DER SPEZIALIST FÜR PUBLIC CONSULTING GIS from the perspective of a governmental Buyer – Experience & Expectations The Austrian JI/CDM Programme Birgit Haberl

DER SPEZIALIST FÜR PUBLIC CONSULTINGABTEILUNG I.Introduction to the Austrian JI/CDM Programme II.GIS Experience III.GIS Requirements and Expectations Agenda

DER SPEZIALIST FÜR PUBLIC CONSULTINGABTEILUNG Kommunalkredit Public Consulting (KPC) Vienna Employees: 57 Management of: - Austrian JI/CDM Programme, EUR 531 Mio. - Austrian Climate and Energy Fund - Federal environmental support schemes in A & abroad - Austrian Development Agency coop. in CEE

DER SPEZIALIST FÜR PUBLIC CONSULTINGABTEILUNG GIS Austrian JI/CDM Programme - Overview Republic of Austria Federal Ministry of Agriculture, Forestry, Environment and Water Management Austrian JI/CDM Commission Federal Minister of Agriculture, Forestry, Environment and Water Management EUR 531 Mio. Application Recommendation Approval Current Portfolio Management of Austrian JI/CDM Programme by KPC  Sourcing of eligible projects  Funding Contracts for Project Development  Negotiation and Conclusion of ERPAs  Recommendation to Austrian JI/CDM Commission  Marketing & Stakeholder Relations  ERPA Administration  Portfolio Monitoring  Payment on Delivery  max. 50% Prepayment  Risk Management Volume Target ( ): 45 Mio. t CO 2e 3 Facilities 5,45 Mio. t 1 Fund USD 5,00 Mio. Type Volume (t CO2e) 17 JI 7,3 Mio. 51 CDM 29,2 Mio. 36,5 Mio. Current Portfolio Individual JI/CDM Projects Carbon Facilities/Funds 1 GIS 2,0 Mio. t

DER SPEZIALIST FÜR PUBLIC CONSULTING II. GIS Experience

DER SPEZIALIST FÜR PUBLIC CONSULTINGABTEILUNG GIS Experience (I) -GIS offers more flexibility to the host country and the investor country compared with JI -GIS offers the chance for revenues “up front” (after delivery of AAUs but before delivery of greening results) -There is a lot of preparatory work to accomplish in the host country before agreement on a binding contract can be reached -Art. 17 eligibility -legislative background, authorization to negotiate and sell on behalf of the host country -implementation of GIS management facility with sufficient capacity and resources -project/programme potential and pipeline -secondary legislation/tender documents (project selection process and criteria)

DER SPEZIALIST FÜR PUBLIC CONSULTINGABTEILUNG GIS Experience (II) -GIS is less standardized – contracts are tailored to the specific needs of the involved parties -Negotiations take longer than for JI/CDM deals and almost always longer than expected -AAUs are a politically sensitive asset – there are reputational risks for both Seller and Buyer country (activities are closely watched in the market) -This risk can be mitigated by high quality GIS scheme, maximum transparency and coordinated and joint communication

DER SPEZIALIST FÜR PUBLIC CONSULTING III. GIS Requirements and Expectations

DER SPEZIALIST FÜR PUBLIC CONSULTING GIS Requirements & Expectations (I) -Hard greening (money needs to be used for supporting projects/programmes that lead to direct and quantifiable GHG emission reductions) -Certain percentage of purchase price may be used for soft greening in terms of raising public awareness to ensure the efficiency and market penetration of the direct GHG emission reduction measures -Certain percentage of purchase price may be used for administrative costs of GIS management facility -Other environmental benefits (reduction in air, and water pollution etc.) and positive social impacts are welcome and provide additional incentive for buyers

DER SPEZIALIST FÜR PUBLIC CONSULTING GIS Requirements & Expectations (II) -Results are required to be monitored according to certain standards (in line with project size) -Traceability of Funds is essential (special budget line, managed disbursement of funds, escrow agent, auditing of reports etc.) -Reporting requirements and supervisory function of buyer -Clear and fair AAU-PA based on equal footing and risk sharing including (i) clear milestones with regard to spending funds for eligible projects/programmes and greening results and (ii) agreement on measures and remedies in case of non- compliance with milestones -Not AAUs are the asset but “greened AAUs”

DER SPEZIALIST FÜR PUBLIC CONSULTINGABTEILUNG Austrian JI/CDM Programme