The South-South-North SSN Project. Country Study: Brazil. Phase 3 - Period 6 Report

Transcription

1 The South-South-North SSN Project Country Study: Brazil Phase 3 - Period 6 Report April to December 2004 January to March 2005 Emilio Lèbre La Rovere Professor, COPPE/UFRJ Executive Coordinator Center for Integrated Studies on Climate Change and the Environment COPPE - Institute for Research and Graduate Studies in Engineering UFRJ - Federal University of Rio de Janeiro emilio@ppe.ufrj.br Technical Team: Angela Oliveira da Costa Carolina Dubeux Cícero Pimenteira Joyce Monteiro Luciana Paz Luciano Basto Oliveira Maria Silvia Muylaert Rachel Martins Henriques Development Facilitators Team: Alexandre D Avignon Flavia Nadalutti March 2005

2 The South-South-North SSN Project Country Study: Brazil Country Report for Phase 3 Period 6 April to December 2004 January to March /30/05 page 2

3 Contents I. EXECUTIVE SUMMARY A1. BACKGROUND A.1. SSN PROJECT PHASE 3 - OBJECTIVES PERIOD 1 FROM OCTOBER 2001 TO MARCH PERIOD 2 FROM APRIL TO SEPTEMBER PERIOD 3 - FROM OCTOBER 2002 TO MARCH PERIODS 4 FROM APRIL 2003 TO SEPTEMBER PERIODS 5 FROM OCTOBER 2003 TO MARCH PERIODS 6 FROM APRIL TO DECEMBER A.2. RESULTS ACHIEVED IN PHASE 3 - PERIOD 1 OCTOBER 2001 TO MARCH GOALS ACHIEVED IN PERIOD 1: GOAL 1: SELECTION OF THE SSN PROJECTS TO BE IMPLEMENTED IN BRAZIL IN PERIOD GOAL 2: IMPROVEMENT OF THE METHODOLOGY FOR ASSESSING ELIGIBILITY OF POTENTIAL CDM PROJECTS A.2.1. RESULTS ACHIEVED TO MEET GOAL 1: SELECTION OF THE SSN PROJECTS IN BRAZIL TABLE OF SELECTED AND CONTINGENCY PROJECTS A.2.2. RESULTS ACHIEVED TO MEET GOAL 2: IMPROVEMENT OF THE METHODOLOGY FOR ASSESSING ELIGIBILITY OF POTENTIAL CDM PROJECTS A.2.3. OTHER RESULTS ACHIEVED IN PHASE 3 - PERIOD A.3. RESULTS ACHIEVED IN PHASE 3 - PERIOD 2 APRIL TO SEPTEMBER

4 GOALS TO BE ACHIEVED DURING PHASE 3 - PERIOD 2: A.3.1. RESULTS ACHIEVED GOAL 1: FORMATION OF THE PROJECT DESIGN TEAMS (PDTS) A.3.2. RESULTS ACHIEVED - GOAL 2: PREPARE FIRST DRAFT OF THE PROJECT DESIGN DOCUMENTS (PDDS)20 A.3.3. RESULTS ACHIEVED - GOAL 3: REVIEW THE APPLICATION OF ELIGIBILITY CRITERIA AND SUSTAINABILITY INDICATORS FOR THE SELECTED AND CONTINGENCY CDM PROJECTS OF THE SSN PROJECT A.3.4. OTHER RESULTS ACHIEVED A.4. RESULTS ACHIEVED - PHASE 3 - PERIOD 3 OCTOBER 2002 TO MARCH GOAL 1: PRESENT THE RESULTS OBTAINED BY CENTRO CLIMA DURING PHASE 3 - PERIOD 2 AT THE SSN PROJECT MEETING, DURING COP8, IN NEW DELHI A.4.1. ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL GOAL 2: CONCLUSION OF THE PROJECT DESIGN DOCUMENTS OF THE TWO SELECTED PROJECTS: A.4.2. ACTIVITIES DEVELOPED TO MEET GOAL A.4.3. OTHER RESULTS CAPACITY BUILDING A.4.4. OTHER POTENTIAL CONTINGENCY CDM PROJECTS THAT ARE BEING DEVELOPED BY CENTRO CLIMA COPPE/UFRJ A.4.5. OTHER ACTIVITIES OF THE CENTRO CLIMA RELATED TO THE SSN PROJECT PERIOD A.4.6. DISSEMINATION OF THE RESEARCH ON CRITERIA FOR CDM PROJECT APPROVAL TO OTHER LATIN AMERICAN COUNTRIES /30/05 page 4

5 A.4.7. DEFINITION OF THE NEXT STEPS AND MILESTONES FOR THE SSN PROJECT A.4.8. OTHER ACTIVITIES A.5. RESULTS ACHIEVED - PHASE 3 - PERIOD 4 APRIL TO SEPTEMBER GOAL 1: PRESENT THE RESULTS OBTAINED BY CENTRO CLIMA DURING PHASE 3 - PERIOD 3 AT THE SSN PROJECT MEETING, DURING APRIL 22ND TO 25TH, IN CAPE TOWN SOUTH AFRICA AT SSN OFFICE A.5.1. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 2: NEW CHALLENGE: ADAPT THE PROJECT DESIGN DOCUMENT OF EACH PROJECT TO THE GOLD LABEL STANDARD WWF A.5.2. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 3: PDDS ITEM G - FIRST STAGE OF PUBLIC CONSULTATION A.5.3. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 4: INSTITUTIONAL CAPACITY BUILDING A.5.4. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 5: DEVELOPMENT OF OTHER POTENTIAL CONTINGENCY CDM PROJECTS DEVELOPMENT OF TWO CDM PROJECTS FOR MINISTRY OF ENVIRONMENT'S NATIONAL ENVIRONMENT FUND A.5.5. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 6: DISSEMINATION OF INFORMATION A.5.6. ACTIVITIES DEVELOPED TO MEET GOAL /30/05 page 5

6 GOAL 7: INTERNATIONAL COOPERATION SSN CENTRAL OFFICE/CENTRO CLIMA MARGIE ORFORD S VISIT TO CENTRO CLIMA COPPE/UFRJ A.5.7. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 8: END OF PERIOD 4 - PREPARATION OF REPORTS TO DELIVER TO SSN SOUTH AFRICA CENTRAL OFFICE A.5.8. ACTIVITIES DEVELOPED TO MEET GOAL GOAL 9. DEFINITION OF NEXT STEPS AND MILESTONES FOR THE SSN PROJECT A.5.9 SEE NEXT STEPS TO FOLLOW FOR THE NEXT PERIOD IN SECTION C.9. ON PAGE 34 OF SOUTHSOUTHNORTH PHASE 3 PERIOD 4 REPORT A SHORT INFORMATION AND STATUS OF EACH BRAZILIAN PROJECT ANNEX 1 PROJECT SUMMARIES OF THE THREE SSN AND TWO FNMA PROJECTS PAGE 37 OF THE SOUTHSOUTHNORTH PHASE 3 PERIOD 4 REPORT ANNEX 2 - PUBLIC CONSULTATION METHODOLOGY ANNEX 3 PROJECT INFORMATION NOTES A.6. RESULTS ACHIEVED ON PERIOD 5 OF PHASE 3 - OCTOBER 2004 TO MARCH GOAL 1 - STRATEGY FOR STAKEHOLDER PARTICIPATION GOAL 2 TECHNICAL SUPPORT TO BRAZILIAN DNA AND SIDE MEETING OF SSN INITIATIVE AT COP GOAL 3 - CARRYING OUT THE MODIFICATIONS TO ITEM B (METHODOLOGY AND ADDITIONALITY ASPECTS) OF THE 3 PROJECTS: /30/05 page 6

7 A CARRYING OUT THE MODIFICATIONS TO ITEM B (METHODOLOGY AND ADDITIONALITY ASPECTS) OF THE 3 PROJECTS: A BIODIESEL PROJECT A GRAMACHO LANDFILL PROJECT A USINAVERDE PROJECT GOAL 4 METHODOLOGIES PANEL OF UNFCCC GOAL 5 TRANSACTION PROCESS GOAL 6 SUBMIT PDDS TO DNA GOAL 7 VALIDATION - OE GOAL 8 PRESENTATION OF SSN EXPERIENCE IN LONDON GOAL 9 - STATUS OF THE PROJECT CDM CYCLE GOAL 10 PRODUCTS TO DELIVER TO SSN SA A.7. RESULTS ACHIEVED ON PERIOD 6 OF PHASE 3 - APRIL TO DECEMBER JANUARY TO MARCH RESULTS OBTAINED PHASE 3 PERIOD 6 APRIL TO DECEMBER GOAL 1: START OF PERIOD 6 PRESENT THE RESULTS OBTAINED BY THE CENTRO CLIMA COPPE UFRJ IN PERIOD 5 DURING THE SEMI-ANNUAL MEETING OF PROJECT LEADERS OF THE FOUR COUNTRIES OF THE SOUTHSOUTHNORTH INITIATIVE AND HELIO INTERNATIONAL GOAL 2: CONTINUE THE DEVELOPMENT OF THE THREE CDM PROJECTS BY THE PROJECT DEVELOPMENT GROUPS COMPOSED OF TECHNICAL AND FACILITATION STAFF OF THE CENTRO CLIMA AND THE PROJECT OWNERS GOAL 3: METHODOLOGY USED TO BUILD THE CASH FLOW FOR EACH PROJECT. STUDY OF THE ECONOMIC AND TECHNICAL FEASIBILITY (SETF) /30/05 page 7

8 GOAL 4: CERTIFIED EMISSIONS REDUCTION (CER) TRANSACTION STAGE AND STATE OF THE ART OF EACH PROJECT FOR NEGOTIATING WITH INVESTORS INTERESTED IN ACQUIRING CERS GOAL 5: GUIDELINES TO BE FOLLOWED BY THE CENTRO CLIMA, FOR MOVING ON TO THE VALIDATION STAGE WITH THE DESIGNATED OPERATIONAL ENTITY AND THE INTERMINISTERIAL COMMISSION ON GLOBAL CLIMATE CHANGE GOAL 6: NATIONAL AND INTERNATIONAL CAPACITY BUILDING IN CDM GOAL 7: TECHNICAL CAPACITY BUILDING IN CLEAN DEVELOPMENT MECHANISM GOAL 8: OTHER CDM PROJECTS UNDER DEVELOPMENT BY CENTRO CLIMA 43 GOAL 9: OTHER ACTIVITIES DEVELOPED GOAL 10: ACTIVITIES FOR ENVIRONMENTAL COMMUNICATION OF THE CENTRO CLIMA GOAL 11: FINAL PRODUCT TO BE SUBMITTED TO THE SSN CENTRAL OFFICE SA UNTIL MARCH GOAL 12: PARTICIPATION AT COP 10 BUENOS AIRES ARGENTINA CENTRO CLIMA TEAM FOR COP10 AND SSN MEETINGS DURING THE COP WEEK PRESENTATION AT COP10 SSN SIDE EVENT II. ACTIVITIES REPORT PERIOD 6 - APRIL TO DECEMBER GOAL 1: START OF PERIOD 6 PRESENT THE RESULTS OBTAINED BY THE CENTRO CLIMA COPPE UFRJ IN PERIOD 5 DURING THE SEMI-ANNUAL MEETING OF PROJECT LEADERS OF THE FOUR COUNTRIES OF THE SOUTHSOUTHNORTH INITIATIVE AND HELIO INTERNATIONAL ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL /30/05 page 8

9 1.1. COORDINATION OF THE SEMI-ANNUAL MEETING OF PROJECT LEADERS IN THE CENTRO CLIMA COPPE UFRJ FACILITIES PRESENTATION OF THE RESULTS OBTAINED BY THE CENTRO CLIMA IN PERIOD 5, FROM OCTOBER 2003 TO MARCH 2004, DURING THE SEMI-ANNUAL MEETING OF THE PROJECT LEADERS OF THE FOUR COUNTRIES OF THE SSN INITIATIVE, WITH THE PRESENCE OF HELIO INTERNATIONAL, IN RIO DE JANEIRO, FROM APRIL 26 TO MAY 2, SCHEDULE FOR THE MEETING OF SSN PROJECT LEADERS IN RIO DE JANEIRO - BRAZIL GOAL 2: CONTINUE THE DEVELOPMENT OF THE THREE CDM PROJECTS BY THE PROJECT DEVELOPMENT GROUPS COMPOSED OF TECHNICAL AND FACILITATION STAFF OF THE CENTRO CLIMA AND THE PROJECT OWNERS ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL TECHNICAL ADJUSTMENTS REQUIRED IN EACH PDD TO COMPLY WITH THE WWF GOLD STANDARD CDM AND TO THE STATUS OF EACH UNDERTAKING: RESULTS OBTAINED IN EACH PROJECT DURING PERIOD PROJECT: JARDIM GRAMACHO: COLLECTION AND RECOVERY OF SANITARY LANDFILL BIOGAS FOR METHANE AVOIDANCE AND TO PROMOTE POWER GENERATION THROUGH THE USE OF BIOGAS AND BIODIESEL ; PROJECT: USINAVERDE - INCINERATION OF URBAN SOLID WASTES, WITH A LOAD COMPOSITION SIMILAR TO RDF, AVOIDING THE FORMATION OF METHANE, MAKING USE OF ENERGY FOR ITS OWN CONSUMPTION" PROJECT "BIODIESEL PRODUCTION FOR USE AS VEHICLE FUEL" GOAL 3 - METHODOLOGY USED TO BUILD THE CASH FLOW FOR EACH PROJECT METHODOLOGY EMPLOYED INSTALLATION COSTS INITIAL INVESTMENT /30/05 page 9

