Adaptation to Climate Change GTZ Initiatives in India

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Climate Change Adaptation and Mitigation (ADAM)
Pamposh Bhat Director Climate Change ,GTZ 2ND
June 2008
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The Greenhouse Effect
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What is Global Warming ?

• Until the industrial revolution concentration of
  Green House Gases (GHG) had remained relatively
  stable
• General expansion of economic activity increased
  population and use of fossil fuels is responsible
  for man made emission of GHGs
• As concentration of GHGs increase the warming
  effect increases
• The resulting increase in temperature may impact
  many climate parameters

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Likely Impacts of Climate Change
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Addressing Climate Change

• The possible options
• Mitigation of GHGs
• even if we stop all emissions today, 0.10C rise
  in temp per decade is predicted..(AR4)
• Adaptation to climate change is a must.

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Global Carbon Market

• With the threshold of 100 million issued CERs has
  been passed
• likelihood of a relatively stringent post-2012
  climate policy regime and thus encourage CDM
  demand
• Kyoto Mechanisms review will lead to a strong
  discussion about reform needs of the CDM in early
  2008.
• Carbon prices on the European Union's emissions
  trading scheme hit a two-year high in early
  trading on Thursday, as the most traded contract
  hit 26.55 euros (41.85) on the European Climate
  Exchange.
• The global carbon market more than doubled in
  value in 2007 to 64 billion, but that masked
  slow growth in actual greenhouse gas emissions
  cuts, the World Bank's carbon finance unit said
  on Wednesday.
• The UNFCCC track contains no numerical target
  values but a reference to the part of the IPCC
  report discussing necessary reduction levels. It
  contains the four building blocks adaptation,
  mitigation, technology transfer, and financing.

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Indias position in the Carbon Market

• India has consolidated its leadership position in
  terms of Host Country Approved CDM projects.
• As on 30 May 2008, a total 949 projects have got
  DNA approval.
• The estimated CER volume reaches 441 million
  (till 2012) if they successfully registered by
  CDM-EB.
• India is also the global leader in terms of
  registered projects with a total of 341 Indian
  projects (as of 30 May 2008).
• CERs have already been issued for 219 Indian
  projects.
• 41.85 millions CERS issued to Indian Projects as
  on 30 May 2008.
• The majority of registered project in India are
  renewable energy project focusing on hydropower,
  and wind energy

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Portfolio of Host Country Projects Approved
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Sector-wise break-up CERs expected till 2012
from HCA Projects as of 30 May 2008.
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Investment in CDM Projects
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International Statistics
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Expected Average Annual CERs from Registered
Projects till 2012
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CERs Issued by Host Party
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CDM Portfolio Global

• China and India account for 80 of market
• Volume from China from 73 in 2005 to 61 in 2006
• Volume from India increased to 12 in 2006 from
  3 in 2005

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Regulated and the Unregulated Sector

• In regulated markets
• Emissions trading can help achieve a given level
  of emission caps efficiently
• Environmental goals are achieved when
  policymakers set scientifically-credible emission
  reduction targets
• Unregulated or voluntary market - VERs
• Lacks a generally acceptable standard
  credibility
• Doesnt add to country emission targets

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CER Price

• CER price 1.5-5 Euro for post-2012 vintages,
• 6-8 Euro for medium-risk forwards,
• 9-13 Euro for low-risk forwards,
• 11-15 Euro for registered projects,
• 16-18 Euro for issued CERs,
• 17.3 Euro spot price on Nord Pool exchange

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Secondary Market for CERs

• The secondary market for CERs is expected to grow
  rapidly in the coming years
• Several buyers like the delivery certainty of
  guaranteed secondary CERs and are willing to pay
  a higher price for the certainty
• Secondary markets provide companies and funds
  with the opportunity to liquidate some part or
  all of their positions for cash
• Secondary markets provide access to a wide
  variety of regulated and unregulated markets

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Visible Changes

• Shift in project categories
• Increase in small scale projects
• Renewable energy/electricity based
• Biomass (gtcommunity based projects)
• Afforestation/Reforestation
• Investment pattern
• Financing sustainable technologies
• Carbon friendly investment choices
• Increased interest from financial institution in
  identifying projects with CDM opportunity

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PoA - Programme of Activities
PoA
Voluntary Coordinated Action by a Private or
Public Entity

• which coordinates and implements any
  policy/measure or stated goal ...
• which leads to GHG emission reductions or
  increase net GHG removals by sinks
• that are additional to any that would occur in
  the absence of the PoA
• via an unlimited number of CDM programme
  activities (CPAs).

