HOW COMPANIES CAN BENEFIT FROM IT

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CDM PROJECTS

• HOW COMPANIES CAN BENEFIT FROM IT ?

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Environmental Issues
GLOBAL WARMING
SUN
absorbed by gases resulting from
industrialization (CO2, CFCs, methane, nitrous
oxide, ground level ozone)
absorbed by natural gases in atmosphere (water
vapour, CO2, nitrous oxide,ground level ozone)
Re-radiated back to surface
Incoming solar radiation
?
Heat radiated back from surface
ATMOSPHERE
EARTH
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Climate Change - Its A Fact !
What is it about ?
a global challenge

• There is new and stronger evidence that most of
  the warming observed over the last 50 years is
  attributable to human activity.
• There is emerging evidence that some social and
  economic systems have been affected by the recent
  increasing frequency of floods and droughts in
  some areas.
• Available observational evidence indicates that
  regional changes in climate, particularly
  increases in temperature, have already affected a
  diverse set of physical and biological systems in
  many parts of the world.
• An increase of the global temperature by 1.4 -
  5.8C relative to 1990 levels within 2100 is
  expected.

Source IPCCs Third Assessment Report (TAR)
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Natural Greenhouse Effect
What is it about ?
a global challenge

• Greenhouse effect is natural
• Without it, average temperature would be about
  -18C.
• natural greenhouse effect enables life on earth
  with
• average temperature is about 15C.
• The natural greenhouse gases are
• Oxygen
• Ozone
• Carbon dioxide
• Water vapour

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Man-made Greenhouse Effect
What is it about ?
a global challenge

• Changes to the natural greenhouse effect are a
  result of man-made emissions of Greenhouse Gases
  (GHG)
• Carbon dioxide
• Methane
• Nitrous oxide (N2O)
• Hydro- Perfluorocarbons
• Sulphurhexafluoride (SF6)

Source IPCC
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Greenhouse Gases Carbon dioxide (CO2)
What is it about ?
a global challenge

• The main source of CO2 emissions is theburning
  of fossil fuels
• heating
• power generation
• transportation
• Deforestation
• CO2 has the largest impact on the greenhouse
  effect

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Greenhouse Gases Methane
What is it about ?
a global challenge

• Methane is formed when organic matter decomposes
  in the absence of oxygen
• wetlands
• rice-plantations
• landfills
• Emitted during extraction and transport of
  natural gas

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Greenhouse Gases Others
What is it about ?
a global challenge

• Nitrous oxide (N2O), Laughing gas
• is formed when bacteria transform nitrate from
  fertilisers
• Hydro- Perfluorocarbons
• used as cooling agents or for cleaning
• known for ozone layer depletion
• Sulphur hexafluoride (SF6)
• used as insulators in electric circuit breakers
• isolation gas (tennisball, sportshoes, windows)

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Greenhouse Gas Emission Reductions

• What is it about ?
• a global challenge
• answers to this challenge
• -the three Kyoto Protocol
  mechanisms

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The Kyoto Protocol (I)
What is it about ?
answers to this challenge

• The Kyoto Protocol makes the UNFCCC operational
  and legally binding.
• The industrialised countries commit themselves to
  reduce their collective GHG emissions by at least
  5 below 1990 emission levels.
• Industrialised countries defined in Annex I of
  UNFCCC or Annex B in Kyoto Protocol

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The Kyoto Protocol (II)
What is it about ?
answers to this challenge

• Actual emission reduction will be much larger
  than 5

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Numbers for industrialised countries
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Source ABB Corporate Research
GtC
2
1990
2000
2010
2020
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Annex I countries
UN Framework Convention on Climate Change signed
by 154 states
Annex I countries (industrialised
countries) commited themselves to reduce their
GHG emissions
Annex I
Non-Annex I countries (developing countries)
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The Kyoto Protocol (III)
What is it about ?
answers to this challenge

• Identifies three mechanism to supplement national
  actions to achieve real, long-term, measurable
  and cost-effective GHG reductions

• Clean Development Mechanism (CDM)
• Joint Implementation (JI)
• International Emission Trading

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Clean Development Mechanism - CDM (I)
What is it about ?
the 3 Kyoto mechanisms
Sponsor
Annex I/B
Developing countries
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Clean Development Mechanism - CDM (II)
What is it about ?
the 3 Kyoto mechanisms

• Criteria to be fulfilled to receive Certified
  Emission Reductions
• Assist host-country to achieve sustainable
  development
• Assist sponsor in achieving compliance with part
  of their emission reduction commitment
• Voluntary participation approved by the parties
• Real, measurable and long-term benefits related
  to the mitigation of climate change
• Reductions in emissions that are additional to
  any that would occur in the absence of the
  certified project activity

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TRADABLE UNITS
- Same representation

• Certified Emission Reduction Units (CER)
• 1 CER 1 Tonne CO2 equivalents

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TRADABLE UNITS
- Same representation

• In India on the Average
• 1MWh of Power 0.8 t CO2
• So saving of 1MWh will get you 1MWHx24x365x0.8
  CERs per year
• Current rate of CER Euro 18
• So yearly incomeRs.1x24x365x.8x18x62
• Rs. 7820928/-

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Emission factors for various Fuels

• The emission factors are given for different
  units, to aid interpretation. Users should be
  able to find appropriate fuel consumption data in
  one of the units mentioned. Once this is done,
  fuel consumption is multiplied by the appropriate
  factor.

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CDM Project Cycle
Sustainable Development outputs
Designated National Authority
I M P L E M E N T A T I O N
Baseline Study In Project Design
Validator DOE
EIA
Public stakeholders
CER's
Feasibility study
Buyers Brokers/ Investors/funds
Full Project Design Document
Executive Board
MONITORING
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Registration of CDM projects
The CDM registry is being constructed. It will
contain public information on all CDM projects
issuance, holdings, transfer and acquisition of
CERs At the EB6 , the following fees were
decided for the registration of a CDM project.
The fee for small-scale CDM projects has been
reduced to 5,000 US
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Total CERs Requested Vs. CERs Issued
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Type Of Projects

• Power Generation through Rice Husk
• Power Generation through Poultry Litter
• Switching Of Fuel Oil to Natural Gas
• Efficiency Improvement Projects

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Type Of Projects

• Opportunities in Distillery Industry

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Type Of Projects

• Methane avoidance
• Biomethanation
• Fossil Fuel saving
• Biogas and biomass based steam and power
  generation
• Biogas use for other purposes

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CDM Project Registered

• Sagar Industries Distilleries Pvt. Ltd, Nashik
• 147000 CER issued

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Type Of Projects

• QGS and Core Carbon X joint venture is a growing
  Carbon advisory company created to serve as the
  pre-eminent business-to-business resourced for
  companies to understand, mitigate and manage the
  transition to a greenhouse gas constrained
  future.
• Our team have executed more than 55 projects
  which are at different levels of registration.
• Vastly experienced in the Distilleries Sector