1 / 19

Background Paper CDM- A KEY TO AVERTING CLIMATE CHANGE

Background Paper CDM- A KEY TO AVERTING CLIMATE CHANGE. Prevention Energy Conservation Green practices, change in lifestyle Abatement GHG emission mitigation through : Improved energy efficiency Cleaner energy sources / technologies Preventing deforestation

greta
Download Presentation

Background Paper CDM- A KEY TO AVERTING CLIMATE CHANGE

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Background PaperCDM- A KEY TO AVERTING CLIMATE CHANGE

  2. Prevention Energy Conservation Green practices, change in lifestyle Abatement GHG emission mitigation through : Improved energy efficiency Cleaner energy sources / technologies Preventing deforestation Reducing methane emission (by improved Waste management practices) Technological and economic potential Policies, measures, and instruments Global, regional and national cost of mitigation; Ancillary benefits Strategic Response

  3. CO2 mitigation Options: Case of Electricity Sector • Coal: Dominates the electricity sector today • Fuel switching (Coal NG) • Conventional Plants + Carbon Capture & Sequestration (CCS) (Post –Combustion CO2 Capture) • Gasification/ Reforming + CCS (Pre-Combustion CO2 Capture) • Oxyfuel Combustion + CCS

  4. CO2 Capture and Sequestration (CCS) • Emerging area of research – Active work being conducted in Europe, US, Canada, Japan, India and Australia • Option 1: Forestry and algal / microbial processes that integrate the separation, capture and sequestration (fixation) of CO2 • Option 2: Capture CO2 generated in a combustion process, transport it as a concentrated steam and securely store it (till eternity!) CCS involves capture+ compression+ transport+storage+ monitoring

  5. Global Problem • CO2 is a global pollutant • Responsibility of the industrialized (developed) nations • Large contribution to the present crisis • Very high per capita emissions • Strong, fossil- fuel driven economies • Role of developing nations • Developmental needs • Large demand for energy • Increasing population • Vulnerable due to lack of resources / adaptive capabilities • Need for International cooperation • North- South debate • Kyoto Protocol (1997)

  6. Brief History • 1992: United Nations Framework convention on Climate Change, adopted by most of the countries at the Earth Summit in Rio de Janeiro • 1997:Kyoto Protocol was adopted • An important step towards stabilization of GHG concentration to prevent dangerous impacts on climate system • Industrialized countries are required to reduce their combined GHG emissions by at least 5.2% compared to 1990 levels by the first commitment period(2008-2012) • 2005:Kyoto protocol entered into force • Met 55 / 55%condition, after ratification by the Russian Federation • Is now fully operational

  7. What is CDM ? • Clean Development Mechanism • Innovative feature of the Kyoto Protocol to the UNFCCC, Introduced in Article 12. • Legal entities in developed countries can invest in projects in developing countries that reduce GHGs. • Once certified, these emission reductions can be used to meet the commitments made by the developed countries under the Kyoto Protocol.

  8. Objectives of CDM • To give Annex- I nations, flexibility to meet emission reduction obligations (by investing in projects in south and taking climate credits in their balance sheets) • To promote sustainable development in the developing countries.

  9. CDM: Pre-requisites • The project should aim to reduce/ absorb at least 1 of 6 GHGs(CO2,CH4,N2O,HFCs,PFCs,SF6) • Additionality: Anthropogenic emissions of GHG by sources are reduced below those that would have occurred in the absence of the registered CDM project activity. • “Real” and “Measurable” GHG reductions against the baseline scenario. • The project activity must demonstrate its contribution to environmental integrity and the host country’s sustainable development goals.

  10. Where is CDM Applicable ? • Renewable Energy: Wind, Solar, Biomass, Hydel power • Fuel switching: Fossil fuels to green fuel • Energy efficiency measures related to: Boilers,pumps,turbines,cooling system etc. • Introduction of new, efficient power generation technologies; Reduction in technical T&D losses • Improved waste management practieses:e.g.Capturing landfill methane for power generation • Transport: Modal shift (e.g. pipelines, train), fuel switch • Forestry:Afforestration

  11. CDM: Disqualifiers • Emission reduction from Nuclear facilities • A diversion of official development assistance (ODA) from Annex – I countries • Any other type of sequestration activities apart from afforestation and reforerstation!

  12. India as a partner in Global GHG Mitigation • June 1992: Rio conference signs UNFCCC • Nov. 1993: Ratified the convention • Dec. 1997: Signed the Kyoto Protocol • Aug. 2002: Ratified the Kyoto Protocol • Dec.2003: National CDM authority was established • March2005: 1st CDM project from India was registered • Among non Annex- I countries, India is the first Nation to recommend highest number of CDM projects to CDM Executive Board of UNFCCC (1000th projects registered on 14 April 2008) • Indian DNA (Designated National Authority) has offered simple, first tracked clearance system for the issuance of Host Country Endorsement.

  13. CDM- A WIN-WIN SITUATION Industrialized countries (AI) • To assist in meeting their emission limitation commitments Investors Projectproponents CDM project activity (private business, governments, NGOs) (private business, governments, NGOs) Developing countries (Non-AI) • To assist in achieving sustainable development

  14. What makes a project activity a CDM project activity? GHG “What would have happened” situation (fictitious situation) = baseline CERs CDM project activity Start of CDM project activity time GHG = Greenhouse gas emissions CERs =certified emissions reduction

  15. CDM Projects Status • Total projects registered by EB – 1000 • Equivalent CERs – 340 Million • Projects from India – 47 (~ 30%) • Total Baseline Methodologies approved > 50 • Majority of the projects: Biomass – energy • Majority of CERs generated: HFC oxidation

  16. Typical CDM Projects Categories in India • Renewable energy (e.g. solar, wind, biomass, hydro) • Fuel switching (e.g. oil to gas, coal to gas) • Energy efficiency (e.g. lighting, insulation, process optimization) • Waste processing (e.g. land fill gas extraction, waste incineration) • Waste heat recovery projects including power generation • Energy saving by elimination of reheating processes • Thermal oxidation of HFC • Afforestation

  17. India’s Sustainable Development Criterion for CDM Project Approval • Environmental well being • Economic well being • Social well being • Technological well being

  18. Some Issues with CDM • Incentives to inflate baseline emissions (both parties gain by overstating CERs) • Technology transfer • Major attraction of Kyoto Protocol to developing countries, now virtually forgotten • A technology acquisition fund (cess on CER buyers) should be created to be given to developing countries to buy technology from wherever and whomsoever • Large transaction costs, discouraging small projects • Perverse policy Incentives- A national policy promoting renewable may disqualify the host century for CER credits • Design for developed countries • Market risk to be borne by the seller alone • Non- transparent deals, keeps the buyers in control

  19. Thank You

More Related