Transcript Mr. Sonam Yangley - Capacity Development for the CDM

CDM Implementation Experiences
of Bhutan
Sonam Yangley
Director
National Environment Commission
Background on CC
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Bhutan’s significant step to address Climate
Change issues:
signed UNFCCC at Rio de Janeiro in 1992
ratified UNFCCC during the 73rd Session of
National Assembly in 1995
NEC designated to host the National
Climate Change Committee
NECS - focal institution for the UNFCCC
Submitted the Initial National
Communication at the 6th Conference of
Parties in November, 2000
Background on CC … cont.
Completed first National Inventory on
Greenhouse Gas Emission
Commissioned first CDM Project (pilot) in Bhutan
Undergoing research on Impact of Climate
Change and its Adaptation measures in Bhutan
Preparation of National Adaptation Plans of
Action (NAPA)
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Sector-wise potentials
 Energy sector
 Off grid minimal
 Export to India Issues
 Forestry Sector
 Limited CDM
 Industries Sector
 Possible, need more research
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Pilot Projects
1. Micro Hydro Project in Chendebji
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70 kW
E7 financing
700 tCO2
2. Pilot project in for a forestry CDM project
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Envirotrade (UK), Edinburgh Center for Carbon
Mgmt, Namsay Consulting (Bhutan)
Only “concept note”. Proposal to be prepared only
after approval by RGOB.
Pilot CDM Project in
Chendebji (Micro Hydro)
E7 Fund for sustainable energy
development and the
Department of Energy, RGOB
Purpose
 To test the principles of CDM
-carbon credit sharing by and for
sustainable development of renewable
energy resource (micro hydro).
- gain experience to contribute to rule
making for the CDM.
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Salient Features of the proposed
Project
 Micro hydro – 50 metres head, 0.2 m3/s
discharge to generate 70 kW power and
582,540 kWh per annum.
Project Objective:
i) Demonstration of the project as the CDM pilot project
ii) RE of 42 HH, 5 institutional buildings at Chendebji
village
iii) Improvement of education and living standards
utilizing ICT.
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Present Status
 Commissioned the hydropower plant
 Estimated cost of the Project (as per PFS)
is US$ 280,000 +/- 25% variation
 Total reduction in CO2 emission by this
project estimated at 593.1 ton CO2 (~
valued at US$ 5,931 – 17,793) –
kerosene, firewood and diesel
replacement.
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Experiences
 Small scale CDM Projects – good only as a pilot
scheme due to cheaper investment cost
 CER shares: 50 – 50 between RGoB and e7
 CER Prices to be negotiated yet
 Need capacity building on preparation of full
scale CDM Project
 Need capacity building for DNA
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Recommendations
1. Carbon trading has potential to complement
“value adding”.
2. Potential for Bhutan not yet clear. It may be
modest. More research is needed.
3. Carbon trading is more than CDM (Kyoto
Protocol) so look at other possibilities such as
niche markets.
4. CDM Administrative cost are expensive and
modalities complex
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Recommendations
5. To fully benefit from carbon trading, more
human resources and capacity building
and awareness is needed.
6. Pilot projects should be implemented
(learning by doing) to provide guidance
in evaluating cost/benefits of carbon
projects.
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Tashi Delek
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