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1. EcoSecuritiesRailways, Biofuels & CDM
2. 2 Contents Who are EcoSecurities
Background on CDM
CDM & Biofuels
CDM Railway CDM prospects
3. 3 Who we are EcoSecurities is a leading company in the business of sourcing, developing and trading carbon credits throughout the world.
Our carbon credit portfolio is the largest in the industry and consists of 375 projects with the potential to generate over 163 million carbon credits:
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5. 5 What we do
6. 6 Where we are
7. 7 Portfolio volume
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9. 9 Concepts and terms
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11. 11 Carbon pricing
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13. 13 EU ETS prices
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15. 15 Emissions reduction potential of biofuels 3) Based on the principle that the effect on the global environment is the same regardless of where the GHG emissions reductions are achieved, countries may meet their targets through a combination of domestic activities and the use of the Kyoto Mechanisms
3) Based on the principle that the effect on the global environment is the same regardless of where the GHG emissions reductions are achieved, countries may meet their targets through a combination of domestic activities and the use of the Kyoto Mechanisms
16. 16 Biofuels & CDM CDM Possibilities:
Displacing fossil fuels – transport or stationary power generation
Carbon sinks - sequestering CO2 in biomass
Large vegetation e.g. jatropha, palm, etc, which is qualified as forestation / reforestation
Not for sugar, rape seed, etc.
17. 17 EcoSecurities Biofuel Experience Fossil Fuel Displacement CDM Projects
Namibia, Indonesia, Peru, Ghana, Malaysia, Nigeria, Chile
Working Methodology development for clients & international authorities
Sequestration CDM Project Types
One baseline Meth approved, another is in approval system
Namibia Jatropha plantation – assisted in identifying acceptable land and project design
Over 70 consultancy assignments on carbon forestry in more than 30 countries
18. 18 1. Displacing fossil fuels Key issues:
Only approved methodologies for waste cooking oil use
Whether producer or users should get credits – double counting issue
Consumers need to select biofuel carefully
Pre-project activity shift is potential problem
Clearing of rainforests for plantations to produce crude oil
19. 19 Initial questions about biofuels projects Volume of biofuel produced or used
Raw material
No deforestation – direct or indirect
Existing legislation in the project country
Biofuel use
Must not be used in Developed Country
Must be USED within developing countries
20. 20 Factors of a “good project” Volume = ~10,000 CERs/yr
Biodiesel: 5 million litres/4,400 tonnes
Ethanol: 8 million litres/5,840 tonnes
No direct or indirect (i.e. through activity displacement) deforestation from plantation
Use of biofuels within developing country
Producers and users of biofuel must agree contractually on credit ownership
21. 21 Biodiesel case study
22. 22 2. Sequestration Potential Eligible projects – the biofuel crop must grow to between 2-5 metres in height eg. Jatropha
Must be on land not deforested since 1990
tCER potential is something in region of 15 tCERs per ha/year.
tCERs bought at discounted price to CER and cannot be sold to EU companies.
Could be significant income stream
23. 23 Status of Railway / Biofuel CDM Projects Two projects EcoSecurities is aware of:
Indian Railways
One project in Brazil involving railway company
Challenges:
Need to develop a Methodology for any railway (consumption based) project that displaces fossil fuels
Can take one to two years!
Monitoring systems
24. 24 Other potential CDM/JI Railway projects Modal switching road / air to rail
Very interesting if we can find large freight users
Should be used as sales /marketing tool
Electrification from diesel use
Energy efficiency e.g. reduction of fuel / electricity use.
Needs to be large project