ISPE Presentation JI Romaniapromitheasnet.kepa.uoa.gr/images/files/BSEC_PROMITHEAS2_Bardic… · Ministry of Environment and Water Management - National Focal Point, coordinating

SIXTH FRAMEWORK PROGRAMME Specific Support Action - FP6-2002-INCO-COMultilatRTD/SSA-5

PROMITHEAS-2

Institute for Studies and Power Engineering Kiev, 09/11/20071

ESEMIESEMIISPEISPEIPEIPEBSRECBSRECGPOGCGPOGCKEPAKEPA

PROMITHEASPROMITHEAS--22EUEU--BSEC Energy and Climate Policy NetworkBSEC Energy and Climate Policy Network

Workshop “Joint Implementation and CleanWorkshop “Joint Implementation and CleanDevelopment Mechanism among theDevelopment Mechanism among the

BSEC countries”BSEC countries”

AncaAnca SimonaSimona BardiciBardici M.ScM.Sc..

PROMITHEAS-2

Institute for Studies and Power Engineering2

Workshop “Joint Implementation and CleanWorkshop “Joint Implementation and CleanDevelopment Mechanism among theDevelopment Mechanism among the

BSEC countries”BSEC countries”

Joint Implementation projects in RomaniaJoint Implementation projects in Romania

Authors: Authors: MScMSc. . AncaAnca SimonaSimona BardiciBardici –– ISPE Bucharest ISPE Bucharest

MScMSc. . CameliaCamelia VasileVasile –– ISPE BucharestISPE Bucharest

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ContentContent

�� Legal FrameworkLegal Framework

�� Institutional FrameworkInstitutional Framework

�� JI/ CDM opportunities in RomaniaJI/ CDM opportunities in Romania

�� Priority Areas for JI ProjectsPriority Areas for JI Projects

�� JI Approval ProcedureJI Approval Procedure

�� Case study JI: Case study JI: ““Sawdust 2000Sawdust 2000”” projectproject

�� Future Activities/Challenges Future Activities/Challenges

�� Outlook and trends for the futureOutlook and trends for the future

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Legal FrameworkLegal Framework

�� UNFCCC UNFCCC –– signed in 1992 and signed in 1992 and ratified in 1994ratified in 1994

�� Kyoto Protocol Kyoto Protocol –– signed in 1999 and signed in 1999 and ratified in 2001ratified in 2001

�� Romania Romania –– first Annex I country ratifying the Kyoto Protocol first Annex I country ratifying the Kyoto Protocol

�� Target Target –– 8% reduction of GHG emissions from 1989 levels8% reduction of GHG emissions from 1989 levels

�� European Union Member State European Union Member State –– from 1from 1stst January 2007January 2007

�� G.D.G.D. nnoo. . 658658//20020066 reorganization of the National Commission reorganization of the National Commission on Climate Change (interon Climate Change (inter--ministerial)ministerial)

�� G.D. no. 645/2005 G.D. no. 645/2005 –– National Strategy on Climate ChangeNational Strategy on Climate Change

�� G.D. no. 1877/2005 G.D. no. 1877/2005 –– National Action Plan on Climate ChangeNational Action Plan on Climate Change

�� Ministerial Order no. 1188/2006 Ministerial Order no. 1188/2006 –– JI projects approval processJI projects approval process

�� Various Various G.DsG.Ds and Ministerial Orders on climate change issuesand Ministerial Orders on climate change issues

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Institutional Framework Institutional Framework

�� Ministry of Environment and Water Management Ministry of Environment and Water Management -- National National

Focal Point, coordinating the climate change activities, EU ETSFocal Point, coordinating the climate change activities, EU ETS

�� National Agency for Environmental Protection National Agency for Environmental Protection -- implementing implementing

the the PaMsPaMs, GHG inventories, National Communications, EU ETS , GHG inventories, National Communications, EU ETS

�� National Environmental Fund Administration National Environmental Fund Administration -- GHG emissions GHG emissions

reduction projects database, GIS funds administratorreduction projects database, GIS funds administrator

