1. CDM Project Pipeline Auditorium, AIT Conference Center, Thailand 19-21 October 2005

2. Outline A.CDM Pipeline in the Philippines B.CDM issues affecting the development of CDM projects C. Roles of DNA, NGO and other institutions D. Country specific issues E. Lessons Learned F. Conclusions

3. Waste Management Projects Renewable energy Projects Afforestation/Reforestation Projects Others A. CDM Pipeline in the Philippines as of October 2005

4. Waste Management Projects Rocky Farms Piggery Waste Biogas Digester Project Waste to Energy Program for Philippine Pig Farms Paramount Integrated Methane Recovery and Electricity Generation Unirich Farm Corporation Methane Recovery and Electricity Generation Everlasting Farm and Sentra Farm Corporation Methane Recovery Generation Gold Farm Corporation Methane Recovery and Electricity Generation Gold Lion Farm Corporation Methane Recovery and Electricity Generation Red Dragon Farm Corporation Methance Recovery and Electricity Generation Container Corporation of the Philippines Wastewater Gas to Energy Project Tanay Municipal Landfill Gas to Energy Project PNOC Exploration Corporation Payatas Landfill Gas to Energy General Santos Biogas Recovery and Utilization CAT Waste to Energy Biogas Integrated Solid Waste Disposal Projects in the Philippines 50MW Victorias Baggase Cogeneration Plant 30MW First Farmers Cogeneration La Suerte Rice Mill 1MW Rice Hull Cogeneration Plant Isabela Rice Hull Power Generation / Cogeneration Program Intercity Industrial Estate 5MW Rice Hull Power Plant Boracay ReStore Wind-Biogas Hybrid Digester Anaerobic Baffled Reactor Integrated Strategy for Transport and Waste Management Capture from Anaerobic Digestion of Pig and Livestock Manure Methane Capture in Metro Manila Dumpsite Biogas Project in Southern Christian College Reduction of Nitrous Oxide D&C Farm Corporationb Pig City Total: 29 (63%)

5. Renewable Energy Projects 42MW North Luzon Wind Power 25MW North Wind Bangui Bay Project 21MW Wind Farm Project 10.8MW Talubin River Basin Hydropower Project 12.5MW Mindoro Mini-Hydro Power Plant Projec 20MW Palinpinon II Optimization Project San Carlos Wind Farm Abra de Ilog Wind Farm Sipanpang 1MW Hydropower 20 MW Nasulo Geothermal Project Burgos Wind Project CEMEX Chemrez Bio-Diesel Total : 14 (30%)

6. Afforestation and Reforestation Streambank Rehabilitation and Ecological Enhancement in Tanay Micro-Watershed Project Sustainable Reforestation in Tarlac Total: 3 (7%)

7. Status of CDM projects in the Philippines: Projects with Project Design Document : 17 Projects with PIN/PAD : 26 CDM Documents under development : 3 Total : 46 Projects submitted for DNA approval : 28 Projects posted for validation : 11 Project implemented : 1 Note: There maybe other CDM projects not monitored by CD4CDM

8. CDM Projects posted for validation Paramount Integrated Methane Recovery and Electricity Generation(7,879 tCO2/yr) Unirich Farm Corporation Methane Recovery and Electricity Generation (3,255 tCO2/yr) Everlasting Farm and Sentra Farm Corp. Methane Recovery Generation (4,086 tCO2/yr) Gold Farm Corporation Methane Recovery and Electricity Generation (3,255 tCO2/yr) Gold Lion Farm Corporation Methane Recovery and Electricity Generation 3,255 tCO2/yr) Red Dragon Farm Corporation Methance Recovery and Electricity Generation 1,494 tCO2/yr) D&C Farm Corporation (1,494tCO2 tCO2/yr) 25MW North Wind Bangui Bay Project (76,218 tCO2/yr) Burgos Wind Power (62,872 tCO2/yr Nasulo Geothermal Project (81,009 tCO2/yr) PNOC Exploration Corporation Payatas Landfill Gas to Energy (35,843 tCO2/yr)

9. CD4CDM Assisted Projects Promoted and Facilitated (37%) Provided technical Assistance (39%) Other projects (22%) Developed PDD (2%) 17 18 10 Total Projects: 46 1

10. Technical assistance provided by CD4CDM: Participation of the project proponents in a Technical Tutorial Course conducted by CD4CDM to develop the Project Design Document (PDD) or the Project Application Document (PAD). The course included individual tutoring of project proponents in-between monthly meetings. Assisted project proponents in developing their PDD or PAD by providing technical expertise in terms of project cycle, baseline and monitoring methodologies, additionality, etc. CD4CDM Assisted Projects

11. Promotion or facilitation provided by CD4CDM: Participation of the project proponents in various training workshops conducted by CD4CDM; Inclusion of the CDM projects in the promotional activities of CD4CDM like 2004 Manila Carbon Forum and the 2005 Carbon Expo held in Cologne, Germany; Close coordination with the proponents in terms of CDM methodologies and updates. CD4CDM Assisted Projects

12. B. CDM issues affecting the development of CDM projects Barriers: Hesitancy in investing in CDM projects by local and foreign investors; Lack of baseline data; High transaction cost in terms of CDM documentation (PDD preparation); High transaction cost of validation and certification;

13. B. CDM issues affecting the development of CDM projects Barriers:  EB developments (i.e. decisions, approval of methodologies, etc) which are lagging behind developments in the market;  Insufficient local and regional validators;  Present political issues faced by the country;  Changes in government officials involved in the process

14. B. CDM issues affecting the development of CDM projects Solutions: Advocacy to CER buyers like Japan to invest in underlying finance; Advocacy to financial institutions to use CERs and ERPAs to improve credit ratings of project proponents and act as bundlers for small scale CDM projects; On-going project to establish baseline data for energy projects; Continuous capacity building for project proponents and local consultants to develop CDM documents;

15. Solutions: Presence of local validators will lower validation cost; Provision of lower application fee and shorter processing time for small scale projects in the national approval process to lessen transaction cost; Continuous capacity building for all the institutions involved in the CDM national approval process; B. CDM issues affecting the development of CDM projects

16. A.Designated National Authority (DNA ) Formulates and develops a national CDM policy; Develops the criteria, indicators, standards, systems and procedures, and evaluation tools; Undertakes the assessment of proposed CDM projects; Monitors the implementation of CDM projects; C. Roles of different institutions/ groups in CDM

17. B. Non- government Organization Ensures that the sustainable development (SD) impacts of the proposed CDM project are in line with the SD objectives of the country; Develops and promotes CDM projects with high SD impacts; Participates in the CDM approval process of the National Authority through its representative in the CDM Steering Committee; C. Roles of different institutions/ groups in CDM (cont.)

18. C. Financial Institutions Provide underlying finance for the development of CDM projects (local or foreign investment); Potential project developer for projects in their loan portfolio; Potential bundlers of small scale CDM projects; Brokers for CERs; Financial advisers to project proponent C. Roles of different institutions/ groups in CDM (cont.)

19. D. Consultancy Groups/ Academe Provide technical assistance in the development of feasibility studies and CDM documents such as the PDD; Assist in packaging the CDM projects; Provide expertise in drafting legal contracts such as Emission Reduction Purchase Agreement (ERPA); The academe conducts research on possible baseline and monitoring methodologies C. Roles of different institutions/ groups in CDM (cont.)

20.  Promulgation of the Rules and Regulations of the National Approval Process;  Streamlined and transparent National Approval Process;  High awareness on CDM by significant stakeholders such as, government, financial institutions, project developers, environmental consultants, etc;  Presence of CER buyers D. Country specific developments and observations

21.  Good number and variety of CDM projects in the pipeline;  Presence of capacity building assistance from various funding agencies;  Growing interest in forestry;  Pilot projects getting off the ground (e.g. first wind farm, first landfill gas capture;  The government is giving priority to the development of renewable energy sources due to rising cost of oil D. Country specific developments and observations

22. E. Lessons Learned  It is important for any capacity building project to work closely with the focal agency such as DENR to coordinate efforts and maximize resources;  It is good to maintain linkages with all the players involved in CDM (project proponents, NGOs, financial institutions, govt. agencies, consultancy groups, etc.);  Co-organizing events and activities with other institutions and group associations is cost-effective;  Participation in international forum such as the Manila Carbon Forum and the Carbon Expo are good opportunities to promote CDM projects and generate interests from potential investors;

23. E. Conclusions The CD4CDM, in coordination with the Inter-Agency Committee on Climate Change (IACCC) has significantly contributed to the development of CDM capacity in the Philippines. 78% of the monitored potential CDM projects in the Philippines received assistance from the Project, ranging from actual technical assistance to facilitation and promotion. CD4CDM also helped in the promotion of Philippine CDM in various international forum.

24. Maraming Salamat! Marina T. Mallare Project Coordinator Capacity Development for CDM klima-Climate Change Center Manila Observatory Telefax: +63 2 426-0837 marina@observatory.ph www.klima.ph/cd4cdm