PACE Centre Clean Development Mechanism Project Developers Workshop, May 2005 Small-Scale CDM Operation & Opportunities in South Africa South African PACE Centre CDM for Small-Scale Renewable Energy & Energy Efficiency

PACE Centre How does CDM operate? Based on the global commons Voluntary, measurable, market based Players Requirement to prove 3 things: –Additionality - not business as usual –Leakages - market based or, actual –Fungibility - currency has to be standardised

PACE Centre CDM instrument CO2e emissions Actual emissions CERs National obligation Time

PACE Centre

Simplified process 1. Check eligibility and potential 2. Project Design Document (PDD) 3. Approval at national level (host country, investor country) 4. Validation - DOE 5. Registration with CDM Executive Board 6. Project Implementation 7. Monitoring, verification and certification 8. CERs issued and transferred

PACE Centre Money for dirt?…. Caveats Internationally contested mechanism and standards Low hanging fruit Obsolete & inappropriate technology Divisions of liabilities and benefits Northern driven

PACE Centre CDM in South Africa Energy & carbon profligate Renewable options Compatible with a existing activity – MIG, LED, EPWP, Housing, Services, Transport recapitalisation Weak but developing institutions 2 projects registered, no CERs traded Increasing investor interest