1. Clean Development Mechanism Global Affairs Divisionin
Sri Lanka
K.A.K. Kasturiarachchi
Global Affairs Division
Ministry of Environment and Natural Resources
Sri Lanka

2. Location of Sri Lanka

3. Introduction to the Climate Change Activities
Ratified UNFCCC in 1994
First National Communication submitted 2000
Green house Gas Inventory -1995
58 Studies are being conducted
Center for Climate Change Studies Established at Met. Department

4. Breakdown of overall GHG emission in Sri Lanka – 1994
Green House Gas Source and Sink Categories
CO2 (Gg)
CH4 (Gg)
N2O (Gg)
Total National Emission
(Gg per year)
1. All Energy
2. Industrial Processes
300.55
……….
………..
3. Agriculture
………….
156.86
3.42
4. Land Use Change and Forestry
27882
5. Other Sources
13.73
Source- Initial National Communication-2000-Under the UNFCCC

5. CDM & Sri Lanka Important initiatives taken by Sri Lanka
Acceded the Kyoto Protocol on 3rd September 2002.
Established Designated National Authority for the CDM project activities.
Prepared a national framework policy on CDM
Establishment of two national CDM study centers at two leading Universities..
National strategy study on climate change (To be started soon).

6. Climate Change Secretariat-DNA
Structure of the Designated National Authority
Secretary / Environment and Natural Resources
CDM Project Developers
CDM Study Centers
NGO’s
Climate Change Secretariat-DNA
Government Agencies
Private Sector
CDM Expert Committee

7. CDM Project Development Process in Sri Lanka
Project developer identifies a project and prepares the project Identification Note (PIN).
2. If possible identify a buyer to buy Certified Emission
Reductions (CERs).
3. Project developer submits the PIN to the DNA/CCS
4. DNA issues the letter of approval or project approval in
principle.
5. Once PIN is approved project developers prepare the PDD.
6. Project developer submits the Project Design Document
(PDD) to the DNA.

8. Cont… 7. Project developer pays PDD evaluation cost to DNA.
8. DNA submits the PDD to the CDM Expert Committee for recommendation.
9. The Expert Committee send the PDD to a suitable expert for review.
10. Expert Committee make recommendation to the DNA.
11. DNA submits the Expert Committee recommendation to the Secretary for approval.
12. DNA issue the host country approval.

9. Partners of the National Expert Committee on CDM
Ministry of Environment and Natural Resources
Ministry of Power and Energy
Ministry of Agriculture
Ministry of Science and Technology
Ministry of Industries
Forest Department
Meteorology Department
Universities
Ministry of Transport and Highways
Private Sector
Non Governmental Organization
Colombo Municipal Council

10. National Policy on Clean Development Mechanism
Objective
To contribute to sustainable development through developing and establishing the institutional, financial, human resources and legislative framework necessary to participate in Clean Development Mechanism (CDM) activities under the Kyoto Protocol while developing a mechanism for trading “Certified Emissions Reductions” (CER) and “Removal Units” (RMU) earned through CDM activities.

11. Policy Principles
Participation in CDM projects shall be in line with existing sectoral policies.
CDM projects shall have tangible national impacts and will contribute to the national sustainable development agenda.
CDM will be used to encourage sector investments in climate-friendly development activities.
CDM projects shall be designed so as to contribute to the improvement of the environment and the welfare of the society as a whole.
CDM Projects shall be encouraged to include elements that would contribute to poverty reduction and employment generation.

12. Policy Principles Cont.
CDM Projects shall promote and encourage the inward transfer of new, proven, affordable and relevant technologies.
CDM Projects that address National Environmental issues will be especially encouraged.
CDM projects shall be approved through a participatory and transparent process that involves a detailed assessment of their economic, social and environmental benefits and their relevance to local needs and priorities.
CDM projects shall recognize the rights of the people of Sri Lanka in relation to all emissions, exercised through the Government of Sri Lanka.
Applicants for approval of CDM projects will meet the costs associated with the evaluation of their applications by making such payment to the Secretariat as the Authority may determine.

13. POLICY STATEMENTS Institutional Framework
The Ministry of Environment & Natural Resources - National Focal Point for UNFCCC & the Kyoto Protocol.
The Climate Change Secretariat (CCS) -Designated National Authority (DNA) for CDM activities.
A National Experts Committee (NEC) - evaluate CDM project and make recommendations to the Authority.
A national CDM study Centre - advising project proponents and the CCS on all issues on CDM.
The Ministry shall establish an Emissions Trading Exchange (ETX).

