1 Clean Development Mechanism & Agriculture Sector Shalin Shah – Programme Manager Industry Initiatives Programme Centre for Environment Education.

1

Clean Development Mechanism

& Agriculture Sector

Shalin Shah – Programme Manager

Industry Initiatives Programme

Centre for Environment Education

Centre for Environment EducationCentre for Environment Education

Background for presentationBackground for presentation

There is enough discussion on Climate There is enough discussion on Climate Change, Global Warming world over.Change, Global Warming world over.

So I will not discuss anything on the basics of So I will not discuss anything on the basics of Climate Change.Climate Change.


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Mitigation of Global Warming

Kyoto Gases & GWP

The CDM – what & how?

The CDM project Cycle

India’s Position

Types of CDM projects

OutlineOutline


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Mitigation of Global WarmingMitigation of Global Warming

To tackle the challenges posed by global warming (climate change), United Nations made an agreement at the ‘ United Nations Conference on Environment and Development’ in 1992 in Rio De Janeiro, Brazil – a conference popularly known as the “Rio Earth Summit”. That agreement was “The United Nations Framework Convention on Climate Change” (UNFCCC).


1988

1990

1992

1997

2005

20082012

IPCC constituted

IPCC GHG inventory report

Rio Earth Summit & birth of UNFCCC

Kyoto Protocol adopted

Kyoto Protocol comes into force

First commitment period starts

First commitment period ends

……22 year story


UNFCCCUNFCCC

Signed by 154 states (plus the EU) in 1992 foundation Signed by 154 states (plus the EU) in 1992 foundation of global efforts to combat global warming.of global efforts to combat global warming.

Objective: “ The stabilisation of greenhouse gas Objective: “ The stabilisation of greenhouse gas (GHGs) concentrations in the atmosphere at a level (GHGs) concentrations in the atmosphere at a level that would prevent dangerous man made interference that would prevent dangerous man made interference with the natural climate system. ”with the natural climate system. ”


UNFCCC Members


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Mitigation of Global WarmingMitigation of Global WarmingKyoto Protocol

•Amendment to the UNFCCC outlined in 1997 in Kyoto, Japan

•Commitment for 38 developed countries to reduce GHG emissions by 5.2% relative to 1990 levels

•It must be achieved by 2008 – 2012 – first commitment period

•Developed countries – bound with targets – Annex I countries – Such as: UK, Europe, Australia etc.

•Developing countries – no targets – non annex I countries – Such as: India; Pakistan; China; Thailand; Malaysia; Mexico; Brazil etc.


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Kyoto Gases & GWP



India’s position


OutlineOutline


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Kyoto Gases & GWPKyoto Gases & GWPThere are over 30 atmospheric greenhouse gases…But only 6 attract CC, so called ”Kyoto Gases”

• Carbon Dioxide (CO2)

• Methane (CH4)

• Nitrous Oxide (N2O)

Relevant to bio-carbon & industrial projects

Relevant to industrial projects

• Perfluorocarbons (CXFX)

• Hydrofluorocarbons (CXHXFX)

• Sulphur Hexaflouride (SF6)

Each of these gases has a different warming potential


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Each of these gases has a different ‘radiative forcing’ capability and a different

atmospheric residence time

Need for a ‘common currency’, so that all such Kyoto gases are denominated in the same

way

Solution: develop a relative scale, using CO2 as a reference gas

Kyoto Gases & GWPKyoto Gases & GWP


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Relative scale – everything is

measured relative to CO2

e.g. Methane is 21 times more potent as a Green House

Gas than CO2

e.g. Sulphur Hexafluoride is

23,900 times more potent!

Kyoto GasKyoto Gas(Green (Green

House Gas)House Gas)

Global Global Warming Warming Potential Potential

(GWP)(GWP)

COCO22 11

CHCH44 2121

NN22OO 310310

PFCPFC 6500 – 92006500 – 9200

HFCHFC 140 – 11700140 – 11700

SFSF66 2390023900

Kyoto Gases & GWPKyoto Gases & GWP


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Kyoto Gases & GWP

The CDM – what & how?The CDM – what & how?


