CDM strategies to incorporate the developmental priorities and technological need: China Experience Cui Cheng Energy Research Institute National development and reform commission, China CDM workshop,24-26 March, Siem Reap, Cambodia

Main contents 1, CDM Authorities in China 2, CDM Regulation in China 3, Key elements of Chinese government concern for CDM 4, Key characters for CDM approve letter 5, Advantages for CDM project in China 6, Priority area of CDM in China 7, About LULUCF project for CDM 8, Who can operate the CDM Project 9, Key experience for CDM in China 10, Main CDM project in China

1, CDM Authorities in China 1, Principal: Office of National Coordination Committee for Climate Change, NDRC 2, Key coordinator: Department of rural and social development, MOST 3, And Department of Treaty and Law, MOFA 4, Manage Center for CDM Project *The office of NCC to take charge of the approve the CDM project

2, CDM Regulation in China 1, Interim Measures for the CDM Project Activities 2, Priority High Technology Area promoted by government in China 3, Other related law and regular

Main process for approve CDM in China (draft) 1, Process: Company/Enterprise ￫￫ Manage Center ￫￫ Office of NCC ￫￫ the meeting of Auditing Institutions ￫￫ approve letter from Office of NCC ( sign by NDRC, MOST, MOFA) 2, Manage Center: will be establish 3, Auditing Institutions: include 7 institutions, NDRC and Most as the Chair institution

3, Key elements of Chinese government concern for CDM 1, Accord with national policy and long term development plan 2, Advantage for Technology Transfer 3, Additionallity for ODA 4, Environment and social benefits

4, Key characters for CDM approve letter 1, Approve document for CDM project as a normal project 2, FDD (include key information in PDD) 3, Project investment from 4, Confirm letter from CERs buyer

5, Advantages for CDM project in China 1, huge potential for CDM 2, Good benefits for CDM project in the normal project level 3, low risk for normal project and CDM project 4, high level CERs for each project due to the Baseline (coal is main energy in China, over 75% total energy consumption) 5, Advantage for project success 6, Reduce transaction cost by project package

6, Priority area of CDM in China 1, Renewable Energy 2, Coal mine gas 3, Energy efficiency 4, Hydropower ……

7, About LULUCF project for CDM 1, Can not be approve this kind of Project 2, National sovereignty (can not be determine the use of the land) 3, Low technology level 4, Many complex issues (Baseline and others)

8, Who can operate the CDM Project 1, Domestic company/enterprise 2, Joint venture company/enterprise (CERs income as the stocks of Chinese side) 3, Foreign single-investor company/enterprise can not be operate CDM project (because no institution can accept CERs income due to the law )

9, Key experience for CDM in China 1, Baseline methodology: use the methodology approved by EB 2, Beginning at small scale project with simple process and get experience 3, Simplify the domestic approve process 4, Reduce transaction cost: domestic or regional OE 5, Information: special web site for CDM 6, prepare at least one spare project for CDM project

10, Main CDM project in China 1, ADB project: Opportunities for CDM in the Energy Sector in China  possibility of financing channel in energy sector  a CDM project development manual  How to combine the local economic, social and environmental benefits with CDM project  promising small scale CDM projects, including project design, evaluation, financing and impact assessment. (solar power, wind power, small hydro, energy efficiency, etc)

Main CDM project in China 2, WB project: Country study for CDM methodology and practice  Methodology and technical issues (baseline, emission amount calculation, etc)  Case study (manual, project channel,public awareness, etc)  Potential supply of CDM in China  From case to methodology (gas recycle in iron-steel sector, clear power and energy efficiency in construction sector)

Main CDM project in China 3, BP CDM project: use LNG instead of coal power generation in Zhuhai power plant  Energy demand and supply in regional and hole country  National situation and policy for CDM  Case study in Local,regional and country level (PDD, finance,environment and social benefits assessment, etc)  Further demand of regulation and law for CDM

Main CDM project in China 4,Canada-China Climate Change Cooperation Project  Include: policy dialogue, coal-bed methane, efficiency improvement in boilers, small hydro, solar energy and carbon sequestration.

Main CDM project in China 5, CERUPT and PCF project:  Wind farm in intermongolia (CERUPT project)  Small hydro in Gansu province  Coal mine gas in Sanxi province  Converter gas recycle in Nanjing iron-steel company

Main CDM project in China 6, UNF project:  National policy  Training  Pilot (renewable, energy efficiency, coal mine gas)  Website (Chinese)

Climate change official Website 