�� National Commission on Climate Change National Commission on Climate Change -- advising the advising the

Minister of Environment on policy decisions, actions and Minister of Environment on policy decisions, actions and

measures for applying the UNFCCC and KP provisions measures for applying the UNFCCC and KP provisions

�� Local Local EPAsEPAs, research institutes, universities, NGOs, companies, research institutes, universities, NGOs, companies

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JI/ CDM opportunities in RomaniaJI/ CDM opportunities in Romania�� Annex I country, ratified the Kyoto Protocol and committed to:Annex I country, ratified the Kyoto Protocol and committed to:

�� Reduce GHG emissions with 8% (2008Reduce GHG emissions with 8% (2008--2012 2012 vsvs base year 1989)base year 1989)�� Establish, no later than 2007, a national system for the estimatEstablish, no later than 2007, a national system for the estimation of GHG ion of GHG

emissionsemissions�� Establish a National Registry of GHG emissions before the startiEstablish a National Registry of GHG emissions before the starting of the first ng of the first

commitment periodcommitment period�� Draft and implement policies with a view to promote sustainable Draft and implement policies with a view to promote sustainable developmentdevelopment

�� About 40% reductions About 40% reductions –– due to restructuring of industrydue to restructuring of industry

�� Involved very early in JI and developed the necessary expertise Involved very early in JI and developed the necessary expertise and and infrastructureinfrastructure

�� Favoured realization of JI projects in order to bring the internFavoured realization of JI projects in order to bring the international capital ational capital necessary for developmentnecessary for development

�� Offered as incentive the recognition of early actions Offered as incentive the recognition of early actions –– emission reductions before emission reductions before 2008 2008 –– and guarantee them with and guarantee them with AAUsAAUs

�� No development in CDM direction No development in CDM direction �� Green investment scheme (GIS) under developmentsGreen investment scheme (GIS) under developments

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Development of greenhouse gas emissionsDevelopment of greenhouse gas emissions

According to 2004 Romania’s National Inventory Report for According to 2004 Romania’s National Inventory Report for anthropogenic emissions of direct greenhouse gases anthropogenic emissions of direct greenhouse gases [1][1] and indirect and indirect greenhouse gases greenhouse gases [2][2] , the total quantity of emissions (excluding net , the total quantity of emissions (excluding net CO2 from LULUCF CO2 from LULUCF [3][3]) is 154.627 ) is 154.627 mil.tonnesmil.tonnes CO2 equivalent and CO2 equivalent and the estimate of net emissions after taking into account the remothe estimate of net emissions after taking into account the removals vals from the land use change and forestry sector is 119.958 from the land use change and forestry sector is 119.958 mil.tonnesmil.tonnesCO2 equivalent. This represents more than 50% below the CO2 equivalent. This represents more than 50% below the obligation under the Kyoto Protocol.obligation under the Kyoto Protocol.

[1][1] CO2, CH4, N2O, HFC, PFC, SF6CO2, CH4, N2O, HFC, PFC, SF6[2][2] NOxNOx, CO, NMVOC , SO2, CO, NMVOC , SO2[3][3] land use, land use change and forestryland use, land use change and forestry

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The historical total greenhouse gas The historical total greenhouse gas emissions during the period 1989 emissions during the period 1989 –– 20042004

In the total GHG emissions of year 2004, CO2 emissions accounts In the total GHG emissions of year 2004, CO2 emissions accounts for 75.25 %. CH4 for 75.25 %. CH4 emissions accounts for 17.42 % and N2O for 7 % of total GHG emisemissions accounts for 17.42 % and N2O for 7 % of total GHG emissions. Fluorinated sions. Fluorinated gases contributed with about 0.3% to total GHG emissions.gases contributed with about 0.3% to total GHG emissions.