India’s Position


OutlineOutline


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Clean Development MechanismClean Development Mechanism‘Flexibility Mechanisms’ of Kyoto Protocol

Clean Development Mechanism(Achieving part of reduction obligations of developed

countries through projects in developing countries that reduce GHG emissions) It is defined under Article 12 of the

Kyoto Protocol

Emission Trading(Trading of emission allowances between developed

countries)

Joint implementation(Transferring emission allowances between developed nations, linked to specific emission reduction projects)


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Developed countries can

reduce emissions

anywhere in the world

They can count these

reductions towards their own targets

CDM allows developed

countries to generate CC

(Certified Emission

Reductions, CERs) in

developing countries

Advantages for developed countries:

relatively low-cost & politically acceptable

Advantages for developing countries:

inward investment, environmental &

technology benefits

Clean Development MechanismClean Development MechanismPurposes of CDM – two primary goals


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Generation of CC

GH

G e

mis

sio

ns

Historical Trend

Project start

Project start

Carbon credits (CERs)

Carbon credits (CERs)

Time

Clean Development MechanismClean Development Mechanism

CERs from a CDM project are calculated as:

CER = BE – PE The Baseline Emissions (BE) is the amount of GHG that would have been emitted to the atmosphere in the absence of the CDM project activity.

PE is the Project Emissions


What is Carbon Credit ?What is Carbon Credit ?Carbon credits are reduction in emission of GHGs Carbon credits are reduction in emission of GHGs

caused by a projectcaused by a project

1 CER = 1 tonne of CO2 equivalent (e) reduction 1 CER = 1 tonne of CO2 equivalent (e) reduction

1 CER = 1 Carbon Credit1 CER = 1 Carbon Credit1 VER = 1 Carbon Credit 1 VER = 1 Carbon Credit

( Earned Through Voluntary Route )( Earned Through Voluntary Route )__________________________________________________________

CER – Certified Emission ReductionCER – Certified Emission Reduction VER – Voluntary Emission Reduction VER – Voluntary Emission Reduction


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Five major criteriaFive major criteria

a) GHG reduction - real and measurablea) GHG reduction - real and measurable

b) Contribution to the sustainable development b) Contribution to the sustainable development of the host countryof the host country

c) No “diversion” of official development c) No “diversion” of official development assistanceassistance

d) Demonstration of Additionalityd) Demonstration of Additionality

e) Project after 2 August 2008 – Inform UNFCCC e) Project after 2 August 2008 – Inform UNFCCC within Six monthswithin Six months

Clean Development MechanismClean Development MechanismQualification for CDM Project


CDM – Cancun outcomeCDM – Cancun outcome Issue - Continuation of CDM Post 2012 Progress / Decisions - Indications CDM

will be part of new post-2012 scheme, despite on-going uncertainty over the future of the Kyoto Protocol

RemarksCancun conference decided that next year (at the next Climate Change Conference in South Africa), one or more new market based mechanism will be established.Any such new mechanism will maintain and build upon existingmechanisms, including those established under the Kyoto Protocol (like CDM)


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Kyoto Gases & GWP



India’s position


OutlineOutline


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Three major credentialsThree major credentials

Project Idea Note (PIN):Project Idea Note (PIN): It includes the basic information It includes the basic information and basic calculations to check the viability of the proposed and basic calculations to check the viability of the proposed project. It is not a mandatory document.project. It is not a mandatory document.

Project Concept Note (PCN):Project Concept Note (PCN): It includes basic It includes basic information about project and project developers, information about project and project developers, technology, finance, sustainable development criteria, technology, finance, sustainable development criteria, project risks, baseline methodology etc. Mandatory project risks, baseline methodology etc. Mandatory document required for HCAdocument required for HCA

Project Design Document (PDD):Project Design Document (PDD): It is a project specific It is a project specific document which included expected emission reduction document which included expected emission reduction calculations and monitoring plan along with the elaborated calculations and monitoring plan along with the elaborated information provided in the PCN. Mandatory document information provided in the PCN. Mandatory document required by NCDMA; DOE and CDM EBrequired by NCDMA; DOE and CDM EB

CDM Project CycleCDM Project Cycle

A) Project Design


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B) Host Country Approval


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B.B. Validation:Validation: Once the PDD has been completed and the HCA has been Once the PDD has been completed and the HCA has been received, all documents along with HCA letter have to be submitted to received, all documents along with HCA letter have to be submitted to DOE (Designated Operational Entity) for review and approval DOE (Designated Operational Entity) for review and approval ((ValidationValidation).).

