Global Climate Change Armenia

Validation of the first Armenian CDM Project in Cement Production Industry Sector

The proposed project activity involves implementation and operation of a 8.5 MW small hydroelectric grid connected renewable energy project on the Argichi river, Armenia.

The operational entity working on this project has decided to make the Project design document publicly available directly on UNFCCC CDM website at: http://cdm.unfccc.int/Projects/Validation in order to receive public comments as referred to in paragraphs 40 (b) and (c) of the CDM modalities and procedures and in accordance with Procedures on public availability of the CDM project.

The comments on the project document will be accepted from the registered users of the UNFCCC web site’s relevant page since September 16, 2006 till October 15, 2006.

All comments should be sent either to the following email address: shabbitts@kpmg.com.au or by fax: +31206564510

The signing of the Protocol of Understanding among "Nubarashen Landfill Gas Capture and Power Generation Project in Yerevan" CDM project participants

The Protocol is a framework document that defines the conditions and procedures of the project further implementation and settles the mutual liabilities of the project participants, namely, Shimizu Corporation, Mitsui & Co., Ltd., Hokkaido Electric Power Co., Inc. and the Yerevan Municipality. The signing of the document signifies the inception of the project practical phase that envisages the construction of a landfill gas capture system and the installation of a gas engine electricity generator.

The Protocol was signed by Mr. V.Vardanyan, Vice Mayor of Yerevan, on behalf of the Armenian Party and by Mr. H.Kurita, General Manager of GHG Projects Department, Shimizu Corporation, on behalf of the Japanese Party. The representatives of the rest two Japanese companies participating in the project, namely, Mr. Y.Takatama, General Manager of Civil Engineering Department, Hokkaido Electric Power Co., Inc and Mr. Y.Suzuki, General Manager of Second Projects Development Department, Mitsui & Co., Ltd., signed the Protocol remotely.

Mr. A.Gabrileyan, Head of Environmental Protection Department of the Ministry of Nature Protection of Armenia, also signed the Protocol as the contact person of the CDM Designated National Authority of Armenia.

The signing of the Protocol will be followed by field investigations organized by the project participants and aimed at assessment of the actual amount of biogas arising from the landfill. Afterwards, the parties will develop an investment plan and sign relevant contracts based on the results achieved.

Signing of the Letter of Approval for the "Lusakert Biogas Plant" CDM Project

On May 5, 2006 the Ministry of Nature Protection of Armenia issued the Letter of Approval for the "Lusakert Biogas Plant" CDM project. The Project Design Document (Version 6), which had been submitted to the Ministry on Nature Protection with a relevant cover letter by Max Concern LLC, the project owner, served as a base for signing the Letter.

This is the second CDM project that has been approved in Armenia since February 16, 2005, when the UNFCCC Kyoto Protocol entered into force.

According to the accepted practice, the Ministry of Nature Protection had introduced the PDD to several key ministries and agencies and obtained their positive feedback before approval. The project has also been verified by Det Norske Veritas company which is the Designated Operational Entity authorized by the CDM Executive Board to execute CDM projects validation.

According to the procedure of the CDM project cycle, the current stage envisages that the PDD be submitted to CDM Executive Board for revision and registration.

It is necessary to mention that the Project will be implemented at the Lusakert Poultry factory site, and the organic waste resulted from the factory operation (mainly poultry manure) will serve as the primary source of production of methane in anaerobic digesters. The captured methane will then be utilized in a gas engine generator to enable combined generation of electricity and heat. Max Concern LLC proposes to sell the produced electricity to the national grid, whereas the obtained thermal energy will be used to satisfy the factory's technical needs. In particular, it will maintain the proper temperature regime inside the methane tanks.

A number of positive outcomes are expected in case of the project successful implementation; including the solution to the problem of poultry factories waste treatment. As a result, the emissions of harmful substances into the atmosphere such as hydrocarbon, ammonia, etc. will decrease, as well as soil and surface water pollution. On a large scale, the environmental outcome of the project will be seen in GHG emissions reduction.

On January 13, 2006 a certificates awarding ceremony was held in the Project office. The ceremony was devoted to the completion of Climate Change and Clean Development Mechanism training courses that commenced in January 2005 and were finalized in October 2005.