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1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

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Kyoto Target GHG emissions GHG net emissions GDP evolution

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Romania’s emissions evolution towards the Romania’s emissions evolution towards the

Kyoto targetKyoto target

Based on emission projections presented in the National InventorBased on emission projections presented in the National Inventory y Report and Progress Report (154.627 Report and Progress Report (154.627 mil.tonnesmil.tonnes CO2 equivalent) CO2 equivalent) Romania is certain to meet its Kyoto Protocol commitments Romania is certain to meet its Kyoto Protocol commitments

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2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

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Kyoto Target GHG emissions

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Romania’s emissions evolution by Romania’s emissions evolution by sectorsector

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Memoranda of Understanding (JI)Memoranda of Understanding (JI)

�� Switzerland (1999)Switzerland (1999)

�� Netherlands (2000)Netherlands (2000)

�� Norway (2001)Norway (2001)

�� Austria (2002)Austria (2002)

�� Denmark (2003)Denmark (2003)

�� Sweden (2003)Sweden (2003)

�� Host Country Agreement with the WBHost Country Agreement with the WB’’s Prototype Carbon Fund s Prototype Carbon Fund (2003)(2003)

�� France (2004)France (2004)

�� Italy (2006)Italy (2006)

�� Finland (2006)Finland (2006)

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Joint Implementation ProjectsJoint Implementation Projects

EBRD EBRD -- NetherlandsNetherlandsRehabilitation of Rehabilitation of CHPPCHPP TimisoaraTimisoara CentruCentru15. 15.

DenmarkDenmarkEnergy Efficiency at Energy Efficiency at HolbocaHolboca CHPP II CHPP II IasiIasi14.14.

DenmarkDenmarkWood Waste to Energy in Wood Waste to Energy in NeamtNeamt CountyCounty13.13.

DenmarkDenmarkRehabilitation of DH System and Energy Efficiency in Rehabilitation of DH System and Energy Efficiency in Dr.Tr.SeverinDr.Tr.Severin12.12.

Sweden Sweden Rehabilitation of CHPP Rehabilitation of CHPP TimisoaraTimisoara SudSud11.11.

DenmarkDenmarkLandfill Gas Recovery at Municipal Landfills Landfill Gas Recovery at Municipal Landfills FocsaniFocsani and and TgTg. . MuresMures10.10.

ERUPT 4ERUPT 4--NetherlandsNetherlandsLandfill Gas Recovery at Municipal Landfills in 4 Major Cities Landfill Gas Recovery at Municipal Landfills in 4 Major Cities 9.9.

ERUPT 4ERUPT 4--NetherlandsNetherlandsMunicipal Cogeneration at CHPP Municipal Cogeneration at CHPP TargovisteTargoviste8.8.

PCF PCF –– World BankWorld BankAfforestation of ~7000 ha Degraded Agricultural Soils Afforestation of ~7000 ha Degraded Agricultural Soils 7.7.

DenmarkDenmarkGeothermal Energy Use in Geothermal Energy Use in OradeaOradea--area 2 and area 2 and BeiusBeius DH SystemsDH Systems6.6.

Denmark Denmark ‘‘Sawdust 2000Sawdust 2000’’ -- Fuel Switching from Coal to Biomass Fuel Switching from Coal to Biomass 5.5.

ERUPT 3ERUPT 3--NetherlandsNetherlandsModernization of 4 Hydro Units in Modernization of 4 Hydro Units in PortilePortile de de FierFier II HydroII Hydro--stationstation4.4.

ERUPT 2ERUPT 2--NetherlandsNetherlandsRefurbishing of 2 Refurbishing of 2 HolcimHolcim Cement FactoriesCement Factories3.3.

ERUPT 2ERUPT 2--NetherlandsNetherlandsModernization of 3 Hydro Units in Modernization of 3 Hydro Units in PortilePortile de de FierFier I HydroI Hydro--stationstation2.2.

NorwayNorwayRehabilitation of District Heating System in Rehabilitation of District Heating System in FagarasFagaras1.1.

