TÜV SÜD Group Carbon Management Service Methodology and Project Development – Notions of a DOE Methodology and Project Development – Notions of a DOE PCF Workshop for Project Developers Buenos Aires, Dec. 5th, 2004 Werner Betzenbichler TÜV Industrie Service GmbH – TÜV SÜD Group, Munich, Germany

TÜV SÜD Group Carbon Management Service Experiences CDM / JI Host countries: - Rumania - Bulgaria - South Africa - Morocco - Fiji - Brazil - Chile - Argentina - Peru - Mexico - Panama - Trinidad - Russia - India - China - Ukraine - Hungary - Czech Republic - Poland - Estonia - Latvia Types of project: - Renewable energy (hydro, wind, biomass, geothermal and solar energy) - Fuel Switch in conventional plants - Energy efficiency - Afforestation / Reforestation - Landfill gas capture - HFC and N reduction

TÜV SÜD Group Carbon Management Service Overview 1.Methodology Development and Approval 2.Project Development 3.Project Registration Cycle 4.Timelines and Costs

TÜV SÜD Group Carbon Management Service Methodology Development Trends:  Movement towards further project types  Inclusion of approved elements  more generic approaches  improved applicability  prepared fall-back positions in case of non-approval Criticism:  Late submissions short before end of deadlines  Uncompleted elements in accompanying draft PDD  hecticness in case of request or “B-decisions”

TÜV SÜD Group Carbon Management Service Methodology Approval Trends:  Impression of improved expertise within the “Roster of Experts”  Enhanced formatting process  new focus on monitoring issues Criticism:  Long reaction time in case of technical request  remaining interpretable issues e.g.- acceptable reservoir of a “run-of-the-river” plant - threshold for “dominated” by low-cost sources (AM0005) - treatment of data uncertainty

TÜV SÜD Group Carbon Management Service Project Development Trends:  yet no market consolidation concerning PDD developers  most activities within leading host countries Crucial issues:  technical expertise in project team  CDM expertise in project team  quality of evidences  reliability and actuality of data sources  transparency of the whole PDD / confidentiality issues  missing local stakeholder process for existing projects  host country’s environmental approval process

TÜV SÜD Group Carbon Management Service Project Registration Cycle Observations:  underestimation of time need by project owners  clear guidance on requirements in case of revisions of PDDs is still outstanding  very diverse behavior of DNAs in the context of the issuance of a letter of approval  time extensive requirements for use of forms and partly translations  remaining risks until the final step of registration

TÜV SÜD Group Carbon Management Service Timelines and Costs Observations:  overambitious deadlines for validation  further delay by late comments during global stakeholder process  recent market price for validation does not reflect in all cases the real efforts reasons: - competition with new entrants - unexpected efforts during the final steps of registration - multiple expertise required (CDM, technology, local and sectoral aspects)

TÜV SÜD Group Carbon Management Service Werner Betzenbichler Tel (0) – TÜV SÜD Carbon Management Service