Joint Implementation Projects Procedure in Ukraine Pursuant Kyoto Protocol Heorhiy Veremiychyk Ministry of Environmental Protection of Ukraine Japan Carbon Investor’s Forum 15 March 2006 Tokyo 1. Joint Implementation Projects (JIP) Approval Process CABINET OF MINISTERS OF UKRAINE adopted the Resolution “On Approval of the Procedure for Consideration, Approval and Implementation of Projects Aimed at Anthropogenic Emissions Reduction or Greenhouse Gas Absorption Increase Pursuant to Kioto Protocol to the United Nation Framework Convention on Climate Change” dated February 22, 2006 N 206 1.0 DNA and JI Projects Secretariat JIP Designated National Authority is Ministry of Environmental Protection of Ukraine Function JIP Secretariat fulfils the Kyoto Protocol Supervising Department of the Ministry of Environmental Protection of Ukraine 1.1 Joint Implementation Projects Procedure (Estimation) 1. Entity which would like to implement a JI project submits to the Ministry of Environmental Protection of Ukraine the Project Idea Note with request for Letter of Endorsement. 2. Ministry studies proposal no longer one month and if there is no objections issues the Letter of Endorsement 1.2 Joint Implementation Projects Procedure (Design) 3. Owner of the entity develops Project Design Documents (PDD) which obviously includes: business plan or project feasibility study, including financial plan project additionality assessment baseline scenario description monitoring plan for GHG emissions analysis of environmental impacts 1.3 Joint Implementation Projects Procedure (Submitting) 4. The owner of the object shall submit the developed project supported by the conclusion of an independent expert organization entitled to examine projects aimed at the reduction of volumes of anthropogenic emissions or increase of greenhouse gas absorption and assess the obtained results, to the Ministry of Environmental Protection of Ukraine 1.4 Joint Implementation Projects Procedure (Approval) 5.The Ministry of Environmental Protection of Ukraine shall consider the project and the supporting documents submitted by the owner of the object within one month, and in case of a positive conclusion shall issue a letter of approval regarding thereof 1.5 Joint Implementation Projects Procedure (Registration) 6. For the purposes of maintaining records of anthropogenic emissions volumes reduction or greenhouse gas absorption increase, the approved project shall be registered in the Ministry of Environmental Protection of Ukraine 1.6 Joint Implementation Projects Procedure (ERU Checking) 7. A report on the results of examination and monitoring of volumes of anthropogenic emissions or greenhouse gas absorption shall be submitted by the owner of the object to the Ministry of Environmental Protection of Ukraine for registration Monitoring of volumes of anthropogenic emissions or greenhouse gas absorption pursuant to the project shall be performed by an independent expert organization 1.8 Procedures for JI Projects (ERU Transfer) Transfer of anthropogenic emission reduction (absorption) units from the National Register of Emissions and Greenhouse Gas Absorption to the register of the respective partner-country shall be done after monitoring report, as well as reduction (absorption) volumes of greenhouse gas emissions reached as the result of the project implementation, have been registered in the Ministry of Environmental Protection of Ukraine. 1.9 Procedures for JI Projects (Requirements) The requirements to the PDD establishes the Ministry of Environmental Protection of Ukraine Data on projects implementations shall be published in the mass media Project owner is responsible for implementation, monitoring and verification of the project. 2. Requirements to the Letter of Endorsement Request Information about entity activity and its’ financial state, scope of the JI Project Idea of the JI project Preliminary estimation base scenario and emission redaction Preliminary additionality assessment Preliminary estimation of the influence for environment 2.1 Barriers To Getting the Letter of Endorsement Unsatisfactory financial state of the proponent Project description details or other faults removal are required (resubmission is possible) Principal impossibility to accept the project as JI (resubmission is impossible) 2.1.1 Reasons of principally rejection a JI project Financial state of the proponent can not be submitted Proponent field activity is far of the JI project subject JI project doesn't excepted local community Potentially ERUs investment very low of the JI project cost 2.2 Needed Documents for obtaining letter of Approval: 1. Completed PDD 2. Resume of any official examinations and discussions of project by Parties involved 3. Conclusion of independent expert entity (for Track 1 - any independent entity, registered in Ministry of Environmental Protection of Ukraine) 4. Letter of interest from buyer 5. Inquiry on commercial confidentiality observance 2.3 Additionality test includes check for: Finance additionality Available finance proposition for implementation of the reconstruction project without JI component There are another reasons which increases the risk of JI project 2.4 General Requirements for JIP approval Facilitating to sustainable development Avoid negative environmental impacts Meet social-economic needs local community Response State strategy policy in field activity Emissions Reduction Idea of the JI projects 3. Types JI Projects which Have Got Letter of Endorsement (CO2- e ERU per year) 1. Utilization coal mine methane – 3 (2.098.000) 2. Methane capture at solid waste landfill - 5 (454.400) 3. Biomass utilization -1 (51.600) 4. Energy cogeneration – 1 (45.300) 5. Liquid waste utilization – 1 (50.000) 6. Alternative sources of energy -1 (70.000) 7. District heating supplying system modernization– 4 (323.700) 8. Technology process modernization – 1 (87.750) 9. Hydropower station modernization – 1 (260.000) 4.Domestic policies to enhance project development Record assigned amount unit Establishment national registry to record and track ERUs, AAUs, RMUs, and report annually to UNFCCC; Implement national inventory system for GHG emissions and removals Training of the stakeholders on JI activities Provide information support JIP developers and partners 4.1 The Field for Cooperation Energy conservation and energy efficiency, biogas and mine methane utilization, renewable sources of energy. Total power generation capacity in Ukraine is near 52-54 million MW, 40 mil. MW – thermal power, 12 – 13 mil. MW - nuclear power, 1-2 mil. MW - hydraulic power 4.2 Energy Saving Potential Practically and economically reachable and profitable energy saving potential to the 2010 is: 40,5 million t coal equivalent per year (7000 kkal/kg) Total economically profitable energy saving potential 85,5 million t coal equivalent per year Additional energy conservation potential needed external finance support 45 million t coal equivalent per year («Additional» emission redactions potential СО2 80 million t per year ) Gratitude Many thanks to the Government of Japan for invitation to participate in Japan Carbon Investor’s Forum Good health and successes to everybody! [email protected]
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