In 1997, a group of nations banded together to form what is known as the Kyoto Protocol. The signatories to this landmark agreement committed to the goal of reducing greenhouse gas levels from 2008 to 2010 (as compared to 1990 levels).
Those who do not meet their emissions cap requirement are expected to look for ways to manage the gap by helping lesser-developed economies start environment-friendly projects. There is also a trading system, much like a commodities exchange, where these developed countries can trade carbon credits to help augment the emissions cap shortfall.
To cite, India who is the first Asian nation to trade carbon credits, has been trading at the Multi Commodity Exchange.
In the Philippines, the process is more rudimentary since a formal trading system has yet to evolve. This does not mean, however, that the opportunity to develop what is known as Clean Development Mechanism (CDM) doesn’t exist.
In fact, there are only a few approved projects that there is a great opportunity to send proposals right now.
Larry Asera is a Filipino-American who founded Asera LLC Group of Companies, an international energy and environmental technology company that specializes in the development of renewable energy resources to promote sustainable communities. He is currently working on four target CDM projects in the Philippines, namely, Panay, Palawan, Aurora, and Albay.
In a talk he gave at the Asian Institute of Management Policy Center, he expressed conviction in the Philippines’s capacity to become a major producer of hydro, wind, and solar power, given the country’s natural capacities.
At the moment, the country is highly dependent on coal-fired plants that are not good for the environment. He suggested that diesel power barges could eventually convert into solar generators; coal fired plants into wind farms.
He reiterated his sincere desire to give back to the Philippines, his grandmother’s homeland. Just looking at what one person is doing to make a world of difference, one becomes aware of the limitless possibilities that other good people can likewise accomplish.
Then perhaps, it’s not yet too late.
Six steps to get approval for a CDM project:
Step 1: Project Application
Submit your application for host country approval to the CDM Secretariat based at the Environmental Management Bureau of the DENR. As the application process is quite complex, you may opt to hire CDM consultants to help prepare requirements such as a Project Design Document (PDD) and baseline calculations.
Step 2: Project Evaluation
The CDM Secretariat will forward the application documents to the appropriate Technical Evaluation Committee (TEC) for review.
Step 3: Project Endorsement
Based on its assessment, the TEC will submit its Evaluation Report for review to the CDM Steering Committee through the CDM Secretariat.
Step 4: Project Approval / Non-Approval
At the national level, the head will give the final decision based on the Endorsement Report and other supporting documents.
Step 5: Validation by the DOE
Validation is carried out by a Designated Operational Entity (DOE) to ensure that the requirements of the CDM are complied with on the basis of the PDD.
Step 6: Registration / Acceptance by the CDM Executive Board
The CDM Executive Board registers or formally accepts the validated project as a CDM activity.
For complete details about CDM project criteria and process, you may get in touch with the AIM Policy Center at www.policy.aim.edu.ph.
(This article is from MoneySense, the country’s first and only personal finance magazine. Visit www.moneysense.com.ph for more.)
