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CDM PROJECTS. HOW COMPANIES CAN BENEFIT FROM IT ?. Environmental Issues. GLOBAL WARMING. SUN. absorbed by gases resulting from industrialization (CO 2 , CFCs, methane, nitrous oxide, ground level ozone). absorbed by natural gases in atmosphere (water vapour, CO 2 ,
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CDM PROJECTS • HOW COMPANIES CAN BENEFIT FROM IT ?
Environmental Issues GLOBAL WARMING SUN absorbed by gases resulting from industrialization (CO2, CFCs, methane, nitrous oxide, ground level ozone) absorbed by natural gases in atmosphere (water vapour, CO2, nitrous oxide,ground level ozone) Re-radiated back to surface Incoming solar radiation Heat radiated back from surface ATMOSPHERE EARTH
Climate Change - It’s A Fact ! What is it about ? a global challenge • “There is new and stronger evidence that most of the warming observed over the last 50 years is attributable to human activity”. • There is emerging evidence that some social and economic systems have been affected by the recent increasing frequency of floods and droughts in some areas. • Available observational evidence indicates that regional changes in climate, particularly increases in temperature, have already affected a diverse set of physical and biological systems in many parts of the world. • An increase of the global temperature by 1.4 - 5.8°C relative to 1990 levels within 2100 is expected. Source: IPCC’s Third Assessment Report (TAR)
Natural Greenhouse Effect What is it about ? a global challenge • Greenhouse effect is natural • Without it, average temperature would be about -18°C. • “natural” greenhouse effect enables life on earth with average temperature is about 15°C. • The natural greenhouse gases are: • Oxygen • Ozone • Carbon dioxide • Water vapour
Man-made Greenhouse Effect What is it about ? a global challenge • Changes to the natural greenhouse effect are a result of man-made emissions of Greenhouse Gases (GHG): • Carbon dioxide • Methane • Nitrous oxide (N2O) • Hydro- & Perfluorocarbons • Sulphurhexafluoride (SF6) Source: IPCC
Greenhouse Gases: Carbon dioxide (CO2) What is it about ? a global challenge • The main source of CO2 emissions is theburning of fossil fuels: • heating • power generation • transportation • Deforestation • CO2 has the largest impact on the greenhouse effect
Greenhouse Gases: Methane What is it about ? a global challenge • Methane is formed when organic matter decomposes in the absence of oxygen: • wetlands • rice-plantations • landfills • Emitted during extraction and transport of natural gas
Greenhouse Gases: Others What is it about ? a global challenge • Nitrous oxide (N2O), Laughing gas • is formed when bacteria transform nitrate from fertilisers • Hydro- & Perfluorocarbons • used as cooling agents or for cleaning • known for ozone layer depletion • Sulphur hexafluoride (SF6) • used as insulators in electric circuit breakers • isolation gas (tennisball, sportshoes, windows)
Greenhouse Gas Emission Reductions • What is it about ? • a global challenge • answers to this challenge -the three Kyoto Protocol mechanisms
The Kyoto Protocol (I) What is it about ? answers to this challenge • The Kyoto Protocol makes the UNFCCC operational and legally binding. • The industrialised countries commit themselves to reduce their collective GHG emissions by at least 5% below 1990 emission levels. • Industrialised countries defined in Annex I of UNFCCC or Annex B in Kyoto Protocol
Kyoto-Protocol -24% -5% The Kyoto Protocol (II) What is it about ? answers to this challenge Actual emission reduction will be much larger than 5%: 6 Numbers for industrialised countries 4 Source: ABB Corporate Research GtC 2 2000 2010 2020 1990
Annex I countries UN Framework Convention on Climate Change signed by 154 states Annex I countries (industrialised countries) commited themselves to reduce their GHG emissions Annex I Non-Annex I countries (developing countries)
The Kyoto Protocol (III) What is it about ? answers to this challenge Identifies three mechanism to supplement national actions to achieve real, long-term, measurable and cost-effective GHG reductions: • Clean Development Mechanism (CDM) • Joint Implementation (JI) • International Emission Trading
Certified Emission Reduction CDM Project Sponsoring Clean Development Mechanism - CDM (I) What is it about ? the 3 Kyoto mechanisms Sponsor Annex I/B Developing countries
Clean Development Mechanism - CDM (II) What is it about ? the 3 Kyoto mechanisms Criteria to be fulfilled to receive Certified Emission Reductions: • Assist host-country to achieve sustainable development • Assist sponsor in achieving compliance with part of their emission reduction commitment • Voluntary participation approved by the parties • Real, measurable and long-term benefits related to the mitigation of climate change • Reductions in emissions that are additional to any that would occur in the absence of the certified project activity
TRADABLE UNITS - Same representation • Certified Emission Reduction Units (CER) 1 CER = 1 Tonne CO2 equivalents
TRADABLE UNITS - Same representation In India on the Average 1MWh of Power = 0.8 t CO2 So saving of 1MWh will get you 1MWHx24x365x0.8 CERs per year Current rate of CER= Euro 18 So yearly income=Rs.1x24x365x.8x18x62 = Rs. 7820928/-
Emission factors for various Fuels • The emission factors are given for different units, to aid interpretation. Users should be able to find appropriate fuel consumption data in one of the units mentioned. Once this is done, fuel consumption is multiplied by the appropriate factor.
CDM Project Cycle Sustainable Development outputs Designated National Authority I M P L E M E N T A T I O N Baseline Study In Project Design Validator DOE EIA Public stakeholders CER's Feasibility study Buyers Brokers/ Investors/funds Full Project Design Document Executive Board MONITORING
Registration of CDM projects The CDM registry is being constructed. It will contain public information on all CDM projects: issuance, holdings, transfer and acquisition of CERs At the EB6 , the following fees were decided for the registration of a CDM project. The fee forsmall-scale CDM projects has been reduced to 5,000 US$:
Type Of Projects • Power Generation through Rice Husk • Power Generation through Poultry Litter • Switching Of Fuel Oil to Natural Gas • Efficiency Improvement Projects
Type Of Projects Opportunities in Distillery Industry
Type Of Projects • Methane avoidance • Biomethanation • Fossil Fuel saving • Biogas and biomass based steam and power generation • Biogas use for other purposes
CDM Project Registered • Sagar Industries & Distilleries Pvt. Ltd, Nashik • 147000 CER issued
Type Of Projects • QGS and Core Carbon X joint venture is a growing Carbon advisory company created to serve as the pre-eminent business-to-business resourced for companies to understand, mitigate and manage the transition to a greenhouse gas constrained future. • Our team have executed more than 55 projects which are at different levels of registration. • Vastly experienced in the Distilleries Sector