German Emissions Trading Authority (DEHSt) UNFCCC Technical Workshop on Joint Implementation Role of parties involved in JI projects - Germany Dr. Wolfgang Seidel German Emissions Trading Authority (DEHSt) 2007-02-13 Head of Unit „Administrative Procedures, Quality control, JI and CDM (DNA/DFP)“

Content German DNA and DFP Project Approval Procedure Project Overview Project Examples Experiences and Outlook

1. German DNA and DFP German DNA and DFP established: German Act on Project-Based Mechanisms JI and CDM –ProMechG (30.09.2005) Federal Environment Agency named as competent national authority

2. Project Approval Procedure Control of Participation Requirements JI: If both countries involved fulfill all participation requirements  Track 1  otherwise Track 2 MoU is not required

2. Project Approval Procedure Criteria Assessment Additional emission reduction No serious harmful environmental impacts If necessary consideration of other international criteria (e.g. World Dam Criteria)

2. Project Approval Procedure Criteria Assessment Assessment is generally focused on plausibility, consistency and coherence Focus is especially on additionality (usage - with regard to JI particulars - of the tool for the demonstration and assessment of additionality (version 2) of the CDM Executive Board)

2. Project Approval Procedure Criteria Assessment In case of: JI within the EU ETS: action against double counting JI in Germany: action against double public funding (e.g. feed-in-tariffs of the Renewables Energy Sources Act form part of the baseline emissions)

2. Project Approval Procedure For all project types: Letter of Approval is only issued to the project initiator (or representative) The applicant does not have to be of German nationality JI in Germany: Principle of reciprocity

3. Project overview – status quo 62 requests for approval or endorsement for JI projects within Germany 5 requests for endorsement for JI projects in other Annex B countries Project categories include coal mine methane, biomass, biogas, fuel switch and energy efficiency, wind power, landfill gas and nitrous oxide

3. Project overview – status quo

4. Germany as JI host country: Use of Coal Mine Methane Concept: Generation of heat and power from Coal Mine Methane Reduction: 4 Mio. t CO2 eq./a from 47 mostly abandoned mines Aspects: Renewable Energy Sources Act (EEG) feed-in-tariffs must be part of the baseline scenario Economical barrier due to the risk of deterioration of mine gas (quantity and quality) Conclusion: Approval of the JI project is expected, but full integration of the feed-in-tariffs in the baseline emissions

4. Germany as JI host country: Biomass heating for public buildings Concept: Installation of biomass heating instead of oil or natural gas heating Reduction: “Small Scale“ project, 10.000 t CO2 / a Aspects: no double public founding (no feed-in-tariffs according to the Renewable Energy Sources Act), PIN passes the additionality test Conclusion: Endorsement is expected

5. Experiences and Outlook Lack of harmonization within the EU/Annex B countries Significant differences with regard to criteria for approval of JI projects Additionality as key element of JI Difficulty of determining BAT standards e.g. in energy efficiency projects in Germany Difficulty to scrutinize and check the plausibility of the investment analysis

5. Experiences and Outlook Programmatic JI Some project ideas in Germany take up a programmatic approach (similar to programs of activities under the CDM), e.g. climate bonus programs of utilities (fuel switching; installation of heat pumps) Fees Official acts under the ProMechG are chargeable. A substantial lowering of fees is expected in 2007. Financing of administrative costs of the DNA/DFP through selling/auctioning of EUAs in the future.

German Emissions Trading Authority (DEHSt) THANK YOU for your attention! Dr. Wolfgang Seidel German Emissions Trading Authority (DEHSt)