14 November 2006 UNFCCC Side Event, COP/MOP, Nairobi Development and Implementation of a JI Track 2 project Manfred Stockmayer Director Camco International Ltd

1 Camco International  Leading developer of carbon assets in JI and CDM projects  Camco works with industrial companies and utilities  Camco helps to maximise the volume and to facilitate placement  Main markets: China Russia Africa Central and Eastern Europe (CEE)  Listed on the London Stock Exchange  Current portfolio of more than 100 million tons of CO2

2 JI in CEE: Lots of questions….. …. Which impacts does the EU Emissions Trading Scheme have? …. How will the issue of double counting be interpreted and be dealt with? …. What is the JI project potential in various sectors? …. How easy is it to develop the project documents and get them approved? …. How much time is left to develop JI projects? …. What is the view of buyers on ERUs?

3 The Linking Directive – a bit of background Links the project-based mechanisms (JI and CDM) to the EU Emissions Trading Scheme  National Allocation Plans shall determine the maximum percentage of CERs and ERUs to be used by installations  Application of criteria and guidelines from World Commission on Dams for hydro power projects  No CERs and ERUs from nuclear facilities and LULUCF activities  Avoidance of double counting (direct and indirect)

4 The Linking Directive – basis for headache Direct double counting No (serious) problems as emission reductions lead to financial benefits => projects will be implemented Indirect double counting Potential for projects in the following categories is reduced:  Renewables (wind, small hydro, biomass CHP)  CHP  Energy efficiency (electricity, district heating)

5 Challenges in developing baselines and monitoring plans  Based on CDM methodologies  Flexibility – take the best and leave the rest  Develop own approaches if no methodology existing  Need for well-experienced project developer/consultant

6 … and even more questions… …. How will countries react on potential limitations? …. Are Green Investment Schemes (GIS) the solution? …. How will the JISC further define the framework for JI? Limited timeline for many project categories Focus on project categories with no (minor) impact on EU ETS  Energy projects up to 20 MW  Methane  Biofuels

7 Thank You Manfred Stockmayer Director Camco International