A series of workshops was organized in the framework of the Project task to build capacity for hosting CDM projects in Armenia, including training of local experts from key ministries, agencies, NGOs, etc. and enhancing their understanding of Climate Change issues, the Kyoto Protocol and CDM. The lectures were presented by international experts from Fichtner - Fraunhoffer ISI - Linden - CESI Consortium and covered a number of relevant topics.

The ceremony was opened by Aram Gabrielyan, Head of Environmental Protection Department of MoNP and UNFCCC National Focal Point, who welcomed the participants and stressed the importance of the training in terms of building human resources aware of the specificity of CDM and capable of estimating relevant project activities within the scope of their competence.

Further on, Artem Kharazyan, Project Coordinator for Armenia, provided a brief overview of CDM development for the year 2005 emphasizing the increased number of approved methodologies and registered project activities. He also touched upon the current status of CDM projects in Armenia, including "Nubarashen Landfill Gas Capture and Power Generation Project in Yerevan" and "Lusakert Biogas Plant" project.

In the final part of the ceremony the participants were awarded with certificates and CDM calendars developed within the Project.

United Nations Climate Change Conference

(COP11 and COP/MOP1)

Montreal, 28 November to 9 December, 2005

The United Nations Climate Change Conference 2005 will be held from 28 November to 9 December in Montreal, Canada. It is expected to assemble up to 10,000 participants, among which are government delegates, business and civic leaders and environmental activists. The conference is a historic event. Not only will the parties to the United Nations Framework Convention on Climate Change (UNFCCC) be meeting for the 11th time, but also the entry into force of the Kyoto Protocol will be marked in 2005. In Montreal, the first ever meeting of the Parties to the Protocol (MOP) will be held parallel to the Conference of the Parties to the Convention (COP). The United Nations Climate Change Conference is set to be the largest intergovernmental climate conference since the Kyoto Protocol was adopted in 1997.

Under the Kyoto Protocol, which took effect on 16 February 2005, more than 30 industrialized countries were bound by concrete and legally binding emission reduction targets during the period of 2008-2012. Now that a pan-European emissions trading has begun and the Clean Development Mechanism, as a tool to promote sustainable development and combat climate change, is operational, the conference is also attracting unprecedented business interest.

At the United Nations Climate Change Conference in Montreal, Parties to the Kyoto Protocol are expected to adopt a set of decisions critical to complete the 'rule book' of the Protocol. Parties are expected to agree on steps aiming to strengthen the clean development mechanism, a tool designed under the Protocol to support sustainable development projects that reduce greenhouse gas emissions in developing countries.

At the United Nations Climate Conference in Montreal, Parties will also start to shape future steps aiming to protect the world's climate.

The Armenian delegation will be represented by First Deputy Minister of Nature Protection of the Republic of Armenia, Mr. S.Papyan (head of delegation), as well as Head of the Environmental Protection Department of the same Ministry and the UNFCCC National Focal Point Mr. A. Gabrielyan.

On November 28, 2005, the registration of the "Nubarashen Landfill Gas Capture and Power Generation Project in Yerevan" CDM project took place. The positive decision on registration was taken by the CDM Executive Board earlier that month, during its 22nd meeting. The significance of the event must not be underestimated as it made Armenia the 17th country in the world and very first country in the post Soviet space, hosting a CDM project. The success was made possible thanks to active participation of both Japanese and Armenian parties who maintained consistent cooperation aimed at facilitating the process of project development. This process was coordinated and supported by the Designated National Authority for CDM in Armenia, who approved the project on February 16, 2005.

In spite of its relatively limited potential of GHG emissions reduction, Armenia manages to attract constant attention in the field of CDM, since it is consistently working on streamlining procedures for projects identification, revision and approval. Participation in almost all stages of the Nubarashen Landfill project development allowed both the Armenian experts and the DNA to learn "by doing" and accumulate valuable experience which will be used for further promotion of the CDM in the country.

The registration of the project obviously lays grounds for the development of further CDM initiatives in the country. Currently, the Shimizu Corporation, the Nubarashen project developer and principal CERs recipient, is seriously contemplating the possibilities of similar projects materialization in the cities of Vanadzor and Gyumry, two largest cities after Yerevan. Simultaneously, one more project is being validated and two project idea notes have been endorsed by the DNA.

The registration of the Nubarashen project gave start for its practical implementation. At the next stage, the Memorandum of Understanding will be signed by the project participants, which will set frames of the partner's mutual obligations and define timframes of project implementation.

