Canada’s CDM & JI Office Project Facilitation Support Through Canada’s CDM and JI Office

2 Canada’s CDM & JI Office Canadian Context Canada ratified the Kyoto Protocol in December 2002 Accounts for 2% of global emissions Canada’s target under Kyoto: –6% below its 1990 level –Equal to 240 Mt/year during the first commitment period ( )

3 Canada’s CDM & JI Office Canadian Context Canada is in a unique situation: –Kyoto Protocol’s target a challenge –Alone in the Americas with a Kyoto commitment –International competitiveness

4 Canada’s CDM & JI Office Guiding Principles – Kyoto Protocol Implementation Majority of activities at home All sectors should share the burden No undue burden on any Canadian region

5 Canada’s CDM & JI Office Overview Mandate of Canada’s CDM and JI office Project facilitation support Projects supported to-date Upcoming events

6 Canada’s CDM & JI Office Office Mandate and Strategy National focal point for CDM and JI –Develops and disseminates information –Links with other Canadian and international programs Facilitates Canadian participation in the CDM & JI –Facilitates project development –Supplies technical guidance to companies –Provides financial support to offset transaction costs –Concludes bilateral agreements

7 Canada’s CDM & JI Office Office Mandate and Strategy (cont`d) Provides approvals Provides analytical and policy support to negotiations Current focus - Project-specific activities to reduce transactions costs - Enhanced domestic outreach - Capacity-building support to key markets - Ensuring Kyoto linkages to domestic systems which are under development - Enhancement of password-protected website - Conclusion of MOUs

8 Canada’s CDM & JI Office Password Protected Website

9 Canada’s CDM & JI Office Status of MOUs CONCLUDED Cuba China-Canada Joint Statement–GOC Colombia, Uganda (project-specific) Tunisia Ecuador Nicaragua Costa Rica Chile Korea Poland Ukraine Latvia UNDER DISCUSSION Argentina, Bolivia Uruguay Dominican Republic Egypt El Salvador Peru Poland, Romania Sri Lanka Brazil, Guatemala, Panama

10 Canada’s CDM & JI Office Project Facilitation Support Project Transaction Costs Development of new methodologies Baseline studies, monitoring plans, PDDs Verification & certification Project registration with CDM EB Monitoring & Verification Project Development Costs Market identification Technical guidance Feasibility studies– carbon asset assessment only Environmental assessments

11 Canada’s CDM & JI Office Funding Criteria for Proposals A Project Must: Result in CDM or JI credits for Canada Be commercially viable Clearly depict the ownership rights to carbon credits Leverage resources – cost-sharing New 2-Step Process: Proposal Summary Template Detailed Proposal

12 Canada’s CDM & JI Office Projects Supported by CDM &JI Office * Africa & Middle East - Egypt - Ivory Coast - Jordan - Morocco - Mauritania - Senegal - Tunisia Asia - Bangladesh - China - India - Pakistan - Sri Lanka Latin/South America - Argentina - Costa Rica - Brazil - Cuba - Barbados - Honduras - Chile Central Eastern Europe - Poland - Romania - Russia

13 Canada’s CDM & JI Office Some Observations Sectoral focus: methane recovery, renewables, energy efficiency Growing interest in sequestration Progress: 2 Canadian projects advanced to EB Type of Support: Feasibility studies, baselines, and PDDs Increasing interest in project facility approach to project development –Small-scale projects – Pembina Institute –India–GSCI-Natsource Absence of upfront project investment impeding project development

14 Canada’s CDM & JI Office Summary Technical advisory role of office enhanced Financial support available for targeted activities Seeking opportunities to collaborate with CDM & JI stakeholders domestically and internationally Interested in obtaining updates on your firm’s international operations Thank you !

15 Canada’s CDM & JI Office For more information... Canada’s CDM & JI Office Climate Change and Energy Division (ESCC) Foreign Affairs Canada 125 Sussex Drive Ottawa, ON K1A 0G2 Tel: (613) Fax: (613) Web: