Copyright @ Asia Carbon Group 2006 Copyright @ Asia Carbon Group 2006 CDM & Sustainable Development CDM & Sustainable Development Quantification & Qualification Quantification & Qualification – – remains a challenge remains a challenge Monitoring Monitoring – – need for consistency need for consistency Local SH involvement & awareness raising Local SH involvement & awareness raising Value added carbon credits Value added carbon credits – – G B S G B S - - CDM CDM 100 % Upfront financing 100 % Upfront financing – – makes it attractive makes it attractive SD benefits Vs Emission reductions SD benefits Vs Emission reductions Integration of rural development policies and Integration of rural development policies and energy security & access energy security & access
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Copyright @ Asia Carbon Group 2006Copyright @ Asia Carbon Group 2006
CDM & Sustainable DevelopmentCDM & Sustainable Development
Quantification & Qualification Quantification & Qualification –– remains a challengeremains a challenge
Monitoring Monitoring –– need for consistencyneed for consistencyLocal SH involvement & awareness raisingLocal SH involvement & awareness raisingValue added carbon credits Value added carbon credits –– G B S G B S -- CDMCDM100 % Upfront financing 100 % Upfront financing –– makes it attractivemakes it attractiveSD benefits Vs Emission reductionsSD benefits Vs Emission reductionsIntegration of rural development policies and Integration of rural development policies and energy security & accessenergy security & access
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CDM : Institutional ReformsCDM : Institutional ReformsTo make DNA infrastructure permanent Refine approval process : DNA – SectoralMinistry Linkage for approvalInternational & domestic procedures to screenprojects : avoid carbon credits flooding the marketRegional and state level CDM agenciesNational, Regional and State level policies andprogramme : CDM as an acceleratorLocal Climate Change Centres of Excellence (3CE) : to link Research – Academics – FieldEnsure international post 2012 process on track
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CDM and Technology TransferCDM and Technology TransferNational portfolio approach always a +CDM TT incubation centresIndigenous TT & South South TT : not to be ignored Integrated service : National & Local FIs(due diligence, techno-economic appraisal, tech portfolio etc.,)
FI – Technology Suppliers : join force (e.g. REEEP-X)Outreach pilot & success on a large scale for accelerating replicationNational / Regional level fund for seed fund / low cost debt / guaranteeNeed to keep transaction costs low, retarding TTTT for SMEs :Huge investment support needed (e.gESCOs)
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CDM : Financial barriersCDM : Financial barriers
Unification of environmental benefits : Unification of environmental benefits : Carbon CreditsCarbon CreditsAlliance : National & International Alliance : National & International FIsFIsProject Equity based funds crucialProject Equity based funds crucialAdditionalityAdditionality : Not mere a number game: Not mere a number gamePricing of carbon credits : role of Pricing of carbon credits : role of exchanges and financial productsexchanges and financial products
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CDM :CDM :SectoralSectoral approachapproach
LULUCF LULUCF –– slow but steadyslow but steadyTransportation Transportation –– Public and captive fleetPublic and captive fleetSMEsSMEs : Industrial and Commercial: Industrial and CommercialUrban municipal needs based projects Urban municipal needs based projects
(MSW / EE in water supply / Sewerage / T&D (MSW / EE in water supply / Sewerage / T&D losses)losses)
Rural population oriented projectsRural population oriented projectsAdaptation projects based credits !Adaptation projects based credits !
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Meaningful participation of NA IMeaningful participation of NA I
CERsCERs discounting method discounting method All post 2012 All post 2012 CERsCERs for meeting NA I targetsfor meeting NA I targetsTo also include Govt. projects and ODA projectsTo also include Govt. projects and ODA projectsPrompt start appliedPrompt start appliedNA I Emission trading linksNA I Emission trading linksNA I Trading NA I Trading Exchange(sExchange(s) to boost liquidity) to boost liquidityTechnology Technology –– Financing Exchanges encouragedFinancing Exchanges encouragedGradual but enhanced inclusion of Gradual but enhanced inclusion of SMEsSMEs
Political uncertainty : not considered !Political uncertainty : not considered !
