1. CDM –Functional Overview
Senergy Global Pvt. Ltd.

2. About Senergy Global
Provide end-to-end solutions in the CDM space. Right from PIN to end transactions.
SGPL has got experience in developing renewables, energy efficiency and fuel switching CDM projects.
Has registered 14 projects with the UNFCCC.
Has a pipeline of more than 70 projects.
Successfully traded & transacted more than 2million CERs/VERs/Off-Sets till date.
Provides renewable energy related policy & regulatory advisory services.

3. What We Do? Develop project ideas and carries out feasibility studies
Prepare the Project Design Document (PDD) and the project Methodology, including baseline studies and monitoring plans
Guidance (presentations and documentation) for Host country approval.
Facilitate quicker and smoother approval by DOE in validation stage.
Registration of the project with the CDM Executive Board
Prepare monitoring reports for timely verification
Issuance of the CERs
Organise transaction of CERs

4. Credibility
An associate of Suzlon, the largest Wind Mill manufacturer in India.
Commitment of service and delivery.
Reputed Clientele.
Transparency is ensured in client dealings.
Adherence to market responsiveness to chart favorable growth path for clients.
Proven track record in registering projects

5. CDM : The genesis
United Nations Framework Convention on Climate Change (UNFCCC)
Ultimate objective of stabilizing global greenhouse gas concentrations in the atmosphere
CDM one of the flexibility mechanism defined under Art 12
The Kyoto Protocol
agreed to reduce greenhouse gases by 5.2 % below 1990 levels (2.8 to 4.8 billion TCO2e) in the commitment period
Required ratification of 55 Parties representing 55 % of industrialized countries’ emissions (US constitutes 36 %, while Russia is 17.4%) for its entry into force
Protocol is in force, since 16th Feb, 2005 (ratification by Russia to cross the magical 55%)

6. What is Carbon Credits or Finance ?
Carbon finance, is nothing but an additional revenue stream emerging from a project based activity
Passes the various additionality tests
Meet all necessary compliances (viz. Kyoto Protocol)
Has a positive sustainable development impacts for the host country

7. CDM & India More than 600 projects approved by MoEF
Total registered project globally:844
India: 289(34%)
32 MN CERs issued to Indian projects, out of about 94 MN total issued CERs

8. Percent of CDM Projects by Country

9. Costs involved in CDM Project
Cost Related to the development of the conventional project
Transaction Cost related to the registration of project with the CDM EB

10. Means of Finance Equity Financing Long Term Lending
Venture Capital Scheme
Lease Financing
Project Financing

11. Transaction Costs
Project Proponent’s additional investment to monetize the CDM Revenues
It Includes
Costs towards consultants for developing CDM project (PDD)
Costs towards validation of the CDM project
Costs towards registration of the CDM project with EB
Costs towards monitoring of emission reductions
Costs towards verification of CERs and transaction costs

12. Transaction Costs
CDM EB deducts 2% of the CDM revenues to Adaptation fund
Transaction costs varies between 5% to 25% of the total revenues depending on the type and size of the project

13. CER Prices
Carbon market is expanding and volume of CERs expected to be transacted by 2012 is about 1.5 billion
Market Mechanism has kept the volatility of CER Prices
Most of the CER transactions happen in the secondary market where the price range of 12 – 15 Euros are in vogue.

14. Taxation Issues CERs may be accounted as an intangible asset
CERs may be treated as the exported commodity and thus the various sops available for the exported products can be availed
CDM revenue may be accounted as “Other Income” and hence normative tax can be applied
India is probably waiting for some accounting model to be formulated by the Annex-I countries

15. CDM Risks Risks related to the registration of the project
Upfront Payment of transaction costs
Risks related to existence of market beyond 2012

16. Thank you Thank you Naveen S Sr. Manager Senergy Global Pvt. Ltd.
9th Floor, EROS Corporate Tower
Nehru Place, New Delhi –
Thank you