1. Clean Development MechanismImplementation by the Netherlands Lex de Jonge Ministry of Housing, Spatial Planning and the Environment (VROM)

2. Netherlands’ interest in CDM • Dutch Kyoto target: reduce 200 Mton CO2 • 50% international (= 100 Mton CO2): • Clean Development Mechanism (CDM) • Joint Implementation (annex 1 countries) • Government finances CDM and JI • 2 Objectives CDM: • Contribute to sustainable development • Purchase CO2 at reasonable price and acceptable risk

3. 4 tracks for implementing CDM • International multilateral financial institutions: IFC, World Bank, IDB, ADB, CAF and other development banks • Procurement tender by Dutch agency Senter: CERUPT (closed 31 January 2002) • Private financial institutions (under discussion) • Bilateral between countries (under consideration)

4. Balancing interests / reducing risks • Apply Marrakech (CoP7) rules and procedures • Most policy risks are on VROM • Dutch CDM financing is additional to ODA • Price between US$ 2 and US$ 5/ton CO2, depending on level of sustainability • Guaranteed payment, on delivery • Criteria for reliable project financing • Detailed information www.cdminfo.nl

5. Commitment of all parties • National Focal Points for CDM (obligatory) • Documents: • Letter of No Objection (LoNO) Host Country  Intermediary • Letter of Endorsement (LoE) Host Country  Project Sponsor • Memorandum of Understanding (MoU) Host Country  Netherlands • Letter of Approval (LoA), obligatoryHost Country  all partiesinvolved • Declaration of Approval (DoA), obligatory Netherlands  Host Country

6. Capacity Building • Budgets and responsibilities of VROM and Development Cooperation are separated • VROM budget: purchase CO2 credits and inevitable project related preparation costs (= Project Related Capacity Building) • No separate activity (unless no CDM interest) • Development Cooperation: Institutional Capacity Building • Coordination Development Cooperation - VROM, but no obligations to sell CDM credits exclusively to VROM