UNEP/DCC – CDM Capacity Building Initiative – Nigeria PDD Capacity Building Workshop Durando Ndongsok S2 Services Bolade Soremekun BAS Consulting

Content UNEP/DCC – CDM Capacity Building Initiative – Nigeria2 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

The aim of the UNEP/DCC program UNEP/DCC – CDM Capacity Building Initiative – Nigeria3 Select viable CDM projects Support development of: 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

BAS Consulting UNEP/DCC – CDM Capacity Building Initiative – Nigeria4 Clean Development Mechanism and Climate Change Identification and Development of potential CDM project opportunities Climate change mitigation strategies Renewable Energy and Clean Technologies 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 Training and Capacity Building in RE and Environment

S2 Services UNEP/DCC – CDM Capacity Building Initiative – Nigeria5 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.

BAS – S2 Services Cooperation UNEP/DCC – CDM Capacity Building Initiative – Nigeria6 Mixed team of well aware Europeans and Africans, The speed to cope with the westerns way of doing business The patience to navigate successfully throughout the hurdles presented by business development in Nigeria and Africa BAS and S2 Services SARL partnership provides international dimension and African wide presence necessary in CDM Offices in Germany, Lagos, and Douala

CDM over the time UNEP/DCC – CDM Capacity Building Initiative – Nigeria – 2005 Kyoto Protocol signed in 1997 Marrakech accords in 2001 CDM entered into – 2008 – 2012 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 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???)

CDM development cycle UNEP/DCC – CDM Capacity Building Initiative – Nigeria8

VVM vs VVS UNEP/DCC – CDM Capacity Building Initiative – Nigeria9 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) Enhance consistency Improve quality Increase efficiency Compulsory to follow the VVS track from Feb. 1, 2013 See this

Difference between PIN and PDD UNEP/DCC – CDM Capacity Building Initiative – Nigeria10 PIN = Project Idea Note 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 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

PDD Development Cycle (1/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria11 Methodology development or selection Is there an approved methodology? Can I develop a new methodology if not? Is the project belonging to any CDM type? Applicability criteria Look carefully if criteria are all met If not, change the meth OR request for clarification or deviation Baseline estimation What will happen without the implementation of the project not always what is happening now CERs estimation Baseline Emissions – Project Emissions – Leakage (if leakage considered) Need of tools

PDD Development Cycle (2/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria12 Additionality Is the project doable without carbon credits Caution, there is new tool to demonstrate additionality CDM consideration (there is a procedure for this) Monitoring What are all parameters monitored during the project and how are they going to be monitored Environmental impact assessment Stakeholder consultation The project has to be accepted by neighboring populations The neighbors usually depends on the boundary of the project

Selected CDM tools UNEP/DCC – CDM Capacity Building Initiative – Nigeria13 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)

Suggested selection criteria for UNEP/DCC sponsored projects for PDD development (1/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria14 If PDD Development has started What stage Form used (VVM or VVS?) Size: Volume of Carbon Credits (CERs) Is the CDM worth the effort? For e.g. if project is < 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: Real and verifiable emissions reduction Economic growth protection and increased income Environmental and financial benefits (EIA is a must) Technology transfer

Suggested selection criteria for UNEP/DCC sponsored projects for PDD development (2/2) UNEP/DCC – CDM Capacity Building Initiative – Nigeria15 Available Methodology Is there an approved CDM meth? If not, is it possible to develop one? And is it worth the effort? PIN/Preliminary Assessment Is there a PIN already? Has the project applied already for endorsement of DNA? Commercial Viability/Business Plan 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

Projects assessment and selection timeline UNEP/DCC – CDM Capacity Building Initiative – Nigeria16 Please send your projects documents to us: Feasibility study Business plan Or clear project description Until November 6, 2012 To: Bolade Soremekun Durando Ndongsok We could request more information during assessment Selected projects informed latest November 9, 2012 Workshop to start PIN/PDD development November in Lagos

Thanks for your attention UNEP/DCC – CDM Capacity Building Initiative – Nigeria17 BAS Consulting Bolade SOREMEKUN Tel: S2 Services Durando NDONGSOK Tel: