Fri, 06 Aug 2004

Kyoto Protocol and subsequent action

With reference to several articles on the Kyoto Protocol recently, published in The Jakarta Post, I would like to add some comments.

After ratifying the Kyoto Protocol, in accordance with para 29 Annex Decision 17/CP7, the government of Indonesia should establish Designated National Authority (DNA), to include rules of procedure for members, meetings, voting, working groups, conduct of business, secretariat, etc, and send this establishment to the secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) and e-mail it to cdm- info@unfccc.int, in order to engage in an exchange of information with DNA from other countries.

The DNA will act as the approving authority for Clean Development Mechanism (CDM) project proposals; to foster and promote CDM projects DNA shall provide a website, containing information and guidelines, so that the approval process can be done online.

When the CDM project is approved, the project owner should contract the Designated Operational Entity (DOE) that will validate and register with the Executive Board (EB) of CDM. As of now there have been four DOEs accredited by EB, i.e. DNV-Norway, JQA-Japan, TUV-Germany and SGS-Britain.

For registration, the CDM project owner will be charged US$5,000 to $30,000, depending on the reduction of tonnes of CO2 per year caused by the project. Estimated cost in contracting DOE is about $20,000 per manmonth; the project owner should also contract the DOE for verification and certification. After getting Certified Emission Reduction (CER) the project owner can sell it to countries of Annex I UNFCCC.

For example, hydropower projects with a capacity of 5,000 kW could reduce 25,000 tonnes of CO2 per year; if the price of CO2 were $5 per ton (estimated prices studied by Natsource at between $5 and $11), the project would get additional revenue of $125,000 per year.

IMAN SANTOSO Jakarta