1. The Danish CDM Project Development Facility Gustya Indriani Climate Change Researcher, Yayasan Pelangi Indonesia gustya.indriani@pelangi.or.id

2. 2 Danish Climate Strategy Published by Danish Government in February 2003 Danish target: GHG emissions reduction of 21% in 2008-2012 compared to 1990’s level Key issue: Introducing Kyoto Mechanisms to achieve cost efficiency Balance between domestic action and buying of credits defined in economic terms. An MoU between Denmark and Indonesia was signed by Ambassador Andersen and Minister Witoelar on July 27, 2005

3. 3 Steps to develop CDM project Feasibility and Due Diligence Project Design Document Implementation Public consultation Validation by DOE Approval by Komnas MPB Verification by DOE Issuance of CERs by the EB Transaction of CERs Methodological approval Registration by the Executive Board

4. 4 Transaction costs of CDM Project Feasibility and Due Diligence$5,000 - $10,000 Documentation (PDD)US$ 20,000 – $50,000; up to $100,000 with new methodology Public ConsultationAbout $2,000 – 10,000 Validation$8,000 - $15,000 Approval by the National Authority Currently free Registration to the Executive Board $5,000 - $30,000 (according to the project) Implementation of the CDM Project According to the project Underlying investmentAccording to the project MonitoringAccording to the project Verification$5,000 – $10,000

5. 5 Danish Project Development Facility Projecttimeline CERs issued Pre-feasibility PDD Development ImplementationRegistration Final Host Country Approval Project Validation PIN Feasibility study Conditional Host Country Approval Financial closure Operation Monitoring Danish buys CERs

6. 6 Plan of Implementation

7. 7 Criteria for participating (1) The underlying project must be technical and financial viable  The technical design  Financial viability/project financing  Legal and commercial status of the project The project should be likely to be approved as CDM project  Contribution to sustainable development  Likelihood of being additional  Existence of baseline methodology

8. 8 Criteria for participating (2) Projects should ideally be of more than 30,000 ton CER/year The project proponent capable to implement the project  Technical and management capability  Financial solidity of the company Only projects that have not been implemented The Royal Danish Embassy prefers a mix of projects, geographically, technically The Royal Danish Embassy will select the best suited projects

9. 9 The formalities ActionDate Launch of Danish Fund in Indonesia July 2005 First call for proposals Closing date26 October 2005 Announcement of results and signing of Letter of Intent Second call for proposals January – February 2006 LaunchingFebruary 2006 Closing date Result April 2006 May 2006

10. 10 Next steps A number of workshops have been and will be organised giving more information on the Project Development Facility If you have a project already then contact the project secretariat to get a template for a Project Idea Note (PIN) We will assist you in filling in the PIN

11. Contact Secretariat of Danish CDM Project Facility c/o Royal Danish Embassy Menara Rajawali 25th Floor, Jl. Mega Kuningan, Jakarta 12950 Telephone: +62 21 576 1478 ext 114 or +62 21 72801172 ext 306 Fax: +62 21 576 1535 E-mail: danish-CDM-facility@pelangi.or.iddanish-CDM-facility@pelangi.or.id Website: http://danish.cdm.or.idhttp://danish.cdm.or.id