The first phase of the project implies installation of a landfill gas collection system which will allow monitoring and estimation of the actual amount of biogas obtained from the landfill. Having received the results of monitoring the project participants will have to consider building a gas generator and agree on its capacity.

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The Project Preparation Committee (PPC), a network of stakeholders involved in preparing and financing environmental investments, organised and conducted a side-event on CDM for interested delegates, who attended the Third EAP Task Force/PPC Meeting and Ministerial Conference on Financing Water Supply and Sanitation in EECCA in Yerevan on16-18 November, 2005.

The PPC is a network of stakeholders which includes over 20 multilateral and bilateral donors, IFIs, regional governments, NGOs and the private sector. As part of the "Environment for Europe" process the PPC's primary goal is to bring environmental benefits to the countries of Eastern Europe, the Caucuses and Central Asia by helping to identify prepare and finance environmental investment projects.

The side-event took place on 18 November 2005 in Armenia Marriott Hotel and hosted approximately forty participants. Along with a number of project sponsors from the region and representatives of key ministries and various financial institutions, local CDM project developers, as well as managers of private entities were invited.

The objectives of the workshop were to present an overview of the CDM institutional and policy developments in the region, and to identify and discuss barriers and possibilities of their resolution via several financial mechanisms designed and maintained by EBRD. In particular, presentations were made on CDM Project Support Facility (CDM PSF) as well as Multilateral Carbon Credit Fund which is being developed by EBRD and EIB.

The event began by an opening speech of Mr. Aram Gabrielyan, Head of Environmental Protection Department of the MoNP of RA and UNFCCC National Focal Point, who welcomed the delegates and made a presentation on development of CDM in Armenia and the current status of CDM projects in the country.
Then the floor went to Mr. Francois Collignon (Sofreco) who elucidated the current process in the Central Asian countries regarding the Kyoto Protocol and provided general information on the EU-funded Lot 3 project. The presenter gave an overview of the current economic situation in all the five countries and assessed the climate change policy progress. At the end, a number of recommendations were developed, some of which would be suitable for Armenia as well.

Mr. Albert Zweering, Team Leader for Lot 2 project, updated the participants on the CDM development in the Caucuses and Moldova. He analysed the obstacles for CDM promotion in the region and discussed the possibilities of their resolution.

The last two presentations were made by EBRD representatives and touched upon the Bank's CDM initiatives in the countries where EBRD operates. The main role of the Bank in the field of carbon finance is to act as financier of emission reduction projects. However, in keeping with its principle of 'additionality' - supporting and complementing the private sector rather than competing with it - the Bank can play a number of additional roles.

In October 2003, the EBRD established its first carbon fund, the Netherlands Emissions Reductions Co-operation Fund, with the Dutch Government. The fund buys Joint Implementation Carbon Credits from its 13 countries of operations eligible for this mechanism.

The EBRD is expecting to launch its 'Multilateral Carbon Credit Fund' in 2006. The fund will buy carbon credits from investments under the European Union scheme as well as the Protocol's Joint Implementation and Clean Development Mechanism. It will also aim to facilitate the direct trading of carbon credits between some of its shareholders.

Agenda and Presentations
More about EBRD - Carbon Finance
More about ETC Initiative and CDM PSF
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Within the framework of Public Hearings and Validation stage, an event on "Lusakert Biogas Plant" CDM Project PDD presentation was held on November 7, 2005, in Tigran Mets Hall of the Marriott Hotel, Yerevan, Armenia. The event was organized at the initiative of "Max Concern" LLC (Armenia), Project Owner, and the Vekst Foundation (Norway), Project Participant and welcomed all interested stakeholders who were informed about the event in advance by post and e-mail. The announcement was also placed with the "Hayastani Hanrapetutsyun" newspaper.

The workshop had broad representation; among the participants were the Minister of Nature Protection Vardan Ayvazyan, the Deputy Minister of Agriculture Karlen Khachatryan, the Head of Public Service Regulatory Commission Robert Nazaryan, the representatives of Danish Carbon Fund, financial institutes, NGO's, as well as the Agriculture Academy.

The session begun with an opening speech of Kh. Manukyan, CEO of Max Concern, who welcomed the participants and briefly introduced the aims and objectives of the project. The speech was followed by Mr. Ayvazyan's greeting, who highlighted the significance of the proposed project for Armenia and expressed the Ministry's positive feelings about it.

