Clean%20Development%20Mechanism%20(CDM)

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Björn Zapfel UNFCCC Secretariat JI Sub-Programme http//ji.unfccc.int bzapfel_at_unfccc.int Panel discussionLow Carbon Generation Technology Carbon Forum America 2008 San Francisco, USA 26 February 2008
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Panel discussion LCGT Project-based mechanisms
Clean Development Mechanism (CDM) Credits (CERs)
for emissions avoided through sustainable
development projects in developing
countries Joint Implementation (JI) Credits
(ERUs) for emissions avoided through projects in
Annex I countries

• Basic principles
• Market mechanisms
• Lowest marginal cost of abatement
• Additionality to any ERs that would occur in the
  absence of the project
• Bottom-up approach, re-use and broad application
  principles for standards
• International supervisory and standard setting
  bodies (CDM EB, JISC)

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Panel discussion LCGT CDM General status

• CDM General status
• 948 projects registered to date
• 49 host countries
• 121,122,134 CERs issued
• gt 3000 projects in pipeline
• 2.7 billion CERs expected to end of 2012

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Panel discussion LCGT CDM General status II

• CDM Registered projects by sectoral scope
• Majority of registeredprojects (gt 50)in scope
  01(energy industries renewable/non-renewable
  sources)
• (JI PDD pipelinesimilar picture)

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Panel discussion LCGT CDM Methodologies

• CDM Methodologies
• Energy industries- renewable/non-renewable
  sources(37/34 gt 50 of registered projects)
• Electricity production from renewable energyUse
  of waste heat/gases to generate
  electricityCogenerationElectricity generation
  from captured methane from industrial,municipal
  and agricultural wasteIndustrial fuel switching
  from coal or petroleum fuels to natural
  gasImprovement in heat generation efficiency or
  switch to renewable biomass for heatingExpanding
  grid to isolated grids or less efficient self
  generating consumersIntroduction of centralized
  and efficient district heating systemsBetter/more
  efficient technologies for generating power from
  fossil fuelsManagement systems to optimize power
  generation from hydro resources
• Manufacturing industries(19/17 ca. 6 of
  registered projects)
• Mitigation of CH4 emissions in the wood
  carbonization for charcoal productionUse of feed
  stock in pulp and paper production or in bio-oil
  production to avoid emissions from biomass
  wastesReplacement of SF6 with alternate cover
  gas in the magnesium industryPartial
  substitution of fossil fuels with alternative
  fuels or less carbon intensive fuels in cement
  manufactureIncreasing the blend in cement
  production or the use of alternative raw
  materials that do not contain carbonates for
  clinker manufacturing in cement kilns

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Panel discussion LCGT CDM Methodologies II

• Waste handling and disposal (12/11 ca. 21 of
  registered projects)
• Covering project activities that introduce
  technologies for better management of industrial,
  municipal, agricultural waste and capture of
  methane from waste, use of waste handling
  measures that avoid methane generation
  (composting, incineration to generate power,
  making fuel out of waste, using agriculture waste
  as raw material in production of pulp, use of
  aerobic treatment systems, gasification of waste,
  etc), methane capture from waste water, animal
  manure management and methane capture, use of
  captured methane for household/transportation
  use, etc.
• Chemical industries(13/12 ca. 2 of registered
  projects)
• Covering project activities such as secondary
  catalytic N2O destruction in nitric acid plants,
  substitution of CO2 from fossil or mineral origin
  by CO2 from renewable sources in the production
  of inorganic compounds or the catalytic N2O
  destruction in the tail gas of nitric acid or
  caprolactam production plants
• Energy efficiency of equipment and industry
• Demand side efficiency
• Transportation
• Capture of CO2
• Flared/vented gas
• Mine methane
• Biofuels

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Panel discussion LCGT ACM0013

• ACM0013 Methodology for new grid connected
  fossil fuel fired power plants using a less
  GHG intensive technology
• Supports the transformation from (e.g. overcome
  RD barriers) low efficiency technologies to more
  efficient fossil fuel based electricity
  generation technologies
• Eligible for
• Construction operation of a new fossil fuel
  fired grid-connected generation plant
• All possible fossil fuel efficiency improvement
  measures
• Limited too
• New electricity generation plants - no retrofit
  or co-generation
• Most plausible baseline scenario is the
  construction of (a) new power plant(s) using the
  same fossil fuel type
• Baseline fuel must be used in more than 50 of
  total generation by utilities in the geographical
  area
• Benchmark emission factor determined based on the
  performance of the top 15 power plants that use
  the same fuel as the project plant and any
  technology available in the geographical area
• Baseline needs to be reassessed for each
  crediting period
• Incentive to improve efficiency of fossil fuel
  based electricity generation technologies, but
  decreasing with overall increased efficiency

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Panel discussion LCGT Technology transfer - trends

• CDM Technology transfer (trends)
• Trends of UNFCCC study to be published soon
• Technology transfer (TT) import of technology or
  knowledge or both
• Basis Statements of project participants in PDDs
  of projects in pipeline
• Roughly 40 of all analyzed projects (covering
  64 of annual emission reductions) claim TT
• Likelihood of TT increases with project size and
  involvement of foreign project participant
• Pattern heterogeneous by project type, but
  figures relevant for LCGT in many cases above
  average

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Panel discussion LCGT Conclusion
Conclusion CDM (and JI),as market based
mechanisms using a bottom-up approach,have
proven as a means toenable low carbon generation
technologies, as well as corresponding
technology transfer