1 clean development mechanism & agriculture sector shalin shah – programme manager industry...
TRANSCRIPT
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Clean Development Mechanism
& Agriculture Sector
Shalin Shah – Programme Manager
Industry Initiatives Programme
Centre for Environment Education
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Background for presentationBackground for presentation
There is enough discussion on Climate There is enough discussion on Climate Change, Global Warming world over.Change, Global Warming world over.
So I will not discuss anything on the basics of So I will not discuss anything on the basics of Climate Change.Climate Change.
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Mitigation of Global Warming
Kyoto Gases & GWP
The CDM – what & how?
The CDM project Cycle
India’s Position
Types of CDM projects
OutlineOutline
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Mitigation of Global WarmingMitigation of Global Warming
To 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).
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1988
1990
1992
1997
2005
20082012
IPCC constituted
IPCC GHG inventory report
Rio Earth Summit & birth of UNFCCC
Kyoto Protocol adopted
Kyoto Protocol comes into force
First commitment period starts
First commitment period ends
……22 year story
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UNFCCCUNFCCC
Signed by 154 states (plus the EU) in 1992 foundation Signed by 154 states (plus the EU) in 1992 foundation of global efforts to combat global warming.of global efforts to combat global warming.
Objective: “ The stabilisation of greenhouse gas Objective: “ The stabilisation of greenhouse gas (GHGs) concentrations in the atmosphere at a level (GHGs) concentrations in the atmosphere at a level that would prevent dangerous man made interference that would prevent dangerous man made interference with the natural climate system. ”with the natural climate system. ”
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Mitigation of Global WarmingMitigation of Global WarmingKyoto Protocol
•Amendment to the UNFCCC outlined in 1997 in Kyoto, Japan
•Commitment for 38 developed countries to reduce GHG emissions by 5.2% relative to 1990 levels
•It must be achieved by 2008 – 2012 – first commitment period
•Developed 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.
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Mitigation of Global Warming
Kyoto Gases & GWP
The CDM – what & how?
The CDM project Cycle
India’s position
Types of CDM projects
OutlineOutline
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Kyoto Gases & GWPKyoto Gases & GWPThere are over 30 atmospheric greenhouse gases…But only 6 attract CC, so called ”Kyoto Gases”
• Carbon Dioxide (CO2)
• Methane (CH4)
• Nitrous Oxide (N2O)
Relevant to bio-carbon & industrial projects
Relevant to industrial projects
• Perfluorocarbons (CXFX)
• Hydrofluorocarbons (CXHXFX)
• Sulphur Hexaflouride (SF6)
Each of these gases has a different warming potential
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Each of these gases has a different ‘radiative forcing’ capability and a different
atmospheric residence time
Need for a ‘common currency’, so that all such Kyoto gases are denominated in the same
way
Solution: develop a relative scale, using CO2 as a reference gas
Kyoto Gases & GWPKyoto Gases & GWP
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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 GasKyoto Gas(Green (Green
House Gas)House Gas)
Global Global Warming Warming Potential Potential
(GWP)(GWP)
COCO22 11
CHCH44 2121
NN22OO 310310
PFCPFC 6500 – 92006500 – 9200
HFCHFC 140 – 11700140 – 11700
SFSF66 2390023900
Kyoto Gases & GWPKyoto Gases & GWP
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Mitigation of Global Warming
Kyoto Gases & GWP
The CDM – what & how?The CDM – what & how?
The CDM project Cycle
India’s Position
Types of CDM projects
OutlineOutline
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Clean Development MechanismClean Development Mechanism‘Flexibility 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)
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Developed countries can
reduce emissions
anywhere in the world
They can count these
reductions towards their own targets
CDM allows developed
countries to generate CC
(Certified Emission
Reductions, CERs) in
developing countries
Advantages for developed countries:
relatively low-cost & politically acceptable
Advantages for developing countries:
inward investment, environmental &
technology benefits
Clean Development MechanismClean Development MechanismPurposes of CDM – two primary goals
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Generation of CC
GH
G e
mis
sio
ns
Historical Trend
Project start
Project start
Carbon credits (CERs)
Carbon credits (CERs)
Time
Clean Development MechanismClean Development Mechanism
CERs 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
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What is Carbon Credit ?What is Carbon Credit ?Carbon credits are reduction in emission of GHGs Carbon credits are reduction in emission of GHGs
caused by a projectcaused by a project
1 CER = 1 tonne of CO2 equivalent (e) reduction 1 CER = 1 tonne of CO2 equivalent (e) reduction
1 CER = 1 Carbon Credit1 CER = 1 Carbon Credit1 VER = 1 Carbon Credit 1 VER = 1 Carbon Credit
( Earned Through Voluntary Route )( Earned Through Voluntary Route )__________________________________________________________
CER – Certified Emission ReductionCER – Certified Emission Reduction VER – Voluntary Emission Reduction VER – Voluntary Emission Reduction
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Five major criteriaFive major criteria
a) GHG reduction - real and measurablea) GHG reduction - real and measurable
b) Contribution to the sustainable development b) Contribution to the sustainable development of the host countryof the host country
c) No “diversion” of official development c) No “diversion” of official development assistanceassistance
d) Demonstration of Additionalityd) Demonstration of Additionality
e) Project after 2 August 2008 – Inform UNFCCC e) Project after 2 August 2008 – Inform UNFCCC within Six monthswithin Six months
Clean Development MechanismClean Development MechanismQualification for CDM Project
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CDM – Cancun outcomeCDM – Cancun outcome Issue - Continuation of CDM Post 2012 Progress / Decisions - Indications CDM
will be part of new post-2012 scheme, despite on-going uncertainty over the future of the Kyoto Protocol
RemarksCancun 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)
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Mitigation of Global Warming
Kyoto Gases & GWP
The CDM – what & how?