The session proceeded with a presentation on the "Lusakert Biogas Plant" project draft PDD, made by Mr. Rolf Kevin, Director of Vekst Foundation. In the conclusive part of his speech, Mr. Kevin encouraged the stakeholders to forward all their comments to the electronic address of DNV, the Designated Operational Entity carrying out the validation of the present project.

Further on, Mr. Aram Gabrielyan, Head of Environmental Protection Department of MoNP and the UNFCCC Focal Point, held a presentation on the main aspects of both the Kyoto Protocol and CDM. He also provided an overview of the current status of CDM in Armenia.

The event became the first of such kind in Armenia, as it introduced the innovative practice of organizing an interactive discussion between project participants and project stakeholders along with obtaining their comments. Later on, the comments will be included in Section G ("Stakeholders Comments") of the final PDD.

On the occasion of the entry in force of the Kyoto Protocol the Ministry of Nature Protection of the Republic of Armenia with the support of the EC “Technical Assistance to Armenia, Azerbaijan, Georgia and Moldova with Respect to their Global Climate Change Commitments” Regional Programme and UNDP office in Armenia organized several events.

1. The Round Table session
The Minister of Nature Protection of the Republic of Armenia and Designated National Authority for the Clean Development Mechanism under the Kyoto Protocol, Mr. Vardan Ayvazyan presented the importance of the Protocol as an international tool for addressing the problem of Climate Change and underlined perspectives and potential benefits for Armenia's participation in the Protocol as a Non-Annex I country.

The representatives of several sectoral ministries and agencies participated in the event to assess their possible involvement in the CDM activities and express their willingness for cooperation in CDM projects development and realization.

The Head of Environmental Protection Department and UNFCCC Focal Point Mr. Aram Gabrielyan held a presentation on the practical aspects of the Kyoto Protocol and the application of the CDM in Armenia.

2. The Approval Letter for “Nubarashen Landfill Gas Capture and Power Generation Project in Yerevan” Project Design Document was officially signed by the Minister of Nature Protection of the RA and CDM National Authority on February 16, 2005.

Memorandum of Understanding between the Government of the Republic of Armenia and the Government of the Kingdom of Denmark on co-operation for the implementation of the Kyoto Protocol to the UN Framework Convention on Climate Change.

The Memorandum of Understanding between the Government of the Republic of Armenia and the Government of the Kingdom of Denmark on Co-operation for the Implementation of the Kyoto Protocol to the UN Framework Convention on Climate Change was signed in Yerevan, Republic of Armenia, on November 9, 2004.

The Government of Denmark, in particular the Ministry of Environment, Danish Environmental Protection Agency (DEPA) and the Government of the Republic of Armenia, in particular the Ministry of Nature Protection of Armenia (MoNP), being the competent authorities for the purpose of the Memorandum and were referred to as the Danish Party and the Armenian Party respectively.

The main objective of the Memorandum is to facilitate the development and implementation of greenhouse gas emission reduction project activities in the Republic of Armenia and the transfer to Denmark of the agreed part of the Certified Emission Reductions (CERs) resulting from those project activities in accordance with article 12 of the Kyoto Protocol.

The Armenian Party will facilitate the development and implementation of projects by supporting the potential beneficiaries interested in carrying out CDM projects with information and formal approval of CDM projects, in accordance with article 12 of the Kyoto Protocol, which meet all national requirements for such projects.

The Danish Party will contribute to the development and implementation of CDM projects by the procurement of CERs originating from those projects or by acceptance and registration of CERs procured by private parties from the Armenian Party being the ultimate owners of such CER units.

The Memorandum is settled for a period of 5 years and it is automatically prolonged for a period of 5 years, if none of the Parties notifies in writing the other one, with at least 6 months before the end of its validity, about the intention to denounce it.

The Memorandum was ratified by Decree of the President of the Republic of Armenia Robert Kocharyan on March 9, 2005 and entered into force on March 17, 2005.

Within the framework of the Memorandum Danish Environmental Protection Agency has been closely cooperating with the Ministry of Nature Protection of RA as the Designated National Authority for the CDM under Kyoto Protocol. Such cooperation has so far resulted in the development of three CDM project proposals (PINs) in the sectors of agricultural waste management and industrial energy efficiency.

In the process of the proposed projects development and evaluation the parties collaborated with EC "Technical Assistance to Caucasus Countries and Moldova with respect to their Global Climate Change Commitments" regional project Armenian office in terms of setting communication channels, providing expert judgement and technical assistance to the Ministry of Nature Protection.



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