Presentation by Bikash Pandey, Deputy Chief of Party – USAID and the Director Clean Energy and Environment, Winrock International providing consultancy to Worldbank at a forum organized by Avanceon titled Financing Energy Optimization Projects with guaranteed IRR

1. Avanceon Carbon Finance PoA Project Forum on Financing Energy Optimization Projects with Guaranteed IRR Bikash Pandey [email_address] Karachi, May 25, 2010

5. What does it mean for projects? Project Conventional Output Conventional Revenue Environmental Benefits Revenue from CERs

7. Baseline 2002 2012 time Emission reduction Project Emissions Baseline (emissions without project) ton CO 2 e emission per year

10. Additional Value From ‘Clean’ Projects Implemented without CERs Not Additional With CERs not implemented Not implemented without CERs; Implemented with CERs CDM CER income

12. Project Cycle - timeline Initial Project Concept Project Implementation Feasibility Assessment - is project eligible as CDM? Final Project Design - full Project Design Document Validation, Registration, Approval Realisation of emission reductions Actual Payment for CERs – $$$ Carbon Contract Verification and certification

14. Registered CDM Projects & Pipeline (as of 1 March, 2010) CDM Statistics Annual Average CERs* Expected CERs until end of 2012** CDM project pipeline: > 4200 of which: N/A > 2,900,000,000 --- 2065 are registered 387,906,742 1,730,000,000 --- 46 are requesting registration 11,030,796 > 30,000,000 * Assumption: All activities deliver simultaneously their expected annual average emission reductions ** Assumption: No renewal of crediting periods

15. CDM Project activities globally

16. Registered Project Activities by Sector (as of Mar 1, 2010)

17. Approved Methodologies by Scope (150)

20. Industry wise Total Abatement Potentials Abatement Sectors Potential for CO2 Abatement (Million Tons/ year) Brick Manufacturing 10.0 Transportation 8.8 Oil and Gas Sector 6.53 Textile Industry 5.62 Fertilizer Industry 5.03 Cement Industry 4.71 Iron and Steel Industry 1.78 Glass Industry 0.88 Inorganic Chemicals 0.3

23. CPA= Several measures Several sites Multiplicity of activities to reduce GHG . The sites could be located within one or more city, region, or country, as long as each involved country submits a Letter of Approval (LoA). The GHG-reducing activities do not necessarily occur at the same time. A program can have a duration of up to twenty-eight years. Managing entity. The program is coordinated or managed by one entity, which can be private or public. CPAs. A program is implemented via an unlimited number of CPA’s. All CPA’s must apply one approved baseline and monitoring methodology. PoA CPA CPA CPA

26. Energy Optimization Solutions for Industries in Pakistan – CPA-1 Six projects have been included in Avanceon’s first CPA (CDM for Program of Activities) for year 2010 / 2011