Gerald Lindo Ministry of Water Land Environment and Climate Change MWLECC Jamaica The Country Context Small Vulnerable Lots of Potential Small island state High vulnerability to climate change ID: 805521
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Slide1
Jamaica’s CDM Experience and NAMA Prospects
Gerald Lindo
Ministry of Water, Land, Environment and Climate Change (MWLECC)
Jamaica
Slide2The Country Context:
Small, Vulnerable, Lots of Potential
Small island state
High vulnerability to climate changeEnergy import dependent91% of energy overall and 94% of electricity fossil fuel based (HFO, Diesel)Mitigation potential low, but mitigation options have excellent economicsHeavily indebted, weak growth
Slide3Bullish on CDM…
The strong impression among policy makers that there were good financing opportunities in “carbon credits”
Rush of project submissions between 2004-2008
Policies were built with CDM opportunities in mindAug 2008- National Carbon Emissions Trading Policy Halt to new project registration
Sep
2008 -
Policy Task Force
formed
@ Ministry
of Energy and Mining
Draft
Carbon Trading Policy
prepared June 2009
Energy
and
sub-policies integrated
CC
considerations
Gov’t hired a CDM consultant who was made available to the private sector
Slide4… until the carbon market bust!
PoA
for utility company designed but abandoned
Over 20 project submissions led to only 2 projects following through – both by Gov’t entityLocked out of ETS, leading to uncertaintyDraft Carbon Trading Policy in limbo
Slide5Slide6Wigton
Wind Farm
Two projects from 2 expansion phases
Ref: 0239, 5522Total reductions of 52540 and 40348 T CO2e / yearER purchase agreement with CAF ended 2012Challenge: making verification of latest CERs worth the transaction costsPossibilities: Gold Standard; working through Bunge Emissions Holdings
Slide7The lessons: better C prices, capacity, lower transaction costs desired
Emission reductions projects still have good returns, but benefits of CDM usually marginal to bottom line
Transaction costs high
Exacerbated by lack of local capacity (all steps of project cycle require importation of expertise)Lack of investor confidence in CDM still needs to be overcomePolicy missteps?Good news: the fundamental economics and benefits of energy projects that reduce emissions have not changed
Slide8Slide91st NAMA(s) will be RE focused
Draft NAMA prepared in collaboration with OLADE: “
Jamaica Renewable Energy Support
Programme” Pre-existing policy target: 20% of energy from RE by 2030Analysis of vision, policies, action plansBarrier analysisInstitutional assessmentEMISSION REDUCTION ANALYSISMRVFinalization by end of Q4, 2014
Slide10NAMAs = mitigation + development + adaptation = Resilience
Jamaica has a unique opportunity, inasmuch as
ANY
energy sector reform will likely reduce energy costs while giving SD benefits!Lower costsIncreased competitiveness… which equals RESILIENCE!
CDM’s structure and methods brings a discipline and robustness to projects and programmes, which can help us get the help we need
Slide11How about a RAMA?
To overcome capacity and scale issues, Jamaica is contemplating uniting with regional partners to create Regionally Appropriate Mitigation Actions
Sharing expertise
Larger programmes more attractive to investors, and have lower transaction costs (same rationale for PoAs)
Slide12Thank you!
g
erald.lindo@mwlecc.gov
gerry.lindo@gmail.com@geraldlindo