UNEP/DCC – CDM Capacity
Building Initiative – Nigeria
PDD Capacity Building Workshop
Bolade Soremekun
BAS Consulting
Durando Ndongsok
S2 Services
Content
The aim of the UNEP/DCC program
BAS and S2 Services
CDM development over time
CDM development cycle
VVM vs VVS
Difference between PIN and PDD
PDD development cycle
Selected CDM tools
Suggested selection criteria
Project selection timeline
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
The aim of the UNEP/DCC
program
Select viable CDM projects
Support development of:
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6 PINs
2 PDDs ready for validation
The process is “learning-by-doing” so projects owners are
trained to develop projects themselves
The program is financed by UNEP and DCC
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
BAS Consulting
Clean Development Mechanism and Climate Change
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Identification and Development of potential CDM project
opportunities
Climate change mitigation strategies
Renewable Energy and Clean Technologies
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Advisory and Business Development on Renewable Energy
Technologies
Feasibility studies and business plans
Waste Management and Environmental services
Advisory and development of energy policy and regulation
Rural electrification Policies and Regulations
Capacity Building and Events Management
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Training and Capacity Building in RE and Environment
UNEP/DCC – CDM Capacity Building Initiative – Nigeria
S2 Services
S2 Services Sarl (S2) is a group of engineers, managers
and experts with worldwide experiences striving to
bridge sustainable development between the western
world and Sub-Saharan Africa
The main founders of S2 are Africans who have studied
and worked for many years in western countries and
Europeans who have shown interest in Sustainability and
Sub-Saharan Africa as Business host
Over 5 years experience in CDM development
throughout Africa
Offices in Germany, and Cameroun
Partners with BAS in Nigeria.
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
BAS – S2 Services Cooperation
Mixed team of well aware Europeans and Africans,
The speed to cope with the western’s way of doing
business
The patience to navigate successfully throughout the
hurdles presented by business development in Nigeria
and Africa
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BAS and S2 Services SARL partnership provides
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international dimension and African wide presence
necessary in CDM
Offices in Germany, Lagos, and Douala
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
CDM over the time
1997 – 2005
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Kyoto Protocol signed in 1997
Marrakech accords in 2001
CDM entered into 2005
2005 – 2008 – 2012
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CDM development
2008 – 2012: first phase EU ETS
Price of a CER hit 24 Euro in 2008
CER traded at 1 Euro today
Beyond 2012
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UN bodies (UNFCCC, UNEP etc.) continuing to support CDM development
Australia, China, Japan, South Korea etc. all putting in place trading schemes
Good interest for LDCs and African CERs
EB rule now: voluntary cancellation of CERs in the log (CERs becoming VERs???)
UNEP/DCC – CDM Capacity Building Initiative – Nigeria
CDM development cycle
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
VVM vs VVS
EB65 adopted a new “procedure” for CDM development
Validation and Verification Manual is changed by Validation
and Verification Standard (ALL FORMS ARE
CHANGED!!!)
A bundle of 3 manuals replacing 24 manuals (VVS, PS –
Project Standard and PCP – Project Cycle Procedure)
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Enhance consistency
Improve quality
Increase efficiency
Compulsory to follow the VVS track from Feb. 1, 2013
See this http://cdm.unfccc.int/Reference/Notes/reg/reg_note43.pdf
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
Difference between PIN and PDD
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PIN = Project Idea Note
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No UNFCCC template exist (so not in procedures and not
compulsory)
Result of preliminary assessment
Important for DNA to endorse the project
BUT very important to get a grip on CDM chances
PDD = Project Design Document
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The all-in-one document where “everything” about the project
is said
Have guidelines and templates
DNA gives Host Country Approval based on PDD
PoA-DDs and CPA-DDs are slightly different
UNEP/DCC – CDM Capacity Building Initiative – Nigeria
PDD Development Cycle (1/2)
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Methodology development or selection
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Applicability criteria
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Look carefully if criteria are all met
If not, change the meth OR request for clarification or deviation
Baseline estimation
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Is there an approved methodology?
Can I develop a new methodology if not?
Is the project belonging to any CDM type?
What will happen without the implementation of the project
not always what is happening now
CERs estimation
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Baseline Emissions – Project Emissions – Leakage (if leakage
considered)
Need of tools
UNEP/DCC – CDM Capacity Building Initiative – Nigeria
PDD Development Cycle (2/2)
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Additionality
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CDM consideration (there is a procedure for this)
Monitoring
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Is the project doable without carbon credits
Caution, there is new tool to demonstrate additionality
What are all parameters monitored during the project and
how are they going to be monitored
Environmental impact assessment
Stakeholder consultation
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The project has to be accepted by neighboring populations
The “neighbors” usually depends on the boundary of the
project
UNEP/DCC – CDM Capacity Building Initiative – Nigeria
Selected CDM tools
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Tool for the calculation of grid emissions factor (for
renewable and other energies projects)
Tool for the emissions from solid waste disposal sites (for
MSW)
Tool for project emissions from flaring (gas flaring, landfill
gas flaring)
Sampling manual (from KfW) (for CFL, solar, cook stoves
etc. distribution)
Tool for calculation of non renewability of the biomass
(for cook stoves mainly)
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
Suggested selection criteria for UNEP/DCC
sponsored projects for PDD development (1/2)
If PDD Development has started
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What stage
Form used (VVM or VVS?)
Size: Volume of Carbon Credits (CERs)
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Is the CDM worth the effort?
For e.g. if project is < 10.000 CERs/y and finance very high, then
not viable for CDM
But small scale projects will be given due consideration
Consistent with Nigerian Sustainability Criteria as developed
by the DCC:
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Real and verifiable emissions reduction
Economic growth protection and increased income
Environmental and financial benefits (EIA is a must)
Technology transfer
UNEP/DCC – CDM Capacity Building Initiative – Nigeria
Suggested selection criteria for UNEP/DCC
sponsored projects for PDD development (2/2)
Available Methodology
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Is there an approved CDM meth?
If not, is it possible to develop one? And is it worth the
effort?
PIN/Preliminary Assessment
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Is there a PIN already?
Has the project applied already for endorsement of DNA?
Commercial Viability/Business Plan
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Is there a feasibility study and business plan?
Is project going to generate revenue?
Are investors interested in the project?
Level of Knowledge of CDM by project promoter
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
Projects assessment and selection
timeline
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Please send your projects documents to us:
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Feasibility study
Business plan
Or clear project description
Until November 6, 2012
To:
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Bolade Soremekun
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Durando Ndongsok
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b.soremekun@basconsultingltd.com
d.ndongsok@s2-gmbh.com
We could request more information during assessment
Selected projects informed latest November 9, 2012
Workshop to start PIN/PDD development November 14-15
in Lagos
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria
Thanks for your attention
S2 Services
Durando NDONGSOK
Tel: +237 99 00 80 27
d.ndongsok@s2-gmbh.com
BAS Consulting
Bolade SOREMEKUN
Tel: +234 80 34 49 96 70
b.soremekun@basconsultingltd.com
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UNEP/DCC – CDM Capacity Building Initiative – Nigeria