María Paz Cigarán National Council for the Environment (CONAM) December 2003 Institutional Framework for the Clean Development Mechanism Implementation in Peru

Objectives of this Presentation To highlight the Peruvian Institutional Framework for the implementation of the CDM. To highlight the Peruvian Institutional Framework for the implementation of the CDM. To highlight the Domestic CDM Project Cycle To highlight the Domestic CDM Project Cycle

KEY FACTORS FOR OUR CDM STRATEGY: INFORMATION CAPACITY CAPITAL & TECHNOLOGY

Peruvian Strategy to Implement the CDM CER GOODS AND SERVICES TIME Information Diffusion Capacity Building Technology Transfer and Investment Promotion +

1. To spread information on the CDM and its opportunities 1.1 To inform Peruvian Businessmen on the CDM (At least one of every 3 businessmen, able to perform GHG emissions reduction, is familiar with the CDM concepts 6 months after the CDM Promotion Office started operations). 1.2 To inform local financial firms on the investment opportunities associated to the CDM. (Two of every five investment officers is familiar with the financing of CDM Projects and CER commercialization). INFORMATION

2. Local capacity building to bring down transaction costs and improve access to pre-investment resources for CDM Projects. 2.1 To hold local capabilities to formulate, structure and finance CDM Projects a year after the CDM Promotion Office started operations. (At the beginning composed by at least 20 local professionals: 5 Industry, 3 Energy, 2 Waste Management, 6 Agroforestry and 4 Transport) 2.2 To hold institutional capabilities to profit from the CDM a year after the CDM Promotion Office started operations. ( At least 3 private institutions with local presence accredited as DOEs are able to verify and / or certify CDM Projects.) 2.3 To promote the financing of the pre-investment phase of CDM projects. (At least 2 projects of every 10 secure funds to finance their pre-investment phase during the first year of operation of the CDM promotion office). CAPACITY BUILDING

3. To ease the transfer of capital and technologies 3.1. To have a legal framework to regulate CDM operations To offer an enabling environment for CDM Projects easing their development, financing and execution. (2 of every 10 CDM Projects, presented before the CDM National Authority, access domestic and international resources within the first year of the CDM Promotion Office operations) 3.3 To promote the closing of CERs purchase deals CAPITAL & TECHNOLOGY

PROINVERSION CDM Investment Promotion CONAMCDM National Authority Approval and National Registration of CDM Projects Coordination of the implementatuion of the Ntional Strartegy fo the CDM Formulation, Structuring and Development of CDM Projects Businessmen FONAM Consulting firms Multilateral Entities CERs Commercialization Verification and Certification Businessmen CET Consulting firms Registered DOEs CDM Projects Validation Nationwide CDM Project Execution Businessmen (Private sector) Government (public sector) Financing of the pre-investment phase of CDM Projects FONAM Businessmen Financial Sector PROFONANPE FONDEBOSQUE CET Others Businessmen COFIDE Development Banks Private Banks Investment funds Private Investors CDM Projects Financing Registered DOEs BUT, WHO ARE THE ACTORS AND WHAT ARE THEIR ROLES?

SUSTAINABILITY CRITERIA TECHNOLOGICALLY FEASIBLE FULL COMPLIANCE AND NOT IN CONFLICT WITH SECTORIAL POLICIES SOCIALLY ACCEPTED

1. CDM registration request is received by CONAM 4. Ad Hoc Committee opinion 6. Communication to project proponent and CDM EB Does it contribute to the Sustainable Development of Peru? Yes 7. Submission to CONAM of the validated project 5. Conditional approval letter Letter to project proponent 8. Project Monitoring 2. A copy of the project is submitted to FONAM and the ministry with jurisdiction on the project 3.Meeting of the Ad- Hoc Committee 45 DAY FAST TRACK NATIONAL CDM PROJECT CYCLE: ISO P-34 PROCEDURE No

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