The CDM project Cycle
India’s position
Types of CDM projects
OutlineOutline
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Three major credentialsThree major credentials
Project Idea Note (PIN):Project Idea Note (PIN): It includes the basic information It includes the basic information and basic calculations to check the viability of the proposed and basic calculations to check the viability of the proposed project. It is not a mandatory document.project. It is not a mandatory document.
Project Concept Note (PCN):Project Concept Note (PCN): It includes basic It includes basic information about project and project developers, information about project and project developers, technology, finance, sustainable development criteria, technology, finance, sustainable development criteria, project risks, baseline methodology etc. Mandatory project risks, baseline methodology etc. Mandatory document required for HCAdocument required for HCA
Project Design Document (PDD):Project Design Document (PDD): It is a project specific It is a project specific document which included expected emission reduction document which included expected emission reduction calculations and monitoring plan along with the elaborated calculations and monitoring plan along with the elaborated information provided in the PCN. Mandatory document information provided in the PCN. Mandatory document required by NCDMA; DOE and CDM EBrequired by NCDMA; DOE and CDM EB
CDM Project CycleCDM Project Cycle
A) Project Design
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B.B. Validation:Validation: Once the PDD has been completed and the HCA has been Once the PDD has been completed and the HCA has been received, all documents along with HCA letter have to be submitted to received, all documents along with HCA letter have to be submitted to DOE (Designated Operational Entity) for review and approval DOE (Designated Operational Entity) for review and approval ((ValidationValidation).).
C.C. Registration:Registration: The DOE submits the validation report, validation opinion The DOE submits the validation report, validation opinion and a request for registration to the CDM EB. and a request for registration to the CDM EB. RegistrationRegistration of project by of project by the CDM EB is an act of formal acceptance of the validated project. the CDM EB is an act of formal acceptance of the validated project.
D.D. Project Implementation & Monitoring:Project Implementation & Monitoring: Once the project has been Once the project has been registered, it can be registered, it can be implementedimplemented. From the point of implementation on, . From the point of implementation on, the project developer needs to the project developer needs to monitormonitor the project performance, the project performance, according to the procedures laid out in validated monitoring plan of according to the procedures laid out in validated monitoring plan of PDD. PDD.
D.D. Verification & certification:Verification & certification: The DOE The DOE verifiesverifies the data collected by the data collected by the project developers according to the monitoring plan and the project developers according to the monitoring plan and certifiescertifies the the total emission reductions actually occurred during the specified time total emission reductions actually occurred during the specified time period. period.
E.E. Issuance of CERs:Issuance of CERs: Based on the DOE certification, CDM EB Based on the DOE certification, CDM EB issues issues the the CERs to the project proponent.CERs to the project proponent.
CDM Project CycleCDM Project Cycle
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Crediting periodCrediting period
CDM 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 renewal
CDM 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
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Mitigation of Global Warming
Kyoto Gases & GWP
The CDM – what & how?
The CDM project Cycle
India’s position
Types of CDM projects
OutlineOutline
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Per Capita COPer Capita CO22 Emissions Emissions
0
5
10
15
20
25
India China Germany Japan U.S.A.
