2. Canada’s CDM & JI Office: Role & Activities Presentation by Jane Desbarats Winnipeg, Manitoba March 14, 2003 Program Manager Canada’s CDM & JI Office ESCC/DFAIT

3. Overview CDM and JI Policy Context Office mandate, objectives, and strategy Key Accomplishments Project Facilitation Linkages with Other Programs Near Term Focus

5. Benefits of CDM and JI for the host country Attracting investment in priority economic sectors Air quality improvements and health benefits Access to clean technologies Improved energy efficiency Infrastructure improvements and increased employment Mitigation of climate change Reduced dependence on imported fuel Revenues from credits

6. CDM Criteria Contributes to the sustainable development of the host country Results in emission reductions that would not have happened otherwise Generates real, measurable and long-term climate change mitigation benefits Approved by parties involved

7. JI- Kyoto Criteria Credits earned from 2008 onward Results in emission reductions that would not have happened otherwise Generates real, measurable and long-term climate change mitigation benefits Approved by parties involved Project hosted by another Annex I country Two Tracks: depends on level of Party’s compliance with the Protocol’s participation requirements –Track I: host Party meets all KP participation requirements –Track II: host Party does not meet all KP participation requirements, of if host country chooses Requires independent third party verification

8. CDM Project Cycle Approval by Parties Validation by OE/ registration by EB Project Idea- Does it fit with Kyoto Criteria? Monitoring by entities Verification and Certification by OEs Issuance of Certified Emission Reductions (CERs) by EB

9. Background of CDM Executive Board Supervisory body of the CDM, established at COP 7 20 members (10 members and 10 alternates) Meetings no less than three times per year Mandate –accreditation of the Operational Entities. –project registration –approval of new methodologies for baselines & monitoring –issuance of CERs –establishment and maintenance of the CDM registry –report on regional distribution of CDM activities

10. CDM and JI Office Mandate Act as national focal point for CDM and JI –Develop and disseminate information –Link with other Canadian and international programs Facilitate Canadian participation –Facilitate project development –Provide technical guidance to companies –Provide funding support –Conclude bilateral agreements Project approval Provide analytical and policy support to negotiations

11. Budget and staff Started in Sept. 1998 with small budget Increased capacity under AP2000 –Total budget $25.25Mn over 5 years Currently have 10 staff –technical expertise –regional expertise –language expertise –trade promotion expertise

12. Objectives –Strengthen Canada’s capacity to use Kyoto Mechanisms Facilitate Canadian participation and assist companies in obtaining credits Credits back to Canada from CDM & JI projects towards obligations in the 1st commitment period. Overall Strategy –Initial focus - building awareness and outreach; advising companies; identifying markets; facilitating MOUs –Current focus - project-specific activities to reduce transactions costs

13. Criteria for funding of proposals Results in CDM or JI credits for Canada Addresses issues or barriers around CDM or JI projects Enhances business opportunities for Canadian companies Solidifies partnerships with active countries Paves the way for future initiatives in the host country Leverages resources

14. Key Accomplishments International Outreach Bilateral Agreements Engaging the Posts Domestic Outreach Project facilitation Communications Activities

15. International Outreach (examples) Canadian CDM workshops in 15 countries –covering key regions (Latin America, Asia, Africa, Eastern Europe) Presentations at several Regional workshops –in Latin America, Africa and Asia Participation in 6 federal or provincial trade missions –(Team Canada, IC; Alberta climate change missions) Support to several climate change initiatives –Small Projects Facilitation Centre- Pembina Institute –Analytical work on carbon forest sequestration methodologies –Delphi group, CERI demonstration projects in S. America

16. Bilateral agreements 10 MOUs completed: Poland, Ukraine, Latvia, Korea, Chile, Colombia, Costa Rica, Nicaragua,Tunisia, Uganda (project specific) Statements of Intent with Mexico and China include cooperation on CDM/JI 9 MOUs underway: Argentina, Ecuador, Brazil, El Salvador, Guatemala, Panama, Kenya, Sri Lanka, Bulgaria Discussions underway with Kazakhstan, Romania, China

17. Canadian Embassies Awareness Building at Posts –training Posts during outreach –pre-departure CDM/JI briefings yearly –briefings at Globe and Americana Greater engagement of posts in key countries –Working Groups –Project identification –Project facilitation –Regular contact with CDM focal points Working closely with Climate Change Technology Promotion Officers

18. Domestic Outreach National Workshops (2000,2002, 2003), Ottawa Yearly regional Roundtables: Halifax, Montreal, Toronto, Calgary, Edmonton, Vancouver, Winnipeg Globe and Americana Ongoing dissemination of information –website –database (approx 750 organizations) –phone calls and e-mail –company visits

19. Communications Activities Brochure Website Database of companies E-mail messages: –Project opportunities –EB decisions –PCF related updates Compilation of focal points Publications: – French CDM guide; –Summary document on COP 7 Decisions –A Guide to Establishing National Authorities

20. Project Facilitation 13 Market studies completed 5 Feasibility studies for CDM project viability 19 Baseline studies,monitoring plans,PDD

21. Interest in CDM and JI Many projects being explored by Canadian entities – Energy efficiency: Includes Fuel Switching, Transportation –Landfill gas capture –Renewables Includes Hydro, Solar, Biomass, Wind –Sequestration –Interest includes: Emitters, Non-emitters –Need to ensure that credits are brought back to Canada.

22. Near term Activities Latin America & Caribbean – focus on Mexico, Chile, Brazil, Central America Asia - focus on India and China –explore opportunities in Korea and Indonesia Africa & Middle East – focus on Egypt, –build on capacity in the Maghreb countries Economies in transition – focus on Russia, Ukraine, and Kazakhstan, –build on existing efforts in Poland, and explore potential in Bulgaria and Romania

23. Linkages with Other Programs TEAM: Baselines for 2 projects –http://www.climatechange.gc.ca/team/ Canadian Initiative for International Technology Transfer –http://www.nrcan.gc.ca/es/etb/cetc/ciitt/htmldocs/about_ciit t_e.html NRCAN’s Technology Promotion Officers AP2000 International technology Initiative –http://www.climatechange.gc.ca/english/actions/action_fun d/techno.shtml CIDA’s Climate Change Development Fund –http://www.acdi-cida.gc.ca/climatechange World Bank PCF & 2 new funds –http://www.prototypecarbonfund.org Regional Development Banks OECD, IEA, UNDP

24. For more information... Canada’s CDM & JI Office Climate Change and Energy Division (AEC) Department of Foreign Affairs and International Trade 125 Sussex Drive Ottawa, ON K1A 0G2 Tel: (613) 944-3039 Fax: (613) 944-0064 E-mail: cdm.ji@dfait-maeci.gc.ca Web: www.dfait-maeci.gc.ca/cdm-ji/