Canada’s CDM & JI Office
Canada’s CDM & JI Office
CDM & JI Office: Mandate
• National focal point for CDM and JI
– Develop and disseminates information
– Provide CDM & JI approvals
– Link with other Canadian and international programs
• Facilitate Canadian participation in the CDM & JI
Canada and the Clean Development
Mechanism (CDM)
–
–
–
–
Gilles Potvin
China International Conference on CDM
Beijing, October 20-21
Facilitate project development
Supply technical guidance to companies
Provide financial support to offset transaction costs
Conclude bilateral agreements
• Analytical and policy support to negotiations
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Canadian Context
Canada’s CDM & JI Office
Canada’s CDM & JI Office
Canada’s “Kyoto Gap”
• Canada ratified the Kyoto Protocol in December
2002
• Canada’s target under Kyoto:
– 6% below 1990 levels by 2012
– Equal to 270 Mt/year during the first commitment
period (2008-2012)
850
800
Million tonnes (Mt)
2
CO equivalent
– 2% of global emissions, 9th largest global emitter, and
3rd highest per capita emissions in the industrialized
world
Projected 2010 Business
as Usual Emissions:
809 Mt
900
2001 Emissions:
720 Mt
750
Business as Usual
“Kyoto Gap”:
270 Mt
700
650
600
550
500
1990
Emissions:
607 Mt
1990
Kyoto Target -6%:
571 Mt
1995
2000
2005
2010
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Sources of GHG
Reductions in Canada
2015
2020
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Canada’s CDM & JI Office
Canada’s CDM & JI Office
Large Final Emitters
(annual 2008-2012)
Large Final Emitters
Climate Fund
Partnership Fund
Renewable Energy
Agriculture & Forestry
Automotive
Greening of Government
1-Tonne Challenge
TOTAL
• LFE sectors include oil and gas, electricity generation,
manufacturing and mining
– Expected to produce half of Canada’s emissions by
2010
• Emissions intensity approach to accommodate
economic growth
– 12% improvement
– Contributing 45 Mt/yr overall
39 Mt (portion from CDM)
75-115 (portion from CDM)
55-85
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15-20
5
1
1
----206 to 281 Mt (goal=271 Mt)
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6
1
Canada’s Climate Fund (1)
Canada’s CDM & JI Office
Canada’s Climate Fund (2)
•
Bill C-43 enacted Legislation for Climate Fund
•
$ 1 billion allocated over 5 years
•
Under Authority of Minister of the Environment
•
Expected yield : 75 – 115 Mt / year
•
Legislated 3 Streams of Activity
•
3 streams of purchasing activity:
•
•
–
Including repayment provision for advance purchases in cases where
i)
ii)
Credits generated by Domestic Offsets System
Advance purchases of domestic credits from large strategic projects
w private sector
iii) Units generated in other Kyoto Parties
actual reductions < expected reductions
Legislated Competitive Process for purchases
–
–
Domestic: criterion of cost-effectiveness
International: criterion of Benefit to Canada
Legislated Governance Framework
–
–
–
Canada’s CDM & JI Office
President and Advisory Board
Annual Corporate Business Plan and Report
Annual Audit by Auditor General
•
Only “green” international credits recognized (AAUs)
•
A Competitive Process must be used in all purchasing activities
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Canada’s Climate Fund (3)
•
–
•
Canada’s CDM & JI Office
Canada’s Climate Fund (4)
•
Any international purchase must be associated with a
project that generates “benefits to Canada” through one of
the following characteristics:
–
–
–
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•
Search for President and appointment of Advisory Board underway
Work underway on all elements of Climate Fund mandate, including
–
–
–
–
Applies Canadian technology; or
Improves Canada’s international competitiveness; or
Improves Canada’s trade or otherwise advances its national
interest; or
Advances Canada’s international development objectives
Public Consultations to be held on specifics of how Climate
Fund may best achieve its mandate
Canada’s CDM & JI Office
"greening“ AAU criteria
further elaborating 4 “benefits” criteria
competitive process
Selection and administration of domestic projects qualifying for
advanced purchase financing
•
Steps for Institutional establishment to continue in parallel throughout
the Fall
•
Objective to have Climate Fund Agency fully established and
ready to engage in arrangements for purchasing no later than
March 31, 2006
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Canada’s CDM & JI Office
Canada’s CDM & JI Office
CDM cost estimates (selected)
280
240
200
160
120
80
Domestic
action
Europe
JI option
Japan
$20000 - $25000
Monitoring Plan
$8000 - $18000
Approval
$10000 - $47000
Validation
$6000 - $34000
Registration
$5000 - $30000
Monitoring
$12000 - $40000
Sources: Michaelowa/Stronzik (2002), EcoSecurities (2002), DEA (2002)
40
USA
Baseline
0
Total Cost
$47000 - $ 269500
CDM option
Source: IETA survey of 104 business organizations (2004)
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CDM Benefits for Host Countries
•
•
•
•
•
•
•
•
Canada’s CDM & JI Office
• Canada-China signed an MOU to enhance collaboration on
CDM during visit to China by Prime Minister Martin in January
2005
Attracts investment in priority sectors
Access to clean technologies
Enhanced infrastructure
Energy efficiency upgrades
Improved air quality
Reduced dependence on imported fuel
Increased employment
Potential source of revenue from carbon credits
• Six capacity building workshops took place to train Chinese
participants on CDM rules and methodologies under the
Ningxia CDM Capacity Building Pilot Project (agreement with
MOST)
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CDM Cooperation with
China (2)
CDM Cooperation with
China (1)
Canada’s CDM & JI Office
• A total of 12 potential CDM projects were developed from the
concept stage towards implementation (projects areas range
from wind farms, solar energy resources, to biogas systems).
Out of the twelve, three have completed the drafts of their
PDD’s (Project Design Documents)
Canada’s CDM & JI Office
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Canada’s CDM & JI Office
Future Activities (1)
CDM & JI Matchmaking Forum
• Canada is increasing its support for the development of CDM
PINs and PDDs in China
• Agreement to be concluded with China’s Ministry of Science &
Technology
•
December 6-7 in Montréal, Canada
•
Opportunity for Chinese CDM project proponents to meet
face-to-face with Canadian companies
•
Two-day customized program of pre-arranged meetings for
participants
•
Contact Canada’s CDM & JI Office for information
• Goal: develop 50 PDDs over the next 12 months
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Canada’s CDM & JI Office
Canada’s CDM & JI Office
Future Activities (2)
Trade Team Canada Environment Mission to China 2006
•
Main annual Canadian environmental business delegation to
China
•
Hong Kong (Feb 27), Guangzhou (Mar 1), Shanghai (Mar 3),
Chongqing (Mar 7), Beijing (Mar 9)
•
Led by Team Canada : Partnership of several Canadian
government ministries : Industry, Environment, Natural
Resources, Foreign Affairs, International Trade, etc.
•
Contact Canada’s CDM & JI Office for information
Canada’s CDM & JI Office
Climate Change and Energy Division (GDCC)
Foreign Affairs Canada
125 Sussex Drive
Ottawa, Ontario K1A 0G2
Tel: +1 (613) 944-3039
Fax: +1 (613) 944-0064
E-mail: cdm.ji@international.gc.ca
Web: www.cdm-ji.ca
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