1.31
4.91
10.069.54
19.18
Source: EIA 2008
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Country Total Emissions (MMtCO2) Per Capita Emissions (Tons/Capita)
1. China 6534 4.91
2. United States 5833 19.18
3. Russia 1729 12.29
4. India 1495 1.31
5. Japan 1214 9.54
6. Germany 829 10.06
7. Canada 574 17.27
8. United Kingdom 572 9.38
9. Korea, South 542 11.21
10. Iran 511 7.76
11. Saudi Arabia 466 16.56
12. Italy 455 7.82
13. South Africa 451 9.25
14. Mexico 445 4.04
15. Australia 437 20.82
16. Indonesia 434 1.83
17. Brazil 428 2.18
18. France 415 6.48
19. Spain 359 8.86
20. Ukraine 350 7.61
Source: EIA 2008
TOP 20 Emitters of the World
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The CDM project pipelineThe CDM project pipeline
Hydro26%
Biomass energy16%
Wind12%
Energy efficiency(own generation)
9%
Landfill gas, 8%
Biogas, 7%
Agriculture, 6%
Energy efficiency(industry), 4%
Fossil fuel switch3%
N2O2%
Other7%
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First registration: 8th March, 2005
First CER issued: 21st August, 2005
Registered 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-EB
CERs issued: ~79.11 million CERs
India’s PositionIndia’s Position
The majority of registered project in India are renewable energy project focusing on hydropower, and wind energy
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India offers vast untapped India offers vast untapped market for Carbon Tradingmarket for Carbon Trading
India today manufactures >25 million India today manufactures >25 million tons of steel.tons of steel.
Installed capacity of electrical power Installed capacity of electrical power generation of >110,000 MWgeneration of >110,000 MW
Produces over >200 million tons of Produces over >200 million tons of food-grainsfood-grains
With GDP growth of 8.5% against the With GDP growth of 8.5% against the energy consumption growth rate of energy consumption growth rate of 7.5%7.5%
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India offers…..cont.India offers…..cont. Leading sectors, having GHG Mitigation Leading sectors, having GHG Mitigation
potential include energy efficiency (45%), potential include energy efficiency (45%), renewable energy (35%), methane emissions renewable energy (35%), methane emissions abatement (15%), and improvements in the abatement (15%), and improvements in the thermal energy generation sector (5%).thermal energy generation sector (5%).
In India, total C02-e emissions in 1990 were In India, total C02-e emissions in 1990 were 10,01,352 Gg, which was approx. 3% of global 10,01,352 Gg, which was approx. 3% of global emissions. The Power sector was the largest emissions. The Power sector was the largest emitter of C02, contributing 55% of national emitter of C02, contributing 55% of national emissions.emissions.
India would be requiring an additional India would be requiring an additional 100,000 MW of power by 2012.100,000 MW of power by 2012.
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India’s PositionIndia’s Position
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Gujarat Fluoro Chemicals Limited:
Registered on 8th March, 2005
Claims ~ 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, 2007
Claims ~ 0.69 million CERs (62 Crore INR) every year for reducing GHG by bundled wind power project in Tamilnadu
Recent monitoring report (01/01/08 to 31/08/08) claimed ~ 0.6 million CERs (48.6 Crore INR)
India’s PositionIndia’s PositionCase Study
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SectorSector Estimated Estimated Potential (MW)Potential (MW)
Installed Capacity Installed Capacity (MW)(MW)
Untapped Untapped Potential (MW)Potential (MW)
WindWind 45,19545,195 7,844.527,844.52 37,350.4837,350.48
Small HydroSmall Hydro
(<25 MW)(<25 MW)15,00015,000 2,045.612,045.61 12,954.3912,954.39
BiomassBiomass 16,88116,881 605.8605.8 16,275.216,275.2
Solar Power Solar Power PlantPlant
------ 2.182.18 ------
Cogeneration Cogeneration bagasse bagasse
5,0005,000 719.83719.83 4,280.174,280.17
Waste to Waste to EnergyEnergy
2,7002,700 55.2555.25 2,644.752,644.75
Source: Ministry of New and Renewable Energy, Govt. of India (As on 31Source: Ministry of New and Renewable Energy, Govt. of India (As on 31stst December December 2007)2007)
Energy Efficiency: 23,000 MW (Assessed by World Bank, Source: Energy Efficiency: 23,000 MW (Assessed by World Bank, Source: FICCI)FICCI)
RE & EE Potential in IndiaRE & EE Potential in India
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Mitigation of Global Warming
Kyoto Gases & GWP
The CDM – what & how?
