ARTICLE 6 (JOINT IMPLEMENTATION) SUPPLY-SIDE PERSPECTIVES Ivona Grozeva MINISTRY OF ENVIRONMENT AND WATER - BULGARIA Montreal, Side event 30 Nov. 2005COP/MOP1

The role of JI in the national CC strategy JI framework in Bulgaria Overview of JI projects Plans concerning JI in Bulgaria Planned activities to meet the eligibility requirements for JI Track I Host Country view on JI Track I The impact of the Linking directive Content

Meeting the Kyoto Target - surplus Second National Action Plan on Climate Change EU ETS Joint Implementation Management of AAUs – Green Investment Scheme The role of JI in the national strategy

Designated focal point for approving of JI projects – MoEW National guidelines and procedures in place 5 MoU signed, 12 projects approved JI framework in Bulgaria

Approved JI Projects PROJECTERUsAAUs 1.Vacha Cascade JI Project Industrial energy efficiency and co- generation, Nikopol Reduction of greenhouse gas by gasification of the towns Veliko Turnovo, Gorna Oryahovitsa and Lyaskovets Reduction of greenhouse gas by gasification of the municipality of Sofia Biomass and Energy Efficiency Project, Paper Factory – Stambolijski Co-generation power station Biovet Plovdiv South co-generation project

Approved JI Projects, cont. PROJECTERUsAAUs 8.Biomass Utilization in Svilosa AD Rehabilitation of district heating system in Toplofikatsia Sofia EAD and Toplofikatsia Pernik ЕAD Agroplychim N2O reduction Reduction of greenhouse gas by gasification in Varna municipality Co-generation gas power stations AKB Fores PLC Financial Industrial Group Total

Plans concerning JI in Bulgaria EU ETS is limiting the scope for JI to a great extend Still! 13 new project ideas are endorsed What is left? Mainly projects outside of the Scheme and non- CO2 projects Besides indirect double counting limits the renewables Rely on GIS

Plans concerning JI in Bulgaria, cont. A6SC decisions are important Additionality is crucial Track 2 – high transaction cost Rely on JI Track I

Planned activities to meet the eligibility requirements for JI Track I Submitted annually a greenhouse gas inventory report (currently for 2004, missing for 1989 – next year) Assigned Amount Units will be calculated and submitted in 2006 Supplementary information on the assigned amount National system for the evaluation of GHG emissions – 2006 (responsible body – ExEA) National registry – project initiated (DEPA) Deadline – end of 2006

Host Country view on JI Track I JI Track I = GIS hard greening Standardised baselines - lack of financing Local validators – accredited by the Bulgarian accreditation agency, possibly EUETS validators Additionality – simplified, environmental additionality National guidelines to be developed on the basis of the existing guidelines for Track II

Draft Plan of action for moving the existing Bulgarian JI projects to Track 1 1. Declaration by the Bulgarian government - the project will generate the amount of ERUs and possible AAUs as stated in the PDD - the project is additional - agrees with the methodology used 2. Contacting the Suppliers – workshop 3. Control on whether the actions undertaken for Track 1 are consistent with the (possible) requirements of the JI Supervisory Committee 4. Transfer of ERUs upon receipt of verification reports

Direct double counting – cancel allowances from concrete installations Indirect double counting – deduct allowances from electricity sector (for heating – from concrete installations) Linking the JI projects to EU ETS

Making JI projects possible Set aside 1. Renewables - from electricity sector 2. Others - from electricity sector 3. Early credits – from National registry

Ivona Grozeva Head of JI Sector Phone: (+359 2) Fax: (+359 2) Web site: MINISTRY OF ENVIRONMENT AND WATER