RCREEE Member States: from the first movers for the NAMAs 16-17 November 2011

1. The status of CDM RCREEE countries:
legislation, institutions, CDM
potential and barriers
Rafik Missaoui, Alcor
Workshop “Existing CDM Potential and Perspectives for
Carbon Finance in RCREEE Member States beyond 2012”
Cairo, Egypt, 16. November 2011
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2. General overview on cc policy in RCREEE countries
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3. UNFCCC ratification and national communication submission years
Date
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4. Kyoto protocol ratification and DNA creation
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5. First CDM project registration
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6. Number of CDM registered projects
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7. Learned lesson
Don’t wait until the game is done, be from the
first movers for the NAMAs !
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8. The status of CDM in Jordan
Carbon neutrality for Costa Rica
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9. Jordan
 National stakeholders and DNA
- Ministry for Environment (MoE)
- DNA consists of two components:
- DNA Technical Committee
- High Level (DNA) Committee
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10. Jordan
 CDM potential
 CDM barriers
- Lack of capacity (stakeholders, DNA, institutions)  Lack of trust
- High transactions costs/ no economic incentives (tax of 15% on CDM
revenues)
- Bureaucracy and administrative inertia
- Bidding approaches to sell CERs
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11. The status of CDM in Lebanon
Carbon neutrality for Costa Rica
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12. Lebanon
 National stakeholders and DNA
- The Ministry of Environment (MoE)
- Climate change related policies and activities
DNA of Lebanon
 CDM potential
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13. Lebanon
 CDM barriers
- No multilateral and bilateral projects of capacity building  lack of
capacity (institutional/technical), awareness and understanding of
CDM and lack of trust
- Weak promotional effort to develop CDM
- Low sizes of projects  high transaction costs
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14. The status of CDM in Syria
Carbon neutrality for Costa Rica
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15. Syria
 National stakeholders and DNA
- The Council for Environment Protection and Sustainable
Development
- Ministry of Local Administration and Environment (MoLAE)
- The General Commission for Environmental Affairs (GCEA)
 DNA in Syria
- The Environmental Studies Centre (ESC)
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16. Syria
 CDM potential
 CDM barriers
- Lack of capacity, awareness and understanding of CDM
- Weak involvement of the national entities in charge of CDM
(identification, promotion and follow-up of projects)
- Limited technical expertise in main sectors
- Lack of legal and institutional framework
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17. The status of CDM in Yemen
Carbon neutrality for Costa Rica
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18. Yemen
 National stakeholders and DNA
- Ministry of Water and Environment/
Environment Protection Entity
- DNA consists of:
- DNA Secretariat
- DNA Board
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19. Yemen
 CDM potential
- Gas flaring reduction: 0.8 million CERs per year
- Landfill gas recovery: 3 landfills with total potential of 300,000 CERs
per year over 21 years
- Renewable energy: large potential for wind, concentrating solar
power and geothermal energy
- Oil and coal gas switch (40,000 and 190,000 CERs/year)
- Liquid waste management and Wastewater treatment
 CDM barriers
- Lack of capacity, awareness and understanding of CDM
(stakeholders, government, institutions)
- Lack of financial sustainability (one of the poorest countries in the
Middle East)
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20. The status of CDM in Egypt
Carbon neutrality for Costa Rica
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21. Egypt
 Climate policy and CDM
 National stakeholders and DNA
- National Committee on Climate Change
- Egyptian Environmental Affairs Agency
- Climate Change Unit (CCU)  DNA of Egypt (Egyptian Bureau/
Egyptian Council for Clean Development Mechanism
- CDM Awareness and Promotion Unit (CDM APU)
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22. Egypt
 CDM potential
Source: McKinsey GHG V2.0 models; team analysis
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23. Egypt
 CDM barriers
- Lack of awareness of the CDM
- Power Purchase agreements (PPAs)  no legislation that allows
independent power producers to sell their electricity
- Subsidies on fossil fuels in Egypt  hinder renewable energy and EE
CDM projects
- No funds for awareness and promotion activities  DNA only
approves CDM projects
- Companies do not have the capacity to evaluate CDM project
proposals
- Lack of underlying finance for CDM projects as financial institutions
do not fully understand the CDM
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24. The status of CDM in Libya
Carbon neutrality for Costa Rica
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25. Libya
 National stakeholders and DNA
- Ministry of Health and Environment  main governmental body
concerned with the development and implementation of
environmental policy in Libya
- Environment General Authority  DNA of Libya
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26. Libya
 CDM potential :estimated at around 35 MtCO2e by 2020 in the
energy sector Sector/Project type % of mitigation
Flare gas recovery 24%
Combined Cycle plants 16%
Fuel Switching to NG 5%
Wind Power 5%
Cogeneration from NG 4%
Waste to energy 4%
EF in building 5%
EF in Industry 2%
Other measures 35%
Total 100%
Estimation of expert from Samir Amous, Middle Eastern and North African
PoA Workshop, WB, 26-27 January 2010, Tunis
 CDM barriers
- Crucial lack of technical and institutional capacity
- Lack of awareness of the CDM
- Initiatives in this field are very rare
- Transparency and stability of governance
- A non operational DNA
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27. The status of CDM in Morocco
Carbon neutrality for Costa Rica
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28. Morocco
 National stakeholders and DNA
- Climate Change Unit
- National Committee for Climatic Change (CNCC),
- Information Centre on Sustainable Energy and Environment ( CIEDE)
- National Scientific and Technical Committee ( CNST- CC)
- DNA : CDM National Council (CDM NC)  Senior officials
CDM Permanent Secretariat (CDM PS)  Secretariat of
State for Water and Environment
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29. Morocco
 CDM potential : 28 % reduction in the emissions by 2020 and 26
% by 2030 ( ≈ 50 MTCO2e )
ktCO2e Mitigation potential
250 000
200 000 194 780
150 000 144 048
134 546
100 000
96 831
65 314
50 000
0
2000 2020 2030
Baseline scenario Mitigation scenario
 CDM barriers
- Lack of awareness of the CDM
- Bidding approaches to sell CERs
- Predominance of public institutions projects
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30. The status of CDM in Tunisia
Carbon neutrality for Costa Rica
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31. Tunisia
 National stakeholders and DNA
- National Commission for Sustainable Development (NCSD)
- National Committee on Climate Change/ Focal Agency (NCCC)
- Information Centre on Sustainable Energy and Environment (CIEDE)
- CDM Task force
- General Directorate of Environment and the Quality of Life, Ministry
of Environment and Agriculture  DNA of Tunisia
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32. Tunisia
 CDM potential : a mitigation potential of 24.4 Mt CO2eq by 2020
MtCO2e Mitigation potential
80
75,4
70
60
51
50
40 37,8
30
20
10
0
2000 2020
Baseline scenario Mitigation scenario
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33. Tunisia
 CDM barriers
- Predominance of public enterprises CDM projects
- A private sector hardly engaged
- No high policy priority accorded for CDM
- Large portion of the CDM potential located in the small and
medium-sized enterprise sector in Tunisia
- Bureaucracy and administrative inertia
- Bidding approaches to sell CERs
- Low prices for electricity
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34. The status of CDM in Algeria
Carbon neutrality for Costa Rica
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35. Algeria
 National stakeholders and DNA
- Algerian Ministry for Territory and Environment (MATET)
- National Climate Change Committee (CNCC)
- Scientific and technical Climate Change Committee (CST-CC)
- Information Centre on Sustainable Energy and Environment (CIEDE)
- national climate change agency (ANCC)
- DNA : permanent secretariat  ANCC
DNA commission  MATET
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36. Algeria
 CDM potential : 1 MtCO2eq. per year ( mitigation potential of 20
PINs portfolio )
 CDM barriers :
- Lack of understanding of the requirements of the CDM
- Limited national capacity to direct the CDM process in
Algeria
- Absence of technical assistance from the donor
community
- Mitigation effort focused on CCS projets
- No policy priority accorded for CDM
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37. Conclusion: main barriers, lessons for NAMA
Carbon neutrality for Costa Rica
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38. Conclusion: main barriers
 Small projects
- High transaction costs
- Not much interesting the developers
- Not interesting CERs byers
 A private sector hardly engaged
- Lack of communication
- Lack of capacity analysis of opportunities
 Predominance of public enterprises CDM projects
potential
- Bureaucracy and administrative inertia
- Bidding approaches to sell CERs
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39. Conclusion: main barriers
 Limited national capacities
- Private expertise
- Expertise in public institutions
 Institutional lack
- DNA under Ministries of environment and Conflicts with
other sectors (energy, transport, etc.)
- DNA not very operational (institutional composition)
- Lack of human and financial means
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40. Conclusion: Lessons for NAMAs
 Institutional arrangements
 Capacity building
 Financial stable support
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41. Many Thanks for
Your Attention!
Rafik Missaoui, Alcor
r.missaoui@alcor.com.tn
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