clean development mechanism & agriculture sector

*Clean Development Mechanism& Agriculture Sector

Shalin Shah Programme Manager

Industry Initiatives Programme

Centre for Environment Education


Background for presentationThere is enough discussion on Climate Change, Global Warming world over.

So I will not discuss anything on the basics of Climate Change.


*Mitigation of Global Warming

Kyoto Gases & GWP

The CDM what & how?

The CDM project Cycle

Indias Position

Types of CDM projectsOutline


*Mitigation of Global WarmingTo tackle the challenges posed by global warming (climate change), United Nations made an agreement at the United Nations Conference on Environment and Development in 1992 in Rio De Janeiro, Brazil a conference popularly known as the Rio Earth Summit. That agreement was The United Nations Framework Convention on Climate Change (UNFCCC).


1988199019921997200520082012IPCC constitutedIPCC GHG inventory reportRio Earth Summit & birth of UNFCCCKyoto Protocol adoptedKyoto Protocol comes into forceFirst commitment period startsFirst commitment period ends22 year story


UNFCCC

Signed by 154 states (plus the EU) in 1992 foundation of global efforts to combat global warming.

Objective: The stabilisation of greenhouse gas (GHGs) concentrations in the atmosphere at a level that would prevent dangerous man made interference with the natural climate system.


UNFCCC Members



Kyoto ProtocolAmendment to the UNFCCC outlined in 1997 in Kyoto, JapanCommitment for 38 developed countries to reduce GHG emissions by 5.2% relative to 1990 levelsIt must be achieved by 2008 2012 first commitment periodDeveloped countries bound with targets Annex I countries Such as: UK, Europe, Australia etc.Developing countries no targets non annex I countries Such as: India; Pakistan; China; Thailand; Malaysia; Mexico; Brazil etc.



Kyoto Gases & GWP

The CDM what & how?


Indias position



*Kyoto Gases & GWPThere are over 30 atmospheric greenhouse gasesBut only 6 attract CC, so called Kyoto GasesEach of these gases has a different warming potential


*Each of these gases has a different radiative forcing capability and a different atmospheric residence timeNeed for a common currency, so that all such Kyoto gases are denominated in the same waySolution: develop a relative scale, using CO2 as a reference gasKyoto Gases & GWP


*Relative scale everything is measured relative to CO2

e.g. Methane is 21 times more potent as a Green House Gas than CO2

e.g. Sulphur Hexafluoride is 23,900 times more potent!Kyoto Gases & GWP

Kyoto Gas(Green House Gas)Global Warming Potential (GWP)CO21CH421N2O310PFC6500 9200HFC140 11700SF623900



Kyoto Gases & GWP

The CDM what & how?


Indias Position



*Clean Development MechanismFlexibility Mechanisms of Kyoto Protocol

Clean Development Mechanism(Achieving part of reduction obligations of developed countries through projects in developing countries that reduce GHG emissions) It is defined under Article 12 of the Kyoto Protocol

Emission Trading(Trading of emission allowances between developed countries)

Joint implementation(Transferring emission allowances between developed nations, linked to specific emission reduction projects)


*Advantages for developed countries:

relatively low-cost & politically acceptableAdvantages for developing countries: inward investment, environmental & technology benefitsClean Development MechanismPurposes of CDM two primary goals


*Generation of CCClean Development MechanismCERs from a CDM project are calculated as:

CER = BE PE The Baseline Emissions (BE) is the amount of GHG that would have been emitted to the atmosphere in the absence of the CDM project activity.

PE is the Project Emissions


What is Carbon Credit ?Carbon credits are reduction in emission of GHGs caused by a project

1 CER = 1 tonne of CO2 equivalent (e) reduction

1 CER = 1 Carbon Credit1 VER = 1 Carbon Credit ( Earned Through Voluntary Route )_____________________________ CER Certified Emission Reduction VER Voluntary Emission Reduction


*Five major criteria

a) GHG reduction - real and measurable

b) Contribution to the sustainable development of the host country

c) No diversion of official development assistance

d) Demonstration of Additionality

e) Project after 2 August 2008 Inform UNFCCC within Six monthsClean Development MechanismQualification for CDM Project


CDM Cancun outcomeIssue - Continuation of CDM Post 2012Progress / Decisions - Indications CDM will be part of new post-2012 scheme, despite on-going uncertainty over the future of the Kyoto ProtocolRemarksCancun conference decided that next year (at the next Climate Change Conference in South Africa), one or more new market based mechanism will be established.Any such new mechanism will maintain and build upon existingmechanisms, including those established under the Kyoto Protocol (like CDM)



Kyoto Gases & GWP

The CDM what & how?


Indias position



*Three major credentials

Project Idea Note (PIN): It includes the basic information and basic calculations to check the viability of the proposed project. It is not a mandatory document.