10 3.3. OPERATING COSTS PROJECT SPECIFICITIES GOAL 4: CERTIFIED EMISSIONS REDUCTION (CER) TRANSACTION STAGE AND STATE OF THE ART OF EACH PROJECT FOR NEGOTIATING WITH INVESTORS INTERESTED IN ACQUIRING CERS ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL CONTACT WITH 500 PPM EMISSION REDUCTION PURCHASE AGREEMENT (ERPA) CONTACT WITH 500 PPM AND WWF OFFERS RECEIVED FROM SSN SA GOAL 5: GUIDELINES TO BE FOLLOWED BY THE CENTRO CLIMA, FOR MOVING ON TO THE VALIDATION STAGE WITH THE DESIGNATED OPERATIONAL ENTITY AND THE INTERMINISTERIAL COMMISSION ON GLOBAL CLIMATE CHANGE ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL MEETING WITH THE BUREAU VERITAS QUALITY INTERNATIONAL (BVQI) CONTACT WITH THE INTERMINISTERIAL COMMISSION FOR GLOBAL CLIMATE CHANGE (CIMGC) GOAL 6: NATIONAL AND INTERNATIONAL CAPACITY BUILDING IN CDM ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL NATIONAL GOVERNMENTAL SECTOR MINISTRY OF THE ENVIRONMENT NATIONAL GOVERNMENTAL SECTOR SUPPORT TO THE BRAZILIAN EXECUTIVE DELEGATION AT THE COP INTERNATIONAL SECTOR - PROGRAM ON THE USE OF ALCOHOL- AUSTRALIA /30/05 page 10

11 GOAL 7: TECHNICAL CAPACITY BUILDING IN CLEAN DEVELOPMENT MECHANISM ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL CAPACITY BUILDING OF THE BUSINESS SECTOR IN CLIMATE CHANGE COURSE I CLIMATE CHANGE AND GREENHOUSE GASES COURSE II IDENTIFYING PROJECTS AND PREPARING PDDS FOR CDM CONTRIBUTION TO MUNICIPAL ENVIRONMENTAL CLIMATE CHANGE POLICIES - PUBLIC SECTOR FOLLOW-UP ACTIVITIES GOAL 8: OTHER POTENTIAL PROJECTS UNDER DEVELOPMENT BY THE CENTRO CLIMA RELATED TO CLIMATE CHANGE AND THE CLEAN DEVELOPMENT MECHANISM: ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL ASSISTANCE TO THE LOCAL GOVERNMENT OF THE CITY OF SÃO PAULO, FOR DEVELOPING THE "INVENTORY OF GREENHOUSE GASES FOR THE CITY OF SÃO PAULO AND TO GIVE A COURSE ON THE CLEAN DEVELOPMENT MECHANISM AND ITS OPPORTUNITIES FOR REDUCING GHG EMISSIONS. (SEE INFORMATION ON THE COURSE IN ITEM 6.2) CDM PROJECTS WITH SUPPORT OF THE NATIONAL ENVIRONMENT FUND FNMA MINISTRY OF THE ENVIRONMENT MMA: OTHER PROJECTS: USE OF RICE HUSKS IN ENERGY COGENERATION AND THE ENSUING MITIGATION OF GREENHOUSE GASES AS CLEAN DEVELOPMENT MECHANISM /30/05 page 11

12 GENERATION OF ELECTRICAL ENERGY IN A THERMOPOWER PLANT FUELLED BY BIOMASS COUPLED TO A SHP IN RONDÔNIA POTENTIAL PROJECTS IDENTIFIED IN THE CDM CAPACITY BUILDING COURSE AT PETROBRAS: GOAL 9: DEVELOPMENT OF THE SSN CDM TOOLKIT ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL GOAL 10: ACTIVITIES FOR ENVIRONMENTAL COMMUNICATION OF THE CENTRO CLIMA GOAL 11: PRODUCTS TO BE HANDED BY CENTRO CLIMA TO SSN DURING THE PARALLEL MEETING OF THE INTERNATIONAL SSN TEAM DURING THE COP10, IN BUENOS AIRES, ARGENTINA: ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL GOAL 12 CENTRO CLIMA S PARTICIPATION AT COP10 6 TH TO 14 TH DECEMBER 2004, BUENOS AIRES, ARGENTINA ACTIVITIES DEVELOPED BY CENTRO CLIMA TO ACHIEVE GOAL CENTRO CLIMA TEAM TEAM FOR SSN SSN MEETINGS DURING COP SSN SIDE EVENT CENTRO CLIMA PARTICIPATION III. ACTIVITIES REPORT - DEVELOPED FROM JANUARY TO MARCH USINAVERDE PROJECT UPDATE USINAVERDE PROJECT VALIDATION PROCESS USINAVERDE: THIRD STAKEHOLDER CONSULTATION MARCH, 14 TH, ENVIRONMENTAL IMPACTS NEW INFORMATION INCLUDED IN PDD /30/05 page 12

13 I. Executive Summary A1. Background This report presents the activities and results achieved by Centro Clima during Phase 3 - Period 6 and the synthesis of Period 1, 2, 3, 4 and 5 of SSN Project in Brazil. A.1. SSN Project Phase 3 - Objectives Phase 3 of the SSN Project, from October 2001 to December 2004, includes six periods: Period 1 from October 2001 to March 2002 The following goals were achieved during this period: o Project Selection o Improvement of the Methodology for Assessing Eligibility of Potential CDM Projects. Period 2 from April to September 2002 The goals to be achieved during this period were: o Formation of Project Design Teams for the Selected Projects o Development of the Technical Documents required for later approval by the Executive Board of carbon credits originated from CDM projects proposed by Centro Clima within the SSN Project in Brazil. o Improvement of the Methodology for Assessing Eligibility of Potential CDM Projects. Period 3 - from October 2002 to March 2003 The goals to be achieved during this period were: o Present the results obtained by the Centro Clima during Phase 3 - Period 2 at the SSN Project meeting, during COP8 o Conclusion of the Project Design Documents 03/30/05 page 13

