1 Summary National Workshop Technical Workshop on CDM Paramaribo, 18 June 2008 Adriaan Korthuis

2 What is CDM A mechanism to reduce emissions of greenhouse gasses in the world An instrument to promote sustainable development Extra income for an investment project A cheap alternative for reducing emissions at home A trading opportunity A leak in the Kyoto Procol

3 The larger framework Global warming Need to reduce greenhouse gas emissions UNFCCC Kyoto Protocol Emission reduction targets in industrialised countries Supporting sustainable development in developing countries CDM Providing investment incentive in developing countries Providing reduced reduction cost in industrialised countries

4 CDM principle CER CO 2 Non-Annex B CO 2 Annex B Reduce emissions Sell emission reduction certificates Use certificates to offset emissions Pay certificates

5 CDM governance Conference of Parties to the UNFCCC Meeting of the Parties to the Kyoto Protocol ( COP/MOP) CDM Executive Board (EB) Accreditation Panel appraising DOEs (AP) Methodology Panel (Meth Panel) Afforestation and Reforestation Working Group (AR WG) Small scale working group (SSC WG) CDM Registration and Issuance Team (RIT)

6 Project development PROJECT IDEACONSTRUCTIONFINANCINGFEASIBILITY STUDY MAKE PDD OPERATION REGISTERVALIDATEISSUE CERsVERIFY STAKEHOLDER COMMENTS TEST ADDITIONALITY USE OR MAKE METHODOLOGY NEGOTIATE ERPASELECT BUYERPREPARE TERM SHEETDELIVER CERs CDM / JI DEVELOPMENT PHYSICAL PROJECT DEVELOPMENT COMMERCIAL DEVELOPMENT STAKEHOLDER COMMENTS MONITOR APPROVAL

7 Designated National Authorities - DNAs Roles (1)  Evaluation and Approval: –Adoption of international eligibility criteria (Marrakech Accords) –Establishment of national criteria Accomplishment of national and sectoral policies and legislation Guarantee national stakeholders participation Special consideration to stakeholders´ comments Technical and economical feasibility of the projects Environmental viability –Issuance of an approval letter declaring voluntary participation and SD contribution

8 Designated National Authorities - DNAs Roles (2)  National CDM Policy and strategy formulation  Local capacity development for CDM public/private project proponents  Identification of CDM projects and formulation of PDDs  Baseline methodologies and additionally criteria  Emission reduction calculation  Monitoring protocols for project performance (e.g. SD)  Carbon market and bilateral agreements

9 9  Pillars: economic -, social development and a just distribution of wealth  Policy priorities:  Guarantee minimal social security  Make accessible social securities  An equitable distribution of income  Public participation  Sustainable exploitation production sectors SD Policy in Suriname

10 Ministerie van ATM Milieu Sektie (DNA) CDM-office Klimaat Unit BeleidsfunctiePromotie functie Voorlichting ATM Promotion office NIMOS NIMOS Externe deskundigen (NH, RGB, LVV, OW)

11 CDM pipeline development - Countries

12 Price development: quality determines value Source: Perspectives GmbH

13 CDM Ideas for Suriname reduction of refinery stack emissions; reduction of oil field methane emissions; composting;landfill gas extraction; domestic waste water processing; animal waste processing; small and large scale hydropower; biomass energy; solar energy (thermal and pv); biofuel production; forestry related projects: revegetation reforestation; afforestation; avoid deforestation; ecotourism.

14 Conclusion  CDM is an incentive mechanism to support projects that reduce greenhouse gas emissions  It is rooted in an international legal framework: UNFCCC and the Kyoto Protocol  CDM projects are developed in a structured, though perhaps bit complex procedure  The carbon market is increasing fast and it can have significant consequences on company performance

15 Contact details  Adriaan Korthuis  Phone  climatefocus.com 