CDM Experience:

QUEZON CITY (PAYATAS)

Controlled Disposal
Facilities
Clean Development Mechanism (CDM)

CER (certified emission reduction)

produced by
Developing Countries

CER/Carbon trading

Industrialized countries

Goal

Emission reduction targets

under
Kyoto Protocol

1 CER=1 ton CO2

Clean Development Mechanism (CDM)

Benefits
Developing Countries
 investment
 access to better technology
 sustainable development while reducing
emissions

Industrialized Countries
 flexibility in meeting their emission reduction
targets
 cost effective manner
Clean Development Mechanism (CDM)

 FIRST global,
environmental
investment and credit
scheme of its kind

 standardized
emissions offset
instrument…

the CERs
Clean Development Mechanism (CDM)

 Since 2006:

 registered more than 1,000

projects

 anticipated to reduce more

than 2.7 billion tons of CO2

 equivalent during the first

commitment period (2008-
2012) of the Kyoto Protocol.
 The Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project

Background:
 Pangea Green Energy Srl
 Italy-based renewable
energy company

 Pangea Green Energy

Philippines
 local affiliate

 Design
 Construction
 Finance
 management

* viability: revenues projected from

the sale of CERs.
 The Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project
Background:
 Generates:
 average of 110,000
CERs per year over a
period of 10 years

 From 2007 to the present:

 invested over Euro
1.8 million in the
project
expects to make
further investments:
 drilling of
additional wells
provision of pipes
and other necessary
materials
 CDM PROJECT ACTIVITY CYCLE

Design PP

DNA
Validation/registration DOE

EB

Monitoring
PP

Verification/certification DOE

Issuance EB

CER
 Approval Process:
Philippine Designated National
Authority (DNA)

STEP 1 STEP 2 STEP 3 STEP 4

Project
Project Project Project
Approval/
Application Evaluation Endorsement
Non-Approval

Project Technical CDM DENR

Proponent Evaluation Steering Secretary
Committe Committee

Project Application
Monitoring

CDM Secretariat
 Step 1: Project Application

Filing of Application CDM Secretatiat

Verify completeness of
documents

Processing of Application Payment of Fees

Step 2: Project Evaluation

CDM Secretatiat

Evaluation based on
TEC National
(Technical Evaluation approval criteria
Committee) (DAO 2005-17)
 Step 3: Project Endorsement
CDM Secretatiat

TEC CDM Steering

(Technical Evaluation Committee
Committee) (CDMSC)

Endorsement
APPLICANT Report

Head of the DNA

 Step 4: Project Approval/
Non-Approval
Head of the DNA
(DENR SECRETARY)

DECISION

NON-
APPROVED APPROVAL

Within 15 days

Motion for
Registration reconsideration
CDM Executive
Board
 Approval Process:
Philippine Designated National
Authority (DNA)

STEP 1 STEP 2 STEP 3 STEP 4

Project
Project Project Project
Approval/
Application Evaluation Endorsement
Non-Approval

Project Technical CDM DENR

Proponent Evaluation Steering Secretary
Committe Committee

Project Application
Monitoring

CDM Secretariat
 Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project
CDM Project Cycle

A. DNA Approval
April 20, 2007 Technical Evaluation
Committee under the Dept. of
Energy recommended approval
of the project to the CDM
Steering Committee of DENR

April 25, 2007 DENR (DNA) granted approval

 Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project
CDM Project Cycle
B. PDD Review & Validation Process
April 1-30, 2007 PDD was publicly posted on
Det Norske Veritas (DNV)
website
July 9, 2007 DOE completed validation and
DNV issued the 1st validation
report
August 6, 2007 DNV completed the corrective
actions, clarifications and
approval then recommended
registration to UNFCCC
 Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project
CDM Project Cycle
C. UNFCC Registration Process
Nov. 11-16, 2007 UNFCC Secretariat received
requests from CDM Executive
Board Members requesting
review of the PDD and
Validation Report
Nov. 30, 2007 DNV sent letter of request to
UNFCC Secretariat in response
to requests for review

Feb. 1, 2008 CDM Exec. Board reviewed

approved and registered.
 Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project
CDM Project Cycle

D. Certified Emission Reduction (CER)

Request for Issuance
Monitoring TUV-SUD
Report
for (DOE)
Crediting period: Feb. 1,
2008 to Aug. 31, 2008
30,860 CERs
Verification of plant and
production data.
- Onsite visit: Sept. 2008
after publication of Moni-
toring Report

30,243 CERs Certification Report -

28 April 2009
Issued Request for CER
25 June 2009 issuance – 6 May 2009
Quezon City Controlled Disposal Facility
Biogas Emission Reduction Project
CDM Project Cycle

Next Verification Period – 1 Sept 2008 to 30 June 2009

Monitoring Report – v. 0 July 2009

published on UNFCCC website for public comments

Onsite audit by TUV-SUD conducted on 24 Sept. 2009

 CONCLUSION
The CDM registration and issuance process is not only very rigorous it also requires:

 Strong technical experience, skills, and

know-how from the engineering design,
construction and operational perspectives
 Knowledge of CDM requirements and
methodologies and the DNA approval process
 Experience in emission audit and
verification conducted by the DOE
 CONCLUSION
 Capacity to invest
and willingness to
work hard without
immediate revenue
generation in order to
take advantage of
positive carbon market
opportunities

 In-depth knowledge of the CER markets,

both primary and secondary, and factors driving
CER prices
 CONCLUSION

 Strong private-public
partnership and
cooperation

 Quezon City’s commitment to

environmental protection and
management
 CONCLUSION

The CDM approval process is long and rigorous. It took 2

years from DNA approval to the issuance of CERs for the
first crediting period.

But the CDM Executive Board is currently working to

improve the efficiency of the project approval
process.
 For a history of the procedures
undertaken and documentation
prepared by Pangea for the project,
please view the following:

http://cdm.unfccc.int/Projects/DB/DN
V-CUK1185342160.98/history.

THANK YOU!