14 The main activities developed to achieve the second objective were: o Improvement of the Product Design Documents for the projects: Biodiesel Production for Use in the Transport Sector Use of Biogas and Biodiesel for Power Generation at the Jardim Gramacho Sanitary Landfill Duque de Caxias RJ o Negotiation with Stakeholders and documentation of this process Period 4 from April 2003 to September 2003 The goals to be achieved during this period were: o Update the PDDs of the three Brazilian projects to Gold Label Standard WWF requirements o Prepare and execute the Strategy of Public Participation process o Provide SSN Central Office with Financial, Administrative, Narrative, Marketing and Technical Reports. Period 5 from October 2003 to March 2004 The goals to be achieved during this period were: o Prepare and execute Second Public Consultation o Consolidate Stakeholders comments o Conclude PDDs of the three Brazilian Projects to Transaction process o Submit the PDDs of the three Brazilian projects to the Call for New Methodologies of baseline and monitoring of Methodologies Panel of UNFCCC Period 6 from April to December 2004 The goals to be achieved during this period were: o Conclude final adjustements in the PDDs of the three projects with the undertakings o Prepare and execute Third and final Public Consultation o Consolidate Stakeholders comments 03/30/05 page 14

15 o Forwarding the PDDs of the three Brazilian projects to Operational Entity for Validation o Forwarding PDDs and the Stakeholder Documentation to the Designated National Authority-DNA, and independent review by an operational entity. o Conclude ERPAs with investors o Projects starting operations, monitoring for credits verification and certification. A.2. Results achieved in Phase 3 - Period 1 October 2001 to March 2002 Goals achieved in Period 1: Goal 1: Selection of the SSN Projects to be implemented in Brazil in Period 2 Goal 2: Improvement of the Methodology for Assessing Eligibility of Potential CDM Projects. A.2.1. Results achieved to meet Goal 1: Selection of the SSN Projects in Brazil Table of Selected and Contingency Projects During Period 1, a selection of SSN Projects from the list of 30 identified project ideas was reconfirmed by Centro Clima, as shown in Table 1 below. A Memorandum of Understanding was signed with each of the project owners, for the selected projects as well as for the contingency project. 03/30/05 page 15

16 Table 1 Project Name Type Status Memorandum of Understanding Biodiesel Production for Use in the Smallscale Selected Signed on March 6, Transport Sector - Rio de Janeiro Brazil 2002 Project Name Type Status Memorandum of Understanding Use of Biogas and Biodiesel for Power Smallscale Selected Signed on March 20, Generation at the Jardim Gramacho 2002 Sanitary Landfill Duque de Caxias Rio de Janeiro Power Generation using Biogas from Smallscale Contingency under way semi-dry anaerobic biodigestion of 1 organic wastes Owner Hidroveg Indústrias Químicas Owner Companhia de Limpeza Urbana do Rio de Janeiro Comlurb Companhia de Limpeza Urbana do Rio de Janeiro Comlurb A.2.2. Results achieved to meet Goal 2: Improvement of the Methodology for Assessing Eligibility of Potential CDM Projects The initial methodology was based on the work developed by Emilio Lèbre La Rovere and Steve Thorne for Helio International, Criteria and Indicators for Appraising Clean Development Mechanism (CDM) Projects, presented at COP5, in Phase 2 of the SSN Project allowed for testing and improving criteria and indicators, by applying them to a list of 30 potential CDM projects identified in Brazil and candidate CDM projects from South Africa, Bangladesh and Indonesia. An improved set of eligibility criteria and sustainability indicators has thus emerged from Phase 2, for both approval and ranking of potential CDM project proposals from any given portfolio. Accordingly, this set of criteria and indicators can be useful for both public and private investors as well as project developers. 03/30/05 page 16

17 Another specific field of application of eligibility criteria and sustainability indicators is the use by Designated National Authorities from non-annex I countries (located within host governments) when approving CDM project proposals. The Environmental Quality Secretariat - SQA of the Brazilian Ministry of Environment - MMA has commissioned Centro Clima to develop a set of criteria and indicators for this purpose. A first draft proposal was prepared by Centro Clima based on SSN methodology, adapting the set of criteria and indicators to this specific purpose. Comments and suggestions on the initial proposal presented by Centro Clima were widely discussed in two seminars held by Centro Clima in October and November 2001, at COPPE/UFRJ, and in the seminar held on December 20, 2001 in Brasília-DF by the Interministerial Commission on Global Climate Change, which acts as the DNA for CDM projects approval in Brazil. Participants in the seminars included representatives of academia, federal and regional government bodies, research institutes and the private sector. The document: Proposal for Eligibility Criteria and Indicators for Potential Clean Development Mechanism (CDM) Projects was jointly produced by Centro Clima and SQA/MMA, as an intermediate result of the process, at this stage. A.2.3. Other Results achieved in Phase 3 - Period 1 The following additional results were achieved at the end of Phase 3 - Period 1: - Identification of Development Facilitators for Project Design and inclusion in the Centro Clima team: 03/30/05 page 17

18 In January 2002, two Development Facilitators were chosen to join the Centro Clima team. Since the beginning of the year, the Development Facilitators have had the opportunity to become familiar with procedures of the SSN Project and with the technical team. The two Development Facilitators are: Alexandre D Avignon and Flavia Nadalutti. - Formulation and Signature of a Memorandum of Understanding between the parties to the Selected SSN Projects: The first task of the Development Facilitators was to draft a Memorandum of Understanding for each selected and contingency project. Drafting of each Memorandum was based on a common model received from SSN Central Office and adapted to fit the specific needs of the Brazilian projects, integrating the owner's executive team and the Centro Clima team. The Facilitators were also responsible for obtaining the agreement of the owners to the Memorandums of Understanding. To do so, several meetings were held for presenting the necessary explanations and negotiate the owner's approval of the concrete modalities of implementing the projects. The Memorandums of Understanding, duly signed by the owners, were presented at the side meeting during the Development Facilitator Training Course, at SSN Headquarters, in March 2002, in Cape Town, South Africa. - Participation of Centro Clima in the Development Facilitation Training Course held by SSN staff in Cape Town - South Africa: Date: March 11 19, 2002 The following Centro Clima members were present at the Training Course: 03/30/05 page 18

