1. Ecuador frente al mercado global de carbono CD4CDM in Ecuador CD4CDM side event at CoP-10 Buenos Aires, 11/XII/2004 Marcos Castro Ecuadorian CDM Promotion Office mcastro@ambiente.gov.ec, mcastro@cordelim.net

2. Ecuador: key data Key milestones of national climate change policy: Ratification and adoption of both, the UNFCCC (1994) and the Kyoto Protocol (1999) Establishment of interinstitutional high-level ‘National Climate Change Committee’ (1998). Development of climate change studies, including ‘1 st National Communication’ (2000). ‘National Council for Sustainable Development’ (2002): international carbon trading’ prioritized as one (out of three) strategic instruments for supporting local development projects. CDM institutional arrangements in place. 0º

3. Ecuadorian institutional arrangements for the CDM RegulationPromotion Project evaluation & approval National registry & project reporting Technical & commercial assistance Capacity building Information dissemination Policy - making Strategic research & studies Priority project portfolio CDM National Authority (DNA) Ministry for Environment CDM Promotion Office public-private entity, presided by Ministry for Environment

4. Main activities Workshops & Courses Management of market intelligence Web site Others Technical tutorials Assistance throughout CDM cycle Indicative portfolio Others Additionality & baselines SD contributionOthers Capacity building Project pipeline Methodological issues Legal issues: CERs transfers Acces to finance & markets Transaction costs & local expertise Others CDM EB work & UNFCCC negotations CDM Offices network Demand side stakeholders Others Addressing barriers Int’l relations

5. Brief overview of approval procedure

6. Ecuadorian DNA: national approval procedures Project DocumentProject participantsDNA Annex: nat’l requirements based on presentation guidebased on evaluation guide A. Compliance with legal framework (sector/local) - Legal prerequisites for proposed project. - Attachment of relevant licenses, certificates, others. Check on integrality & consistency. Consultations with relevant entities. B. Congruence with development policies/plans Discussion on how the proposed project is congruent with development policies/strategies. Assessment of evaluators: individual briefing and joint recommendation on approval. C. Review of environmental, socioeconomic & technological impacts Explanation on how positive impacts will be achieved and negative impacts mitigated. Individual briefing and joint recommendation on approval. Annex on int’l requirements // CDM Project Design Document (defined by the CDM-EB) Submission of PDD (that has been or will be submitted for validation by DOE) Review of PDD. Observations may require joint revisions with participants & validator.

7. Ecuadorian DNA: national approval procedures (2)

8. Brief overview of indicative project portfolio

9. Indicative project pipeline (as of November 2004) PDDPIN Emission reduction projects Power generation: hydro 4 LoA & ERPA: 2 8 with LoE: 2 Power generation: wind, biomass 2 with LoE: 2 2 Landfill gas/ 2 with LoE: 1 Other: animal waste management; public transport; gas capture from oil wells /preliminar PINs LoA: Letter of Approval; LoE: Endorsement Information on indicative project portfolio: National CDM Promotion Office / CORDELIM: www.cordelim.net, info@cordelim.net Information on approval & endorsement procedures: CDM Designated National Authority, www.ambiente.gov.ec

10. Indicative project pipeline (as of November 2004) PDDPIN Carbon sequestration projects eligible for the CDM (i.e. “Kyoto compliant”) 2 (in due course) 5 (with LoE: 4) not eligible for the CDM (e.g. ER from conservation) 2 (AIJ projects) 2 (with LoE: 2) Information on indicative project portfolio: National CDM Promotion Office / CORDELIM: www.cordelim.net, info@cordelim.net Information on approval & endorsement procedures: CDM Designated National Authority, www.ambiente.gov.ec Only projects with site-specific offset assessment…

11. More information… National CDM Promotion Office – CORDELIM: www.cordelim.netwww.cordelim.net, e-mail: info@cordelim.netinfo@cordelim.net CDM Designated National Authority: www.ambiente.gov.ecwww.ambiente.gov.ec Investment/business environment: Exports & Investments Promotion Corporation – CORPEI; www.corpei.org / www.ecuador-investway.orgwww.corpei.orgwww.ecuador-investway.org Power generation profile: National Electricity Council - CONELEC; www.conelec.gov.ec www.conelec.gov.ec Forestry sector profile: National Forestry Direction / Ministry for the Environment; www.ambiente.gov.ec www.ambiente.gov.ec