News

CDM potential for geothermal projects in the Pacific region

Alexander Richter 8 Jun 2009

The Clean Development Mechanism (CDM) program provides opportunities for geothermal development in the Pacific region, as was discussed in a recent workshop in Fiji.

A recent CDM workshop in Fiji, brought together around 40 participants throughout the Pacific African-Caribbean-Pacific islanders in the end of May.

The article describes the opportunities for renewable energy projects by utilizing the Clean Development Mechanism (CDM) program. “The CDM is an important term in the context of the international climate change negotiations. It allows for developed countries to reduce greenhouse gas emissions by carrying out climate-friendly projects in developing countries.

Fiji was the first country in the world to sign the Kyoto Protocol and intends to play a leading role in implementing measures to reduce carbon dioxide emissions.

The CDM is fairly new in the African Caribbean Pacific countries. Currently there are only two registered
Clean Development Mechanism projects in the Pacific region: the Wainikasaou and Vaturu hydropower project in Fiji and the Lihir Geothermal Power project in Papua New Guinea. The workshop will learn from the experiences from these two projects.

“The scarcity of projects clearly reflects the lack of capacity and awareness about the Clean Development Mechanism in the PACPs. The Kyoto Protocol imposes specific emission reduction targets on Annex 1 parties (developed countries to the treaty), which are binding under international law,” explained SPREP’s Solomone Fifita, who is coordinating and assisting with the conduct of the workshop.

“These reductions must be achieved during the Protocol’s first commitment period. The CDM is therefore one of the win-win mechanisms in the Kyoto Protocol designed to assist Annex 1 Parties to reduce their greenhouse gas emissions as cost-effectively as possible while at the same time provide the much
needed capital, jobs, trade opportunities and infrastructures to non-Annex 1 countries like the PACPs.”

Fifita believes the CDM enables developing countries to take advantage of low-cost opportunities to reduce greenhouse gas emissions in other countries rather than relying solely on domestic emission reduction measures, which may be more expensive.

The United Nations Environment Programme RISOE Centre on Energy, Climate and Sustainable Development
in Denmark is responsible for implementing the CDM capacity-building component with SPREP as the Pacific hub for the project.

The workshop explored the current status and potential of the CDM activities in Pacific countries, and prepared a work plan based on the common and country-specific capacity building needs of the PACPs. The
UNEP RISO Centre and SPREP will then implement this workplan over the next three years.”

This is indeed very interesting and could be of impact to a number of geothermal projects in the region, e.g. Fiji and Vanuatu, as well as other countries with geothermal potential.

Clean Development Mechanism (CDM): A Kyoto Protocol initiative under which projects set up in developing countries to reduce atmospheric carbon generate tradable credits called CERs. The credits can be used by industrialized nations to offset carbon emissions at home and meet their Kyoto reduction targets. The projects include afforestation, reforestation and implementation of clean fuels technology. (source: emit-markets.com)

Source: Pacific Regional Environment Programme