perspective of ji in hungary józsef feiler climate change unit
TRANSCRIPT
Perspective of JIPerspective of JI in Hungar in Hungaryy
József FeilerJózsef FeilerClimate Change UnitClimate Change Unit
1. Experiences with JI projects
2. Criteria for project approval
3. Potentials
4. Status for Track 1
JI in Hungary
Experiences with JI projects
Recent JI statistics:
• 36 Project Idea Notes received until now• 27 Letters of Endorsement / Letters of no
Objection issued• 14 Letters of Approval issued
Experiences with JI projects
0
2
4
6
8
10
12
14
16
MtCO2e
Submitted Endorsed Approved Appr., impl.
JI projects in Hungary
Other
N2O red. inacid plant
Wind
Landfill gas
Biogas plant
Fuel switchto biomass
Project partner (country) Projects endorsed
Projects approved
ERUPT (The Netherlands) 10 5
Austrian Government 10 4
PCF (World Bank) 1 1
Other 6 4
Total: 27 14
Experiences with JI projects
Summary table – number of projects
Additonality:
1. Environmental additionality: the project results in emission reductions compared to BAU scenario
2. Financial additionality: the project would not have taken place without the additional financial resources provided by carbon financing
3. Legal additionality: the investment is not required by law
4. No LoE for already running projects
5. No LoE for projects receiving other forms of investment aid
Criteria for project approval
Types of projects NOT endorsed:
• Fuel switching to gas no longer supported due to lack of financial additionality
• Biomass potential from wood waste from forests already exhausted by 5 relatively large biomass JI projects
• Large hydro projects not supported by current government due to environmental considerations (> 5 MW)
• Effect of EU ETS and linking on power sector and some district heating installations
Potentials
Types of projects currently endorsed:
• Landfill gas utilisation in deposits to be closed before 2009 • Wind projects with energy storage• Biomass + sink together (no projects to date)• Geothermal and solar power (no projects to date)• Methane capture in agriculture• Demand-side energy saving projects (no projects to date) • Off-grid solar power and wind power (no projects to date) • Sink projects – forestation (no projects to date)
So far, most projects have been renewables
Potentials
Types of projects MAYBE endorsed:
• Wind power a question of system operation financial additionality depends on new feed-in tariff
regulations for renewables – feed-in tariff of 23 HUF/kWh (9,2 Eurocent/kWh)
• Biogas Plants
Potentials
National SystemNational System
NS in Hungary currently:NS in Hungary currently:• No responsible body for inventory preparation by lawNo responsible body for inventory preparation by law• No QA/QC yetNo QA/QC yet• No uncertainty managementNo uncertainty management• Basic management systemBasic management system• A staff of 1,5 personsA staff of 1,5 persons
• Upgrade of the system is likely in early 2006Upgrade of the system is likely in early 2006
AA amount• EU deadline 15th June 2006, UNFCCC deadline 31st of December
2006• Hungary is likely to meet both deadlines
National Registry• UK registry currently for EU ETS
Status for track 1
Direct double counting: Art 11b (3): “Until 31 December 2012, for JI and CDM project activities which reduce or limit directly the emissions of an installation falling within the scope of this Directive, ERUs and CERs may be issued only if an equal number of allowances is cancelled by the operator of that installation.”
TThhe future of JI with direct linkage e future of JI with direct linkage tto the EU ETS sector o the EU ETS sector depends on mode of allocation and the difference between depends on mode of allocation and the difference between the prthe priicece of EUAs and ERUs.of EUAs and ERUs.
Indirect double counting: Art 11b (4): Until 31 December 2012, for JI and CDM project activities which reduce or limit indirectly the emission level of installations falling within the scope of this Directive, ERUs and CERs may be issued only if an equal number of allowances is cancelled from the national registry of the Member State of the ERUs’ or CERs’ origin.
The future of JI with indirect linkage to the EThe future of JI with indirect linkage to the EUU ETS sector ETS sector depends on politidepends on politiccal feasibility of including more projects al feasibility of including more projects and reducing and reducing nnumber of allowances elsewhere within the umber of allowances elsewhere within the total amounttotal amount.
Obstacles – Linking directiveObstacles – Linking directive
Scenarios for double counting...Scenarios for double counting...
40 000
50 000
60 000
70 000
80 000
90 000
100 000
110 000
120 000
1985 1990 1995 2000 2005 2010 2015 2020
ktC
O2
Total (with LUCF removals) NEW
Total (without LUCF) NEW
Kyoto target
Kyoto target - ERUs (kérvényezett)
Kyoto target - ERUs (LoA, akt.)
Kyoto target - ERUs (kérv.) x 2
Kyoto target - ERUs (LoA, akt.) x 2
