REPORT TO THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CHAPTER IV- ON THE PLAN AND SCHEDULE OF THE REMAINING PROJECT ACTIVITIES

Transcription

1 MEXICO, SUPPORT FOR THE DEVELOPMENT AND UPTAKE OF CDM PROJECTS IN THE INDUSTRIAL SECTOR: PILOT PROJECT IN COOPERATION WITH AUSTRIAN INDUSTRY Project: US/GLO/04/096/ Mexico REPORT TO THE UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION CHAPTER IV- ON THE PLAN AND SCHEDULE OF THE REMAINING PROJECT ACTIVITIES BY DR. EDMUNDO DE ALBA Mexico City September 12, 2005 Chapter IV, UNIDO-AUSTRIA 1

2 MEXICO. Support for the development and uptake of CDM projects in the industrial sector: Pilot project in cooperation with Austrian industry. Chapter IV- On the plan and schedule of the remaining project activities INDEX: Introduction to Chapter IV... 3 General considerations for the Project in Mexico... 3 Stakeholders... 3 Project reception and CDM development... 4 Recommended Project short term actions... 4 Possible short term activities by the CMPL... 5 Medium and long term activities... 6 Chapter IV, UNIDO-AUSTRIA 2

3 MEXICO. Support for the development and uptake of CDM projects in the industrial sector: Pilot project in cooperation with Austrian industry. Chapter IV- On the plan and schedule of the remaining project activities Introduction to Chapter IV This fourth and final chapter of the study presents some notes on the future plan and schedule of the activities to be conducted by the UNIDO- Austria Project in Mexico as have been detected during the course of the present study. The chapter contains: General environment for the Project at Mexico Recommended Project short term actions Possible short term activities by the CMPL Medium and long term Project activities. General considerations for the Project in Mexico Stakeholders The large number of stakeholders or potential stakeholders points to the high number of possibilities for CDM activities in Mexico, but at the same time makes evident the urgent need to consolidate the opportunities in a practical form, to accelerate the process of preparing projects and to finish the required organizational arrangements of the Mexican Designated National Authority (DNA). At Chapter I and its Annexes a large number of potential stakeholders are presented, the main synthesis tables are the following: Stakeholders (by administrative type) Number National Authorities 14 Other Governmental and parastatal 12 stakeholders Local Governments 11 Private sector organizations 15 Private enterprises See next Table Social sector organizations 11 Consulting Firms and Brokers 20 Technical and Research organizations 20 International organizations 21 Foreign Governments 13 Stakeholders (by project or activity type) Number Energy saving 29 plus ESCOs Fuel-switching 5 plus Independent Producers Fugitive emissions 2 Renewable energy general 5 Biomass and biofuels 11 plus Geothermal 1 plus Hydroenergy 17 Solar energy 6 plus Sea waves 1 Wind power 10 plus Chapter IV, UNIDO-AUSTRIA 3

4 Non-forest Carbon Sequestration 1 F-gases 3 Construction 6 plus Forestry 37 plus Industry general 6 general plus several specific Transport 9 plus Stakeholders (at Annexes) Number Identified main stakeholders 209 Energy Services Companies 179 Academic sector 17 Cogenerators 11 Independent producers of electricity (after 2000) 14 The Mexican universe of stakeholders presented is correlated to the size and diversification of the Country s economy. Project reception and CDM development All interviewed Mexican Authorities and organizations related to CDM welcome the existence and initiation of operation of the UNIDO-Austria Project, the interviewed private sector representatives vary in opinion from enthusiastic to cautious, depending on their specific interest (competing companies). In this connection the Project requires to be presented as a cooperative and not a competing activity with those that are already in progress. The Country has a delay in its internal preparation for CDM activities in comparison with similar developing countries, but since the recent formation of the Intersectoral Committee for Climate Change and the initiation of the National Approval of CDM projects, the number of presentations of new projects to the Mexican pipeline has increased considerably month by month. Various stakeholders see the Project, with its multilateral backup, as an opportunity to achieve advances in some of the barriers existing for areas like renewable energy or the need to cluster efforts on energy efficiency, as well as an opportunity to develop strategic level activities related to CDM at Mexico. One of the main causes of the delay in the Mexican preparation of concrete CDM specific projects is the general lack of financial support for the initiation of the project (search and initial definition). The companies acting in Mexico that have a good backup of risk capital are finding a larger degree of success. Recommended Project short term actions Priorities The most recommended priorities for the action of the Project in Mexico are: Cogeneration Methane capture and use Renewable energy Energy efficiency Chapter IV, UNIDO-AUSTRIA 4

