1. ECONOLER INTERNATIONAL CDM/JI Office Canada Development of a Portfolio of CDM Projects in Indonesia Access to CDM & JI office of Canada facility Presented by: ECONOLER INTERNATIONAL Jakarta, Indonesia January, 2006

2. ECONOLER INTERNATIONAL Your animator: Stéphanie Nour, Engineer CDM Your animator: Stéphanie Nour, Engineer CDM Expert ECONOLER INTERNATIONAL Tel.: +1 (418) 692-2592 snour@econolerint.com or visit our Web site: www.econolerint.com and the project web site: www.econolerint.com/english/CDM/Indonesia snour@econolerint.com www.econolerint.com www.econolerint.com/english/CDM/I

3. ECONOLER INTERNATIONAL Topics n The obligation of Canada towards Kyoto Protocol n Support from CDM/JI Office Canada n Mandate of Econoler International

4. ECONOLER INTERNATIONAL Kyoto Protocol What if an Annex-I country that ratified the KP can’t make it? n This has been decided during Bonn Climate Conference: u Each 1-ton above the target in 2012… u Means 1.3-ton more to catch up after 2012 u In addition to the “after-2012” emission reduction targets

5. ECONOLER INTERNATIONAL Kyoto Protocol For instance: the KP In Canada n Each country has its own target u Canada’s target is 6% u When signed, it represented 240 Mtons CO2 PER YEAR u Now it represents 270 Mtons CO2 PER YEAR. n Forecast total cost of the Canadian compliance: u US$8.5 Billion u Part of it is the Canadian Climate Change Development Fund: US$3.3-4.3 Billion For the purchase of carbon credits using the flexible mechanisms…

6. ECONOLER INTERNATIONAL Kyoto Protocol For instance: the KP In Canada n Canada’s KP compliance plan: u Reduction target: 80 Mt CO2/year from: F Carbon storage F RE projects u Reduction target: 100 Mt CO2/year from: F Awareness campaign for population (31Mt) F Reduction contacts with industrial sectors u Reduction target: 60 Mt CO2/year from: F Massive investment in public transportation infrastructures u PURCHASE of carbon credit through the flexible mechanisms…

7. ECONOLER INTERNATIONAL CDM & JI Office Role n Canada’s Designated National Authority (DNA) and Focal Point n Facilitate Canadian participation in CDM and JI n Approval of voluntary participation in CDM/JI projects n Strengthening relations with Project Host Countries n Facilitate development of Project Idea Notes (PINs) n Analytical and policy support to negotiations

8. ECONOLER INTERNATIONAL CDM & JI Office Financial Support BASE CONDITIONS n Canadian partner must apply n Certain eligible fixed costs n Office cannot fund 100% of project n Project must demonstrate "additionality" n Project must be clearly defined and bounded n Project goals must be realistically achievable

9. ECONOLER INTERNATIONAL Project Facility by CDM & JI office n Indonesia has been identified as one of the more significant countries in terms of supply of carbon credits from CDM projects, and it is among the highest priorities for CDM cooperation for Canada. n The CDM & JI office has mandated Econoler International to develop a portfolio of PINs and PDDs in Indonesia. n This project allows to the CDM&JI office to be on the ground.

10. ECONOLER INTERNATIONAL Support from CDM/JI Office Canada New Project Launched n Development of a Portfolio of CDM Projects in Indonesia objectives u Develop PINs and/or PDDs for Indonesian promoters u Increase the number of projects available for Canadian participation u Potential purchase of Carbon credits by Canadian entities and the Climate Fund u Require an in-kind contribution from promoters (data collection) n Limited number of projects

11. ECONOLER INTERNATIONAL Support from CDM/JI Office Canada Criteria n High probability of meeting sustainability and additionality criteria n Pre-feasibility (PIN) and feasibility work (PDD) already completed or at least under completion n Financing practically arranged on principle agreement with financing institutions n Need for up-front financing in return for some exclusivity on sale of credits. n Minimum project size of 25,000 tons/year anticipated CERs. n CDM projects supported to the PDD level under this project will be initially offered on an exclusivity basis to Canadian buyers of CERs for a period of 90 days after completion of the PDDs.

12. ECONOLER INTERNATIONAL Support from CDM/JI Office Canada Benefits for Indonesian Promoters n Realize PIN/PDD by nearly outsourcing their total costs n Easier access to Carbon buyers n Improve project business plan using the support of Econoler International experts n Access to the latest UNFCCC’s news and methodologies n Be in the loop for further development of the project

13. ECONOLER INTERNATIONAL Support from CDM/JI Office Canada Project Development n A preliminary list of 12 projects has been submitted to the CDM & JI office December 15, 2005 n A final list of 16 projects was presented on January 16, 2006 n We are currently finalizing the list according to the CDM & JI recommendations. n agreements with project developers shall be signed by January 31, 2006. n ALL PINs and PDDs are to be produced before March 20, 2006.

14. ECONOLER INTERNATIONAL Support from CDM/JI Office Canada Further development of Project facility n Due to the high numbers of PINs proposed under the current facility, the CDM & JI office may launch another similar facility after April 1, 2006. n This will depend on u The quality of PINs submitted by the project developers. u The outcome of the federal elections in Canada u The status of Canada’s target towards Kyoto

15. ECONOLER INTERNATIONAL Conclusion n Keep yourself informed using our WEB SITE: u All additional and new information u All further activities u Info about how to propose a project u http://www.econolerint.com/english/CDM/I ndonesia http://www.econolerint.com/english/CDM/I ndonesia

16. ECONOLER INTERNATIONAL Other Sources of Information

17. ECONOLER INTERNATIONAL Sources of Information n IETA International Emission Trading Association http://ieta.org/ n PointCarbon Web site, newsletters and reports http://pointcarbon.com/ n Pembina Institute, manual on CDM www.pembina.org www.pembina.org n UNFCCC: http://cdm.unfccc.int/http://cdm.unfccc.int/ n CDM contact point at the Canadian Embassy in Jakarta: Nicolas Lepage, Trade Commissioner T: (62-21) 2550-7852 C: (62-81) 117-8305 F: (62-21) 2550-7812 Email: nicolas.lepage@international.gc.ca Web: http://www.international.gc.ca/jakarta/http://www.international.gc.ca/jakarta/

18. ECONOLER INTERNATIONAL CDM/JI Office Canada u Canada’s Clean Development Mechanism and Joint Implementation Office u Climate Change and Energy Division (AEC) u Department of Foreign Affairs and International Trade u 125 Sussex Drive, Ottawa, ON K1A 0G2 u Tel: 613-944-3039 u Fax: 613-944-0064 u e-mail: cdm.ji@dfait-maeci.gc.ca u Web site: www.dfait-maeci.gc.ca/cdm-ji