- landfill gas utilization and the clean development workshop - 6 september 2005
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Japan ’ s Financial Schemes for Promoting CDM Projects. - Landfill Gas Utilization and the Clean Development Workshop - 6 September 2005 Bali Hilton International Nusa Dua, Bali Presented by Ms. Yamada Fumiko Expert Staff - PowerPoint PPT PresentationTRANSCRIPT
- Landfill Gas Utilization and the Clean Development Workshop-
6 September 2005 Bali Hilton International
Nusa Dua, Bali
Presented by
Ms. Yamada FumikoExpert Staff
New Energy and Industrial Technology Development Organization (NEDO)
Jakarta Office
Japan’s Financial SchemesJapan’s Financial Schemesfor Promoting CDM Projectsfor Promoting CDM ProjectsJapan’s Financial SchemesJapan’s Financial Schemesfor Promoting CDM Projectsfor Promoting CDM Projects
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ContentsContentsContentsContents
1. Japan Kyoto Mechanisms Acceleration Programme (JKAP):
A Facilitator for CDM Project Development
2. Feasibility Studies
3. Upfront Payment
* Cont. by Mr. Matsushita’s presentation
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Japan Kyoto Mechanisms Acceleration Japan Kyoto Mechanisms Acceleration Programme (JKAP)Programme (JKAP)Japan Kyoto Mechanisms Acceleration Japan Kyoto Mechanisms Acceleration Programme (JKAP)Programme (JKAP)
JBIC Financing
GEC/NEDO
CDM/JI Project F/S
JBIC SAPROF PDD
Assistance, etc.
JETRO Business Matching Support
MOE/NEDO Uprfront Payment Programme for CDM/JI Projects
NEXI Export
Insurance
JCF Development of
CDM/JI Procurement of
Credits
MOFA, METI, MOE
Objective: Facilitating cooperative CDM/JI projects between Japan and host countries.
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Feasibility StudiesFeasibility StudiesProject Development AssistanceProject Development Assistance
Feasibility StudiesFeasibility StudiesProject Development AssistanceProject Development Assistance
JAPAN
ProjectDevelopers
Incl.Japanese
partner
Potential Project
In host country
PDD development and Study Implementation Cost
up to JPY25M
Financial assistance for a Feasibility Study (F/S) covers:
Requirement:Any International consortium must include a Japanese partner to be eligible
Budget:JFY 2004: 1.7 Billion yen (US$16M)JFY 2005: 1.8 Billion yen (US$17M)
Financial assistance for F/S costs
Organization: NEDO & GEC
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Upfront PaymentUpfront PaymentUpfront PaymentUpfront Payment
JAPANESEGOV.
Project Developer
Incl.Japanese
partner
CDM/JI projectin host country
Type A: Preliminary costs (PDD development, validation and registration costs, etc.)
Type B: Project expenses (equipment costs, etc.)
Type C: Post project review costs (monitoring, verification and certification costs, etc.)
Financial assistance for project development with up-front payment covers either one of the following:
Requirements:
1. A portion of credits generated from emission reduction project that is proportional to the amount of the financial assistance should be transferred to Japan.
2. Any international consortium must include a Japanese partner to be eligible.
Budget for FY 2005:
5.7-8.0 Billion yen (US$54-76M)
Fair price to be determined on a project-by-project basis according to project risk, delivery risk, market price trends, etc.
Credit price:
Up to 50 % up-front payment of total project cost
CER
CER
CDM EB
CertificationReport
Program Administrators: METI, NEDO, MOE
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Project Type: Energy Efficiency, Renewable Energy, GHG Reduction, incl. Methane
Capture and Utilization, HFC decomposition, N2O reduction, etc. (Sink projects are excluded.)
Acceptance of Applications in 2005: Feasibility Studies: (1) May (Closed) (2) September Upfront Payment: (1) April-May (Closed) (2) July-August (3) November (4) TBA
(Additional program details are available upon request.)
Feasibility StudiesFeasibility Studies& Upfront Payment & Upfront Payment (Supplementary Explanation)(Supplementary Explanation)
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・ Equipment and construction costs = US$30M → Maximum amount of upfront payment: US$30M×50% = US$15M ・ ERs = 0.4 Mt-CO2/Year ・ Starting year of the crediting period: 2007 ・ Estimate of credits for the 1st commitment period:
0.4 Mt-CO2×6 years = 2.4 Mt-CO2
If an applicant requests the maximum upfront payment (50%):
① If credit price = US$4 / t-CO2
→ Available “Upfront payment” = US$4×2.4 Mt-CO2 = US$9.6M (32%)
② If credit price = US$ 7/ t-CO2
→ Available “Upfront payment” = US$7×2.14 Mt-CO2 = US$15M (50%)
Upfront Payment-Scenario I: Energy Efficiency Project
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Applicants
US$10MDesign and partial manufacturing of equipment
2005 2006 2007 2008 ~2012
US$20M
Manufacturing and installation completed
Issuance of credits
The 1st commitment period
Japanese Government
Upfront payments: US$5M US$10M
Order EquipmentSCENARIO 1-②:
Manufacturing and installation of equipment
Upfront Payment-Energy Efficiency Project (cont.)
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・ Equipment and construction costs = US$12M → Maximum amount of upfront payment: US$12M×50% = US$6M ・ ERs 1.5 Mt-CO2/Year ・ Starting year of the crediting period: 2007 ・ Estimate of credits for the 1st commitment period:
1.5Mt-CO2×6 years = 9 Mt-CO2
If an applicant requests the maximum upfront payment (50%):
① If credit price = US$4 / t-CO2
→ Available “Upfront payment” = US$4×1.5 Mt-CO2 = US$6M (50%)
② If credit price = US$7 / t-CO2
→ Available “Upfront payment” = US$7×0.86Mt-CO2 = US$6M (50%)
Upfront Payment-Scenario II: Decomposition of N2O Project
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US$6M
2005 2006 2007 2008 ~2012
US$6M
Issuance of credits
The 1st commitment period
Applicants
Japanese Government
Upfront payments: US$3M US$3M
Design and partial manufacturing of equipment
SCENARIO 2-②:Order
EquipmentManufacturing and installation
completed
Manufacturing and installation of equipment
Upfront Payment:Decomposition of N2O Project (cont.)
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Thank youhttp://www.kyomecha.org/e/index.html
Comments and inquiries should be forwarded to:
[email protected] in Energy & Environment Policy Department, NEDO Japan
or
[email protected], [email protected]
in NEDO Jakarta