CDM IN MONGOLIA Mr. B.PUREVDORJ CDM-DNA Mongolia International Cooperation Department Ministry for Nature & Environment

CDM IN MONGOLIA Mongolia ratified the Kyoto Protocol in 1999 The Government of Mongolia signed UNFCCC in 1992 at the Rio Conference, and the Parliament ratified it in 1993

Climate Change

63 years data of Mongolia’s hydro-meteorological observation: The annual average air temperature has been increased 1.56 degrees Celsius - in winter season by 3.6 degrees - in spring and fall seasons by degrees - in summer season by 0.3 degrees CDM IN MONGOLIA

In coincidence with the warming process, precipitation volume had been reducing in the last 60 years by about 11 percent on the average. CDM IN MONGOLIA

Last 10 years - Mongolia’s arid area extended by 3.4 percent, - area of lands affected by desertification impact extended by 5.4 times, - seriously desertificated area was extended by 1.8 times. As a whole, desertification has been seriously existing in the Gobi desert region, which occupies 41.3 percent or 647,000 square kilometers of country’s territory. CDM IN MONGOLIA

Sufficient enough studies and research works have been done in terms of climate change and its impacts and now focusing more on possible adaptation options. Developed the National Programme on Climate Change National GHG Inventory National GHG Inventory Studies on climate change impacts on various sectors Studies on climate change impacts on various sectors CDM IN MONGOLIA

NATIONAL COMMITTEE ON CLIMATE CHANGE National Committee on Climate Change was established in 2002 chaired by the Minister of Nature & Environment with high level representation from the several relevant ministries and in addition from the Mongolian Academy of Science, National Council for Sustainable Development, Hydro-Meteorological Institute and NGO. National Committee on Climate Change was established in 2002 chaired by the Minister of Nature & Environment with high level representation from the several relevant ministries and in addition from the Mongolian Academy of Science, National Council for Sustainable Development, Hydro-Meteorological Institute and NGO. It has three Working Groups: For Public-Private Partnership For Clean Development Mechanism For Energy Efficiency CDM IN MONGOLIA

ESTABLISHMENT OF CDM-DNA MONGOLIA 19 NOVEMBER 2004 CDM IN MONGOLIA Structure: Composes of representatives from the following organizations and institutions, including: Ministry for Nature & EnvironmentMinistry for Nature & Environment Ministry of Fuel & EnergyMinistry of Fuel & Energy Ministry of Industry & TradeMinistry of Industry & Trade Ministry of Finance & EconomicsMinistry of Finance & Economics Scientific OrganizationsScientific Organizations NGOsNGOs Private SectorPrivate Sector DNA establishes an Expert Group, which is responsible for validation & verification process.

DNA’s Role Act as country’s focal point for CDM Facilitate project development Provide technical guidance to companies Conclude bilateral agreements Project approval Market studies and project identification Implementation Monitoring Awareness raising through domestic and international outreach efforts (meetings with relevant companies, organizations and organize workshops, conferences etc. communicate relevant Kyoto information to companies) International outreach to countries listed in Annex 1. CDM IN MONGOLIA

Project approval process shall be simple and avoid hindrances to the projects proposed. Project approval process shall be simple and avoid hindrances to the projects proposed. Proponent submits proposal to DNA and DNA instructs Expert Group for validation & verification, and basing on the results of EG works, DNA issues the letters. Proponent submits proposal to DNA and DNA instructs Expert Group for validation & verification, and basing on the results of EG works, DNA issues the letters. CDM IN MONGOLIA

Only in Ulaanbaatar city 3 million tons of coal is burned every year. If we also add thousands of auto vehicles, mining, unified waste disposal, cement and construction materials industries in it, there will be enormous number of emission. CDM IN MONGOLIA

Mongolia is rated as a country having above average greenhouse gas level per capita. Thus, clean technology policy is required to be implemented in the next 5 to 10 years. Financial mechanism and resources are main barrier for adopting leading technologies and efficient manufacturing practices. Energy sector in Mongolia is using fossil fuel (almost 100 percent coal-fired). CDM IN MONGOLIA

POTENTIAL PROJECT SECTORS POTENTIAL PROJECT SECTORS Mongolia divides projects into 5 bundles for CDM, depending on the size of projects.: Mongolia divides projects into 5 bundles for CDM, depending on the size of projects.: Heat efficiency (heat only boilers, thermal stations, fuel) Heat efficiency (heat only boilers, thermal stations, fuel) Renewable energy (wind, hydro, solar) Renewable energy (wind, hydro, solar) Greening (afforestation, reforestation, any other plantation) Greening (afforestation, reforestation, any other plantation) Environmental pollution (waste management, sewage treatment facilities, air pollution) Environmental pollution (waste management, sewage treatment facilities, air pollution) Technology transfer (cement, metallurgic, construction materials factories) Technology transfer (cement, metallurgic, construction materials factories) CDM IN MONGOLIA

Project under Discussion: Improved Household Stoves Project” (IHSP) sponsored by WB/GEF. This project involves efficiency improvements of coal-fired household stoves used in the ger (traditional round Mongolian tents) areas of UB city for heating and cooking purposes, through: -Introduction of more energy efficient household stoves (“modern” stoves) -Improvements in household stoves already in use (adapted/modified standard stoves) Inefficient coal-fired household stoves in ger districts in UB are responsible for a large part of air pollution in UB, in particular because of temperature inversions in winter, combined with the location of UB in a valley surrounded by mountains. CDM IN MONGOLIA

The project displaces lower efficiency coal-fired household stoves by: Introducing more efficient stoves; Introducing more efficient stoves; Improving existing stoves Improving existing stoves Both these changes would not happen in absence of financial assistance from international sources, may be through CDM – i.e. the present, inefficient household stoves would remain in use. Both these changes would not happen in absence of financial assistance from international sources, may be through CDM – i.e. the present, inefficient household stoves would remain in use. The reason is that although the energy cost savings are sufficient to justify the initial outlay for the improved or new stoves, the target population lacks the financial means to finance this on their own. The reason is that although the energy cost savings are sufficient to justify the initial outlay for the improved or new stoves, the target population lacks the financial means to finance this on their own. It is also very difficult to collect payments due. It is also very difficult to collect payments due. This case, The MNE can be owner of the project and give subsidies to the households. Annual reductions at full capacity: 192,000 tCO2 equivalent Up to a period of 10 years: 1,536,675 million tCO2-equivalent Up to a period of 7 years: 960,675 tCO2-equivalent

<NEEDS> 1) Capacity Building for - DNAExperts Private Sector Relevant stakeholders 2) Effective and simple approval procedures 3) Financial barriers, especially for private sector CDM IN MONGOLIA