5 With CMPL As the UNIDO-Austria Project is base on a significant participation of the Mexican Center for Cleaner Production, is a clear need to formalize the Center participation, which was confirmed only in principle. The Project financial support to initiate this type of activities is seen as a clear impulse needed to direct additional efforts by the Center to CDM activities, because of the level of engagement with other already acquired responsibilities and the pressure of the main support scheme (IPN budget) to increase in short term the Center independent income (The Technical personnel participating in the Seminar proposed the incorporation of an additional expert to coordinate the CDM efforts of the Center. This person could be intensely trained by the Project, the Center authorities pointed out that this support scheme has been used with UNIDO for other programs). With the National Environment and Energy Authorities In both cases it was proposed a meeting between key stakeholders of both countries, organized by UNIDO, to give high level input to the Project at Mexico. It was even mentioned the convenience of conveying the meeting before the next UNFCCC COP/MOP meeting. The National organization for energy saving (CONAE) expressed its interest in participating with the UNIDO-Austria project in the national programs the Commission is developing. With Private Sector CESPEDES CESPEDES welcome the possible participation of the Project and the CMPL at the Standard Protocol activities. This possibility could be further considered by the Centre authorities. By the UNIDO-Austria Project To define with the Mexican authorities the desirable and possible scope of the Project at Mexico, whether is to be concentrated on specific projects or could reach national CDM strategic activities (creation of sector carbon markets, etc.). This definition could be a result of the proposed high level meeting. The close cooperation between Austrian interested companies, Mexican Energy and Environment authorities and industries and local representations are the best path of success under the umbrella of the UNIDO-Austria Project. Possible short term activities by the CMPL Is imperative a final definition of the role that the Center is going to play at the Project and a precise program to cover its main needs. This definition could be reach very soon during the projected visit of the Director of CMPL to Vienna UNIDO headquarters. Due to the novelty of the Center in the CDM subject, is of great help to the Project the conduction of several training activities for the technical personnel of the CMPL and selected Mexican industries (including specialized industry chambers). These activities, if carried out together with interested Austrian industries and UNIDO personnel, could largely increase the Center s credibility on the topic by the Mexican industries participating, as the competitive edge for CMPL in CDM activities will be at the beginning a strong international backup. These training activities could also be directed to the large number of Mexican ESCOs. An area for short term action to explore CDM activities by the Center is to contact the companies where CMPL have had successful interventions, as discuss with the Center s personnel. In this connection the first action could be an awareness meeting with chosen former clients. Chapter IV, UNIDO-AUSTRIA 5

6 The industrial cluster where CMPL has concentrated activities in the past has been in general the small and medium industries, where special efforts to aggregate projects have to be done to reduce the CDM transaction cost. This is part of the need of the Center to have a backup for risk activities. With large corporations the door is open for the possibility of participation of the Centre at the Standard Protocol activities. Medium and long term activities. Once the CMPL has acquired credible capacities and experience on CDM activities, the Center, with the help of the Project, could look for associations with organizations like FIDE and CONAE, as well as agreements with the Mexican DNA to help the authorities in the search and development of the Mexican CDM pipeline. As has been pointed out several times in this study, the existence of resources to support the initiation of CDM activities is a strategic step to have a clear increment in the number and size of the CDM projects at Mexico. The involve resources are of the ordinary cost of preparation of a PIN, multiplied by the number of PINs that the UNIDO-Austria Project is prepared to conduct. The ulterior preparation of PDDs has to be part of the investment of the proponents of the specific project. If the area of energy efficiency is to be significantly associated with the Project, the best recommended scheme is to set up a Fund to finance ESCOs to conduct several performance projects in an integrated fashion to reach sizable CDM aggregations. The UNIDO-Austria Project could consider exploring further the proposals for strategic interventions to create sectoral carbon markets in Mexico, as well as the regional expansion of the Standard Protocol activities and its second phase of identifying CDM opportunities at the large Mexican industrial corporations. Chapter IV, UNIDO-AUSTRIA 6