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Sectoral Opportunities for CDM Benefits in the Pacific Countries

Darshak Mehta Technical Support Facility

Characteristics of Pacific Countries


Small Island Countries with low population densities Large marine distances Conventional energy sources few and far in between Lack of trained manpower to run sophisticated technologies Most commonly used generation is through small diesel generators Significant suppressed demand due to difficult energy infrastructure

CDM Opportunities
Switching of fossil fuel to biomass based fuels for power generation or heat generation e.g Coconut or vegetable oil, biomass gasifier Renewable electricity generation e.g. Small Hydro, Biomass, Solar, Geothermal, Wind Waste water and solid waste management Transport sector fuel switching Oil and Gas sector opportunities in some countries

Current status & Issues for CDM


DNAs have been established or are in process of establishment in most of the countries Experience from few registered projects can be emulated Bundling across nation is possible to reduce the transaction cost Increases complexity but better option in the long term Lower fee structure in certain cases Buyer preference to LDCs / SIDCs Over all 3 registered projects in the Pacific One PoA under validation One project in Fiji and 6 projects in PNG under validation

Increase project viability through


Bundling Cross border project integration Program of Activities

Way Forward

Standardize Baselines Default additionality through close work with UNFCCC Suppressed demand methodologies development Smart Negotiations share risks of validation and PDD preparation, advance payments Get best technologies for long term benefits

Thank You!
Technical Support Facility Carbon Market Program ADB