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CDM
as instrument for industrial development and poverty alleviation in
Caucasus - I Phase
Clean Development Mechanism (CDM) is a mechanism under the Kyoto
Protocol that will enable projects in emerging economies that lead to a
reduction of greenhouse gases, to get an extra revenue stream.
The Norwegian Ministry of Foreign Affairs sponsors a program that will
be implemented by two Norwegian organizations: Norsk Energi and ECON and the
Energy Efficiency Centre Georgia.
This is a four phase program and will include the following elements:
- Capacity Building: Conducting a capacity
building program on CDM; identification of long-list of potential
projects and prioritizing short-list.
- PIN - Project Idea Note development:
Preparation of PINs for the projects on the short-list. Present the
PINs to potential investors and financial institutions
- PDD – Project Design
Document. Preparation of PDDs for the selected
projects.
- CDM Project Implementation
Activities – Phase I
This capacity building project comprised of the
Information Seminar and two 2-day workshops with the
participation of the project developers.
Information seminar: October 11, 2006
Norwegian experts together with the Energy Efficiency Center
Georgia conducted the information seminar in cooperation
with the DNA. During the seminar an introduction to the
Kyoto Protocol and the flexible mechanisms were covered. The
seminar discussed the criteria that have to be met by
projects and which projects could benefit from the CDM
mechanism.
In his presentation Mr. Grigol Lazriev, Acting Head of
Department of Hydrometeorology and Climate Change, Ministry
of Environment Protection and Natural Resources, DNA/CDM
contact person touched on the following issues: legal basis
for the CDM project development and implementation in
Georgia, functions and capacity of the DNA, CDM National
Council structure and its role, project evaluation process,
national sustainable development criteria and indicators for
CDM projects, CDM projects under consideration.
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Workshop 1, November 16-17, 2006
The following topics were covered during the workshop:
- Introduction to the Kyoto Protocol and the CDM
- Technical description of CDM
- CDM Project cycle
- Involved parties and their roles
- National procedures
- Introduction of Project Idea Note (PIN)
- Homework
The participants of the seminar were the representatives
of various industries, in particular:
Itera-Georgia (gas distribution company), “Tbilisi Water”
Ltd (water utilities company), Karenergo (wind energy), Wood
Service Ltd (wood processing), Waste management company
“Energia” from Borjomi, representatives of the Georgian
Association of Power Engineers, representatives of the
Ministry of Energy.
With the assistance of the Norwegian experts the
participating companies identified the project ideas for
further development.
Homework for workshop participants: start to outline project
information for PIN development.
Workshop II, December 11-12, 2006
Issues covered during the second workshop included:
- Homework discussion
- Project economy and financing options
- Environmental impact
- Estimate emission reductions
- Baseline methodologies
- Monitoring methodologies
- Feasibility to Georgia’s circumstances
The Norwegian experts provided the participating
companies with the CDM EB approved methodologies as
refference. After the screening of the first homework, and
individual discussions of the projects with the
participating companies a pilot project to serve as an
example has been chosen. The project team will start to
outline the project documentation (PDD) for this project and
use this project as an example throughout the whole program.
First Phase Results
- Increased awareness and knowledge of CDM in Georgia
and Caucasus
- Viable CDM projects identified and developed into
PINs
- Long list of projects that could be developed as CDM
projects prepared
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