RP among Asian nations with strong CDM portfolio

SUNTEC CITY, Singapore — In the wake of the financial crunch that is threatening economies worldwide, funding institutions and key stakeholders involved in efforts to reduce carbon emissions converged in a two-day conference here to ensure sustained initiatives against global warming.

Carbon Forum Asia 2008, jointly organized by the International Emissions Trading Association (IETA) and Koelnmesse, aimed to support “a greater focus on national and regional market initiatives, project implementation, and offset mechanisms and technologies” especially since Asia today is being considered as fast becoming the “driving force” behind the increase of the world’s Carbon Market.

 “As issues of climate change and GHG (greenhouse gas) emissions abatement continue to take center stage in the global arena, Asia increasingly presents abundant opportunities for countries looking to achieve carbon neutral status,” said Michael Dreyer, vice president of Koelnmesse-Asia Pacific.

 “From 2006 to 2007, Asia’s CDM market grew by nearly 200 percent, signalling the region’s emerging dominance in the global Carbon Market,” he also said.

To date, 774 or 65 percent of the total 1,186 CDM (clean development mechanism) projects registered with the United Nations Framework Convention on Climate Change (UNFCCC) are from Asia and the Pacific.

This represents over 80 percent of all preliminary Carbon Emissions Reduction (CERs) traded in the international carbon market.

China and India lead the pack with close to 640 CDM projects, while other countries, including the Philippines, are not too far behind.

 “Although China and India remain the heavyweights in the CDM projects, countries such as Vietnamn, Thailand, and the Philippines have also put up a strong portfolio of projects,” Dreyer noted.

Carbon Forum Asia 2008 showcased over 60 projects, compared to only 16 projects in 2007. According to Henry Derwent, president and CEO of IETA, the overwhelming increase only mirrors Asia’s rapidly growing CDM market.

Meanwhile, for industrialized countries looking to sponsor CDM projects and achieve carbon neutral status, the organizers believed that the Carbon Forum Asia was the perfect platform to tap into Asia’s opportunities.

 “For a long time, the EU Emissions Trading Scheme (ETS) has dominated the global Carbon Market. This is set to change. With Australia and New Zealand en route to establishing their own trading scheme, and with trading of one sort or another being proposed in Japan, Korea, Taiwan, parts of China and even India, Asia’s prominence in the global Carbon Market is certain,” Derwent said.

The Asian Development Bank (ADB), said there is a “staggering” predicted rate growth in energy demand and GHG emissions in Asia. ADB said it supports the Carbon Forum Asia as it intends to improve Carbon Market opportunities in the region.

 “The world depends on reducing emissions in Asia, particularly those associated with energy. ADB is working with developing countries in the region in a range of capacities to tackle climate change. We see Carbon Forum Asia as an excellent way for ADB to help scale up the carbon market opportunities in the region,” said Josh Carmody, fund manager for ADB’s Asia Pacific Carbon Fund.  

Last year, following the climate change meeting in Bali, Indonesia, Environment and Natural Resources Secretary Lito Atienza declared that the Philippine government would forge ahead with climate change projects and commitments by aggressively pursuing CDM projects for GHGs.

In fact, he noted, the Philippines is ranked number eight in the world standing in terms of CDM projects since the country has, to date, a total of 14 projects registered with the CDM executive board in Switzerland.

According to Atienza, among the country’s CDM projects in the pipeline are biogas emission reduction from a garbage facility, hydropower energy, reforestation and utilization of renewable energy and methane recovery.