1. 16/10/20071 Methodological approaches regarding baseline setting and monitoring UNFCCC Technical Workshop on JI Bonn, 15-16 November 2007 Lennard de Klerk Global Carbon BV

2. 16/10/20072 Global Carbon B.V. Global Carbon B.V. is an international consultant with an exclusive focus on JI projects Areas of operation are Bulgaria, Ukraine, and the Russian Federation. Enthusiastic team based in The Hague, Budapest, Sofia, Kyiv, Donetsk and Moscow. Expanding company with currently 17 experts active in all different JI project types.

3. 16/10/20073 Experience Experience in final determination: Ever first JI project: JI 0001 “Switch from wet-to-dry process at Podilsky Cement” Experience in monitoring and verification: First Ukrainian monitoring and verification completed for 2004 – 2006 of project “Utilization of CMM at the Coal Mine named after A.F. Zasyadko” Pre-monitoring completed for Podilsky Cement project Global Carbon working on transferring the first ERUs and AAUs.

4. 16/10/20074 JI guidance on baseline setting “Guidance on criteria for baseline setting and monitoring” offer different options for baseline settings. In applying the guidance for baseline setting (section B) the most practical approach is: Use an existing CDM methodologies, or Use elements of existing CDM methodologies, or Use approach of registered JI project, or If no CDM methodology is available, use the underlying principles of CDM methodologies This requires a clear understanding of the PDD consultant and the AIE of the underlying principles of CDM methodologies.

5. 16/10/20075 Most common projects in JI world In JI countries like Ukraine and Russia the focus is about modernization of the existing infrastructure. Hence energy efficiency projects are (or should) provide the majority of the projects. For energy efficiency projects not many methodologies are available. However if the baseline scenario is the continuation of the existing situation, take the three-year average of the specific energy consumption prior to project implementation. Such approach is applicable for most energy efficiency measures (like Podilsky Cement project). Other projects in JI countries CMM, LFG: CDM methodologies exist Cement: CDM methodologies exist + Podilsky Cement approach can be used

6. 16/10/20076 Specific baseline issues JI Energy efficiency in steel industry is large potential, but there is not much experience in CDM. The energy flows within the steel process are very much interlinked. Therefore special attention should be given to drawing the correct project boundaries. Energy efficiency projects that increase production capacity at the same time. Question on how to deal with the baseline emissions for the incremental capacity? How to deal with biofuels double-counting issue and exported biofuels? -> follow the discussion as under CDM.

7. 16/10/20077 JI guidance on monitoring (section C) Article 37: The project participants are encouraged to improve the monitoring process and its results. Revisions, if any, to the monitoring plan to improve its accuracy and/or completeness of information shall be justified by project participants and shall be submitted for the determination referred to in paragraph 37 of the JI guidelines by the AIE. A pre-monitoring visit is vital to ensure a correct monitoring of baseline and project monitoring. Main focus is on correct data management and storage.

8. 16/10/20078 Deviations from PDD The practice is that some projects are built differently than originally designed in PDD. Example cogeneration project: Instead of originally two cogeneration plants of 2 x 20 MW el = 40 MW el, the project participant implemented a 3 x 15 MW = 45 MW el plant. If such a change does not materially changes the basis on which the baseline was determined by the AIE, the AIE should have the possibility to assess whether such a change does not change the assumptions on which the project was determined (a non-material change).

9. 16/10/20079 Contacts Global Carbon BV Lennard de Klerk Tel.: +36 1 4290060 deklerk@global-carbon.com Offices in The Hague, Sofia, Kyiv, Donetsk and Moscow For more information see: www.global-carbon.comwww.global-carbon.com