1. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Project Development Guidelines and Status of CDM Activities in Pakistan Syed Amjad Hussain Acting Head CDM Cell

2. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Part 1: Project Development Guidelines  CDM Project Identification in Different Eligible Sectors  Development of Project Idea Note (PIN)  Preparation of Project Design Document (PDD)  Host Country Approval  Validation of Project  Registration of Project  Monitoring of Project  Certification and Issuance of CERs  Time Required for Different Component within CDM Project Cycle Overview of Presentation

3. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Government of Pakistan Initiatives for Strengthening of CDM in Pakistan Establishment of CDM Cell in the MoE. World Banks Project for Capacity Building for Development and Implementation of Carbon Finance Projects under Japanese Policy and Human Resource Development Grant (PHRD) Norwegian grant of US$ 0.67 million Project for Institutional Capacity Enhancement for CDM in Pakistan Hands on Capacity Building of Forest Official in Developing Proposals for Afforestation/ Reforestation Project Design Documents (PDDs) under CDM MoUs for promotion and enhancement of CDM Project Activities in Pakistan. Status of CDM Projects Activities in Pakistan Provided Host Country Approval to 14 CDM Projects CDM Projects in Pipeline Part 2: Status of CDM Activities in Pakistan

4. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Part 1: Project Development Guidelines

5. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan –Unilateral, Bilateral and Multilateral CDM Projects are allowed in following sectors –Energy - Renewable/alternate energy, - Energy efficiency/conservation, and - Fossil- fuel cogeneration –Waste Management - Landfill gas capture - Recycling - Energy from solid waste etc. –Transportation - Alternative fuel vehicles - Mass transit systems - Cleaner engines, CNG CDM Project Identification in Different Eligible Sectors

6. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Cont--- –Industrial processes (, Fertilizer, Textile etc.) –Land Use, Land Use Change and Forestry (watershed management, sustainable forest management, afforestation and reforestation) –Agricultural and livestock practices –Any other project resulting in GHG mitigation or carbon sequestration.

7. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Development of a Project Idea Note (PIN) PIN provide basic information about proposed CDM project activities including  General information about project  Information about project cost  Estimated GHGs Reduction in tons of C eq/year,  Estimated number of CERs/year,  Suggested crediting life time of the project  Environmental and Socioeconomic benefits of project etc. PIN is used to obtain a letter of endorsement from the DNA

8. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Preparation of a Project Design Document (PDD) Website: http://cdm.unfccc.int Methodologies  Baseline  Monitoring Project Additionality Project should be additional to “business as usual scenario” Tool for the demonstration and assessment of Additionality are available for all CDM Project Methodologies on available at (http://cdm.unfccc.int/Reference/guidclarif/index.htm)

9. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Host Country Approval Host Country Approval Criteria  General Criteria  Environmental Criteria  Social Criteria  Economic Criteria  Technological Criteria Validation  Executive Board (EB) Designated a third party called Designated Operational Entity (DOE) carried out validation for CDM Project Activities.  A list of DOEs is available at ( http://cdm.unfccc.int/Reference/guidclarif/index.htm)

10. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Registration of Project  After Successful Validated and Host Country Approval CDM Project will register by the CDM Executive Board Monitoring of Project  Project performance, including baseline conditions, is measured by the project proponent in the commissioning process and during on-going project operation.

11. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Certification and Issuance  Based on the successful compilation and satisfactory report of the following;  Host Country Approval  Project Validated  Verification of project performance,  CERs are certified by a DOE and issued by the CDM Executive Board.

12. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Time Required for Completion of Different Component within CDM Project Cycle

13. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Part 2: CDM Activities in Pakistan

14. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Project: Establishment of CDM Cell in the MoE Funding:Public Sector Development Programme (PSDP) Period: 3 years (July 2006 - June 2009). Budget :Rs. 38.93 million. Objectives: –Strengthening of Clean Development Mechanism (CDM) Cell in the Ministry for implementation of Pakistan National Operational Strategy for CDM. –Capacity building and awareness raising of public/ private stakeholders in CDM activities under the Kyoto Protocol of UNFCCC.

15. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Progress made so far: CDM Cell, Ministry of Environment has organized the following seminars/workshops/symposiums for awareness and capacity building for GHGs Emission Reduction in Pakistan during the last three years; Workshop on ‘The Climate Change and Natural Resource Management in June 2007. Workshop on ‘Carbon Credits Potential in Oil and Gas Sector of Pakistan in September 2007. Workshop on ‘Carbon Credits Potential in Cement Industry of Pakistan in January 2008.

16. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Workshop on ‘Carbon Credits Potential in Sugar Industry of Pakistan in April 2008. Workshop on “Carbon Credits Opportunities in industry Sector of Pakistan in August 2008 Workshop on “Carbon Credits Opportunities in Wind Sector of Pakistan in August 2008. Seminar on “Climate Change and Greenhouse Gases (GHG’s ) Mitigation Options under the Kyoto Protocol” for creating awareness among the student community in all Universities like Quaid-i-Azam University, Pir Mehr Ali Shah University of Arid Agriculture, Fatima Jinnah University, International Islamic university and Bahria University. An awareness raising seminar on Climate change and Clean Development Mechanism in Agricultural Sector of Pakistan at NARC, Islamabad.

17. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Following workshops have been planned in provincial headquarters and industrial hubs of Pakistan in all CDM eligible sectors for awareness raising and enhancement of CDM project activities for national sustainable development and controlling environmental pollution. 1) Steel Industry of Pakistan 2) Textile Industry of Pakistan 3) Brick Industry of Pakistan 4) Paper Processing sector of Pakistan 5) Waste and Effluent Management/Tanners Given Host Country Approval to 13 CDM Projects

18. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan CDM Capacity Building Initiatives Project Name World Banks Project for Capacity Building for Development and Implementation of Carbon Finance Projects under Japanese Policy and Human Resource Development Grant Period18 Months BudgetUS$ 0.57 million Aims and Objectives1. Strengthening of institutional framework and enabling environment to promote public and private participation in the carbon market. 2. Training/Workshops for enhancement of capacities of local stakeholders (public institutions, private investors, NGOs etc.) in CDM project development. 3. Support CDM project preparation and development in priority sectors: Energy, waste management, industries, forest and agriculture). Progress Made so Far  The Action Plan for the project has already been prepared.  The institutional and financial arrangements for the execution of project have been approved.  Capacity building workshops have been organized Current Status Consultant Firm i.e. WINROCK International has been hired. And is in process of implementation

19. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan (Cont…) Project NameInstitutional Capacity Enhancement for CDM in Pakistan. Period18 months Total CostUS$ 0.674 million Project ImplementationGrant from Royal Norwegian Embassy through United Nations Industrial Development Organization (UNIDO) Objectives1.to build institutional capacities in Pakistan for addressing climate change; through enhancement of the DNA/CDM in the Ministry of Environment for better management of CDM process and increasing the capacity of CDM Project developers 2. To tape the GEF funding to give a kick-start to initiating the process of developing second national communication to UNFCCC. 3. To tape donor funds to initiate the process of developing national policy/ action plan for climate change mitigation and adaptation as envisaged under national environmental policy. Progress Made so FarMinistry of Environment, UNIDO and Economic Affairs Division have approved the project documents. Current Status The project is in process of implementation now

20. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan (Cont…) Project NameHands on Capacity Building of Forest Official in Developing Proposals for Afforestation/ Reforestation Project Design Documents (PDDs) under CDM Period2007- 2009 Total CostRs. 9.84 million FundingSwiss Agency for Development Cooperation through Inter- Cooperation, and Ministry of Environment ObjectivesTo build capacity of Provincial Forest Departments to develop and manage CDM projects in forestry sector o Pakistan. Progress Made so Far  Three training sessions have been organized  Draft Project Design Documents have been completed  National Forest Definition for implementation of A/R CDM Projects Activity have been developed

21. Memorandum of Understanding (MoU) Government of Pakistan has signed a Memorandum of Understanding (MoU) on Cooperation in CDM with Japanese Carbon Fund (JCF) through Japan Bank for International Cooperation (JBIC) has been signed in July 2008. Government of Pakistan has signed a Memorandum of Understanding (MoU) in August 2008 with CAMCO International for the realization of CDM projects in Pakistan. A number of similar MoU for promotion and enhancement of CDM Project Activities in Pakistan Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan

22. Provided Host Country Approval to 14 CDM Projects 1.Catalytic Nitrous oxide Abatement at the Tail Gas End of Pakarab Fertilizers (Pvt.) Ltd, Multan. The project got registered with CDM Executive Board in November 2006. 2.Cattle Waste Management, Landhi Cattle Colony, Karachi, Pakistan. 3.84 MW New Bong Escape Hydropower Project in Azad Jammu and Kashmir. 4.Pakarab Fertiliser Co-generation Power Project. 5.Generator Change Project at Maple Leaf Cement Company Limited. 6.Fuel Switch and Energy Efficiency Project at Prosperity Weaving Mills Limited. 7.Construction of additional cooling tower cells at AES Lal Pir (Pvt) Limited, Muzaffar Garh, Pakistan. 8. Almoiz Bagasse Cogeneration Project, D. I Khan, Pakistan.

23. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan 9.Fuel Switch to a less Carbon Intensive Fuel at S. Fazalilahi and Sons Pvt Limited, Pakistan. 10.Community-Based Renewable Energy Development in the Northern Areas and Chitral, Pakistan. 11.Gul Ahmed Combined Cycle Gas Turbine Project, Karachi, Pakistan. 12.Composting of Organic Content of Municipal Solid Waste in Lahore, Pakistan. 13.Biogas-based Cogeneration Project at Shakarganj Mills Ltd., Jhang, Pakistan”. 14.Installation of natural gas based cogeneration system at Century Paper & Board Mills Ltd., Lahore, Pakistan,

24. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan Expected Benefits from these 14 CDM Projects in Pakistan –Foreign direct investment = US$ 345 million –GHG Reduction = 3.35 million tones per annum –Other sustainable development, social, economic and environmental benefits to Pakistan.

25. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan CDM Projects in Pipeline More than 60 CDM Projects are in Pipeline in different sectors  Energy (Efficiencies/Renewable/alternate energy)35 Projects  Waste Management/Industrial Processes 20 Projects  Afforestation/Reforestation CDM05 Projects

26. Clean Development Mechanism Cell, Ministry of Environment, Government of Pakistan THANK YOU