19 Professor Emilio Lèbre La Rovere Executive Coordinator of Centro Clima COPPE/UFRJ and lecturer at the Facilitation Training Course. Alexandre D Avignon Project Facilitator Flavia Nadalutti Project Facilitator André Pereira Technical team Claudia do Valle Technical team. Mauro Almeida - monitor of SSN projects in Brazil for Helio International Professor Emilio La Rovere collaborated in the development of the training modules and provided part of the CDM training course to project facilitators and technical teams. During the course, Centro Clima facilitators learned the concepts required to manage Clean Development Mechanism projects and how to apply this knowledge, including through group exercises with facilitators and technical teams from other participating countries, namely South Africa, Bangladesh and Indonesia A.3. Results achieved in Phase 3 - Period 2 April to September Goals to be achieved during Phase 3 - Period 2: o Goal 1: Formation of Project Design Teams (PDTs) o Goal 2: Prepare first draft of the Project Design Documents (PDDs) o Goal 3: Review and application of Eligibility Criteria and Sustainability Indicators to the Selected and Contingency CDM projects of the SSN Project in Brazil. 03/30/05 page 19

20 A.3.1. Results achieved Goal 1: Formation of the Project Design Teams (PDTs) (a detailed description about the process of the Formation of the PDTs is presented in section , pages 37 and 38 of the SouthSouthNorth Brazil Phase 3 - Period 2 Report) The activities developed by Centro Clima during Phase 3 - Period 2, described in this report, were aimed at continuing the design of Clean Development Mechanism (CDM) projects - both selected and contingency projects. Once the projects to be implemented were reconfirmed (a result of Phase 3 - Period 1), Centro Clima set up the Project Design Teams PDTs to develop the initial draft of the documents required for project approval by the CDM Executive Board. The Project Design Teams were formed for developing the Project Design Documents of two Selected SSN Projects and two Contingency SSN Projects, since a new contingency project was identified at this time. The new Contingency Project is called: Power Generation using urban solid wastes from the Ilha do Fundão Campus of the Federal University of Rio de Janeiro, Brazil. Details about this project are presented in section 1.1, Contingency Project 1, page 28 to 32 of the SouthSouthNorth Brazil Phase 3 - Period 2 Report or page 41 to 45 of the - Phase 3 Period 3 - Report. A.3.2. Results Achieved - Goal 2: Prepare first draft of the Project Design Documents (PDDs) (A detailed description about the preparation process of the PDDs is presented in section and , pages 39 to 42 of the SouthSouthNorth Brazil Phase 3 - Period 2 Report). 03/30/05 page 20

21 During this period, the selected projects were meticulously studied in PDT meetings to elaborate their characteristics and stages in order to adapt them, first to the model for CDM large scale projects and then to the small-scale format, established by the United Nations Framework Convention on Climate Change (UNFCCC). The projects were thus submitted to a methodological review by the PDTs, to extract the maximum information for developing the baseline and project implementation scenarios. Centro Clima researchers developed the following documents for the 2 selected projects and the 2 contingency projects: a) Baseline Scenarios b) Project Design Document. In addition, Centro Clima collaborated closely with Helio International staff in Brazil in the discussion and drafting of the Monitoring and Verification Protocols of the selected projects. These documents are required by the International Executive Board for approval of projects applying to the Clean Development Mechanism. A.3.3. Results Achieved - Goal 3: Review the application of Eligibility Criteria and Sustainability Indicators for the Selected and Contingency CDM projects of the SSN Project A new set of sustainability indicators was defined during Phase 2, building upon the experience of using the SSN methodology and introducing minor adjustments to further improve the choice of indicators. The new list of 03/30/05 page 21

22 sustainability indicators was applied to the two selected projects and two contingency projects, and included in the corresponding PDDs. Detailed information about the results achieved in this respect is presented in sections to , pages 45 to 53, of the SouthSouthNorth Brazil Phase 3 - Period 2 Report. Concerning the set of specific eligibility criteria for use by DNAs, the document prepared in Phase 1 was further discussed in another Seminar organized on April 22nd, 2002 by Centro Clima and SQA/MMA, at COPPE/UFRJ Rio de Janeiro, gathering entities from the public and private sector, academia and non-governmental organizations. The result of this seminar was an improved final version of the document Eligibility Criteria and Sustainability Indicators to Assess Projects that Contribute to the Mitigation of Climate Change and to Promoting Sustainable Development, sent by Centro Clima to the Ministry of Environment, dated April 30, This methodology was approved by SQA/MMA and has been adopted to prioritize the application of funds made available by the Ministry of Environment in this field. A first concrete application of this methodology by the MMA was its adoption as the framework to select the winning bids of the Call for Tenders on mitigation projects, launched by MMA with financial support from the Dutch Government in April, Additionally, following a recommendation from the Seminar participants, another document, Eligibility Criteria and Sustainability Indicators to Assess Potential Clean Development Mechanism Projects was prepared by Centro Clima and SQA/MMA. This simplified version of the set of 03/30/05 page 22

23 sustainability indicators was eventually forwarded by SQA/MMA to the Interministerial Commission for Global Climate Change. The proposed methodology focuses on the specific criteria to be adopted for approval of potential CDM projects by this Commission, which is the Brazilian Designated National Authority. This way, the Ministry of Environment intended to provide information to this Commission to support its discussions on what is relevant when defining eligibility criteria in addition to those formulated by the CDM Executive Board, particularly with regard to the contribution of potential CDM projects to the sustainable development of the country. It is suggested that the projects to be assessed by the Commission should provide the information required to assess the contribution, both qualitative and quantitative, to the sustainable development of the country. A.3.4. Other Results achieved (Detailed information about these results can be found in section 1.5, pages 53 to 58 of the SouthSouthNorth Brazil Phase 3 - Period 2 report). o Continuing Technical Assistance to the Environmental Quality Secretariat of the Ministry of Environment (MMA) o Continuing Support to the Brazilian delegation in international global conferences on Climate Change o National dissemination of the information contained in IPCC reports o Participation of Centro Clima in the Cerupt/Senter Workshop in Rio o Participation of Centro Clima in the Rio + 10 Brazil (WSSD preparatory meetings) 03/30/05 page 23

24 A.4. Results achieved - Phase 3 - Period 3 October 2002 to March 2003 Goal 1: Present the results obtained by Centro Clima during Phase 3 - Period 2 at the SSN Project meeting, during COP8, in New Delhi A.4.1. Activities developed by Centro Clima to achieve goal 1 a. Presentation of the Results obtained by Centro Clima during Phase 3 - Period 2. The SSN Brazil Phase 3 Period 2 Report was also presented at this meeting. This report includes the detailed description of all the activities carried out by the Centro Clima, from April to September, b. Presentation of the PDDs of the selected projects for technical discussion. At this meeting, Prof. Emilio Lèbre La Rovere, Executive Coordinator of the Centro Clima, presented the draft PDDs of the selected projects to SSN participants from South Africa, Bangladesh and Indonesia and to Helio International: 1. Biodiesel Production for Use in the Transport Sector 2. Use of Biogas and Biodiesel for Power Generation at the Jardim Gramacho Sanitary Landfill Duque de Caxias RJ 03/30/05 page 24

