1 Sustainable Development Assessment of CDM projects in Georgia Mariam Ubilava Istanbul, Turkey January, 2008

2 Legal Background Georgia ratified UNFCCC on 29 October 1994 and has accessed to the Kyoto Protocol on 16 June 1999; From the three mechanisms defined by the Kyoto Protocol, Georgia, as a Non-annex I party to the UNFCCC can participate only in CDM; Georgia satisfies CDM participation requirements: - Georgia participates voluntary in CDM; - Georgia has nominated CDM “Designated National Authority” (DNA); - Georgia is a Party to the Kyoto Protocol.

3 “The Win-Win Mechanism” The dual aim of the CDM: To achieve SD in developing countries and Cost-effective reduction of GHGs in developing countries. Three dimensions of SD: Social Criteria : poverty alleviation, equity and improved quality of life; Economic Criteria: financial returns to local entities, a positive balance of payments and technology transfer; Environmental Criteria: reduction of GHGs and the use of fossil fuels, conservation of local resources, improved health and reduced pressure on local environment.

4 Contribution to Sustainable Development (SD) The traditional definition of SD is used from the Brundtland Commission report. As established under the article 12 of Kyoto Protocol the Purpose of the CDM shall be: “To assist Parties not included in Annex I in achieving SD and in contributing to the ultimate objective of the Convention”. It is the prerogative of the host Party to confirm whether a CDM project activity assists it in achieving SD or not.

5 CDM Designated National Authority (DNA) By the Decree of the Government of Georgia dated 20 January 2005 the Ministry of Environment Protection and Natural Resources of Georgia was appointed as CDM DNA. The main tasks of the CDM DNA is to confirm that: Georgia participates voluntary in CDM and in the Project; CDM project will assist Georgia in achieving SD; CDM Project has been in compliance with national environmental regulations; Stakeholders opinions have been considered and followed.

6 How CDM contributes to SD in Geogria??? It is a case of project by project basis; No methods exist for measuring the total contribution of the CDM to SD; CDM DNA of Georgia developed SD criteria of CDM projects; The main task of the CDM National Board is to determine according to the SD criteria, whether the proposed project contributes to SD of the country.

7 National SD Criteria and Indicators for CDM Projects National SD criteria and indicators for CDM projects have been formulated on the basis of Georgia’s National SD criteria and Georgia’s National environment and development priorities and strategies taking into account experience of countries similar to Georgia. Sectoral sustainability criteria and indicators suggested by relevant ministries have been considered as well.

8 SD Criteria of CDM Projects in Georgia

9 Registered Project Project Title:Landfill Gas Capture and Power Generation Project in Tbilisi Sectoral scope1: Energy industries (renewable-/non- renewable sources) 13: Waste handling and disposal Project hostTbilisi City Municipality Foreign partner“Simizu Corporation” (Japan) MethodologyAMS-I.D, ACM001 Crediting period:14 years (renewable) Estimated reductions in totalAbout 500,000 t CO 2 -eq Current statusSubmitted for registration Envisioned date of registration5 April 2007

10 Project Submitted for Registration Project Title:Refurbishment of Enguri Hydro Power Plant Sectoral scope1: Energy industries (renewable-/non-renewable sources) Project hostEngurhesi Ltd. Foreign partnerEBRD MethodologyACM0002 “Consolidated baseline methodology for grid-connected electricity generation from renewable sources” Crediting period:10 years (fixed) Estimated reductions in totalAbout 2,500,000 t CO 2 -eq Current status Submitted for registration Envisioned date of registration Tentatively 1 st quarter 2008.

11 Projects Under Preparation Project Title:Methane Leak Reduction from Natural Gas Pipeline Sectoral scope10. Fugitive emissions from fuels Project hostGeorgian Oil and Gas Corporation Foreign partner MethodologyNM0172 (not approved) Crediting period:Fixed – 10 years Estimated reductions in total Tentatively more then 4 000,000 t CO 2 eq. Current statusDraft PDD completed Envisioned date of registration

12 Thanks for Attention on SD Assessment of CDM Projects !!! I Wish you cleaner air )))