Index

• CDM(Clean Development Mechanism)

• Project became Sustainable Project

• Carbon for Water

CDM(Clean Development Mechanism)?

Annex I (Developed Countries)

Capital & Technology investment

Project Registration

Non-Annex I (Developing Countries)

UNFCCC CDM EB

Reduction Record (CER)

Acquisition of Carbon Credit(CERs) through Capital & Technology investment into Developing Countries

Non- Annex Ⅰ

Annex Ⅰ (Investor)

Contribute into Sustainable project Carbon Credit share

Types of Carbon Credit

Types of Carbon Credit Description

EU-ETS

credit Allowance-

based (Cap-and-Trade

system)

EUA (EU Allowance) EU-ETS based

allowance to participated countries

Kyoto

credit

AAU(Assigned Amount Unit) Kyoto protocol based

allowance to participated countries

Project-based (Baseline-and-

Credit system)

CER (Certified Emission

Reduction) Credit produced by CDM project

ERU (Emission Reduction

Unit)

Credit produced by CDM project

JI project

RMU (Removal Unit) GHGs absorption by Land use,

Forest activity

Voluntary Mainly Project-

based VER Voluntary GHGs reduction

Status of CDM: countries less than 10 cases registered

Procedures of CDM

1

Program planning, consulting, Investor, local partner

PDD(Project Design Documents)

Project Develop 2 Approval

Validation by DOE

National Approval

UNFCCC

3 Registration

5 Verification 6 Credit acquisition 4 Monitoring

Trading Constitution of Carbon Credit

Obligation Reduction – Energy, Power station, Heavy-metal, Paper

Investment– Financial Institution, Carbon Fund, Trading Firm

CER

Trader Obligated

Enterprise

Direct search and trade

Search and Trade by Broker

Carbon Fund

Trading Agency

Investment Trade

ECX. BlueNext

Listed transaction

Off-board Transaction

Trading Class of Carbon Credit

Advance

Payment

Spot

Trading PoD

Option

Contract

Forward

Payment

Variable price Fixed price

* PoD : Pay on Delivery

Market trading OTC trading

Global Carbon Market

Pattern of CDM Project

Energy Industry Wind power, Solar energy, Biomass. Renewable Energy

Energy Distribution Electricity distribution efficiency

Energy Demand Energy usage by Efficiency Technology

Manufacturing Substitute material

Chemical Industry Removal of N2O

Logistics Low-emission transportation (Bio-diesel)

Mine Industry Landfill sampling

Metal Process Improvement

Oil Industry Omitted gas from Oilfield

HFC, PFC, SF6 Removal of HFCs

Reforestation Reforestation

Reforestation Reforestation

Agriculture Agriculture

Source: UNEP, Guidebook to Financing CDM Projects (2007)

6 GHGs CO2 CH4 PFCs HFCs N2O SF6

CDM Program in Korea

Program Volume

4.22%

6.33%

18.56%

23.22%

19.50%

24.82%

3.35%

0.0 - 0.5

0.5 - 1.0

1.0 - 2.5

2.5 - 6.0

6.0 - 10.0

10.0 - 50.0

50.0 -Cre

dit s

ize(1

0K,ton C

O2e)

Title CERs (PDD)

Ulsan Rodia N2O reduction 9,151 ktCO2e/yr

Ulsan Chemical HFC reduction 1,400 ktCO2e/yr

Huecams N2O reduction 1,268 ktCO2e/yr

Metropolitan Landfill Gas Resource 1,210 ktCO2e/yr

Daegu-Bangcheonli Landfill Gas 405 ktCO2e/yr

Siwha TidalPower 315 ktCO2e/yr

Ulsan Hanwha N2O reduction 281 ktCO2e/yr

Dongbu Hannong chemical HFC 241 ktCO2e/yr

Kangwon Wind power Generation 149 ktCO2e/yr

Yeongduk Wind power Generation 60 ktCO2e/yr

Fuel switch of District Heating Corp 35 ktCO2e/yr

Jeju Hankwang wind power generation 29 ktCO2e/yr

Small Hydro-power generation(Namdong) 21 ktCO2e/yr

Small Hydro-power generation(Boreong) 14 ktCO2e/yr

Small Hydro-power generation(K-water) 9.7 ktCO2e/yr

Small Hydro-power generation(K-water)II 8.7 ktCO2e/yr

Small Hydro-power generation(Yangyang) 8.6 ktCO2e/yr

Wind-power generation(K-water) 4 ktCO2e/yr

Solar-power generation(Donghae) 0.6 ktCO2e/yr

Vietnam Wind-power Generation

• Size :30㎿(1.5㎿×20)

• Annual GHGs Reduction : 57,988 CO2 ton

• Technology : Wind-power Generation

(91,571 MWh generation/Yr.)

Baseline calculation: 0.6448 CO2 ton/MWh

-8.78% in IRR(Internal Rate of Return) lower than

Bank loan rate(14.4%)

Mongol Waterpower Generation

• Size : Taishir(11 MW)/Durgun(12 MW)

• Annual GHGs Reduction : 29,600/30,400 CO2 ton

• Technology : Waterpower Generation

• Baseline calculation : 0.8 CO2 ton/MWh

– IRR(Durgun : 4.98%, Taishir : 1.37%) lower than Mongol Central bank Bong interest rate(8%)

• “Global 2000” LifeStraw® &Carter Center

• Point-of-use (POU) treatment is an alternative approach, which ca

n accelerate the health gains associated with the provision of safe

drinking water to the at-risk populations.