C.C. Registration:Registration: The DOE submits the validation report, validation opinion The DOE submits the validation report, validation opinion and a request for registration to the CDM EB. and a request for registration to the CDM EB. RegistrationRegistration of project by of project by the CDM EB is an act of formal acceptance of the validated project. the CDM EB is an act of formal acceptance of the validated project.

D.D. Project Implementation & Monitoring:Project Implementation & Monitoring: Once the project has been Once the project has been registered, it can be registered, it can be implementedimplemented. From the point of implementation on, . From the point of implementation on, the project developer needs to the project developer needs to monitormonitor the project performance, the project performance, according to the procedures laid out in validated monitoring plan of according to the procedures laid out in validated monitoring plan of PDD. PDD.

D.D. Verification & certification:Verification & certification: The DOE The DOE verifiesverifies the data collected by the data collected by the project developers according to the monitoring plan and the project developers according to the monitoring plan and certifiescertifies the the total emission reductions actually occurred during the specified time total emission reductions actually occurred during the specified time period. period.

E.E. Issuance of CERs:Issuance of CERs: Based on the DOE certification, CDM EB Based on the DOE certification, CDM EB issues issues the the CERs to the project proponent.CERs to the project proponent.

CDM Project CycleCDM Project Cycle


Crediting periodCrediting period

CDM mitigation projects

• Project developers have two crediting period options:

– A maximum of 7 years, which can be renewed up to 2 times(i.e. a potential total crediting period of 21 years)

– A maximum of 10 years, with no option for renewal

CDM sequestration projects (forestry)

• Project developers have two crediting period options:

– A maximum of 20 years, which can be renewed up to 2 times(i.e. a potential total crediting period of 60 years)

– A maximum of 30 years, with no option for renewal


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Kyoto Gases & GWP



India’s position


OutlineOutline


Per Capita COPer Capita CO22 Emissions Emissions

0

5

10

15

20

25

India China Germany Japan U.S.A.

1.31

4.91

10.069.54

19.18

Source: EIA 2008


Country Total Emissions (MMtCO2) Per Capita Emissions (Tons/Capita)

1. China 6534 4.91

2. United States 5833 19.18

3. Russia 1729 12.29

4. India 1495 1.31

5. Japan 1214 9.54

6. Germany 829 10.06

7. Canada 574 17.27

8. United Kingdom 572 9.38

9. Korea, South 542 11.21

10. Iran 511 7.76

11. Saudi Arabia 466 16.56

12. Italy 455 7.82

13. South Africa 451 9.25

14. Mexico 445 4.04

15. Australia 437 20.82

16. Indonesia 434 1.83

17. Brazil 428 2.18

18. France 415 6.48

19. Spain 359 8.86

20. Ukraine 350 7.61

Source: EIA 2008

TOP 20 Emitters of the World


The CDM project pipelineThe CDM project pipeline

Hydro26%

Biomass energy16%

Wind12%

Energy efficiency(own generation)

9%

Landfill gas, 8%

Biogas, 7%

Agriculture, 6%

Energy efficiency(industry), 4%

Fossil fuel switch3%

N2O2%

Other7%


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First registration: 8th March, 2005

First CER issued: 21st August, 2005

Registered projects: 513 projects (as of July, 2010)

HCA projects: 1704 projects (as of July, 2010)

Estimated CER volume: 441 million CERs (39690 Crore INR, till 2012) if they are successfully registered by CDM-EB

CERs issued: ~79.11 million CERs

India’s PositionIndia’s Position

The majority of registered project in India are renewable energy project focusing on hydropower, and wind energy


India offers vast untapped India offers vast untapped market for Carbon Tradingmarket for Carbon Trading

India today manufactures >25 million India today manufactures >25 million tons of steel.tons of steel.

