UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Power-Gen PAK rd International Conference on Power Generation Pearl Continental Hotel, Lahore December 10, 2009 By Muhammad Matloob Khan UNIDO’s Initiatives for CDM in Pakistan

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth The Kyoto Protocol and CDM Kyoto Protocol 1.December 1997 (COP 3 RD negotiations finalized the KP) (Came into Force) (First Commitment Period) Significance: Kyoto Protocol legally binds developed countries to reduce GHG emissions by an average of 5.2% relative to 1990 level. KP Mechanisms for the Emissions Reduction: 1.Joint Implementation (JI), 2.Emission Trading Scheme (ETS) and 3.Clean Development Mechanism (CDM)

What types of projects can qualify for CDM? A project should meet three essential requirements to qualify as a CDM project: 1.Reduce emissions below the level in the absence of the project 2.Be located in a developing country 3.Provide benefits that contribute to sustainable development in the country.

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Project Host Additional Financial Resources Advanced Technology Transfer Achieve Sustainable Development Project Investor Cost Effective Emission Reductions International Trade in Environmental Goods Increased Commercial Interactions CDM Projects: A Win Win Situation $$$$$$$$$$$$$

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth CDM Potential in Pakistan Renewable Energy Abatement Potential (million tones/year) Large Hydro (25,641MW)56.15 Wind Energy12 Grid connected small Hydro5.6 Small Hydro (Off-grid) (45 MW)0.276 Bagasse Cogeneration (760MW)1.66 Solar Home Systems0.05 Total75.736

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth CDM Statistics: An Eye Opener CountryNo of ProjectsExpected Annual CERs CERs Issued by Host Party Expected $10/CER (mill.) Total Projects ,088, ,732, China670191,648, ,497, India46937,009,966 72,205, Brazil16520,867,610 36,080, Republic of Korea3414,862,859 46,740, Mexico1199,333,467 6,077, Chile354,682,271 3,987, Pakistan31,280,167 1,723,

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth CDM Statistics: Registered Projects

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth CDM Project Cycle: Steps towards CERs

CDM Project:Is it a complex business? Conventional Project Feasibility Technical Design (Technology Consultant) Financial Feasibility (Finance Consultant) CDM PDD (CDM Project Developer) GHG Considerations Carbon Revenue (CERs)

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Programme of activities (PoA) Rules  PoAs and CPAs at large and small ‐ scale level  A PoA contains one or many CDM Programme Activities (CPA), which can be successively added during the lifetime of the PoA POA Managing Entity CPA Implementer CPA Implementer CPA Implementer Facilitates a policy /measure or goal Achieve the emission reductions

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Advantage of PoAs Compared to bundling of small ‐ scale projects into one single CDM project, the PoA has significant benefits:  The individual project activities need not to be defined in advance  The exact sites of the project activities (CPAs) need not to be defined in advance  The individual project activities can be included into the PoA at any time without the need for further registration  Aggregation of SSC can go beyond SSC limits

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth UNIDO’s CDM Initiative in Pakistan 1.Institutional Strengthening of DNA/CDM Cell and other Institutions 2.Carbon Market Development in the Country to tap out the opportunities from Kyoto and non-Kyoto markets 3.Training of Human Resources 4.Support for CDM Project Development 5.Information and Awareness on CDM 6.Promotion of Climate Change Mitigation and Adaptation activities

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Established 17 November Member States 650 Staff Members 42 Field offices 19 Investment and Technology Promotion Offices 42 Resource Efficient and Cleaner Production Centers 9 Technology and Research Centers General Conference and Industrial Development Board BASIC FACTS AND FIGURES

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth UNIDO’s CDM Initiative in Pakistan Focused Industrial Sectors in Pakistan Sr. # Sector A Energy 1Renewable/ Alternate energy 2Energy Efficiency 3Energy Distribution 4Cogeneration 5Gas Flaring and Recycling B Waste Management 1Landfill Gas Capture 2Recycling/Composting 3Energy from Solid Waste Sr. # Sector C Industrial Processes 1Sugar 2Cement 3Fertilizer 4Textile 5Paper & Pulp 6Steel 7Bricks D Transportation 1BRT, MRT, Systems

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Things to Do Capacity building of the public, private and financial sector about CDM opportunities Dissemination of information about incentives of the CERs to local private investors To encourage private sector initiatives to invite the international investors and donors for the CDM Projects Easy financing at low interest rates to Introduce CDM Projects

UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION Reducing poverty through sustainable industrial growth Thank You Please Contact: Muhammad Matloob Khan United Nations Industrial Development Organization House # 35-B, College Road, F-7/2 Islamabad, Pakistan UNIDO-Pakistan CDM Programme: Turning Potential into Projects