Beyond CDM: Options for the wind industry 21 April 2010, Warshaw EWEC 2010 Marion Vieweg.

Beyond CDM: Options for the wind industry

21 April 2010, Warshaw

EWEC 2010

Marion Vieweg

Beyond CDM: options for the wind industry

Outline

Which options are discussed in the climate negotiations that could enhance wind energy beyond

CDM?

Sectoral approaches

Sectoral approaches NAMAsNAMAs

Defi-nitionDefi-nition

Road testing China

Road testing China

StatusStatus Defi-nitionDefi-nition OptionsOptions StatusStatus


What are sectoral approaches?

• Different options are discussed in the various negotiation texts in 20091:

…(

e) Sectoral targets, national sector-based mitigation actions and standards, and no-lose sectoral crediting baselines;

…

1 FCCC/AWGLCA/2009/8, B.1.73


Sectoral crediting

• Countries voluntarily pledging sectoral crediting baselines (dynamic, e.g. t CO2/t cement)

• Based on detailed, national, transparent analysis for each sector assessing feasibility and cost-effectiveness

• “No lose”: credits (to government) for reductions beyond baseline, no penalty if not achieved

• Governments have to pass on incentive to private entities (they decide how to do it)

• Needs demand for credits, i.e. stringent reduction commitments by other countries


Principle of sectoral crediting

The concept


Electricity sector scenarios


Key findings

• Data quality in power generation is rather good

• Large uncertainty of future energy demand intensity target

• Current policies already very ambitious

• Domestic institutional setup and involvement of the big utility companies is key

• Analysis needed on national implementation

Benefits for wind potentially high, but depend on sector boundary and national implementation!

Full results: see www.sectoral.org


Status of negotiations on ‘sectoral’

• Mostly discussed type of sectoral approach is sectoral crediting (mainly driven by the EU)

• Focus of negotiations has shifted away from sectoral approaches to NAMAs

• Details of a potential crediting mechanism are not yet clear

Copenhagen Accord

“decide to pursue various approaches, including opportunities to use markets, to enhance the cost-effectiveness of, and to promote mitigation actions”


What are NAMAs?

• Originated in the Bali Action Plan: Paragraph 1 (b) (ii) of the Bali Action Plan calls for: “Nationally appropriate mitigation actions’ by developing

country Parties in the context of sustainable development, supported and enabled by technology, financing and capacity building, in a measurable, reportable and verifiable manner.“


Examples for potential NAMAs in the wind sector

• Feed in tariff: provision of funds to cover incremental cost of a feed in tariff

• Grid extension: supported by international funds and technical assistance

• Regulatory measures: financial support and capacity building to create the necessary enabling framework, e.g. regulation on preferential grid access


Status of negotiations on ‘NAMAs’

• Funding for NAMAs will be provided, but details of funding sources/distribution are yet unclear

could potentially also be through bilateral action

• No clarity yet on the exact definition of a ‘NAMA’

Copenhagen Accord

Fast start funding: 30 bln US$ (2010-2012)

Total funding: up to 100 bln US$ per year in 2020

Both for adaptation and mitigation, from public and private sources

Annex with proposed NAMAs


Current developing countries’ proposed NAMAs Become climate neutral around 2020

• Costa Rica, Maldives

Percentage reduction of national emission below BAU or base year in 2020

• Brazil, Indonesia, Israel, Marshal Islands, Mexico, Moldova, Singapore, South Africa, South Korea

Percentage reduction of intensity (national emission per GDP) in 2020 from 2005

• China, India

Detailed list of projects

• Congo, Ethiopia, Jordan, Macedonia, Madagascar, Morocco, Sierra Leone


Conclusions

Sectoral crediting

• Approach tested and feasible under certain conditions

• Outcome of negotiations uncertain

• Potentially more beneficial for wind compared to higher cost options, depending on sector boundaries and mechanism details

Nationally appropriate mitigation actions

• Agreement to substantially support developing country actions

• Large potential to design an effective system in the coming months

• Several options for fund based support in the wind sector


More information available at

www.ecofys.com www.sectoral.org

Niklas Höhne, [email protected], +49 221 27070-101

Christian Ellermann, [email protected], +49 221 27070-104

Marion Vieweg, [email protected], +49 221 27070-184

Beyond CDM: Options for the wind industry 21 April 2010, Warshaw EWEC 2010 Marion Vieweg.

Documents

wind industry examples

wind energy

different options

wind sector feed

sectoral approaches

concept slide

e sectoral targets

i n e s