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First Belgian JI/CDM Tender
Despite the fact that Belgium’s GHG emissions only increased with 0.6% compared to 1990 levels, achieving its 7.5% reduction target under the EU Burden-Sharing Agreement seems highly unlikely if domestic measures are not accompanied by abatement measures through the Kyoto mechanisms. Therefore, the Belgian State intends to acquire 12.3 million emission reduction units outside of Belgium for Kyoto compliance purposes during the commitment period 2008-2012. The Federal Government recently announced its JI/CDM Tender for project ideas.
Both JI and CDM emission reductions are eligible under this tender call and will be evaluated on the following key award criteria: (1) contribution to sustainable development in the host country, and (2) certainty of delivering the Emission Reductions (ERs). Furthermore, the CER/ERU price is an important criterion. The initial budget allocation is €9.3 million for both mechanisms. Submitted proposals will be categorised within one or more of the following groups:
energy efficiency projects;
renewable energy projects (excl. biomass);
energy production by using clean, sustainably grown biomass (excl. waste);
small-scale projects;
projects in Africa or in a Least Developed Country or in a partner country from the Belgian Development Cooperation; and
others, among which fossil fuel switch and methane recovery.
Then, within each category, projects will be ranked by evaluating their score on the above mentioned award criteria ‘sustainability’, ‘certainty of delivery’, and ‘price’. Initially, 50 points can be obtained for the former two. Subsequently, points will be added or subtracted if the proposal performs better or worse. Basically, projects with relatively high CER/ERU prices and with high scores on the award criteria may therefore be ranked higher than projects with a lower CER/ERU price and lower scores on the award criteria
Ms Tine Heyse, member of Belgium’s JI/CDM Team: “the evaluation procedure and the final ranking within categories indicates our willingness to pay more for real sustainable and qualitative projects. Moreover, no minimum amount of ERs is requested and only approved baseline methodologies will be considered.”
Sustainability
‘Sustainability’ has three components under the Belgium Tender. (1) Local/regional/global environment, (2) social sustainability and development, and (3) economic and technological development. Each indicator is assessed against the baseline situation, being the situation without the project.
JIQ: Does this mean that you are actually employing a more stringent approach to sustainability than host countries in some cases may apply?
Ms Heyse: “Since the host country has to give its approval for the CDM/JI project (by submitting a Letter of Approval) the project should in all cases respect the requirements of the host country – including their possible sustainability requirements. Nevertheless, projects should obtain a minimum score on ‘sustainability’ under our tender programme based on the three criteria assessed. Initially, 50 points are to be awarded while for each negative impact points are subtracted or vice versa.”
Certainty of delivery
‘Certainty of delivery’ will be evaluated based on sub criteria such as a project entity’s commitment and capacity, financials, carbon related project details and country risk. With respect to the latter, for example, the likelihood of approval of the project by the host country will be determined.
JIQ: Could you give us a peak into the future regarding Belgium’s tender procedures?
Ms Heyse: “This tender is the first step of Belgium’s JI/CDM programme. Its financial resources (€10 million of which €9.3 million will be used to purchase credits) come from the “Kyoto Fund”, established in 2003, with an annual budget of €25 million. On 15 June last, the federal Minister of Environment announced that if the first phase of this tender proves to be successful, a second tender with a larger budget could be launched at the end of this year.”
Expressions of Interest for the First Phase of this tender programme are being solicited before 23 September 2005.
For further information, please contact:
The Belgian JI/CDM Team
Ms Tine Heyse, Ms Sophie Closson or Ms Elisabeth Ellegaard
Place Victor Horta 40 – box 10
1060 Brussels, Belgium
tel.: +32 2 524 9531/34/30
fax: +32 2 524 9601
e-mail: jicdmtender@health.fgov.be
Internet: www.klimaat.be/jicdmtender
Interviews in JIQ Issue April 2005
Mr Nikolaus Müllebner on the Austrian JI/CDM Tender Programme
Interviews in JIQ Issue October 2004
Ms Ulla Blatt Bendtsen on the Danish - Russian cooperation
Mr Sünnen on the KfW Carbon Facility
Interviews in previous JIQ Issues
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