25 Goal 2: Conclusion of the Project Design Documents of the two selected projects: - Biodiesel Production for Use in the Transport Sector - Use of Biogas and Biodiesel for Power Generation at the Jardim Gramacho Sanitary Landfill Duque de Caxias RJ A.4.2. Activities developed to meet goal 2 A Revision of the Summaries of Selected and Contingency SSN Projects Updated Summaries for the SSN Project website Review of the summaries of the two selected projects after the changes suggested at the SouthSouthNorth Project meeting in New Delhi, during COP8, October See summaries of each project in Annex 1 of this document,. 03/30/05 page 25

26 A Improvement of the Product Design Documents a. Redesign of Projects according to the Small Scale Project Model format proposed by the UNFCCC a.1. Technical changes in the selected projects and changes due to the adaptation to the UNFCCC's Small Scale Project Format The projects were being developed by the PDTs in the UNFCCC PDD format for large scale CDM projects. In January 2003, the UNFCCC placed on its website the format: CLEAN DEVELOPMENT MECHANISM SIMPLIFIED PROJECT DESIGN DOCUMENT FOR SMALL SCALE PROJECT ACTIVITIES (SSC-PDD) - Version 01 (21 January, 2003). In addition to these changes, the project incorporated suggestions from the SSN Project meeting during COP8 in New Delhi, at the end of October Changes were incorporated into the selected projects for later presentation to their owners. (A detailed description about the improvement of the PDDs is presented in section and , pages 39 to 42 of the SouthSouthNorth Brazil Phase 3 - Period 2 Report). A.4.3. Other Results Capacity Building During this period, Centro Clima has continued to provide support to the Environmental Quality Secretariat of the Ministry of Environment MMA on issues related to the Clean Development Mechanism in Brazil. Centro Clima has also provided technical support to the Brazilian delegation to COP8, in New Delhi, from October 21 to November 1, /30/05 page 26

27 A.4.4. Other potential contingency CDM projects that are being developed by Centro Clima COPPE/UFRJ Centro Clima has continued to develop the feasibility studies for two CDM projects, supported by the Ministry of Environment's National Fund. The CDM projects being developed are: 1. Power generation from a biomass-fired Thermo power plant to operate coupled to a small Hydropower Station in the state of Rondônia, Brazil 2. Use of rice husks for Power and Heat Cogeneration and GHG Emissions Mitigation. A.4.5. Other activities of the Centro Clima related to the SSN Project Period 3 a. National dissemination of information contained in IPCC reports A second Seminar was jointly organized by Centro Clima, Cenbio and Brasus, as the last stage of the project to Disseminate Information Contained in selected Working Group III Reports of the Intergovernmental Panel on Climate Change (IPCC). - Date: December, 5th, 2002 Brasilia Brazil > Lectures and Executive Summaries in Portuguese of the four IPCC Reports below, handled to all participants: Third Assessment Report (TAR) - Mitigation WG III Special Report on Emissions Scenarios (SRES) Special Report on Technology Transfer (SRTT) Third Assessment Report - Synthesis Report 03/30/05 page 27

28 A.4.6. Dissemination of the Research on Criteria for CDM Project Approval to other Latin American countries a. Ministry of Housing National Environment Directorate Climate Change Unit Montevideo Uruguay December 1-5, 2002 During this period, support was provided to the Ministry of Housing National Environment Directorate Climate Change Unit, in Montevideo, Uruguay to develop a Methodology for Eligibility Criteria and Indicators for Potential CDM Projects. b. WWF Gold Standard Discussion of the initial Golden Label Standard WWF proposal, sending of comments and suggestions, and preparation for the launching of the carbon label in New Delhi, on October 29, 2002, during COP-8, and participation in the Scientific Advisory Panel to help its implementation throughout A.4.7. Definition of the next steps and milestones for the SSN project Next steps to be developed by the Centro Clima according to the CDM Project Cycle, proposed by the UNFCCC, were defined : Start of Project Validation (sending projects to the Operational Entity for validation) Sending the PDDs to the Interministerial Commission on Climate Change for approval Sending PDDs to the Executive Board for approval Negotiation of the Certificates for Emission Reduction Periods 4 and 5 Period 5 Period 5 to be developed to be developed to be developed 03/30/05 page 28

29 A.4.8. Other activities Other activities to be developed by Centro Clima in 2003 include: Contribution to the SSN CDM Guide Continued capacity building on CDM eligibility criteria and sustainability indicators in other Latin American countries. Hold a side event at COP-9. Web-site continuous updating of project progress 03/30/05 page 29

30 2003 A.5. Results achieved - Phase 3 - Period 4 April to September Goal 1: Present the results obtained by Centro Clima during Phase 3 - Period 3 at the SSN Project meeting, during April 22nd to 25th, in Cape Town South Africa at SSN office A.5.1. Activities developed to meet goal 1 The results were presented by Prof. Emilio La Rovere to SSN Team Leaders at the SSN meeting in Cape Town, during April 22nd to 25th. (A detailed description about the improvement of the PDDs is presented in section II. C.1, pages 24 and 25 of SouthSouthNorth Phase 3 Period 4 report.) Goal 2: New challenge: Adapt the Project Design Document of each project to the Gold Label Standard WWF A.5.2. Activities developed to meet goal 2 The three Brazilian projects are in principle eligible to the GS requirements as they fill within the area of Renewable Energy. PDDs have had to be adapted to the Large Scale format (UNFCCC) to meet the GS WWF requirements. A detailed description is presented in section II. C.2, page 26 of SouthSouthNorth Phase 3 Period 4 Report. 03/30/05 page 30

31 Goal 3: PDDs Item G - First Stage of Public Consultation A.5.3. Activities developed to meet goal 3 - First Public Consultation was completed for the projects: 1. Biodiesel Production for Use in the Transport Sector 2. Use of Biogas and Biodiesel for Power Generation at the Jardim Gramacho Sanitary Landfill Duque de Caxias RJ - Second Public Consultation is being developed and consists of a Public Presentation that will be held at COPPE/UFRJ. At this stage all the three Brazilian projects will be presented and comments from the stakeholders will be requested and evaluated. See more details in section II. C.3., page 27 of SouthSouthNorth Phase 3 Period 4 Report. 03/30/05 page 31