14. Criteria
The CCS through NEC shall ensure that the project developers follow the guidelines of the IPCC and the UNFCCC
Government shall not be held responsible for delivery of the CER and RU contracted by CDM projects.
CDM projects shall be subject to the Environment Impact Assessment (EIA) process and other applicable laws, as relevant.

15. Eligibility
CDM Project proposals shall be evaluated based on their feasibility and national benefits.
Proponents of CDM projects shall be entities incorporated in Sri Lanka
Small CDM projects - Bonn Agreement adopted at the (COP-6).

16. CDM Sectoral Opportunities

17. The key sectors for the implementation of CDM projects
Energy
Industry
Transport
Waste Management
Agriculture
Forestry Management
Plantations
The government may decide priority sectors for CDM projects from time to time.

18. Proposed CDM project Proposals and Concept Papers in Sri Lanka
Bambarabatu Oya mini hydro power plant-3.2MW-Vidullanka Limited.
50MW Wind power plant at puttalam- Largerwey Windturbine International.
Colombo Organic Waste Treatment Plant- Biolan (pvt) Ltd.
20MW Wind power plants in Narakkalliya- Senok Trade Combine Ltd.
Mini hydro power projects- Eco-power Ltd.
a) Alupola, Badulu Oya, Weli Oya, Arattana- 13.3MW
b) Magal Ganga – 9.9MW
c) Hapugastenne & Hulu Ganga – 13.55MW

19. Concept Papers
Power Generation and Manufacture of Coconut Shell Charcoal – 8MW by Sri Recogen Limited.
Availing to Carbon Credit for Proposed Denro and Hydro Power Project- 6MW by Lanka Transformers, Ltd.
Reduction of Carbon Emission, Environmental Improvement, and Community Development through briquetting of saw dust in the Lunawa/ Bolgoda area- by Coast Conservation Department, Central Environmental Authority, Seth Sevana Foundation.
Carbon Trading for Rubber Growers – Rubber Research Institute.
Disposal of Solid Waste Generated in the City of Colombo – by Free Lanka Plantation.

20. PINs submitted for approval
Wind power plant by Senok Trade Combine Ltd.
Mini Hydropower Project by Free Lanka (pvt) Ltd
Atabage small hydropower project
Gatembe small hydropower project by
Environment Management Lanka (pvt) Ltd.
Wind power plant by Largerway Wind Turbine International in partnership with the Central Finance Company Ltd.
Power Generation & Manufacture of coconut shell charcoal

21. Cont…
Reduction of carbon emission, Environmental Improvement & community Development through briquetting of saw dust in the lunawa / Bolgoda area by Coast Conservation Dept., Central Environmental Authority, Seth sevana Foundation.

22. Cont…
Availing to Carbon Credit for proposed Dendro and Hydro power project by Lanka Transformers Ltd.
Biomass Power Plant by Energeon Power (pvt) Ltd.
300MW Wind power projectDAVIDS & M Engineering (pvt) Ltd.

23. Request for approval from EB
Mini hydro power projects- Eco-power Ltd.
a) Alupola, Badulu Oya, Weli Oya, Arattana- 13.3MW
b) Magal Ganga – 9.9MW
c) Hapugastenne & Hulu Ganga – 13.55MW

24. Further Measures Needed

25. Future Programme
Trainning and Capacity Building in Private and Public Sector
Setting up the minimum requirements for CDM projects
Clear guidelines on priority areas for projects
Producing a list of non-eligible activities
Development of Baselines for Various Sector

26. Future Programme Cont..
Setting up an infrastructure for promoting and handling CDM projects
Developing a full programme to promote and actively seek out CDM projects.
Efficient and transparent procedures for processing project applications.
Procedure for registering and monitoring in-country project activities,

27. Future Programme Cont..
Procedures for authorizing verification organizations that validate and certify CDM projects.
Clear guidelines on the selection,
Information about project and financial opportunities to in-country project developers.
Identify promising project types and associated social, economic and environmental impacts.

28. Possible challenges, CDM & Sri Lanka
Over Estimating the CDM Potential.
Over Estimating the CDM Revenue.
No Market access
Approval Procedures Not Acceptable to Private Sector
Lack of knowledge.
No easy access to new information.
Fear of adopting new technologies.

29. Thank you