PHILIPPINES: Government environment officials are now finalizing rules for Philippine projects to avail of foreign funding from countries interested in getting credits for reductions in greenhouse emission under a Kyoto Protocol mechanism.

"We are fast-tracking the implementing rules and regulations (IRR) on CDM projects since we want to quickly benefit from the revenue and investment potentials of these environment-friendly projects," Julian D. Amador, executive director of the Environmental Management Bureau, told BusinessWorld in an interview.

The Kyoto Protocol, a treaty signed by 141 countries including 30 industrialized nations who committed to reduce greenhouse emissions by 5.2% until 2012, took effect yesterday.

Under this is the so-called Clean Development Mechanism that allows governments and private entities from industrialized countries to undertake emission reduction projects in developing countries and in return receive credit in the form of certified emission reductions or CERs.

Under the proposed Philippine CDM national approval criteria, projects should assist the country in achieving sustainable development, using the economic, environmental and social standards.

Application documents are to be filed with the EMB, the designated secretariat for the CDM authority.

President Gloria Macapagal Arroyo, in her Executive Order No. 320 issued June last year, designated the Department of Environment and Natural Resources (DENR) as the national authority for the Clean Development Mechanism. Mr. Amador's office is an agency under DENR's administration and supervision.

"The prompt issuance of an IRR on the approval process gives the government and other stakeholders a chance to access the newly available funds that developed countries would make available. We also would like to take advantage of the demand for emissions credits while it is there," Mr. Amador said.

Two emissions trading exchanges, the Chicago Climate Exchange and the European Union greenhouse trading scheme have been established especially for companies that want to purchase CERs in the open market.

Mr. Amador said there are 14 potential CDM-eligible projects under their consideration, with three of them already endorsed to the World Bank Prototype Carbon Financing.

Among these proposed projects include Bangui Bay's 25-megawatt (MW) North Wind project, the 50-MW Cogeneration project in Victoria, Negros Occidental, the 30-MW Cogeneration project in Tolosan, Occidental Mindoro as well as the planned 1-MW methane gas power project in Payatas, Quezon City.

Patrick Giraud, director of Asian Development Bank's Southeast Asia Infrastructure Division, told BusinessWorld they have created a CDM facility to help member countries who are Kyoto Protocol-compliant in some of their costs implementing CDM projects.

Business World