Carbon Trading Opportunities for Indian Industries and Rail_274

8/6/2019 Carbon Trading Opportunities for Indian Industries and Rail_274

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Kyoto Protocol

igned in 1997; in force since 16 February 2005

atified by >160 countries

-Major non-participants: USA and Australia

ndustrialised (= Annex 1) countries are to to reduce their greenhouse gas

emissions by 5% below 1990 levels in 2008-12

- Individual, quantified emission targets for each industrialized country

- Six greenhouse gases covered: CO2, CH4, N2O, HFC/PFC, SF6

Flexibility mechanisms for financing emission reductions abroad:

- Clean Development Mechanism (CDM)

- Joint Implementation (JI)-


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CDM Objectives and Organization

Principle: Emission reductions in developing countries can be certified and sold- Buyers= Annex 1 governments and companies located in these countries

Twin objectives:

- Help buyer countries meet their GHG reduction objectives cost-effectively

- Contribute tosustainable development of the host countries

Rules, modalities and procedures are defined in:

- Kyoto Protocol (1997)

- Follow-up decisions of COP, especially Marrakesh Accords (2001), and

- Decisions of CDM Executive Board

CDM Executive Board:

- Responsible for further development of CDM rules, and supervising

implementation

- Composed of 10 Members + 10 Alternates

- Reports to the Conference of the Parties (COP)


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Eligible Project Types

In principle, any project reducing Kyoto gases in theatmosphere:

- Kyoto Gases: CO2, CH

4, N

2O, HFC/PFC, SF

6

Carbon sinks are included:

- Afforestation, reforestation

- Technical sequestration (rules to be established)

Exclusions:

- Nuclear energy

- Avoided deforestation (Forest protection)

Tradable unit: Certified emission reductions (CER)

- 1 CER equals 1 metric tonne of CO2-equivalent (CO

2e)


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Global Status CDM Today

World / India CDM Status (Projects)Details India Worldwide India (%)

Registered Projects 255 742 34%

Issued CERs (Projects) 124 304 41%

Issued CERs (Numbers) 27,229,135 63,484,663 43%

Registered projects: 742

Expecting 592 million CERs by 2012

Host countries: 34

Buyer countries: 13 Issued CERs for 304 Projects: 63,484,663

CER price: 5-6 Euro for medium-risk forwards, 8-10 Euro for low-riskforwards, ~11 Euro for registered projects , 12-13 Euro for issuedCERs


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Global Registered Project Activities by

Host Party


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Host Country Approved Projects, as on

26th July -2007 - Sectorwise


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Sector-wise break-up: CERs expected till

2012 from Host Country Approved projectsas of 26th July2007


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Baseline and Additionality of CDM Projects

Year

G

HGe

missions

[tCO

2-eq

] Emissions baseline

Emissions with project

Additional emission

reductions

Project

implementation


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Project Design Document

Main document in the CDM project cycle

Standardized format:

- General description of project activity

- Baseline methodology

- Crediting period

- Monitoring methodology and plan

- Estimation of GHG emissions

- Environmental impacts

- Stakeholders comments

Format available at http://cdm.unfccc.int
http://cdm.unfccc.int/http://cdm.unfccc.int/


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Host Country Approval

Formal confirmation by the designated national authority(DNA) of the hosting country that the project meets

sustainable development objectives

In India, Ministry of Environment & Forest is appointed as theDesignated National Authority (DNA) for CDM


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Validation

Independent assessment by Designated Operational Entity(DOE) that project meets criteria of the Kyoto Protocol

DOE shall :

- Review the PDD and supporting documentation

- Conduct site visits- Interact with stakeholders

- Source other relevant additional information from various sources

- Publish the PDD in the web for 30 days for international stakeholder

comments

A successfully validated project can be submitted to CDM EB forregistration.


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Crediting Periods

CERs can be generated as from now:

- Banking by buyerfor use towards compliance in 2008-12

- Banking by project proponent for sale in later years

Duration of crediting periods:

- Fixed crediting period of up to 10 years, or

- Renewable crediting periods of up to 7 years (maximum = 3 x 7

years)

Start of crediting period:

- The later of (i) CDM registration, and (ii) start of project operation

- Possibility to claim CERs retroactively for emission reductions

achieved since 2000 has expired at the end of 2005


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Small-Scale CDM Projects

Size limits for for small-scale projects:- Type 1: Electricity generation from renewable sources, up

to 15 MW

- Type 2: Energy efficiencyprojects saving, up to15 GWhp.a.