32 Goal 4: Institutional Capacity Building A.5.4. Activities developed to meet goal 4 During this period, Centro Clima has continued to provide capacity support to the Ministry of Environment MMA, Ministry of Science and Technology and Non Governmental National Forum on Climate Change FBMC - on issues related to the Clean Development Mechanism in Brazil. See more details in section II. C.4., pages 28, 29 and 30 of SouthSouthNorth Phase 3 Period 4 Report). Goal 5: Development of other potential contingency CDM projects Development of two CDM projects for Ministry of Environment's National Environment Fund A.5.5. Activities developed to meet goal 5 Centro Clima has continued to develop the feasibility studies for two CDM projects, supported by the Ministry of Environment's National Environment Fund. The CDM projects being developed are: 1. Power generation from a biomass-fired Thermo power Plant to operate coupled to a small Hydropower Station in the state of Rondônia, Brazil 2. Use of rice husks for Power and Heat Cogeneration and GHG Emissions Mitigation in the state of Santa Catarina, Brazil. See more details in section II. C.5., pages 30 and 31 of SouthSouthNorth Phase 3 Period 4 report). 03/30/05 page 32

33 Goal 6: Dissemination of information A.5.6. Activities developed to meet goal 6 Centro Clima COPPE/UFRJ in its role of disseminator of information on Climate Change has been constantly sharing its research and results with a wide variety of stakeholders in the country and in Latin America. See more details in section II. C.6., pages 31 and 32 of SouthSouthNorth Phase 3 Period 4 report). Goal 7: International Cooperation SSN Central office/centro Clima Margie Orford s visit to Centro Clima COPPE/UFRJ A.5.7. Activities developed to meet goal 7 From 12th to 22nd of august Centro Clima received the visit of Margie Orford, a writer who came to Rio de Janeiro, Brazil, on behalf of SSN. She met Project Owners and Centro Clima s Project Development Team members at COPPE/UFRJ, collecting material for the Brazilian chapter of the book: Developing World Story: Climate Change The Kyoto Protocol s Clean Development Mechanism. See more details in section II. C.7., page 33 of SouthSouthNorth Phase 3 Period 4 Report. Goal 8: End of Period 4 - Preparation of Reports to deliver to SSN South Africa Central office A.5.8. Activities developed to meet goal 8 At the end of Period 4 Centro Clima has provided SSN Central Office with narrative, financial, administrative, technical, tool kit questionnaire, pins and marketing reports. See more details in section C.8. pages 33 and 34 of SouthSouthNorth Phase 3 Period 4 Report. 03/30/05 page 33

34 Goal 9. Definition of next steps and milestones for the SSN project A.5.9 See next steps to follow for the next Period in section C.9. on page 34 of SouthSouthNorth Phase 3 Period 4 Report. A Short Information and Status of each Brazilian Project See information in Section C.10., pages 35 and 36 of SouthSouthNorth Phase 3 Period 4 Report. 03/30/05 page 34

35 Annex 1 Project Summaries of the three SSN and two FNMA projects page 37 of the SouthSouthNorth Phase 3 Period 4 Report 1. Biodiesel Production for Use in the Transport Sector, 2. Use of Biogas and Biodiesel for Power Generation at the Jardim Gramacho Landfill, Duque de Caxias, Rio de Janeiro, Brazil and 3. Energy generation using urban solid wastes from the Ilha do Fundão Campus of the Federal University of Rio de Janeiro FNMA 4. Power generation by a Thermopower Plant fueled by biomass to operate coupled to a small Hydropower Station in Rondônia, Brazil and 5. Utilization of rice husks in the Cogeneration of Energy and the Ensuing Mitigation of Gases that Contribute to the Greenhouse Effect as a Clean Development Mechanism. Annex 2 - Public Consultation Methodology See on pages 38, 39 and 40 of SouthSouthNorth Phase 3 Period 4 Report. Annex 3 Project Information Notes See page 40 of SouthSouthNorth Phase 3 Period 4 Report. SSN - Biodiesel Production for Use in the Transport Sector, - Use of Biogas and Biodiesel for Power Generation at the Jardim Gramacho Landfill, Duque de Caxias, Rio de Janeiro, Brazil and - Energy generation using urban solid wastes from the Ilha do Fundão Campus of the Federal University of Rio de Janeiro 03/30/05 page 35

36 FNMA - Power generation by a Thermopower Plant fueled by biomass to operate coupled to a small Hydropower Station in Rondônia, Brazil A.6. Results achieved on Period 5 of Phase 3 Goal 1 - Strategy for Stakeholder Participation A.6.1 Strategy for Stakeholder Participation Type of communication consultation Methodology WWF Gold Standard Public Presentation at COPPE Auditorium 1.2 Consolidation of the Comments received See PDDs Annexes 5 and 6 of our three projects, following GS format (Annex 11) Goal 2 Technical Support to Brazilian DNA and Side Meeting of SSN Initiative at COP 9 A Technical Support to the Interministerial Commission (Brazilian DNA) and to the Climate Change Unit of the Ministry of Environment. Participation at COP 9 Technical Assistance to the Climate Change Unit MMA Technical Support to the DNA-Brazil for applying the new rules for CDM project appraisal (Resolution n. 001/2003) A Side Meeting of SSN Initiative at COP 9 projects good grades 03/30/05 page 36

37 Need to improve methodologies and aspects related to additionality. Project Prospectus Cash Flow of Project Activities Goal 3 - Carrying out the modifications to item B (methodology and additionality aspects) of the 3 projects: A Carrying out the modifications to item B (methodology and additionality aspects) of the 3 projects: A Biodiesel Project Same category Type III.C. Emission reductions using a low GHG emission vehicle type eligible to the GS-WWF was added Renewable energy liquid biofuels Item B.3 Table of Emissions Sources per fuel was added Item B.5 Project s additionality was emphasized (since without CDM activity, there would be no gas mitigation and the Comlurb truck fleet would continue to operate with fossil fuels (diesel). A Gramacho Landfill Project Category Category III.D. Other Activities Methane Recovery. GS type of project : Biomass, biogas and liquid biofuels Item B.3 Better explanation of the additionality financial resources are essential for the implementation of the project because of: Major institutional barriers Cannot be financed by regular financing mechanisms (high risk due to a new combination of fuels) 03/30/05 page 37

