Morten Pedersen Deputy Programme Director Danish Environmental Protection

Morten Pedersen Deputy Programme Director Danish Environmental Protection Agency Climate Change Division

Denmark - an ’early mover’ • Denmark among the first countries to actively support and make use of the flexible mechanisms. • Marrakech Accords adopted in 2001. • We want to help create a market for private investments in JI and CDM. • The Danish government allocated the first funds for JI in May 2002 - 17 mill. Euro. • From 2003 27 mill. Euro for JI and CDM every year. • Additional funds available for capacity building in host countries.

Danish Procurement Programme for JI Danish. Carbon. dk: • 8 contracts 4. 935. 626 tonnes CO 2 , 2 mill tonnes CO 2 as options. 4 are implemented and generating emission reductions. • 2 Contracts without LOA 1, 21 Mill tonnes CO 2 • Expected for Indirect contracts 2. 85 to 3. 7 mill. tonnes CO 2. So far one contract in JI-countries under the NEFCO Testing Ground Facility.

Danish. Carbon. dk • 20 - 25 JI-projects under development. • Have received Lo. E / Lo. I. • PDD developed or under elaboration • A number of projects have been determined.

Biomass Energy in Romania 720, 000 tons CO 2 e

Biomass Energy in Romania Implemented in Five Towns

Biomass Energy in Romania • Total investment: 15, 1 mill. USD. • Baseline: Replaces fossil fuels, reduces methane emissions by using sawdust instead of dumping. • Determined by SGS. • Main barrier: Securing financing, establishing baseline for methane emissions, securing daily monitoring. • Status: Implemented, first verified emission reductions delivered. • Determined by DNV.

The project hosts • Project hosts are making investment decisions and taking a lot of risks. • Important that project hosts feel confident that the flexible mechanisms are successful. • Without trust in the financial contribution from the mechanisms a lot of good projects will not happen. • Rules and procedures must be both simple and stable to help build this trust.

Recommendations for further work of JISC • Important to create flexible and efficient rules. • Learn from the experience of CDM. These rules are widely known and used. • Fair definition and treatment of ’early movers’. The treatment of ‘early movers’ will set the mood for future decisions about JI projects.

Recommendations for further work of JISC • The Independent Entities will have a key role in JI. Important to have a credible accreditation procedure. But also important not to make the procedure to bureaucratic. • Recommend a fast-track accreditation for companies that are already accredited as DOEs under the CDM. • Not necessary to have separate accreditations for determination of PDDs and of monitoring reports.

Conclusion • Impressed with the work of the JISC so far. • High degree of commitment. • Very ambitious work-programme for this year. • Important to come to decisions and to find flexible solutions. • High hopes for the future work of JISC!

For further information Please contact: Morten Pedersen mp@mst. dk www. Danish. Carbon. dk