A regional response to global climate change

1
A regional response to global climate change

• The Baltic Sea region as a testing ground for for
  the Kyoto protocol
• A climate policy initiative by the Baltic Sea
  Region Energy Cooperation BASREC -
• under the CBSS umbrella

2
Starting points

• Climate change is a global issue.
• Reduction of emissions of greenhouse gases is the
  main abatement instrument
• From a climate point of view it does not matter
  where you reduce emissions - the effect is the
  same on the GHG concentration in the atmosphere
• Cost-efficiency is of major importance
• The Climate convention and the Kyoto protocol
  therefore acknowledge the use of flexible
  mechanisms like joint implementation

3
Baltic Sea Region a testing ground for mechanisms

• Tasks decided by the BASREC energy ministers
• Write a JI handbook
• Simulation of emissions trading and arranging a
  conference on the results
• Prepare and set up a JI investment facility
• Prepare a Testing Ground Agreement
• Information www_at_basrec.org and www_at_cbss.org

4
The BASREC JI handbook

• First version of the handbook now ready but
  on-going process, subject to revisions
• Interpretation of the international agreements
  Kyoto Protocol and the Marrakech Accords (COP7),
  Nov 2001
• Covers two key areas
• Requirements that Parties have to meet to
  participate in JI - BSR status in meeting them
• Advice to project developers on the Track 2
  procedures, steps to a succesful ERU purchase
  agreement
• translated into Russian and available on website

5
Testing ground framework agreement
Objectives

• to build capacity and competence to use the Kyoto
  mechanisms and promote common understanding of
  concepts
• to promote realisation of high quality projects
  in the energy sector generating emissions
  reductions
• to gain experience with the Joint Implementation
  (JI) mechanism in the energy sector
• to develop methods and procedures
• to collaborate in addressing administrative and
  financial barriers, especially regarding small
  scale JI projects
• to facilitate generation, ensure issuance and
  transfer of ERUs from JI projects
• to implement projects early and offer credits for
  emission reductions prior to 2008 by appropriate
  means

6
The BASREC Testing Ground Agreement

• Open to participation for BASREC governments and
  companies ( and others! )
• As if application of Kyoto rules before start
  in 2008 on projects within the energy sector.
  From 2008 and onwards Kyoto rules apply in full
• Projects to be approved by investor and host
  country
• Core element already decided Testing Ground
  Facility to invest in JI projects for 10-20
  million Euros in BASREC TGA countries
• Model project agreements and handbook to support
  activities

7
Testing Ground Facility

• Managed by NEFCO Nordic Environment Financing
  Corporation
• Decision by the Nordic Council of Ministers
• Initially BASREC investor countries
• Open for others
• Fund Management Agreement with NEFCO being
  finalized right now

8
BASREC work ahead in the climate field

• Implement the testing ground agreement and
  facility (the agreement has been signed by 9
  countries and the TGF is being capitalised)
• Analyse effects of EU accession
• Revise and improve the JI-handbook as needed
• Baseline development in Arkangelsk
• Continue building capacity and knowledge