Adaptation to Climate Change GTZ Initiatives in India

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CDM in India and the Global Carbon Market
Presentation for Carbon Markets India Sep. 25,
2007 Pamposh Bhat Director, Climate Change, GTZ,
New Delhi Pamposh.Bhat_at_gtz.de
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Topics

• Latest global trends and Indias position
• The CDM in India in the global context
• The importance of India to global carbon
  mitigation
• Working with Indian industry to take the process
  forward

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Background

• Indications of climate change due to emissions of
  greenhouse gases become stronger
• Kyoto Protocol sets emission targets until 2012
• Kyoto Mechanisms are the first international
  market for environmental services
• Emissions trading since 2005 cornerstone of EU
  climate policy
• Negotiations for international post-2012 climate
  policy regime have started

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Supply and Demand on the Kyoto Market(billion t
CO2 eq. 2008-2012)
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EU Climate Policy Targets

• Limitation of global warming to 2C compared to
  preindustrial level
• Emission reduction by 20 to 2020 even if other
  countries do not set targets
• 30 reduction if other industrialized countries
  participate in regime
• 20 improvement in energy efficiency compared to
  business-as-usual by 2020
• 20 share of renewable energy in 2020
• Developing countries to participate
• Advanced countries through commitments
• Low-income countries through CDM?

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Indian Position on Commitments

• India is a major emitter (3-4 of global
  emissions)
• Response Indias per-capita emissions are 1/4th
  of global, 1/25th of US, 1/12th of Japan, 1/15th
  of EU-15
• India is inefficient in terms of energy
  intensity of GDP
• Response Indias energy intensity of GDP at 0.16
  kgoe/ GDP (year 2000 PPP), compares favourably
  with EU-15, and is same as Germany

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Global Transactions 2004-7 (million t CO2)
Total 94 million t in 2004, 800 million t in
2005, 1.6 billion in 2006, 1.2 billion first half
2007
Source Point Carbon
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CER and ERU Demand (million )
Total gt 5 billion
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The CDM Gold Rush Since May 2005
First Unilateral Oroject Registered
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Issued CERs (Host Countries)
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Expected CERs (Host Countries)
Registered and Submitted Projects Until 2012)
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Challenges for CDM in India

• High rejection rate of Indian CDM projects
• 55 out of 136 projects that have been available
  for public comments before the end of 2005 but
  not been registered so far are from India
• Cut-throat competition of consultants leads to
  assembly line PDD writing
• Consultants 100 success-fee based, meaning that
  there are no resources for hiring specialists
• Consultants hide behind the companies
  implementing the projects ( xxx and associated
  consultants Ernst Young)

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Challenges for CDM in India II

• What is an additional CDM project under the
  Indian context?
• Wind?, hydro?
• Cut-throat competition of validators leads to
  sloppy validation procedure
• Validators increasingly rely on untrained local
  staff to reduce costs
• Can PoAs mobilize a new class of CDM activities
  in India?
• Compact fluorescent lamp distribution coordinated
  by BEE

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Working with Industry

• Supporting new methodology development
• Greenfield supercritical coal power plants
• Non-renewable biomass
• Afforestation project for City Governments
• Supporting programme development
• SME clusters
• Improving quality of PDDs
• Training courses

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Challenge called Climate Change

• Destructive changes in temperature ,rainfall and
  agriculture were now to occur several decades
  earlier than thought
• Till Today ,Mitigation has all the attention, but
  we cannot mitigate out of this problem focusing
  only on the ways to cut emissions
• There is a urgent need to adapt other wise we
  have to choose between a future with a damaged
  world or a severely damaged world
• This requires international attention to the
  problem of reduced crop yields, water shortages
  ,health and damaged ecosystems with direct
  impact to economic development .
• World governments need to focus on helping
  nations in developing world to cope with the
  Predicted impacts of climate change.

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• THANK YOU
• FOR YOUR ATTENTION !
• Ms. Pamposh Bhat
• Director, Climate Change Unit
• German Technical Cooperation GTZ
• B  5/1 Safdurjung Enclave
• New Delhi, 110029, India
• Tel   [phone], Fax  91 11
  46027620
• Email  pamposh.bhat_at_gtz.de, pbhat_at_cdmindia.com