CDM and SSN:
A winning combination
SSN and CDM
Creating partnerships between
South, South and North countries
through the opportunity of the
Clean Development Mechanism to
combat adverse climate change,
and to promote Sustainable
Development, best practice, and
capacity enhancement in the
developing world.
The SouthSouthNorth project

The SouthSouthNorth Project is a capacity
building initiative helping four southern
countries to learn from the experience of
developing CDM projects

We operate in Brazil, South Africa,
Indonesia, and Bangladesh
An SSN introduction

In this presentation we will highlight some
fundamental points regarding,

the Clean Development Mechanism

and illustrate what SSN seeks to achieve
TRADE with the SOUTH :
THE CDM
The CDM, or Clean Development
Mechanism, is a unique trade instrument
 Through it, SOUTH countries (without
targets) can elect to assist NORTH
countries (with targets) to achieve their
target at a lower cost
 How is this done?

A CDM project:
Investment
funds
Emitter in NORTH
Emitter in SOUTH
COST
$
COST
$
Emission
Reduction
credits
Target level of
emissions
Achieved level of
emissions
Countries and emitters

A CDM Project
activity can either be
a contract between
countries or emitters
themselves:
Holland
Costa Rica
Philips
Local
Landfill
Project
In summary…
The SOUTH project developer receives
investment from the NORTH
investor/purchaser
 And in return assists the NORTH
investor/purchaser to reach its target at a
lower cost
 This is TRADE: there must be a difference
between the cost to the investor and the
price to the developer

The project activity…
Must reduce GHG’s against a validated
baseline
 This baseline represents what the
emissions would have been without the
CDM project taking place
 Each ton CO2 equivalent reduced in this
way becomes a CERTIFIED REDUCTION
CERTIFICATE, which is tradable

And…
The NORTH emitter wins by achieving a
portion (no more than 50%) of its target at
a lower cost
 The SOUTH emitter wins by receiving
investment funds to improve technology
and performance
 The world wins through a reduction of
GHG’s
 And…

The host country…
It is a requirement of the Kyoto Protocol
that the host country must first satisfy itself
that any CDM project will contribute to its
SUSTAINABLE DEVELOPMENT
 So the host country wins in this way
 Well, that, at least, is the idea…
 But a lot has gone wrong

SD: the challenge
Setting SD rules is complex
 Many developers want deal flow without
restrictions: a race to the bottom?
 Some CDM projects will result in job
losses
 Government may be stuck in the middle
 Should there be thresholds?
 And anyway, with the US out, is there a
carbon market?

CDM projects: the cycle
The CDM project is a component of a
development project
 It is based on a PROJECT DESIGN
DOCUMENT (PDD)
 The PDD is a prediction of the “carbon
offset” which the CDM component will
achieve
 This prediction is then validated,
approved, registered and transacted

The Project Cycle illustrated
Owner and
Stakeholder
Groups
Project Design
Approval by
DNA
Validation by OE
Registration by
Exec Board
Monitoring
Implementation
Verification
and Issuance
CDM milestones
CDM Administrative Bodies
Owner and
Stakeholder
Groups
DNA : approves
project for
Sustainable
Development
OE = Operational
Entity eg: accredited
auditor
Validates project
design
Project Design
Approval by
DNA
Exec Board = of the
CDM
Validation by OE
Registers Project
Registration by
Exec Board
Monitoring
By the OE
Issues CER’s
Verification
and Issuance
So what can the CDM achieve?
The South can help the North meet its
targets
 In return the South can promote its path
towards sustainable development
 The South can choose its projects, the
timing, the investors, and so forth
 So…the CDM could achieve a great deal

The SSN Project
Our organisation, our work
We are about…



Viable, commercial,
and transactable
CDM projects
People focused
sustainable
development
Capacity
development and
learning
We are first a SOUTH
organisation…
We are monitored by HELIO INTERNATIONAL
Bangladesh
Office
Brazil Office
South Africa
Office
Indonesia
Office Our principal funder
is the Government
of the
Central Office
Netherlands
Our structure…
Object 1: assist project owners to
develop CDM projects
BRAZIL
SOUTH
AFRICA
Thermo Power Plant
Energy Production
through the using of waste
gas (bio- gas) and biodiesel (methyl ester)
Bundled
Geo-thermal
housing project power plant with
over 3000 low
Unocal
cost houses
Rural solar homes
system with
Grameen for 50000
houses
Bio-diesel (methyl ester)
Production from Residual
Vegetable Oil
Landfill project
aimed at the
recovery &
collection of
LFG for
subsequent
use as thermal
or electrical
energy
Electric vehicle
project in Dhaka
Thermo Power Plant
through a semi dry
Anaerobic Bio-digestion
technology
INDONESIA
Transport project
in Yokjakarta
BANGLADESH
We assist project developers:






By providing a technical team with expertise for
each project activity
By assisting with approval, validation,
registration and transaction
By providing a portion of the transaction costs
By providing project facilitators
By sourcing investors/purchasers
In this way maximizing benefits to southern
hosts
Object 2: work with governments



We are in close co-operation with all four
governments to assist them in developing
criteria and indicators, and a procedure, for the
approval of CDM projects
We are also assisting all four governments to
develop internal capacity for the Designated
National Authority offices
We are facilitating consultative meetings
between governments and stakeholders
Object 3: develop a CDM guide
Our CDM guide will be based on actual
experiences gained from developing CDM
projects
 The Guide has 64 modules and can be
used in various formats and for various
audiences
 It will contain template documents
 It will be web, CDROM and trainer-event
based
 It will be for all to use




Helio helps us to
monitor our projects,
To develop Monitoring
and Verification
Protocols
And to develop a
number of trained
CDM monitors
Visit us at….