Project Concept Note (PCN): It includes basic information about project and project developers, technology, finance, sustainable development criteria, project risks, baseline methodology etc. Mandatory document required for HCA

Project Design Document (PDD): It is a project specific document which included expected emission reduction calculations and monitoring plan along with the elaborated information provided in the PCN. Mandatory document required by NCDMA; DOE and CDM EBCDM Project CycleA) Project Design


*B) Host Country Approval


*B.Validation: Once the PDD has been completed and the HCA has been received, all documents along with HCA letter have to be submitted to DOE (Designated Operational Entity) for review and approval (Validation).

C.Registration: The DOE submits the validation report, validation opinion and a request for registration to the CDM EB. Registration of project by the CDM EB is an act of formal acceptance of the validated project.

D.Project Implementation & Monitoring: Once the project has been registered, it can be implemented. From the point of implementation on, the project developer needs to monitor the project performance, according to the procedures laid out in validated monitoring plan of PDD.

D.Verification & certification: The DOE verifies the data collected by the project developers according to the monitoring plan and certifies the total emission reductions actually occurred during the specified time period.

E.Issuance of CERs: Based on the DOE certification, CDM EB issues the CERs to the project proponent.CDM Project Cycle


Crediting periodCDM mitigation projects

Project developers have two crediting period options:

A maximum of 7 years, which can be renewed up to 2 times (i.e. a potential total crediting period of 21 years)

A maximum of 10 years, with no option for renewalCDM sequestration projects (forestry)

Project developers have two crediting period options:

A maximum of 20 years, which can be renewed up to 2 times (i.e. a potential total crediting period of 60 years)

A maximum of 30 years, with no option for renewal



Kyoto Gases & GWP

The CDM what & how?


Indias position



Per Capita CO2 Emissions0510152025IndiaChinaGermanyJapanU.S.A.1.314.9110.069.5419.18Source: EIA 2008


available.data from EIA 2008Source: EIA 2008TOP 20 Emitters of the World

CountryTotal Emissions (MMtCO2) Per Capita Emissions (Tons/Capita) 1.China 65344.912.United States 583319.183.Russia 172912.294.India 14951.315.Japan 12149.546.Germany 82910.067.Canada 57417.278.United Kingdom 5729.389.Korea, South54211.2110.Iran 5117.7611.Saudi Arabia 46616.5612.Italy 4557.8213.South Africa 4519.2514.Mexico 4454.0415.Australia 43720.8216.Indonesia 4341.8317.Brazil 4282.1818.France 4156.4819.Spain 3598.8620.Ukraine 3507.61


The CDM project pipelineHydro 26%Biomass energy 16%Wind 12%Energy efficiency (own generation) 9%Landfill gas, 8%Biogas, 7%Agriculture, 6%Energy efficiency (industry), 4%Fossil fuel switch 3%N2O 2%Other 7%


*First registration: 8th March, 2005First CER issued: 21st August, 2005Registered projects: 513 projects (as of July, 2010)HCA projects: 1704 projects (as of July, 2010)Estimated CER volume: 441 million CERs (39690 Crore INR, till 2012) if they are successfully registered by CDM-EBCERs issued: ~79.11 million CERs Indias PositionThe majority of registered project in India are renewable energy project focusing on hydropower, and wind energy


India offers vast untapped market for Carbon TradingIndia today manufactures >25 million tons of steel.

Installed capacity of electrical power generation of >110,000 MW

Produces over >200 million tons of food-grains

With GDP growth of 8.5% against the energy consumption growth rate of 7.5%


India offers..cont.Leading sectors, having GHG Mitigation potential include energy efficiency (45%), renewable energy (35%), methane emissions abatement (15%), and improvements in the thermal energy generation sector (5%).

In India, total C02-e emissions in 1990 were 10,01,352 Gg, which was approx. 3% of global emissions. The Power sector was the largest emitter of C02, contributing 55% of national emissions.

India would be requiring an additional 100,000 MW of power by 2012.


*Indias Position


*Gujarat Fluoro Chemicals Limited:Registered on 8th March, 2005Claims ~ 3 million CERs (270 Crore INR) every year for reducing GHG by thermal oxidation of HFC23 (GWP = 11700)Recent monitoring report (01/08/08 to 30/09/08) claimed ~ 1.4 million CERs (126 Crore INR)Tamilnadu Spinning Mills Association (TASMA):Registered on 10th June, 2007Claims ~ 0.69 million CERs (62 Crore INR) every year for reducing GHG by bundled wind power project in TamilnaduRecent monitoring report (01/01/08 to 31/08/08) claimed ~ 0.6 million CERs (48.6 Crore INR) Indias PositionCase Study


RE & EE Potential in India

SectorEstimated Potential (MW)Installed Capacity (MW)Untapped Potential (MW)Wind45,1957,844.5237,350.48Small Hydro(

clean development mechanism & agriculture sector

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