38 Table of Emission Sources per fuel and place was also added to the baseline scenario and the emissions scenario for the project activities A USINAVERDE Project Baseline Methodology GHG Emissions Inventory for the City of Rio ( ). The project baseline scenario was developed without the CDM activity and Top-Down and Bottom-Up analyses were employed. GHG Emissions Inventory for the city of Rio de Janeiro - project baseline emissions based on scenarios of energy sources to meet cargo transport sector demand (diesel oil) and on continuing the disposal of domestic waste in landfills. Goal 4 Methodologies Panel of UNFCCC The three PDDs were submitted with revised baseline and monitoring methodologies (Jan 23rd, 2004) Formal Letter was sent. Goal 5 Transaction process Additional information to meet the format of WWF-GS PDD Updating aspects related to SD Indicators (GS SSN Matrix item A.2.A) Negotiations with the SSN staff and 500ppm Fund (Germany) CER transactions of the 3 SSN-Brazil projects 500ppm analyst s visit to Centro Clima (Feb., 2004) Re-discussion of the 3 projects gather information which ascertains the additionality of the projects. 03/30/05 page 38

39 Goal 6 Submit PDDs to DNA April 2nd, 2004 three projects were submitted to DNA PDDs + documents requested in Resolution n.001/03 Goal 7 Validation - OE Negotiations with OEs since Oct, Bureau Veritas Quality International (BVQI), Det Norske Veritas (DNV) and Klynveld Peat Marwick Goerdeler (KPMG) were pre-selected and contacted. BVQI and DNV organized themselves most rapidly to provide estimates for the services. KPMG staff did not answer the formal request. BVQI was chosen because of: a) the estimate proposed to carry out the service, b) the methodology and the technical staff to be sent to carry out the validation of projects, and c) BVQI s strategic option of creating a team of Brazilian technical personnel to carry out the validation of CDM projects, not only in Brazil, but also in other developing countries. Goal 8 Presentation of SSN experience in London A.6.8. Presentation of SSN experience at an international workshop organized in London by the Royal Institute of International Affairs, London, England (November, 2003) Goal 9 - Status of the Project CDM Cycle See on page /30/05 page 39

40 Goal 10 Products to deliver to SSN SA Narrative Report Period 5 Financial Reports Tool kit Questionaire Project s Prospectum 03/30/05 page 40

41 A.7. Results achieved on Period 6 of Phase 3 Results obtained Phase 3 Period 6 April to December Goal 1: Start of Period 6 Present the results obtained by the Centro Clima COPPE UFRJ in Period 5 during the semi-annual meeting of project leaders of the four countries of the SouthSouthNorth Initiative and Helio International. Activities developed to achieve Goal 1: 1.1. Coordination of the semi-annual meeting of project leaders in the Centro Clima COPPE UFRJ facilities Presentation of the results obtained by the Centro Clima in Period 5, during the Semi-Annual Meeting of the Project Leaders of the four countries of the SSN initiative, with the presence of Helio International, in Rio de Janeiro, from April 26 to May 2, Goal 2: Continue the development of the three CDM projects by the Project Development Groups composed of technical and facilitation staff of the Centro Clima and the project owners. Activities developed to achieve Goal 2: 2.1. Technical adjustments required in each project to comply with the WWF "Gold Standard and the state of the art of each undertaking Results obtained in each project during Period Jardim Gramacho: Collection and Recovery of Sanitary Landfill Biogas for Methane Avoidance and to Promote Power Generation through the use of biogas and biodiesel ; 2. "USINAVERDE: Incineration of urban solid wastes, with a load composition similar to RDF, avoiding the formation of methane, making use of energy for its own consumption"; and 3. "Biodiesel Production for Use as Vehicular Fuel". 03/30/05 page 41

42 Goal 3: Methodology used to build the cash flow for each project. Study of the Economic and Technical Feasibility (SETF) Activities developed to achieve Goal 3: 3.1. Methodology Employed 3.2. Installation Costs Initial Investment 3.3. Operating Costs 3.4. Project Specificities Goal 4: Certified Emissions Reduction (CER) Transaction Stage and state of the art of each project for negotiating with investors interested in acquiring CERs. Activities developed to achieve Goal 4: ppm WWF 4.2. SSN Emily Tyler Austrian Consortium Goal 5: Guidelines to be followed by the Centro Clima, for moving on to the Validation stage with the Designated Operational Entity and the Interministerial Commission on Global Climate Change. Activities developed to achieve Goal 5: 5.1. Contact with BVQI Meeting on September 16, Contact with the Interministerial Commission Goal 6: National and International Capacity Building in CDM Activities developed to achieve Goal 6: 6.1. Contributions of the Centro Clima to the national climate change policy - federal government sector - Ministry of the Environment Working Group to advise the Minister of the Environment - MMA 03/30/05 page 42

43 6.2. Constant contacts with the Executive Secretariat of the Interministerial Commission for Global Climate Change on Centro Clima activities Participation of the Centro Clima in the Brazilian Delegation at COP Contribution of Centro Clima to encouraging mitigation projects in developed countries. Goal 7: Technical Capacity Building in Clean Development Mechanism. Activities developed to achieve Goal 7: 7.1. Capacity Building of the Business Sector - Course on climate Change and Capacity Building in CDM for Petrobras - Petróleo do Brasil S.A Contribution to Environmental Policies in Climate Change for Municipal Policies Assistance to the Green Environment Secretariat of the City of São Paulo (SVMA) for Capacity Building in Clean Development Mechanism and for the Project of the Inventory of the Greenhouse Gases of the City of São Paulo Goal 8: Other CDM projects under development by Centro Clima Activities developed to achieve Goal 8: 8.2. National Environment Fund (FNMA) Projects 8.3. Other projects Course given to Petrobras Goal 9: Other activities developed Activities developed to achieve Goal 9: 9.1. Toolkit development 03/30/05 page 43

44 Goal 10: Activities for Environmental Communication of the Centro Clima Activities developed by Centro Clima to achieve goal 10 Institutional Image Updating of the Centro Clima website Institutional folder Contact with relevant stakeholders of the CDM projects under development. Goal 11: Final Product to be submitted to the SSN Central Office SA until March 2005 Activities developed to achieve Goal 11: a) PDD in English for the project: Jardim Gramacho: Collection and Recovery of Sanitary Landfill Biogas for Methane Avoidance and to Promote Power Generation through the use of biogas and biodiesel, b) PDD in English for the project : USINAVERDE: Incineration of urban solid wastes, with a load composition similar to RDF, avoiding the formation of methane, making use of energy for its own consumption ; c) PDD in English for the project: Biodiesel Production for Use as Vehicular Fuel ; d) Report of activities carried out by the Centro Clima during Period 6 - April to December 2004 and extension January to March 2005; and e) Final Project Financial and Administrative Reports f) Cash-flow of each project. 03/30/05 page 44