Session-A

PROGRESS ON CARBON FINANCING OF DOMESTIC BIOGAS PROGRAMMES

What are the lessons learned from current carbon finance domestic biogas projects in Asia?
Carbon development needs to be pragmatic Project design and fundamental should be strong

Financial model should be robust

Project owners must be committed: carbon expertise cant be fully

outsourced. Data management and quality survey [by project developers and third party) is crucial Limited awareness, capacity of project developers, DOEs

What are the lessons learned from current carbon finance domestic biogas projects in Asia?
Reasons for delay Poor quality of consultant

Limited understanding of UNFCCC and GS-VERs by project

developers Poor technical qualification of DOE/auditors DOEs are taking jobs without sufficient human resource Fast changing rules and regulations of UNFCCC Timely actions and avoid delay [Do not be lazy in responding to your DOEs on CARs/CLs].

What are the good practices for making biogas CF project a success and receiving timely carbon revenues?
A strong and robust organization structure for

monitoring and data management, programme management is necessary (collaborative not competitive). Have internal carbon expert (completely relying on external consultants is not advisable). VER pathway is most preferred in the current market situation (credibility, applicability, appropriateness, provision to measure strong co-benefits, retroactive crediting period, GS is easily approachable less bureaucratic, premium value of carbon credit)

What are the good practices for making biogas CF project a success and receiving timely carbon revenues?
Contextualization: How to apply carbon principles to

local context Sharing carbon credits is crucial (commercialization and sustainability innovative use of carbon revenue for plant installation-upscaling and maintenance) Share experiences and lessons learned and establish a network for such activity and start advocacy for promoting and developing pro-poor projects like domestic biogas

What will be the future carbon market instruments?

Currently, carbon market at the bottom low [poor price and

over supply of credits in the EUETS]. For the next few years VER could be a reliable pathway [Price: upto11:5 EUR, based on quality and type of project] Bilateral and domestic carbon markets Develop pro-poor project like biogas as there is a promise and future for projects with strong development impacts and co-benefits

What will be the future carbon market instruments and what will be the best fit to generate sustainable financing?
Financial innovation for domestic biogas
Develop hybrid financial model[combining carbon finance and credit financing, insurance credits].

Start activities as market readiness effort to meet the new market mechanism [sector-wide regional project development in biogas and/or national programme development under NAMAs]. Need a common platform for knowledge

sharing and start market readiness activities

First SWG-CF Meeting Sub-Working Group on Carbon Financing of Domestic Biogas Programmes November 21, 2012 Chengdu, China

The Group:
Consists of practitioners having different nationalities and having technical, commercial, policy and administrative experiences Observers from ADB, WB, GS, KfW

Intervention areas of SWG-CF

Information sharing and market development CDM GSV NMM meths
Technical Area Market Evolution

Trading Policy Guidelines

Help Desk
Tailor-made supports through a web-portal in E4ALL

Project specific experiences

Fund raising for the next step

Good practice Lessons learned

Action Items of the SWG-CF for 2013-2014:

Development of a biogas specific carbon finance project

development handbook Publishing a newsletter/half yearly bulletin on carbon finance on domestic biogas [latest updates on market, methodology, additionality analysis, review etc.]. Establishing an expert consultation cell under E4ALL web-portal to provide tailor-made expert advices to project developers Supporting E4ALL partner to carryout pre-feasibility of carbon projects Organising side event in international expo related to carbon and energy

Key action items

Start the operations of SWG-CF for knowledge sharing and start market readiness activities
Thank You