Italian programmes on CDM and JI Italian Ministry

Italian programmes on CDM and JI Italian Ministry for the Environment and Territory Department for Environmental Research and Development

Italian National Action Plan 37. 6 Million t. CO 2 10. 8 31, 5 -46, 9 31, 0 -46, 4 613, 3 12. 0 543, 9 508, 0 475. 0 1990 2000 Trend scenario 2010 Domestic measures Domestic sinks Additional domestic measures JI/CDM "already in place" Kyoto target

Actions of IMET Specific actions undertaken: § Exploring institutional settings for JI/CDM implementation § Experimenting with the JI/CDM project cycle § Investing in credit-generating facilities § Preparing for the increase in direct investments abroad

Commitment of IMET € 6. 7 M € 100 M actual capitalization. Italian private sector involved € 2. 0 € 79 M € 18. 8 M

Italian Carbon Fund concept § Purchase fund, operational as for March 2004 § Purchase of project-based emission reductions (ERs) § Purchase period initially up to 2012 (with option to extend) § Payment on delivery on the basis of a long-term contract (pre-financing possible in individual cases) § Distribution of credits “pro quota” to fund’s participants (Italian public and private entities)

ICF project selection No specific limitations as for project types but exclusions of (in line with the KP): § Nuclear power projects § Large hydro power projects Project size: generally no limitations but transaction costs! Generally no regional limitations § No more than 50% of the total capitalisation in one country § Preference to projects in China, LAC, Mediterranean region, Central-Eastern Europe and Middle Eastern countries

Major cooperation programmes The Sino Italian cooperation programme (China) The Central-Eastern Europe Task Force: Serbia & Montenegro, Croatia, Bosnia & Herzegovina, Albania, Macedonia, Romania and Bulgaria The Mediterranean cooperation: - The MEDREP initiative - Algeria, Egypt, Israel, Marocco and Tunisia

Italy and CDM Capacity Building – China (i) n IMET, through its Sino-Italian Cooperation Programme, is supporting capacity building activities together with MOST, NDRC and SEPA n All the programmes aim at providing stakeholders with the skills and knowledge needed to enable CDM projects to be developed in China via the implementation of pilot and demonstration projects, training activities, and feasibility studies in area such as renewable energy, energy efficiency in the industrial and residential sector, and waste management.

Italy and CDM Capacity Building – China (ii) § Training program on environmental management and sustainable development with a focus on climate change for officials and experts from Chinese public administrations and private enterprises started in 2003 § So far the program involved a number of 789 participants from MOST, CASS, SEPA and the Beijing and Shanghai Municipalities § From January 2005 Tsinghua University is a member of the Venice International University, participated by 8 Universities from Europe, USA, Japan, Israel, and China.

Italy and CDM Capacity Building – China (iii) IMET supported a Capacity Building Project for CDM in China jointly developed with NDRC, UNDP and Norway Agency for Cooperation. The project: q Strengthened the Government of China’s institutions’ ability to implement CDM projects q Provided stakeholders with the skills and knowledge needed to enable CDM projects to be developed in China q Provided “learning by doing” opportunities trough the preparation of PINs q Disseminated information on the CDM to industry and other interested parties.

Italy and CDM Capacity Building – Central-Eastern Europe In the framework of the cooperation with the Federal Republic of Serbia and Montenegro, the Republic of Albania and the FY Republic of Macedonia, IMET is implementing projects aimed at developing national capacity in CDM field: q Assisting local institutions/organizations for establishing Designated National Authority for CDM q Creating local knowledge for the identification and selection of CDM projects and CDM portfolio q Assisting local institutions in the process of transition towards the harmonization with the European legislation and the adoption of International Conventions, with particular reference to climate-related issues.

Italy and CDM Capacity Building – Northern Africa Cooperation in the Mediterranean region is covered under the umbrella of the Mediterranean Renewable Energy Programme (MEDREP), which is aimed at: q Establishing the Mediterranean Energy Renewable Energy Center (MEDREC) (training, capacity building and dissemination of projects results/information) q Strengthening of policy frameworks and removing barriers to projects development q Building a stronger private sector infrastructure, helping taking advantage of the “Tradable Renewable Certificates” and CERs from CDM projects q Tailoring of financial instruments and mechanisms to support projects.