Installed capacity of electrical power Installed capacity of electrical power generation of >110,000 MWgeneration of >110,000 MW

Produces over >200 million tons of Produces over >200 million tons of food-grainsfood-grains

With GDP growth of 8.5% against the With GDP growth of 8.5% against the energy consumption growth rate of energy consumption growth rate of 7.5%7.5%


India offers…..cont.India offers…..cont. Leading sectors, having GHG Mitigation Leading sectors, having GHG Mitigation

potential include energy efficiency (45%), potential include energy efficiency (45%), renewable energy (35%), methane emissions renewable energy (35%), methane emissions abatement (15%), and improvements in the abatement (15%), and improvements in the thermal energy generation sector (5%).thermal energy generation sector (5%).

In India, total C02-e emissions in 1990 were In India, total C02-e emissions in 1990 were 10,01,352 Gg, which was approx. 3% of global 10,01,352 Gg, which was approx. 3% of global emissions. The Power sector was the largest emissions. The Power sector was the largest emitter of C02, contributing 55% of national emitter of C02, contributing 55% of national emissions.emissions.

India would be requiring an additional India would be requiring an additional 100,000 MW of power by 2012.100,000 MW of power by 2012.


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India’s PositionIndia’s Position


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Gujarat Fluoro Chemicals Limited:

Registered on 8th March, 2005

Claims ~ 3 million CERs (270 Crore INR) every year for reducing GHG by thermal oxidation of HFC23 (GWP = 11700)

Recent monitoring report (01/08/08 to 30/09/08) claimed ~ 1.4 million CERs (126 Crore INR)

Tamilnadu Spinning Mills Association (TASMA):

Registered on 10th June, 2007

Claims ~ 0.69 million CERs (62 Crore INR) every year for reducing GHG by bundled wind power project in Tamilnadu

Recent monitoring report (01/01/08 to 31/08/08) claimed ~ 0.6 million CERs (48.6 Crore INR)

India’s PositionIndia’s PositionCase Study


SectorSector Estimated Estimated Potential (MW)Potential (MW)

Installed Capacity Installed Capacity (MW)(MW)

Untapped Untapped Potential (MW)Potential (MW)

WindWind 45,19545,195 7,844.527,844.52 37,350.4837,350.48

Small HydroSmall Hydro

(<25 MW)(<25 MW)15,00015,000 2,045.612,045.61 12,954.3912,954.39

BiomassBiomass 16,88116,881 605.8605.8 16,275.216,275.2

Solar Power Solar Power PlantPlant

------ 2.182.18 ------

Cogeneration Cogeneration bagasse bagasse

5,0005,000 719.83719.83 4,280.174,280.17

Waste to Waste to EnergyEnergy

2,7002,700 55.2555.25 2,644.752,644.75

Source: Ministry of New and Renewable Energy, Govt. of India (As on 31Source: Ministry of New and Renewable Energy, Govt. of India (As on 31stst December December 2007)2007)

Energy Efficiency: 23,000 MW (Assessed by World Bank, Source: Energy Efficiency: 23,000 MW (Assessed by World Bank, Source: FICCI)FICCI)

RE & EE Potential in IndiaRE & EE Potential in India


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Kyoto Gases & GWP



India’s position


OutlineOutline



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Types of CDM ProjectsTypes of CDM ProjectsTypeType ExampleExample

Process ChangeProcess ChangeChanging over from HF process to catalytic conversion Changing over from HF process to catalytic conversion for LAB productionfor LAB production

Continuous digester (Pulp & Paper)Continuous digester (Pulp & Paper)

Energy Energy EfficiencyEfficiency

High efficiency equipment & lightingHigh efficiency equipment & lighting

Replacement of old electro mechanical drives with Replacement of old electro mechanical drives with InvertorsInvertors

Waste heat recovery programmesWaste heat recovery programmes

Fuel substitutionFuel substitutionSwitching over to cleaner fuelsSwitching over to cleaner fuels

Biogas recovery from UASB – use instead of flareBiogas recovery from UASB – use instead of flare

Renewable Renewable EnergyEnergy

Wind PowerWind Power

Hydro PowerHydro Power

Solar EnergySolar Energy

ForestryForestryAfforestationAfforestation

ReforestationReforestation


CDM Projects in Agriculture SectorCDM Projects in Agriculture Sector

Improved manure management

Reduced enteric fermentation

Improved/reduced chemical agri-inputs use (fertilizers, pesticides, herbicides, etc.)

