Carbon market andMDG Carbon Facility recent developments

Matt SpannagleCarbon Technical Adviser

Millennium Development Goals Carbon Facility

Bureau for Development PolicyUnited Nations Development Programme

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UNDP MDG Carbon Facility

Recall:

15 million credits

28 to 44 projects (mid-point 36)

To be sourced and reach ERPA in 07-08

Projects vary by:•Size•Technology•Geography•MDG attributes

Pipeline on-going development (not stop at end of 2009)

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UNDP MDG Carbon Facility

Recall:

MDG Impact

Number of CountriesLow High

Low

High Objective for UNDP’s Carbon Strategy

CurrentCDM Market*

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UNDP MDG Carbon Facility

What is in global pipeline?

Region 2012 kt CO2 Number of projectsAsia-Pacific 2,017,422 (78%) 2,419 (73%)

LAC 400,939 (16%) 738 (22%)

Africa 88,467 (3%) 47 (1%)

Arab States 51,827 (2%) 56 (2%)

Europe/CIS 18,027 (1%) 36 (1%)

TOTAL 2,576,682 (100%) 3,296 (100%)

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UNDP MDG Carbon Facility

What is in MDGCF ‘hard’ pipeline?

Macedonia – animal & agricultural waste management and energy generation

Yemen – landfill gas capture and destruction/use

Rwanda – renewable energy

Uzbekistan - reduction of natural gas leakage from compressor stations

Ukraine – landfill gas Lugansk

Albania – small hydro

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UNDP MDG Carbon Facility

What is in the ‘soft’ pipeline?

• dynamic, based on ideas coming up

• Driven by CO/RTA updates

- See Q3 report •Many in soft pipeline will be discontinued/rejected (16:1)

• good regional spread – but getting to hard pipeline is the challenge!

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UNDP MDG Carbon Facility

Pipeline development issues

Areas of development• Leads from capacity development projects in Africa, LAC & central asia• partnerships/collaboration with other organisations

Where UNDP looks good• in more difficult countries (LDCs)• in conjunction with national strategic policy priorities• leveraging other UNDP work

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UNDP MDG Carbon Facility

Pipeline development issues

Opportunities coming up• programmatic approach to reach community-level, smaller sites• suppressed demand

What are opportunities in YOUR country?

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UNDP MDG Carbon Facility

Broader developments

UN engagement & global politicsUNDPCarbon market post-2012CDM market post-2012

CDM EB tightening on additionality, new methodologiesSectoral approaches‘positive lists’Deemed approachREDD

Voluntary market