-2- Opportunities for CDM/JI Projects Renewable energy Electricity generation and transmission Energy efficiency Fuel switching Waste management Oil and Gas Transportation Afforestation and Reforestation Others...

-3- Benefits for Canadian Companies Opportunity to showcase technologies Access new markets & investment opportunities Commercialize climate-friendly technologies Demonstrate environmental leadership Future emission reduction credits = revenue stream Help meet voluntary or legally binding GHG targets Reduce overall cost of compliance Canada’s current Kyoto gap is 270 megatonnes per year (this is the equivalent weight of 2000 CN Towers!!!)

-4- Benefits for Host Countries Attract investment in priority sectors Access clean technologies Enhance infrastructure Upgrade energy efficiency Improve air quality Reduce dependence on imported fuel Increase employment Create source of revenue from carbon credits

-5- CDM & JI Office: What We Do Canada’s Designated National Authority (DNA) and Focal Point Facilitate Canadian participation in CDM and JI Approval of voluntary participation in CDM/JI projects Strengthening relations with Project Host Countries Facilitate development of Project Idea Notes (PINs) Analytical and policy support to negotiations

-6- DOMESTIC Outreach in Canada to explain CDM/JI process; Advising companies on market/project opportunities; Financial and technical support for stages of project development; Provide CDM & JI approvals CDM & JI Office: How We Do It

-7- INTERNATIONAL Outreach and missions to build awareness of Canadian capabilities; Capacity-building support to key markets; Conclusion of MOUs to facilitate cooperation with project host countries; Provide training to Canadian staff at posts on CDM/JI issues. CDM & JI Office: How We Do It

-8- CDM & JI Office: What We Have Done Office Activities for 2005 included: Financial support for Canadian company projects in Argentina, Belize, Chili, Dominican Republic, El Salvador, India, Morocco, Panama, Russia, Senegal, Vietnam Funds dedicated to project portfolio development (PIN & PDD) in China, India, Indonesia, Russia, South Africa, Latin America Exhibitions at AMERICANA (Montreal) and CarbonExpo (Cologne) Brazilian Road Show in Canada

-9- BASE CONDITIONS Canadian partner must apply Certain eligible fixed costs Office cannot fund 100% of project Project must demonstrate "additionality" Project must be clearly defined and bounded Project goals must be realistically achievable CDM & JI Office: Financial Support

-10- ADDITIONAL CRITERIA Project will generate CDM/JI credits for Canada; Project will contribute to reducing the cost of compliance with the Kyoto Protocol; Project will use Canadian (innovative) technology; Project is supported by host country authorities and partners (supporting documents); Project enhances sustainable development in host country; Project in underrepresented sector or market; Project will leverage funds from other sources. CDM & JI Office: Financial Support

-11- Carbon Finance Assessment Project Design Document (PDD) –Methodology Development –Baseline Development –Monitoring Plan Project Registration and Verification CDM & JI Office: What is Funded

-12- Since the coming into force of the Kyoto Protocol in February 16, 2005 approximately 33 projects have been registered by the CDM EB; Of those, three projects involved a Canadian company (TransAlta) working in Chile on Methane capture and combustion; A number of other Canadian projects are in the final stages of preparation prior to their being registered with the CDM EB; Numerous projects are in earlier stages of development, with the CDM/JI office providing guidance as required. CDM Canadian Success Stories

* Projects include Carbon Finance Assessments, Methodologies and PDDs Projects Supported by CDM/JI Office

-14- CDM & JI Office: MOUs The Government of Canada, through the CDM/JI office, has a number of Memorandum of Understanding (MOUs) with various countries; These MOUs help to facilitate cooperation on CDM/JI and IET processes; They also provide greater confidence for Canadian companies that their projects will proceed smoothly in the Host Country.

-15- CDM & JI Office: Signed MOUs AFRICA: Tunisia, Uganda (project-specific), Morocco ASIA: Indonesia, China, Sri Lanka, India, Korea EASTERN EUROPE: Poland, Ukraine, Latvia, Czech Republic LATIN AMERICA: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, Dominican Republic, Ecuador, Mexico, Nicaragua, Panama, Peru, Uruguay

-16- Canada-Indonesia CDM Cooperation Canada and Indonesia signed a Letter of Intent (LoI) to cooperate on the CDM during COP 11 (December 2005) The LoI facilitates private sector participation in the CDM between our 2 countries In anticipation of the LoI, Canada’s CDM & JI Office has supported: –Participation of Indonesian industry representatives in a CDM Matchmaking Session in Montreal, December 2005 –A CDM Project Development Facility in Indonesia to identify potential CDM projects

-17- CDM & JI Office: Resources UNFCCC - CDM – Government of Canada’s Climate Change Web Site – Government of Canada Clean Energy Portal – Industry Canada – Canadian Environmental Solutions database – Natural Resources Canada – Canadian Initiative for International Technology Transfer (CIITT) –

-18- Canada’s CDM & JI Office Climate Change and Energy Division (ESCC) Foreign Affairs Canada 125 Sussex Drive Ottawa, ON K1A 0G2 Tel: +1 (613) Fax: +1 (613) Web: For More Information

-19- CDM contact point at the Canadian Embassy in Jakarta: Nicolas Lepage, Trade Commissioner T: (62-21) F: (62-21) Web: For More Information