Perspective of JI in Hungary

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Perspective of JI in Hungary
József Feiler Climate Change Unit
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• JI in Hungary

• 1. Experiences with JI projects
• 2. Criteria for project approval
• 3. Potentials
• 4. Status for Track 1

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Experiences with JI projects

• Recent JI statistics
• 36 Project Idea Notes received until now
• 27 Letters of Endorsement / Letters of no
  Objection issued
• 14 Letters of Approval issued

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Experiences with JI projects
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Experiences with JI projects
Summary table number of projects
Project partner (country) Projects endorsed Projects approved
ERUPT (The Netherlands) 10 5
Austrian Government 10 4
PCF (World Bank) 1 1
Other 6 4
Total 27 14
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Criteria for project approval

• Additonality
• 1. Environmental additionality the project
  results in emission reductions compared to BAU
  scenario
• Financial additionality the project would not
  have taken place without the additional financial
  resources provided by carbon financing
• Legal additionality the investment is not
  required by law
• No LoE for already running projects
• No LoE for projects receiving other forms of
  investment aid

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Potentials

• Types of projects NOT endorsed
• Fuel switching to gas no longer supported due to
  lack of financial additionality
• Biomass potential from wood waste from forests
  already exhausted by 5 relatively large biomass
  JI projects
• Large hydro projects not supported by current
  government due to environmental considerations (gt
  5 MW)
• Effect of EU ETS and linking on power sector and
  some district heating installations

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Potentials

• Types of projects currently endorsed
• Landfill gas utilisation in deposits to be closed
  before 2009
• Wind projects with energy storage
• Biomass sink together (no projects to date)
• Geothermal and solar power (no projects to date)
• Methane capture in agriculture
• Demand-side energy saving projects (no projects
  to date)
• Off-grid solar power and wind power (no projects
  to date)
• Sink projects forestation (no projects to date)
  
• So far, most projects have been renewables

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Potentials

• Types of projects MAYBE endorsed
• Wind power
• a question of system operation
• financial additionality depends on new feed-in
  tariff regulations for renewables feed-in
  tariff of 23 HUF/kWh (9,2
  Eurocent/kWh)
• Biogas Plants

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Status for track 1

• National System
• NS in Hungary currently
• No responsible body for inventory preparation by
  law
• No QA/QC yet
• No uncertainty management
• Basic management system
• A staff of 1,5 persons
• Upgrade of the system is likely in early 2006
• AA amount
• EU deadline 15th June 2006, UNFCCC deadline 31st
  of December 2006
• Hungary is likely to meet both deadlines
• National Registry
• UK registry currently for EU ETS

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Obstacles Linking directive

• Direct double counting Art 11b (3) Until 31
  December 2012, for JI and CDM project activities
  which reduce or limit directly the emissions of
  an installation falling within the scope of this
  Directive, ERUs and CERs may be issued only if an
  equal number of allowances is cancelled by the
  operator of that installation.
• The future of JI with direct linkage to the EU
  ETS sector depends on mode of allocation and the
  difference between the price of EUAs and ERUs.
• Indirect double counting Art 11b (4) Until 31
  December 2012, for JI and CDM project activities
  which reduce or limit indirectly the emission
  level of installations falling within the scope
  of this Directive, ERUs and CERs may be issued
  only if an equal number of allowances is
  cancelled from the national registry of the
  Member State of the ERUs or CERs origin.
• The future of JI with indirect linkage to the EU
  ETS sector depends on political feasibility of
  including more projects and reducing number of
  allowances elsewhere within the total amount.

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Scenarios for double counting...
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• Thank you for your attention!
• József Feiler, Hungary
• feiler_at_mail.kvvm.hu