Reduced machinery use (and/or lower fossil fuel intensity of conservation agriculture practices)

Agronomic planning (selection of seeds and species with low chemical agri-inputs demand and water requirements)

Energy from dedicated crops

Energy from agricultural residues, animal waste, and other on-farm organic waste

Water management (water saving from improved water retention, reduced evaporation, ecc.)

Improved irrigation techniques/technologies (i.e. drip and sprayer irrigation)

Improved water management in rice cultivation


Technical mitigation potential by 2030 of each agricultural management practice

Source: IPCC (2007): IPCC Fourth Assessment Report: Climate Change: Mitigation of Climate Change.


Total technical mitigation potentials (all practices, all GHGs: MtCO2-eq/yr) for each region by 2030,

Source: IPCC (2007): IPCC Fourth Assessment Report: Climate Change: Mitigation of Climate Change.


Economic potential for GHG Agricultural mitigation by 2030


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Small-scale projects can use simplified procedures.

The following types of projects are considered small-scale.

Renewable energy projects: up to 15MW capacity

Energy efficiency projects: up to 60 GWh/yr reduction in energy consumption

Other projects: up to 60 KtCO2 equivalent (60,000 CER) emission reduction

o CH4 recovery in wastewater treatmento Switching fossil fuelso Landfill CH4 recovery

Small Scale CDM Projects

Types of CDM ProjectsTypes of CDM Projects


Simplified methodologiesSimplified methodologies

Aspect 1: Technology/measure:

What would be specific examples for new sustainable technologies, management practice etc. (avail)able to reduce GHG emissions (e.g. reduced mechanization, low-tillage practices, or use of lighter machinery)?



Aspect 2: Baselines

Could you think of clear, logical and quantifiable procedures for the identification of baseline emissions, i.e. the scenario for GHG emissions in absence of the proposed activity/project?



Aspect 3: Monitoring plan

What would be simple, straight-forward monitoring measures /plans/indicators to verify GHG reductions throughout the life time of each respective activity/project?



Aspect 4: Project boundary

What is your idea of reasonable project boundaries (e.g. the physical, geographical boundaries of the agricultural field, including machinery used on the field but maybe excluding machinery used for processing or transportation) for quantifying GHG emission reductions?



Aspect 5: Leakage

Does the project/activity (indirectly) cause an increase in GHG emissions outside its project boundaries?


SummarySummary

India has a very big role to playIndia has a very big role to play

More opportunities even after 2012More opportunities even after 2012

Demand for CERs is likely to increase Demand for CERs is likely to increase

Market based instruments will play a key role Market based instruments will play a key role

Government and trade organizations have to put more Government and trade organizations have to put more

efforts to create strong awareness of CDM specifically efforts to create strong awareness of CDM specifically

for SMEsfor SMEs


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Secondly, the CDM project developers need to have certain capabilities such as:

• Analytical thinking• Mathematical ability• Understanding of

chemical processes and operations

• Creative opinion

Why all these to you??Why all these to you??

You have these qualities – MeaningYou have these qualities – MeaningYOU CAN DO IT !!YOU CAN DO IT !!

The audience I am addressing consists of Agriculture Specialists

The mother Earth needs our attention


Some Important ReferenceSome Important Reference

unfccc.int unfccc.int cdmindia.nic.in cdmindia.nic.in cdmindia.com cdmindia.com UNEP Risoe Centre UNEP Risoe Centre


C DM

oppenhagen exico

urban


Lets make the world a better place to live in Lets make the world a better place to live in

Thank youThank you

Shalin Shah

Programme Manager

Centre for Environment Education

Email: [email protected]

Mobile: +919879203702

1 Clean Development Mechanism & Agriculture Sector Shalin Shah – Programme Manager Industry Initiatives Programme Centre for Environment Education.

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