From Pipe Dreams to Pipelines: Getting the first CDM project in Israel going Presented by: Adi Dishon Managing Director

CDM Jump Start Feb Israel Ratified Kyoto Protocol (as non annex 1 party) Establishment of Designated National Authority (DNA) Determining sustainable development criteria Israeli CDM projects – ready to roll

Getting the CDM - Off the Ground Step 1: Identifying potential sectors Step 2: Identifying potential projects in each sector Step 3: Presenting the CDM concept to decision makers of each project Step 4: Carrying out feasibility studies Step 5: Getting the First CDM project going

Barriers  Conceptual Barriers Moving Environmental issues from the “Minus” to the “Plus” side of the balance sheet  Investment Barriers High transaction costs High implementation costs Lack of upfront financing Low carbon prices

The Flag Ship Project To get a local CDM market going you need one substantial flag ship project that shall serve as a: Pilot Project Capacity Building exercise for both government & private sector Role Model

Requirements of a Flag Ship Project Large volume project – that can overcome barriers Cooperative project developers Develop role model project in each sector

Current achievements of the Israeli CDM Market Flag ship project: First Israeli CDM project initiated in a cement plant. Project shall serve as a role model for Israeli industries to introduce state of the art technologies. Second CDM project: Role model project in the Solid Waste sector (Methane collection). Project shall revolutionize solid waste sector in Israel (funding rehabilitation of dump sites).

GHG reduction technology Monitoring technology Renewable Energy Local Technology (A-) Credit Rating Financial Stability The ability to rely on: Advantages of Israeli CDM Projects

Feasibility assessments Field surveys Legal & financial advising CDM registration process Local Professionals [scientists, engineers, lawyers] Stable democracy Clear environmental regulation (EIA) Transparency Governmental Infrastructure Promote implementation of GHG reduction projects Awareness for sustainable development Valuable stakeholder involvement Local Initiatives

Advantages of Israeli CDM Projects These advantages result in: Lower transaction costsDue to reliance on local human & technological resources Lower risksDue to reliable data, government infrastructure & financial stability Israeli credible quality carbon credits by 2005

Acknowledgements: I wish to thank the Rieger Foundation for enabling my participation at COP10

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