Presentation by Bikash Pandey, Deputy Chief of Party – USAID and the Director Clean Energy and Environment, Winrock International providing consultancy to Worldbank at a forum organized by Avanceon titled Financing Energy Optimization Projects with guaranteed IRR
1. Avanceon Carbon Finance PoA Project Forum on Financing Energy Optimization Projects with Guaranteed IRR Bikash Pandey [email_address] Karachi, May 25, 2010
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5. What does it mean for projects? Project Conventional Output Conventional Revenue Environmental Benefits Revenue from CERs
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7. Baseline 2002 2012 time Emission reduction Project Emissions Baseline (emissions without project) ton CO 2 e emission per year
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10. Additional Value From ‘Clean’ Projects Implemented without CERs Not Additional With CERs not implemented Not implemented without CERs; Implemented with CERs CDM CER income
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12. Project Cycle - timeline Initial Project Concept Project Implementation Feasibility Assessment - is project eligible as CDM? Final Project Design - full Project Design Document Validation, Registration, Approval Realisation of emission reductions Actual Payment for CERs – $$$ Carbon Contract Verification and certification
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14. Registered CDM Projects & Pipeline (as of 1 March, 2010) CDM Statistics Annual Average CERs* Expected CERs until end of 2012** CDM project pipeline: > 4200 of which: N/A > 2,900,000,000 --- 2065 are registered 387,906,742 1,730,000,000 --- 46 are requesting registration 11,030,796 > 30,000,000 * Assumption: All activities deliver simultaneously their expected annual average emission reductions ** Assumption: No renewal of crediting periods
20. Industry wise Total Abatement Potentials Abatement Sectors Potential for CO2 Abatement (Million Tons/ year) Brick Manufacturing 10.0 Transportation 8.8 Oil and Gas Sector 6.53 Textile Industry 5.62 Fertilizer Industry 5.03 Cement Industry 4.71 Iron and Steel Industry 1.78 Glass Industry 0.88 Inorganic Chemicals 0.3
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23. CPA= Several measures Several sites Multiplicity of activities to reduce GHG . The sites could be located within one or more city, region, or country, as long as each involved country submits a Letter of Approval (LoA). The GHG-reducing activities do not necessarily occur at the same time. A program can have a duration of up to twenty-eight years. Managing entity. The program is coordinated or managed by one entity, which can be private or public. CPAs. A program is implemented via an unlimited number of CPA’s. All CPA’s must apply one approved baseline and monitoring methodology. PoA CPA CPA CPA
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26. Energy Optimization Solutions for Industries in Pakistan – CPA-1 Six projects have been included in Avanceon’s first CPA (CDM for Program of Activities) for year 2010 / 2011