MINISTERIO DE AMBIENTE, VIVIENDA Y DESARROLLO TERRITORIAL Development Dividend

Content  Role of the government  Instruments development in the context of the implementation of the CDM  Results obtained  Conclusions

Role of the government  Initial stages  Participation in the context of the negotiation of the international agreements  Develop national capacity  Facilitated the implementation of the new instruments

Instruments development in the context of the implementation of the CDM  Clear national framework  Articulation with national plans  National Development Plan – NDP  Law 813, 2003  NDP includes the priority to implement and coordinate activities to promote CDM projects in different sector (energy, transport, solid waste and LULUCF)  Includes specific target related with GHG emission reduction by CDM projects.  Target 2003 – 2006 : US$ 30M  US $26 M

Instruments development in the context of the implementation of the CDM  Articulation with other sectors  National Council on Economic and Social Policy  CONPES 3243 (August, 2003)  Strategy and Actions to Promote the Climate Change Mitigation Environmental Services  Recommendations for 4 ministries  Working plans with the different sectors  Approved by National Council of Social and Economic Policy - August, 2003  Mining-Energy Sector, with the Ministry of Mining and Energy and the Mining-energy Planning Unit (UPME).  Non-Interconnected Areas Sector, with the Energy Solutions Institute, in charge of energy generation in non-interconnected areas.  Transportation Sector, with the Ministry of Transportation.  Agro-Forestry Sector, with the Ministry of Agriculture, the Hydrology, Meteorology and Environmental Research Institute – IDEAM, the Tropical Agriculture Research Center (CIAT), PLANTE, the National Planning Department, CIPAV and CORPOICA.

 Fiscal benefits (tax exemptions)  Tax allowance in CDM projects  Law 788, 2003  For new projects in renewable energy if:  The project includes social programs and  social investment.  Rent Exemption in projects: eolic energy and biomass  15 years  Tax allowance for the equipment (new technology)  Exemption in added value tax  Importation of technology and equipment for CDM projects Instruments development in the context of the implementation of the CDM

Results obtained (1/2)  Jepirachi Wind Power Project  Colombia´s first wind farm.  19.5 MW, Ton CO 2 e  Direct benefits to indigenous community – Wayuu  Improve local conditions  Water supply  Education  Productive employment  EE.PP.M E.S.P - ERPA US $3.2  Rio Amoya Run-of-River Power Project  New approach to hydropower generation  Mitigation, vulnerability and adaptation  80 MW, 4´ Ton CO 2 e  Direct befefits to the communitiy:  Health  Education  Alternative production activities  Generadora Union – ERPA $18,2 Euros.

Results obtained (2/2)  Urban Mass Transportation System: Transmilenio  First CDM transportation project presented to meth panel  Benefits to the most important city.  Rio Frio Waster Water Treatment Plant Project  Three type of benefits  Climate change mitigation  Provision of clean drinking water and adecuate sanitation  Benefits to local commnunity  CO2 and N2O

Conclusions  The current carbon market will grow and consolidate in the following months.  Globally the carbon market pieces are close to be in place  The pace of its development has been enormous  In no time, the current learning scenario will become a competitive arena, where competitive advantages will prove decisive.

Thank you PRESIDENCIA DE LA REPÚBLICA MINISTERIO DE AMBIENTE, VIVIENDA Y DESARROLLO TERRITORIAL