.

• The DART partnership is a unique public-private

collaboration that aims to combine the unique skills of the

partners to accelerate adoption of ZeroVector® Durable

Lining as a replacement for indoor residual spraying (IRS).

• Carbon Financed Project will Provide Safe Drinking

Water for 10 Years thanks to an Innovative Way to Finance the

Reduction of More than Two Million Tons of Carbon Emissions

Annually

Project became Sustainable Project

Background: Carbon for Water

Social

• Expose to NTDs(Neglected Tropical Diseases) by inferior public health condition

• Loss of Education opportunity

• Social cost increase

Economic

• Productivity reduce by Manpower loss and decline

• Self-reliance insufficient by lack of Infra-structure

• Degrade to Sub-contract station

Enviro

• Forest & Land dilapidated by indiscriminate logging

• GHGs(Green Houses Gas) emission increase

• Bio-Diversity reduction

Lack of potential in Sustainable Project

Process:

Diagram of CFW

Status report

Date contents Related Bureau

2012.07 KAIST Professional Forum KAIST Business School

2012.07 “Carbon for Water” Launching Vestergaard Frandsen HQ

2012.10 Earth Hour International Collaboration Earth Hour Korea

2012.11 UNGC Commitment UNGC HQ

2012.11 EWBs Int’l Forum EWBs Int’l

2012.12 WWF International WWF Local branch

2013.01 Cambodia Government (confirm) Dept. of Education, Dept. of Public Health

Dept. of Commerce

2013.01 Cambodia Government (on Consultation) Ministry of Foreign Affairs

2013.02 Mozambique Government(on Consultation) Ministry of Foreign Affairs

2013.06~ Pilot project Refer to other sheet

2013.03~ CFW(Main Project) Refer to other sheet

Pilot Project - Outline

Project: Sustainable Deployment of

the LifeStraw® Family in OOO

Country: Cambodia or Mozambique

Duration:2014.06 ~ 2024.06

Methodolgy: Cook-Stoves & Kitchen Regimes,

V.02

size: Small Scale

Approval: Desk Review / Follow up interviews

/ Resolution of outstanding issues

Level: Full Approval and submission for

registration

Registration: Gold Standard(VERs)

Pilot Project - Budget scheme

• Budget:1.5Million

• LSF 10,000units

• Beneficiary:50,000

(person)

Budget Formulation

LSF Supply ,

Support(43%)

Consulting,Initial

Registration(20%)

Local Center &

Monitoring

Manage(16.7%)Reserved

Center(0.6%)

CFW(Main Project) -Budget scheme

• Budget:10Million

• LSF 100,000units

• Beneficiary:500,000

(person)

Budget Formulation

LSF Supply ,

Support(43%)

Consulting,Initial

Registration(20%)

Local Center &

Monitoring

Manage(16.7%)Reserved

Center(0.6%)

Project Impact

Social

• NTDs Prevention, Public Health condition improvement

• Education opportunity & Gender- Equality increase

• Social Cost reduction

Economic

• Local Employment(2,000)

• Bio-mass purchase cost decrease

• Social Business Community establish

Enviro

• Forest , Environment Conservation

• GHGS emission reduction

• Bio-Diversity Conservation

Sustainable Development Project

Application to Carbon Credit

<ex: Main project,US$6~10/ton>

Estimated Profit

2Million

~1.2M/Yr.

Based on

Carbon Credit

200,000t/ Yr.

Credit Price:

US$6~10

Utilization

L.Center,Commu

ne(40%)P.Partner(15%)

Investor(20%)

Aid Green(15%)

Reserved

Fund(10%)

ex)”Carbon for Water in Kenya

Project: Sustainable Deployment of the

LifeStraw® Family in rural Kenya

Country: Kenya

Duration:2011.04 ~ 2021.04

Methodology: Cook-Stoves & Kitchen

Regimes,

V.02

size: Large Scale

Approval: Desk Review / Follow up interviews

/ Resolution of outstanding issues

Level: Full Approval and submission for

registration

Registration: Gold Standard(VERs)

• In April and May, 2011, more than 877,500 LifeStraw® Family water filters were distributed to approximately 90% of all households in the Western Province of Kenya.

• The distribution program, called LifeStraw® Carbon for Water, is providing four nearly an entire community of 4.5 million residents with quick access to safe drinking water at home.

• The program is led and solely funded by Vestergaard Frandsen (VF), a European company that specializes in disease control textiles, including LifeStraw® Family water filters,

• in partnership with the Kenyan Ministry of Public Health and Sanitation.

• VF’s expenses will be reimbursed by carbon financing.

• This funding model gives companies in developed countries potential revenue, in the form of carbon credits, for reducing greenhouse gas emissions in developing countries. Carbon credits can then be sold to carbon credit buyers that want to reduce their carbon footprint or improve their environmental stewardship. The revenue generated, in large part, will be re-invested into the program to make it sustainable over a 10-year period.

• No longer have to treat water by boiling it using fossil fuels, which generate greenhouse gases.

• This behavioral change is expected to produce more than two million tons of carbon emission reductions annually.

Project Summary

Award & Partner

Media

Carbon for Water is a project

motivate and makes a people

work

by themselves.

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