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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
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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