1. TÜV SÜD Group Carbon Management Service Methodology and Project Development – Notions of a DOE Methodology and Project Development – Notions of a DOE PCF Workshop for Project Developers Buenos Aires, Dec. 5th, 2004 Werner Betzenbichler TÜV Industrie Service GmbH – TÜV SÜD Group, Munich, Germany

2. TÜV SÜD Group Carbon Management Service Experiences CDM / JI Host countries: - Rumania - Bulgaria - South Africa - Morocco - Fiji - Brazil - Chile - Argentina - Peru - Mexico - Panama - Trinidad - Russia - India - China - Ukraine - Hungary - Czech Republic - Poland - Estonia - Latvia Types of project: - Renewable energy (hydro, wind, biomass, geothermal and solar energy) - Fuel Switch in conventional plants - Energy efficiency - Afforestation / Reforestation - Landfill gas capture - HFC and N 2 0 - reduction

3. TÜV SÜD Group Carbon Management Service Overview 1.Methodology Development and Approval 2.Project Development 3.Project Registration Cycle 4.Timelines and Costs

4. TÜV SÜD Group Carbon Management Service Methodology Development Trends:  Movement towards further project types  Inclusion of approved elements  more generic approaches  improved applicability  prepared fall-back positions in case of non-approval Criticism:  Late submissions short before end of deadlines  Uncompleted elements in accompanying draft PDD  hecticness in case of request or “B-decisions”

5. TÜV SÜD Group Carbon Management Service Methodology Approval Trends:  Impression of improved expertise within the “Roster of Experts”  Enhanced formatting process  new focus on monitoring issues Criticism:  Long reaction time in case of technical request  remaining interpretable issues e.g.- acceptable reservoir of a “run-of-the-river” plant - threshold for “dominated” by low-cost sources (AM0005) - treatment of data uncertainty

6. TÜV SÜD Group Carbon Management Service Project Development Trends:  yet no market consolidation concerning PDD developers  most activities within leading host countries Crucial issues:  technical expertise in project team  CDM expertise in project team  quality of evidences  reliability and actuality of data sources  transparency of the whole PDD / confidentiality issues  missing local stakeholder process for existing projects  host country’s environmental approval process

7. TÜV SÜD Group Carbon Management Service Project Registration Cycle Observations:  underestimation of time need by project owners  clear guidance on requirements in case of revisions of PDDs is still outstanding  very diverse behavior of DNAs in the context of the issuance of a letter of approval  time extensive requirements for use of forms and partly translations  remaining risks until the final step of registration

8. TÜV SÜD Group Carbon Management Service Timelines and Costs Observations:  overambitious deadlines for validation  further delay by late comments during global stakeholder process  recent market price for validation does not reflect in all cases the real efforts reasons: - competition with new entrants - unexpected efforts during the final steps of registration - multiple expertise required (CDM, technology, local and sectoral aspects)

9. TÜV SÜD Group Carbon Management Service Werner Betzenbichler Tel. ++49-(0)89 57 91 – 2170 Werner.Betzenbichler@tuev-sued.de www.netinform.net TÜV SÜD Carbon Management Service