The CDM project Cycle
India’s position
Types of CDM projects
OutlineOutline
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Types of CDM ProjectsTypes of CDM ProjectsTypeType ExampleExample
Process ChangeProcess ChangeChanging over from HF process to catalytic conversion Changing over from HF process to catalytic conversion for LAB productionfor LAB production
Continuous digester (Pulp & Paper)Continuous digester (Pulp & Paper)
Energy Energy EfficiencyEfficiency
High efficiency equipment & lightingHigh efficiency equipment & lighting
Replacement of old electro mechanical drives with Replacement of old electro mechanical drives with InvertorsInvertors
Waste heat recovery programmesWaste heat recovery programmes
Fuel substitutionFuel substitutionSwitching over to cleaner fuelsSwitching over to cleaner fuels
Biogas recovery from UASB – use instead of flareBiogas recovery from UASB – use instead of flare
Renewable Renewable EnergyEnergy
Wind PowerWind Power
Hydro PowerHydro Power
Solar EnergySolar Energy
ForestryForestryAfforestationAfforestation
ReforestationReforestation
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CDM Projects in Agriculture SectorCDM Projects in Agriculture Sector
Improved manure management
Reduced enteric fermentation
Improved/reduced chemical agri-inputs use (fertilizers, pesticides, herbicides, etc.)
Reduced machinery use (and/or lower fossil fuel intensity of conservation agriculture practices)
Agronomic planning (selection of seeds and species with low chemical agri-inputs demand and water requirements)
Energy from dedicated crops
Energy from agricultural residues, animal waste, and other on-farm organic waste
Water management (water saving from improved water retention, reduced evaporation, ecc.)
Improved irrigation techniques/technologies (i.e. drip and sprayer irrigation)
Improved water management in rice cultivation
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Technical mitigation potential by 2030 of each agricultural management practice
Source: IPCC (2007): IPCC Fourth Assessment Report: Climate Change: Mitigation of Climate Change.
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Total technical mitigation potentials (all practices, all GHGs: MtCO2-eq/yr) for each region by 2030,
Source: IPCC (2007): IPCC Fourth Assessment Report: Climate Change: Mitigation of Climate Change.
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Economic potential for GHG Agricultural mitigation by 2030
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Small-scale projects can use simplified procedures.
The following types of projects are considered small-scale.
Renewable energy projects: up to 15MW capacity
Energy efficiency projects: up to 60 GWh/yr reduction in energy consumption
Other projects: up to 60 KtCO2 equivalent (60,000 CER) emission reduction
o CH4 recovery in wastewater treatmento Switching fossil fuelso Landfill CH4 recovery
Small Scale CDM Projects
Types of CDM ProjectsTypes of CDM Projects
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Simplified methodologiesSimplified methodologies
Aspect 1: Technology/measure:
What would be specific examples for new sustainable technologies, management practice etc. (avail)able to reduce GHG emissions (e.g. reduced mechanization, low-tillage practices, or use of lighter machinery)?
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Simplified methodologiesSimplified methodologies
Aspect 2: Baselines
Could you think of clear, logical and quantifiable procedures for the identification of baseline emissions, i.e. the scenario for GHG emissions in absence of the proposed activity/project?
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Simplified methodologiesSimplified methodologies
Aspect 3: Monitoring plan
What would be simple, straight-forward monitoring measures /plans/indicators to verify GHG reductions throughout the life time of each respective activity/project?
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Simplified methodologiesSimplified methodologies
Aspect 4: Project boundary
What is your idea of reasonable project boundaries (e.g. the physical, geographical boundaries of the agricultural field, including machinery used on the field but maybe excluding machinery used for processing or transportation) for quantifying GHG emission reductions?
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Simplified methodologiesSimplified methodologies
Aspect 5: Leakage
Does the project/activity (indirectly) cause an increase in GHG emissions outside its project boundaries?
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SummarySummary
India has a very big role to playIndia has a very big role to play
More opportunities even after 2012More opportunities even after 2012
Demand for CERs is likely to increase Demand for CERs is likely to increase
Market based instruments will play a key role Market based instruments will play a key role
Government and trade organizations have to put more Government and trade organizations have to put more
efforts to create strong awareness of CDM specifically efforts to create strong awareness of CDM specifically
for SMEsfor SMEs
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Secondly, the CDM project developers need to have certain capabilities such as:
• Analytical thinking• Mathematical ability• Understanding of
chemical processes and operations
• Creative opinion
Why all these to you??Why all these to you??
You have these qualities – MeaningYou have these qualities – MeaningYOU CAN DO IT !!YOU CAN DO IT !!
The audience I am addressing consists of Agriculture Specialists
The mother Earth needs our attention
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Some Important ReferenceSome Important Reference
unfccc.int unfccc.int cdmindia.nic.in cdmindia.nic.in cdmindia.com cdmindia.com UNEP Risoe Centre UNEP Risoe Centre
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Lets make the world a better place to live in Lets make the world a better place to live in
Thank youThank you
Shalin Shah
Programme Manager
Centre for Environment Education
Email: [email protected]
Mobile: +919879203702