1. Joint Implementation by the Netherlands Maurits Henkemans Ministry of Economic Affairs Netherlands 26-5-2004 Moscow

2. Who is buying? In percent of volume purchased 2002-2003

3. Intended realisation by the Netherlands InstrumentContractedPlanned  Erupt1-38  Cerupt 8 Fin Institutions CAF (CDM) 10 WB (PCF/IFC) CDM 31 EBRD (JI) 6 Rabo CDM 10 Part PCF CDCF 4 Sub Total 77 ERUPT 4/5 JI (WB) CDM option 23 Total100

4. What is Needed for JI in Russia?  Ratification of Kyoto Protocol  Responsible Minister that can sign letter of Approval (before 27 June)  Implementation article 5, 7 and 8 Kyoto  Good Portfolio of CO2 reduction Projects  Public awareness /Transparency and Dialog

5. Lead Time Impact on CDM and JI 2006 2003 2008 2012 Operating Wind, Efficiency, Waste to Energy Large Hydro, Geothermal, Coal to Gas Power Second Commitment Period Rules and Targets Need to be decided by 2006 to ensure continuity in CDM Market Development 5 year average Pre- feasibility = Start Construction

6. Following Issue’s I want to discuss  Dutch climate policy  Dutch/Russian JI cooperation  What is needed for JI and GIS  Conclusions

7. Dutch Climate Policy  Get a CO2 World Market for Efficient Climate Policy  -6% CO2 reductions in period 1990 - 2008/2012  40 Mton a year  50% national instruments  50% flexible instruments (JI/CDM en ET)

8. Dutch JI/CDM Programme 2004  Budget 200 mln EURO for JI Min of Economic Affairs  Budget 350 mln EURO for CDM Min of Environment  In accordance with EU/OECD/Kyoto rules  Target CO2 price 3-5 EUR  Target 100 Mton CO2 (35% JI/65% CDM)

9. For 100 Mton CO2 we follow five roads  JI Buy ERU’s by ERUPT (ERU- Procurement Tender)  CDM Buy CER’s by CERUPT  Buy ERU’s and CER’s by PCF  Contract with WB/EBRD/IFC and other commercial Banks..  International Emissions Trading (Between Governments as last resort)  We are well on track!!

10. Dutch Approach to JI  First track JI Country in compliance art 5.7 and 8  Second track JI Validation by Independent Entity Accreditation IE by Supervisory Board  Dutch approach start with JI Second then first track JI Credits before 2008 change in AA 2008/2012 use Trading art 17

11. Why start with JI?  Political more attractive to start with real projects  Good for Russian Companies  Investor countries get used to decision structure in Russia

12. Conclusions  The Dutch and EU companies and Governments interested in - Gas and Oil from Russia - Interested in JI credits  Investment in Energy sector needed  JI and GIS can help Russian Companies  Quick decisions needed otherwise money goes to CDM

14. Pro’s and Con’s for JI in Russia  No clear counterpart  No institutions  Investment climate not positive  Big JI potential  Positive for Russian Companies  Foreign interest for JI  EU trading demand for JI not ET!

15. More info about Dutch JI and CDM and ET policy www.carboncredits.nl l.j.m.blansonhenkemans@ minez.nl