1. Climate Change, Kyoto Protocol and CDM Status and Prospects in Nepal Khum Raj Punjali Joint Secretary/Chief of Environment Division Dilip Khatiwada Mechanical Engineer/Asst. Spokesperson Ministry of Environment, Science & Technology Government of Nepal

2. Presentation Overview Environment Sector Initiatives Climate Change Vulnerability!!! Back Ground: UNFCCC and Kyoto Protocol Policy Focus and Priority Areas DNA Structure Potential CDM Projects CDM projects and CERs Areas of Concerns

3. Environmental Sector Initiatives Establishment of the Ministry of Population & Environment, 1995; Merged in Ministry of Environment, Science and Technology, 2005 Environment Protection Act (1997) and Environment Protection Regulation (1997) Signatory of the various international environmental conventions/protocols ( Total 19: like Basel, UNFCCC, UNCCD, Montreal, Kyoto etc.); Focal point of MEAs Promotion of Clean and Environment-Friendly Energy Technology (biogas, solar, micro-hydro, wind): AEPC Provision of Environmental Planning (EIA/IEE) Standard Formulation, Pollution Control and Prevention Cooperation, Collaboration and Networking with INGO/NGO, Academic Institutions (Climate Change Network Nepal), Public- Private Partnership Dissemination of environmental information, Awareness Creation, and HRD

4. Nepal’s vulnerability to Climate Change and Global Warming: Fragile Mountain Ecosystem Prone to Natural Disasters Landlockedness Poverty – additional cost for adaptation Major river systems are either glacial origin or in the impact zones Climate change major challenge to livelihood of people Agro-based (monsoon based) economy Climate Change Vulnerability!!!

5. Background: UNFCCC and KP UNFCCC Nepal signed UNFCCC on 12 June 1992, ratified on 2nd May 1994 and entry into force in Nepal 31 July 1994 Nepal has been participating in all COPs and other subsidiary meetings Nepal’s contribution to global emission by 0.025% only First INC Report prepared with GEF/UNEP assistance: July 2004 and shared with Parties Kyoto Protocol Deposition of Instrument of Accession: 16 September, 2005 Entry into force in Nepal: 14 December, 2005 CDM MOEST is DNA: 22 December 2005 Constitution of DNA (11 member steering committee): 17 April 2006

6. Policy Focus and Priority Areas Tenth Plan (2002-07) Policy Focus Carbon trade for resource management and for poverty reduction Promotion of the use of environment-friendly technologies, cleaner production, energy efficiency, clean energy, and alternative energy Implementation of multilateral environmental agreements (MEAs) including UNFCCC Priority Areas Agriculture, Sustainable Management of Natural Resources and Biodiversity Development of Rural Infrastructures and Rural Energy Development of Tourism, Water Resources Human Resource Development and Women Empowerment Strengthening of Local Bodies, NGOs and CBOs Environment Conservation and Promotion etc.

7. Structure of DNA Ministry of Environment, Science and Technology (MoEST) Secretariat of DNA Member-Secretary (Joint-Secretary) Steering Committee Chairman: Secretary, MoEST Members: MOF, MFSC, MOICS, MOLTM, MLD, MOWR, MOAC, Experts (2) (NGO, private, academic and banking sectors) Member-Secretary: Joint-Secretary, MoEST Technical Advisory Committee Environment Assessment Section Environmental Standards and Monitoring Section Environment Promotion and Awareness Section

8. Promoter/ Developer Project Idea Note (PIN)/ Project Design Document (PDD) Processing by DNA Secretariat, MoEST Meeting of the Steering Committee Decision on PIN/PDD by MoEST Simplified Decision-Making Process for CDM Projects

9. Potential CDM Projects in Nepal Renewable Energy Biogas Micro-Hydro Solar PV (Tuki-Mara) Improved Water Mills Improved Cooking Stoves Transporation Electric Tempo (Safa Tempo) Trolley Bus Electric Trams and Trains Hydropower Substitution of Fossil Fuels Export to India Industry Cement Industries and other energy intensive industries Brick Kilns Agriculture and Forestry

10. SNName of the ProjectCERs in 10 YearsStatus 1Biogas Support Program Activity 1 and 2938,830Registered at CDM EB 2AEPC/REDP – Micro Hydro Power Project377,550PDD completed, negotiation going on with buyer 3Improved Water Mill137,383PIN completed PREGA Initiatives (Promotion of Renewable energy, energy efficiency and greenhouse gas abatement ) 4Sisdol Landfill gas to energy project238,239PDD completed 5Vertical Shaft Brick Kiln Activity 145,045PDD completed 6System of Rice Intensification (SRI)1,707,522PDD completed 7Solar Tuki (lighting)82,000PIN prepared 8Improved Cooking Stove1,200,000PIN prepared 9Safa Tempo – transportation61,000PIN prepared 10Biodiesel242,283PIN prepared 11Ethanol254,843PIN prepared 12Solar Water Heater97,736PIN prepared 13Cement210,974PIN prepared 14Trolley Bus in Ring Road, Kathmandu42,988PFS completed 15West Seti Hydropower for export (WS)22,932,223PFS completed 16Electric Train – (E-W highway)2,081,464PFS study completed CDM projects and CERs CER= cerified emission reduction

11. Areas of Concerns Capacity Building (Negotiation Skills, Project Development, DNA Strengthening) Transaction Cost for CDM projects preparation and documentation Mainstreaming CDM in Development Planning and Poverty Reduction Generating Data & Information, Technology Transfer and Sharing Targeting CDM in Rural Areas Developing Regional Voice with Common Understanding on Regional Issues