CPA
CPA
CPA
CPA
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POA offers New Opportunities

• Programmatic CDM offers new opportunities in
  Small and Medium size industries ,Municipalities
  ,renewable energy
• GTZ is cooperating with India SME Technology
  Services Ltd to identify projects in Iron and
  steel, textile , Pulp and Paper ,Glass Foundry
  ,Steel Forging and Rerolling Sectors
• ASEM has CDM Cell in Panipat Textile Cluster
  manned by Zenith Consultancy Services
• Shortly ASEM will be opening CDM office in Steel
  ReRolling sector Jodhpur

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PoA for Energy-Saving Light Bulbs

• GTZ supports a PoA for the distribution of
  energy-saving light bulbs.
• The target is to replace 80 of incandescent
  light bulbs approximately 320 million light
  bulbs currently used by Indian households.
• Up to 80 individual projects will be implemented
  by regional power distribution companies, which
  will distribute energy-saving light bulbs at the
  price of incandescent light bulbs.
• The Indian Bureau of Energy Efficiency serves as
  the coordinating entity.

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PoA for Energy Efficient Buildings

• GTZ supports an India wide PoA targeting energy
  efficiency measures in commercial buildings
  (rehabilitation)
• The Indian Bureau of Energy Efficiency serves as
  the coordinating entity
• The PoA is based on a small-scale methodology and
  will include a set of clearly identified measures
• Typical Indian commercial buildings have an
  energy consumption level of 200 kWh/m2 which
  often can be reduced to the level between 120 and
  160 kWh/m2
• Initial focus on Governmental buildings
• PoA-DD currently under development by South Pole
  Carbon Asset Management Ltd.

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Opportunities in Forestry Sector

• GTZ ASEM -CDM Programme is already extending its
  technical cooperation to Government of Delhi for
  preparing CDM project of Asola Wildlife Sanctuary
  2055 Ha and ETF-Bhatti Mines /Dera Mandi 1932 Ha
  ,Total 3987 Has.
• This will be First state owned Afforestation and
  Reforrestation project of Delhi Govt
• PDD is ready and will be submitted for Host
  country approval in NCDMA June meeting.
• ASEM is committed to develop first Sustainable
  Management of Forest Project with MoEF for one
  selected state of India .

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Actors for Adaptation
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Adaptation Imperatives for India

• High vulnerability to climate change
• Reliance on climate-sensitive sectors (60
  rainfed area
• Over-stressed natural resources
• Large part of the rural population
• Identify and prioritize adaptation options in key
  sectors (e.g. heat and salt-resistant varieties,
  storm warning systems, water storage and
  diversion)
• Complement national development policies and
  mitigation measures

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Cont

• Adaptation requires resources of same order of
  magnitude as mitigation!
• No diversion of ODA/MFI resources from
  development, MDGs to adaptation
• 0.7 ODA target to be in any case met ASAP
• Additional resources may be raised through Annex
  I fiscal provisions and all instruments of global
  carbon market, not only CDM
• The most effective response strategy for
  anthropogenic climate change is poverty
  alleviation

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7 Major Components of Adaptation

• (i) Crop improvement research (22) (ii) Drought
  proofing flood control (19) (iii) Health
  improvement and prevention of disease (19) (iv)
  Risk financing (6) (v) Disaster management (6)
  (vi) Forest conservation (12). (vii) Poverty
  alleviation and livelihood preservation (30)
• (Figures in brackets indicate number of Schemes
  identified under each category)
• Climate proofing of Government Schemes

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Summary

• Many opportunities
• Demand could be substantial
• Market based instruments has greater role to play
• Increased evidence of building cost of mitigation
  reflecting in national plans and policies
• Mitigation funds to support Adaptation options
• Climate Change is recognized as most challenging
  environmental problem faced by humanity .

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Websites Capacity Building Mission

• www.cdmindia.nic.in website is maintained by
  GTZ-CDM India with collaboration of Ministry of
  Environment and Forests, Government of India that
  consist the Eligibility Criteria, Approval
  Process of CDM projects as well as Approved CDM
  Project by National CDM Authority. GTZ-CDM India
  regularly update the database for the approved
  projects.
• www.cdmindia.com website is also maintained by
  GTZ-CDM India that consists the list of Indian
  DOEs/Validators, Consultants and Capacity
  Building Institutions.
• Capacity Building Mission- GTZ-CDM India holding
  may Capacity Building Programme, International
  Workshop/Conference on Clean Development
  Mechanism and Climate Change with the Indian
  Industry like FICCI, ASSOCHAM, CII on the various
  sector of CDM Projects like Energy Efficiency,
  Renewable Biomass, Renewable Energy etc.
• Baker Mc Kenzie is currently developing an online
  CDM Rulebook which will be published at
  www.cdmrulebook.org/. To be informed about the
  launch date, register at www.cdmrulebook.org/Page/
  Register

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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.
• The Federal Ministry for Economic Cooperation and
  Development, BMZ, of the Government of Germany
  has provided 1.5 Million in support of GTZ-CDM
  India which will be now extended till 2012
• 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.
• BMZ has as bilateral cooperation provided 6
  million Euro for developing a Pilot Adaptation
  Project under Climate Change Division , Ministry
  of Environment and Forest

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• Thank you for your Attention