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ACG ACG –– An OverviewAn OverviewGroupGroup’’s activities conceptualized, researched and developed since 2001s activities conceptualized, researched and developed since 2001
Founded : Feb 4 2003 two years ahead of Kyoto coming into forceFounded : Feb 4 2003 two years ahead of Kyoto coming into force
Presently operating 14 entities in 9 countries Presently operating 14 entities in 9 countries
Strong presence in The Netherlands (Annex I) :Developing CDM andStrong presence in The Netherlands (Annex I) :Developing CDM and JI JI projects where we also aggregate Buyersprojects where we also aggregate Buyers
Strong Asian presence through Singapore (Non Annex I); Develop Strong Asian presence through Singapore (Non Annex I); Develop unilateral CDM projects and also Aggregate Sellers of CERs from unilateral CDM projects and also Aggregate Sellers of CERs from Non Non Annex I countriesAnnex I countries
Strategic Alliance with Kanso Technos in Japan (Annex I)Strategic Alliance with Kanso Technos in Japan (Annex I)
Centres of Excellence in Singapore, Vietnam, IndiaCentres of Excellence in Singapore, Vietnam, India
Advance stage of development for a Centre of Excellence in ChinaAdvance stage of development for a Centre of Excellence in China
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GroupGroup’’s Unique Business Models Unique Business ModelVertically Integrated to provide a one stop solution in Vertically Integrated to provide a one stop solution in
carbon advisory, carbon finance and carbon asset managementcarbon advisory, carbon finance and carbon asset management
Carbon Advisory
Carbon Asset Management
Carbon Finance & Project Finance
AC CE
AC-ADF™
ACXChange™
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Operational since February 2005Operational since February 2005
1) Identify, fund & develop PDDs for CDM/JI projects1) Identify, fund & develop PDDs for CDM/JI projects2) Manage Carbon Assets2) Manage Carbon Assets
Projects :Projects :Projects identified and under development in Projects identified and under development in Vietnam, India, Indonesia, Sri Lanka, Singapore, Vietnam, India, Indonesia, Sri Lanka, Singapore, Malaysia and PhilippinesMalaysia and Philippines
ACAC--aDFaDF™™
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15 MW grid connected small scale wind power project57 MW grid based hydro power10.8 MW grid connected small scale hydro power project16 MW grid connected large scale hydro power project24 MW grid based hydro power14 MW grid based hydro power
Initial CDM feasibility study for 90 MW captive power project – switch from Diesel to Natural Gas in Indonesia
Partial list …
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Waste heat recovery and grid connected wind power project7.5 MW grid connected small scale biomass power project20 MW grid connected large scale biomass power project21 MW grid connected large scale biomass power project14 MW grid connected small scale wind power project5.5 MW grid connected small scale wind power projectBoiler Fuel Switch power project13.6 MW Fuel Switch power projectWaste heat recovery power projectBiomass gasifier based power project30 MW bagasse cogeneration project19.5 MW grid connected large scale wind power project
Pre-feasibility study on Technical Loss Reduction in the ElectricityDistribution Sector of Sri Lanka under CDM
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Projects in the pipelineProjects in the pipelineFood waste to energyFood waste to energyMunicipal Solid Waste to PowerMunicipal Solid Waste to PowerFuel Switch in Public Transport sectorFuel Switch in Public Transport sectorForestryForestryEnergy Efficiency n Public LightingEnergy Efficiency n Public LightingN2O destruction projectN2O destruction projectPFC reduction project PFC reduction project Energy Efficiency in HVACEnergy Efficiency in HVACACG has covered almost all the 6 GHG Emissions that qualify ACG has covered almost all the 6 GHG Emissions that qualify for CERs and for CERs and ERUsERUs through our various projects through our various projects ACG also has capability to prepare new methodologies for ACG also has capability to prepare new methodologies for acceptance by the Executive Board, UNFCCCacceptance by the Executive Board, UNFCCC
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ACXACX--ChangeChange™™First on line exchange in the world to
Provide a common platform for Sellers and Buyersof Carbon Assets
Outside of EU Allowances
Web based 24 x 7
Built in registry and trading facilities
Soft launch – Carbon Expo - May 2005, Cologne, Germany.
Fully operational since November 2005
Carried out five consecutive online auctions to date
Re launch new look and feel platform – May 2006, Cologne, Germany
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ACXACX--Change : Our Value PropositionChange : Our Value PropositionACX:
Links CDM community to Global Carbon Market
Understands Carbon Asset Management is fundamental in a carbon
constrained world and places emphasis of this in the carbon market value
chain
Increases comfort levels for both sellers and buyers
Provides much sought after opportunity for optimizing real time returns
Ensures Effective tools in place for transacting carbon assets (cost, efforts,
standardization etc.,)
Practical Solution for price questions
No window shopping, no guesswork, no hawking and no bucket shops
Real time one stop solution for CERs transactions (from trade to ERPA
negotiations and custodian)
Least cost solution provider for management of CERs
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Buyers Bids
ACX CDM Auctions ACX CDM Auctions –– An AnalysisAn Analysis
Price of CERs on same project
10.2510.5
5
6
7
8
9
10
11
0 2 4 6 8 10 12 14
Number of Bids
Pri
ce p
er C
ER
, Eur
os
200420052006200720102011200820092012
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ACX-Change CER Auction - An Overview
180180130 610 890 230
9.5
6.2
13.23
7.1
6.2
5.05
6.2
55.3
4
54
6.75
11.9
5.7
9.2
5.03
4
0
100
200
300
400
500
600
700
800
900
1000
25th Nov 2005 16th Dec 2005 13th Jan 2006 16th Feb 2006 21st Apr 2006 24th Aug 2006
CE
R V
oum
e tr
aded
, x 1
03
0
2
4
6
8
10
12
14
€ /CE
R
CER VolumeHighLow Close
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““The supreme reality of our time is the vulnerability of our planThe supreme reality of our time is the vulnerability of our planet.et.””–– John F. KennedyJohn F. Kennedy
