1. Implementation of the Kyoto protocol mechanisms in the Czech Republic
Climate Change Department
Ondrej Bores
Pavel Zamyslicky
Climate Change Department
Ministry of the Environment
of the Czech Republic
Vrsovicka 65
Praha 10,
Phone:
Fax:

2. Contents of the Presentation
Overview of JI projects
JI approval and criteria in the Czech Republic
Planned activities
Domestic requirements for Track I
Linking directive (Opportunities and Threats)
Implementing of GIS in the Czech Republic
Process of Establishing GIS

3. Current information (JI)
In total 96 projects registered (PIN)
→ about tons of CO2ekv./year
Two portfolios
PCF Portfolio of projects (16 small hydro, 2 centralized heating)
– total emission reduction tons of CO2 / year
BTG Portfolio of projects (15 biomass central heating projects)
– total emission reduction tons of CO2 / year
Last approved projects (LoA): Lovochemie, SHP Vraňany
Implementation of (CDM) Landfill Gas Methodology (29 projects in pipeline)
Rest of projects in various stages of implementation

4. Projects registered in 2006
083/JI/2006
Bohemia Waste
Management
Landfill Gas Capture and Energy Use Project - Zdechovice (Chvaletice)
50775
084/JI/2006
EKOBIOENERGO
Heating plant JIH (Třebíč) -Biomass central heating
8410
085/JI/2006
Boiler house K-13 (Třebíč) - Biomass central heating
2617
086/JI/2006
MAEN s.r.o.
Landfill Gas Capture and Energy Use Project- Mrsklesy
10000
087/JI/2006
ECOENERG
Wind Power Plant Farm Kryštofovy Hamry
91407
088/JI/2006
BTG
New biomass energy source (CE WOOD, a.s.)
31378
089/JI/2006
Biomass energy and heat production Trhové Sviny
12155
090/JI/2006
Biomass central heating system Kněžice
2587
091/JI/2006
Biogas Unit Kněžice
5507
092/JI/2006
Biogas Unit Kostelci na Hané (Statek Kostelec na Hané, a.s.)
4346
093/JI/2006
Biogas Unit Čejč (Horák energo, s.r.o.)
9863
094/JI/2006
Bierhanzl Biogas
Biogas Unit Rožmitál pod Třemšínem
14311
095/JI/2006
TEDOM
Landfill Gas Capture and Energy Use Project - Kozlany
3869
096/JI/2006
Landfill Gas Capture and Energy Use Project - Dačice
2562

5. JI projects registered by MoE

6. Approval process in the Czech Republic
Registration of the project by MoE – PIN (LoE)
Registration by State Environmental Fund (SEF) – program 2.8 (assessment)
Discussion in working group of MoE (suggestion for approval or refusal)
Ministerial approval (LoA)

7. Criteria Defined relatively generally
Priority areas (renewables, energy savings, landfill gas projects, non - CO2 gases, transport…)
Non-priority areas also possible
Assessment takes into account environmental, technical and economic issues
Case-by-case basis
Link to → Methodical Guideline for JI Projects in the Czech Republic

8. Track I eligibility criteria
Track 1 - necessity of moving forward
Criteria for Track 1:
Reporting issues
Initial Report was submitted to the UNFCCC
GHG Inventory
National Inventory Report
National Registry System (International Transaction Log)
ITL - testing operation are starting during spring 2007.
Operator – Czech Electricity Market Operator, linking with EU ETS registry
Other things should not be a major problem

9. Domestic requirements for Track I
Learning from problems in JI track 2
Standardization to a maximum extent possible
Validation and verification done by accredited local bodies
Additionality issues? To be considered
Simplification of procedures as much as possible
Pooling of projects needed
Potential for new JI projects?

10. Linking directive
Opportunity for EU ETS developers (limit 10 % in the second NAP for CERs and ERUs)
Big problem for new member states of the EU - New JI potential shortening
Reserve 99 389 allowances per year in NAP2 for indirect linking (only RES projects with LoA, No allowances for projects with LoE)
Is there a room for JI in linked regime at all?
New JI – only (biomass) heating and non – CO2 projects)
Room for AAU crediting, International Emission Trading and Green Investment Scheme - GIS)

11. Implementing GIS in the Czech Republic (I)
MoU – Denmark, Austria, (Preparation -Japan, Netherlands, Finland, Portugal, Spain, Slovenia... )
Czech Republic in a relatively advantageous situation
Projected emissions are below Kyoto target (- 24%) = surplus AAUs for sale
Available cca 30 mil AAUs per year

12. Implementing GIS in the Czech Republic (II)
Expected amount million AAUs per commitment period (estimation with the highest probability) – Uncertainty - allowances surplus, national reserve issue ???
What is the difference between Track I and IET (Article 17 trading in the form of Green Investment Scheme – GIS)?
Potential exists in various sectors (energy, transport, industry, …)
Domestic resources limited – foreign funding welcomed
Existing framework for funding – National programs
Capacity of State Environmental Fund, Czech Energy Agency

13. GIS responsibilities
Number of issues (responsibilities) to be clarified, but in general:
MoE responsible for Climate Change and Kyoto flexible mechanisms (Main coordinating role MoE – Department of Climate Change)
Cooperation with other ministries (Industry of industry and Trade, Foreign Affairs, Transport, Agriculture)
Greening facility – transferring of money to individual projects on the basis of pre-defined criteria (issue for working group)
Greening facilities on the Czech side
– State Environmental Fund (SEF) –
– Czech Energy Agency (CEA) –

14. The process of establishing GIS
1) signature of Memorandum of Understanding (MoU)
2) establishing bilateral expert working group for GIS
3) criteria for selection of projects (greening, scope of projects,…. )
Approach for choosing projects (kind, size, sector,…….)
4) preparation of ERPA(s)
5) Pilot phase of GIS (testing)
6) Work phase of GIS
Funding programme with defined criteria established
Applicants send applications – assessed against criteria
List of approved projects – funding

15. Issues to solve
State aid – need to be checked (depends on who is the recipient of money)
EU ETS – AAU trading not explicitly mentioned – could be a problem in terms of „crossing“ of various ways of funding
„Soft“ or „Hard“ greening?
Resources available up front (payments)? When the concrete projects need to be presented?
Role of investor country in approval process?
Validation and verification projects

16. Thank you for your attention !