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Austrian JI/CDM Tender Programme well Underway:
“Get in touch with host country authorities as early as possible”
Presently, the second round of the Austrian JI/CDM programme is open for project ideas. It was published on 11 October of last year and will be closed on 30 June of this year. The programme’s first Call closed on 30 September of last year. JIQ spoke with Mr Nikolaus Müllebner of Kommunalkredit Public Consulting GmbH, which manages the programme on behalf of the Austrian Government.
JIQ: With one call closed and one still open, what would be your impression of the quality of the project ideas submitted to the Austrian JI/CDM programme so far?
Mr Müllebner: In the first call we received 51 Expressions of Interest, 30 for CDM projects and 21 for JI projects, from countries all over the world. Including the EoIs submitted under the second Call, so far we have received 46 CDM and 21 JI project ideas in total.
Based on these more than 60 EoIs, we could say that in general the quality of the project ideas is better than we expected at the start of our programme. Nevertheless, there are considerable differences in quality. On the one hand, we have received project notes which are very good. These ideas meet all requirements in terms of Kyoto Protocol criteria, financial issues, and clarified host country conditions to enable a successful realisation of the project. However, we have also received EoIs, from which it is clear that the eventual implementation of the project will be quite unrealistic.
At the time, it seems that around 25% of the submitted project ideas will not reach the second phase of our approval procedure, during which a fully prepared Project Design Document must be submitted for projects that we select from the calls. The main reasons why project ideas may not reach the second round are problems concerning project financing, insufficient contact with host country authorities, lack of clarity regarding additionality, and other Kyoto-related requirements that are not covered by the project idea notes.
JIQ: What is your experience with the co-operation with host country governments and entities?
Mr Müllebner: We have quite good experiences with working together with host countries. Most of the people involved in the project development process with whom we have had contact are very competent and interested in a constructive co-operation. However, sometimes DNAs face the problem of a lack of personal resources.
With respect to co-operation among host country entities, our experience is that project developers should get in touch with the relevant authorities in the host country in an early stage of the project. This is important because it enables project developers to incorporate all necessary information about the host country procedures for project approval, sustainable development criteria and other host country-specific JI or CDM requirements in the project idea.
JIQ: What does the present Austrian portfolio of project ideas look like in terms of project type and host country?
Mr Müllebner: As I said, we have received more CDM projects than JI projects. We therefore think that in terms of numbers of projects the potential for CDM projects to result from the Austrian programme is larger. The most interesting CDM host countries are currently India and Brazil.
Concerning the project types, we cannot really identify a dominant technology. Around 23% of the project ideas aim at using renewable energy sources, 15% propose energy efficiency measures, 12% are landfill gas projects, and another 12% are biomass CHP projects. The remaining project ideas cover nearly all possible project types.
JIQ: Presently, there are multilateral JI/CDM funds, bilateral JI/CDM programmes and less formal types of co-operation where private sector entities set up projects and sell the credits case by case to an Annex I government. Which model would Austria prefer for future use?
Mr Müllebner: Basically, the main purpose of the Austrian JI/CDM Programme is to support the fulfilment of the Austrian Kyoto target. We are doing this by purchasing emission reductions generated by JI and CDM projects directly from the project owners or through participation in multilateral funds and other procurement facilities managed by private entities. From our point of view any of the possibilities that you have mentioned are necessary for a successful programme management and appropriate risk diversification.
JIQ: At its latest meeting, the CDM EB agreed that a CDM project can be registered without an Annex I Party being involved at the stage of registration. What is your opinion on the future potential of such unilateral CDM?
Mr Müllebner: Since it might be easier for project developers to find potential Annex I buyers after project registration at the EB, the option of unilateral CDM will probably create more CDM projects. Therefore, we appreciate this decision of the CDM EB.
JIQ: Austria takes the market price of CERs as a basis for negotiations on the Emission Reduction Purchase Agreements, but would be willing to pay more if the project delivers additional benefits. What could these additional benefits be?
Mr Müllebner: According to the directive for the Austrian JI/CDM Programme, the purchase of emission reductions “takes place on the basis of cost-benefit optimisation and is based on the international market price for comparable projects.” Within this range we are considering additional ecological and social benefits of the projects in our price calculation.
For further information, please contact:
Mr Nikolaus Müllebner
Climate and Energy
Kommunalkredit Public Consulting GmbH
Tuerkenstrasse 9
1092 Vienna
Austria
tel.: +43 (0) 1 31 631 280
fax DW: + 43 (0) 1 31 6 31 99280
e-mail: n.muellebner@kommunalkredit.at
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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