CD 4 CDM in Ecuador CD 4 CDM

CD 4 CDM in Ecuador CD 4 CDM side event at Co. P-10 Buenos Aires, 11/XII/2004 Ecuador frente al mercado global de carbono Marcos Castro Ecuadorian CDM Promotion Office mcastro@ambiente. gov. ec, mcastro@cordelim. net

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

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

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

Brief overview of approval procedure

Ecuadorian DNA: national approval procedures Project Document Annex: nat’l requirements Project participants DNA based on presentation guide based 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.

Ecuadorian DNA: national approval procedures (2)

Brief overview of indicative project portfolio

Indicative project pipeline (as of November 2004) PDD PIN Emission reduction projects Power generation: hydro 4 Lo. A & ERPA: 2 8 with Lo. E: 2 Power generation: wind, biomass 2 with Lo. E: 2 2 Landfill gas / 2 with Lo. E: 1 Other: animal waste management; public transport; gas capture from oil wells / preliminar PINs Lo. A: Letter of Approval; Lo. E: 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

Indicative project pipeline (as of November 2004) Only projects with site-specific offset assessment… PDD PIN Carbon sequestration projects eligible for the CDM (i. e. “Kyoto compliant”) 2 5 (in due course) (with Lo. E: 4) not eligible for the CDM (e. g. ER from conservation) 2 (AIJ projects) 2 (with Lo. E: 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

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