- Type 3: Other projects which reduce emissions, and emitlessthan 15,000 t CO

2e p.a.

- CERs of Type 3-projects are capped at 25,000 t CO2e

SSC projects benefit from simplified rules :- Simplified PDD

- Same operational entity may undertake validation andverification / certification


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CDM Additionality ToolAdopted by CDM Executive Board, Oct. 2004

Step 0: Eligibility for early CDM

Step 1: Identification of lawful project alternatives

Step 2: Investment analysis, or

Step 3: Barrier analysis

Step 4: Common practice analysis

Step 5: Impact of CDM Registration

Forsmall-scale projects, sufficient to demonstrate thatbarrierswould have led to higher emissions (in the absence

of CDM)


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3 Billion (INR 17,500 crore)

Committed to Buy CERs

Source: State of the Carbon Market 2005, The World Bank, Washington, DC USA

650

100

270

140

130

110100

455

210

180

140

115

143

W orld BankEBRDCompania Andina de FomentoKfWItalyIrelandDenmarkAustriaDutch tendersBelgiumSwitzerland

SpainFranceLuxembourgSwedenFinlandGermany, NorwayGGAP (Natsource)EPIC SpecialistsFE Clean Energy GroupEuropean Carbon FundIcecapJapan Carbon FundClima te Change CapitalMerzbac h Group

EnelNEFCOEcosecurities


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CDM Capacity Building in India and

Role of GTZ CDM-India The Indian DNA is proud to have been titled the most active DNA

amongst all host countries (Source: Point carbon). It has been working

in close association with multilateral and bilateral agencies for capacity

building.

It has established a technical cell in the National CDM Authority for

cooperating with Government of India for capacity building on CDM

project development in various sectors.

GTZ CDM-India has emerged in last Four years as one of the main

CDM Knowledge Management Centre in India. It is a neutral entity

working to develop the Carbon Market in India. It has a dedicated team

of national and international experts which provide technical support.


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New initiatives in EE Projects

Preparation and Approval of CFL Methodology by EB.

Programmatic CDM documentation of Prime Ministers CFL Programme .

Preparing and testing Methodology for Energy Efficient refrigerators

Identification & development of Energy Efficiency projects for SME Clusters with

SIDBI & BEE

Potential EE projects will be from Iron & Steel, Cement, Pulp & Paper and GlassFoundries.

Testing New Methodologies of Super critical and R&M plant for NTPC


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Approved Baseline & Monitoring Methodologies

Total Approved Methodologies 81

- Approved Consolidated Methodologies 11

- Approved Large Scale Methodologies 46

- Approved Small Scale Methodologies 24


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Opportunities for Indian Railways

Indo-GermanEnergy Programme ,CDM India ,BEE ha beenassigned to assess what type of CDM Project could be promising for

Railways .

Indian railways is enterprise with 65,000km of track with 1.4 million

employees has annual consumption of 13TWh electricity and 2.6million tons diesel

Scope is of Energy Efficiency CDM Project .eg regenerative brakingfor electric locomotives or innovative engines .

Prespectives Climate Change is the consultancy based in Zurichworking on this assignment


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Gobal CDM Projects in Railways In Patagonia, Argentina, a railway project is being designed to be

powered by hydro and wind energy.

In Patagonia, the consultant company Karp International SA isconsidering an innovative project for an electric low power train, with the

track of the train on elevated flatlands parallel to the coast. A series of

wind generators will be covering different spans. An interesting detail isthe battery: the accumulators of energy will be reservoirs filled with

seawater by means of an hydraulic pump. The water will be then

turbinated as demand for electricity appears. The design and

operational aspects of this project will request a complete coordination

with natural elements.

The designers are considering independent wind generators of 0.6 Mw.each, the three cars-train power should be around 190 kW, associated

with a series of small hydropower schemes which will be filled using the

energy surplus from wind generation.


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Thanks for your attention

Ms. Pamposh Bhat, Director,

Climate Change, B 5/1 (GF), Safdarjung Enclave,

New Delhi - 110029

Tel: +91-11-4602 7617 / 7618,

Fax: +91-11-4602 7620Web: www.cdmindia.com

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Carbon Trading Opportunities for Indian Industries and Rail_274

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