1. Status of JI Projects Regulation in Russia Alexander Averchenkov NPAF, Russia UNDP Regional Workshop on Carbon Finance Istambul, January 21-22, 2008

2. Governmental incentives to participate in the International Carbon Market Bring real investments in Russian economy to support strategic areas of energy policy : Bring real investments in Russian economy to support strategic areas of energy policy : -Modernization and reconstruction of district heating systems, -Energy Efficiency measures, -Renewable energy development Provide additional income and institutional frame for support of environmental projects and programs Provide additional income and institutional frame for support of environmental projects and programs

3. Governmental Actions on implementation of the KP obligations National Action Plan on Kyoto Protocol implementation Interagency Commission on the KP Implementation Agreed by the Government ) (February 2005) Created by the Order of Minister of Economic Development and Trade ( May 25, 2005 ) 7

4. Legal basis for JI projects in Russia Federal Law on Kyoto Protocol ratification (128-ФЗ of 04.11.2004) Federal laws: “About the Government of the RF”, “Taxation Code of the RF”, “Civil Code of the RF”, “About foreign investments in the RF”. Federal Law on Investment activities in the Russian Federation, (39-ФЗ of 25.02.1999) Decisions of COP/MOP1 Governmental resolution on procedures of JI projects approval (May 28, 2008) Governmental resolutions on national monitoring system (March 3, 2006) on national registry (February 20, 2006)

5. JI projects regulations in Russia (1) JI procedures are developed as universal procedures both for Track 1 and Track 2. Finalization and approval by NFP (MEDT) of an institutional infrastructure for JI procedures are expected in January 2008, Initial total national limit for JI projects was agreed by federal ministries at the volume of 300 million tons of CO2-equivalent

6. JI projects regulations in Russia (2) Early emission reductions (ERs) achieved prior 2008 are not accepted by Russian national JI procedures, JI projects should be in compliance with targeted indicators on project effectiveness (to be developed by federal ministries and agencies), MEDT will issue LoAs after they are considered and approved by the Interagency Commission on the KP implementation and by a resolution of the Government of Russia

7. Russian JI Project Pipeline (as of 20 January 2008, web-site ji. unfccc.int) Project typesNumber of projects Estimated emission reductions, tCO2-equiv. (2008-2012) % Energy savings & energy efficiency79 703 8169,19,1 District heating systems2586 2930,5 Landfill gas and waste treatment58 241 1977,7 Renewable energy171 5090,1 Natural gas networks refurbishment191958 999 61055,2 Fuel switch to gas74 463 1554,2 Switch to biofuel62 888 5162,7 Flare gas reduction48 748 1658,28,2 PFC, HFC23, SF6, NO 2 emission reduction 412 247 73111,4 Waste carbon dioxide recovery1305 4880,3 Methane emission avoidance through poultry manure utilization 1215 5100,2 Mini CHP1380 7520,4 TOTAL58106 851 742100