companies with voluntary but legally
binding compliance objectives in the
Chicago Climate Exchange (CCX).
There is also a growing retail carbon segment that sells
emission reductions to individuals and companies seeking to
offset their own carbon emission footprints. Reports of
increased interest of banks, credit card issuers, private
equity funds and others in this segment suggest that it
could grow exponentially if only there were a credible,
voluntary standard for such assets. |
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CDM Buyers
The CDM market in 2006 was dominated by European buyers (86%
of volumes transacted). This was a change over previous
years when Japanese and European buyers had similar market
shares. Within Europe, the United Kingdom had a 50% market
share of volumes transacted (up from 15% in 2005)
consolidating its leadership position as the carbon finance
hub for the world. Italy, which entered the market in 2005
with a 1.5% market share, increased its purchases in 2006 to
reach 7% of the market, largely through acquisitions by
private companies. Spain has maintained a steady 6-7% market
share in 2005 and 2006 (with government purchases at 25% and
15% of volumes transacted, respectively). Austria accounted
for 3% of the market’s volumes transacted in 2006.
Private sector players were the main buyers of CDM assets in
2006, with about 90% of purchases coming from the European
private sector in 2006. In contrast, the JI market has long
been dominated by public buyers (mainly the Netherlands,
Denmark and Austria), representing 92% of those transactions
in 2006 (up from 80% in 2004 and 2005). On a cumulative
basis, the EU has accounted for two-thirds of the CDM and JI
market since 2003, while
Japan
has accounted for nearly 30%. |
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CDM Sellers
China dominates the CDM market on the supply side with a 61%
market share of volumes transacted in 2006, down slightly
from 73% in 2005. India stands next to China, at 12%,
recovering from 3% in 2005. Asia as a whole led with an 80%
market share in 2006. During the same period, Latin America
– an early pioneer of the market – accounted for 10% of CDM
transactions overall with Brazil alone at 4%. The share of
Africa remained constant, at about 3%; however African
volumes transacted increased proportionally to the increase
of overall volumes transacted. The authors estimate that
since 2003 some 30 MtCO2e originating from
Africa
have been transacted on the Primary CDM market, nearly
two-thirds of that volume being from either
North Africa or South Africa. The other countries of
sub-Saharan Africa account for just over 10 MtCO2e.
India has a relatively low market share at 12%. However,
India is second (at 17%) only to China in the CDM pipeline
by the number of expected CERs by 2012 and first by volumes
of issued CERs to date at about 18 million (coming mainly
from two HFC projects). This is partially as a consequence
of the relatively small size of projects (70% of projects
with deliveries below 50 MtCO2e per annum). |
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CDM Status in
India |
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Overall Statistics*
Registered Projects
233
% of Global Projects
35%
CDM Projects (by Volume)
12%
Issued CERs (Projects)
93
Issued CERs (No.)
19,200,135
Host Country
Approved Projects by Sector*
Renewable Energy
311
Energy Efficiency
149
Industrial Process
48
Fuel Switching
31
Solid Waste
6
Host Country
Approved Projects by State*
Andhra Pradesh
59
Chhattisgarh
40
Gujarat
39
Himachal Pradesh
19
Jharkhand
7
Karnataka
66
Madhya Pradesh
15
Maharashtra
67
Orissa
17
Punjab
27
Rajasthan
41
Tamil Nadu
47
Uttar Pradesh
64
Uttaranchal
11
West Bengal
26
Source: MNRE, 2008.
*May 2007 Data
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Sources of CDM Project
Finance |
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Multilateral & Government Carbon Funds
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Austrian JI/ CDM Program
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Belgian JI/ CDM Tender
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BioCarbon Fund
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CAF- Netherlands CDM Facility
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CAF- Spain Carbon Initiative
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Community Development Carbon Fund
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Danish Carbon.dk Public Procurement
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EcoSecurities/Standard Bank Carbon Facility
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Flemish Government JI / CDM Tender
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Italian Carbon Fund
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Multilateral Carbon Credit Fund (MCCF)
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Netherlands Carbon Facility (INCaF)
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Netherlands CDM Facility
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Prototype Carbon Fund (PCF)
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Rabobank-Dutch Government CDM Facility
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Spanish Carbon Fund
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Swedish International Climate Investment
Program SICLIP2002 - 2012 |
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Private
Carbon Funds
- European
Carbon Fund
- GG-CAP
Greenhouse Gas Credit Aggregation
Pool
- ICECAP
- Japan
Carbon Finance Ltd
- KfW
Carbon Fund |
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Multilateral and Private Financiers
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Asian Development Bank
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African Development Bank
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European Bank for Reconstruction and Development
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European Investment Bank
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Export Import Bank (USA)
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Export Import Bank (Japan)
- Global
Environmental Facility
- Inter
American Development Bank
- International
Fund for Agricultural Development
- International
Monetary Fund
- Kreditanstalt
für Wiederaufbau (Kfw)
- North
American Development Bank
- Overseas
Economic Cooperation Fund (Japan)
- Swedish
International Development Agency
- United
States Agency for International Development
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World Bank Group (including IBRD, IDA, IFC,
and MIGA) |
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CDM Resources |
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Clean
Development Mechanism
The homepage of UNFCCC's CDM Executive Board
Designated
National Authorities
The DNA is the government office in charge of CDM affairs in
each country
Designated
Operational Entities
DOEs are responsible for validating CDM projects, and for
verifying that the emissions have taken place
International
Emissions Trading Association (IETA)
Dedicated to the establishment of effective systems for
trading in greenhouse gas emissions by businesses that are
demonstrably fair, open, efficient, accountable and
consistent across national boundaries
National
CDM Authority, India
Designated National Authority
Clean
Development Mechanism Watch Editor's Pick
Monitors flexible mechanisms of the Kyoto Protocol designed
to help industrialized countries meet emission reduction
targets by assisting developing countries to achieve
sustainable development
The
Climate, Community and Biodiversity Alliance Editor's Pick
Developing and promoting a set of rigorous standards for
evaluating climate, community and biodiversity impacts of
land-based carbon projects
Carbon
Credits
Buys emission reduction for the Dutch government via Joint
Implementation (JI) and Clean Development Mechanism (CDM)
Climate
change: Accounting for carbon
Presents the "Recent patterns and mechanisms of carbon
exchange by terrestrial ecosystems" article which examines
the effectiveness of terrestrial carbon sinks
Voluntary
Reporting of Greenhouse Gases Program
The US Energy Information Administration allows any company,
organization or individual to establish a public record of
emissions, reductions, or sequestration achievements in a
national database
WWF
This link takes you directly to WWF's Gold Standard
Point
Carbon
Point Carbon provides news, market intelligence and
forecasting for the emerging carbon emission markets
CD4CDM
The United Nations Environment Program (UNEP) has launched
the project "Capacity Development for the Clean Development
Mechanism" with financial support from the Dutch Government.
It will operate in 12 developing countries
Earth
Talks
An Environmental Sustainability Discussion Community
Clean
Development Mechanism (CDM) Facility at Asian Development
Bank
The CDM Facility at ADB provides opportunities to developing
member countries (DMCs) to access additional financial
resources through efficient emissions reduction to promote
sustainable development
Chicago
Climate Exchange updated
Provides cost-effective methods for reducing greenhouse gas
emissions by building and operating a market-based emission
reduction and trading program that is flexible, has low
transaction costs, is environmentally rigorous and rewards
environmental innovation
Australasian
Emissions Trading Forum (AETF)
Provides regular reports on emissions trading developments
in Australia, New Zealand and internationally, and provides
a forum for discussion of ET issues
Carbon
Credits
Buys emission reduction for the Dutch government via Joint
Implementation (JI) and Clean Development Mechanism (CDM)
Carbonfund.org
Buys carbon dioxide credits and retires them, making it easy
and affordable for businesses and individuals to reduce
their climate footprint
coolAction.com
Allows individuals/entities to participate in the GHG
emission reduction market by purchasing emission reductions
on-line
Corporate
Greenhouse Gas Emissions updated
Working to develop a common standard for company reporting
on greenhouse gas emissions; with participation from
business, governments and non-governmental organizations
Emissions
Marketing Association
Promotes market-based emission trading systems as solutions
for environmental management
Emissions
Trading Education Initiative
Promotes caps and trading of emissions; providing
environmental groups, industries, and lawmakers with
practical resources on environmental-based trading programs
EPA's
Clean Air Market Programs
The US Environmental Protection Agency promotes clean air
market programs to reduce air pollution and promote
emissions allowance trading
GHG
Registry Program
Records validated greenhouse gas (GHG) emissions profiles to
help create a market that will enable efficient emissions
reductions
Global
Hub For Carbon Commerce
Provides tools and strategies for emissions trading
Gold
Standard
An independently audited, globally applicable best practice
methodology for project development that delivers high
quality carbon credits
Green
Markets International
Dedicated to supporting climate protection and local
development, working to make the emerging international
greenhouse gas reduction market more broadly accessible to
small-scale activities
Prototype
Carbon Fund
Information about the World Bank's Prototype Carbon Fund, a
new product that aims to demonstrate how project-based
emissions transactions can mitigate climate change
UNCTAD
/ Earth Council Institute - Carbon Market Program
Exploring the emerging greenhouse gas emissions market;
bringing government, industry and civil society together to
address climate change through trade and investment
State
and Trends of the Carbon Market 2007
Summary of Carbon Market
trends in 2007
Guidebook
to Financing CDM Projects
The
Guidebook prepared under the CD4CDM Project funded by the
Netherlands Ministry of Foreign Affairs
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