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Priority Areas for JI ProjectsPriority Areas for JI Projects

�� Increase of energy efficiency in main economic sectors Increase of energy efficiency in main economic sectors

�� Rehabilitation of district heating systemsRehabilitation of district heating systems

�� Construction (or rehabilitation) of coConstruction (or rehabilitation) of co--generation installationsgeneration installations

�� Recovery of methane generated by urban waste landfills Recovery of methane generated by urban waste landfills

�� FuelFuel--switching in energy productive installationsswitching in energy productive installations

�� Construction (or rehabilitation) of energy production Construction (or rehabilitation) of energy production installations creating clean energy (especially hydroinstallations creating clean energy (especially hydro--electric, electric, geothermal, wind, solar, biogas or biomass) geothermal, wind, solar, biogas or biomass)

�� Reducing GHG emissions in the agriculture sectorReducing GHG emissions in the agriculture sector

�� Reducing GHG emissions in the transports sector Reducing GHG emissions in the transports sector

�� AfforestationAfforestation and/or reforestationand/or reforestation

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Approval Procedure for JI ProjectsApproval Procedure for JI Projects

(3)

(1) PIN + Letter of

interest

Project

Participants

MEWM + NEPA

NCCCLetter of

EndorsementRejected

(2) PDD + Pre-

determination Report

Emission Reduction Purchase

Agreement (ERPA)

Letter of

Approval

MEWM + NEPA

NCCC Rejected

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““Sawdust 2000Sawdust 2000”” -- IntroductionIntroduction

�� ““Sawdust 2000Sawdust 2000”” project was launched by the Danish project was launched by the Danish

Environmental Protection Agency (DEPA) and the Romanian Environmental Protection Agency (DEPA) and the Romanian

Ministry of Environment and Water Management in 2001Ministry of Environment and Water Management in 2001

�� The pilot project was implemented in a small town (The pilot project was implemented in a small town (TascaTasca) in a ) in a

remote area of Romania in the period 1999 remote area of Romania in the period 1999 –– 20002000

�� Fuel switching project implementing technology for using the Fuel switching project implementing technology for using the

sawdust (wood dust) as an energy source replacing fossil fuels sawdust (wood dust) as an energy source replacing fossil fuels

in the district heating systemsin the district heating systems

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““Sawdust 2000Sawdust 2000”” -- Existing SituationExisting Situation

Assessment in cooperation with the Assessment in cooperation with the Romanian Agency for Energy Conservation Romanian Agency for Energy Conservation proved that 5 mediumproved that 5 medium--size towns fulfilled all size towns fulfilled all the requirements established for the project the requirements established for the project implementation:implementation:

��Existing district heating systems in operationExisting district heating systems in operation�� Identifying wood waste resource as sufficientIdentifying wood waste resource as sufficient��Allocating 10% of the investment from local budgetAllocating 10% of the investment from local budget��Developing the Developing the ““Sawdust 2000Sawdust 2000”” as a JI projectas a JI project��Strong commitment at the local and regional levelStrong commitment at the local and regional level

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““Sawdust 2000Sawdust 2000”” -- Financial SchemeFinancial Scheme

�� TTotal otal budget of the project ~budget of the project ~ 14 mil14 milllion EUROion EURO,, from which:from which:

�� 2200% % Joint Implementation mechanism Joint Implementation mechanism –– Denmark;Denmark;

�� 46%46% EU EU Phare 2001 Phare 2001 ProgrammeProgramme –– “Regional Tourism “Regional Tourism DevelopmentDevelopment”” –– EU EU DelegatiDelegationon in Romania in Romania accepted to accepted to participate in this project (funds managed by Romanian participate in this project (funds managed by Romanian Ministry of Development);Ministry of Development);

�� 2244% Special F% Special Fuund nd forfor the Energy System Development the Energy System Development managed by the Ministry of Economy and Trade;managed by the Ministry of Economy and Trade;

�� 10% 10% local budget.local budget.

�� Project implemented in the period 2002Project implemented in the period 2002--20042004

�� GHG emissions reduction ~ 700,000 GHG emissions reduction ~ 700,000 ERUsERUs and and AAUsAAUs in the in the period (2004period (2004--2012)2012)

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The budget of investmentsThe budget of investments

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Selected townsSelected towns

Vlăhiţa - Harghita County

Huedin - Cluj County

Gheorgheni - Harghita County

Întorsura Buzăului - Covasna County

Vatra Dornei - Suceava County�

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Selected towns Selected towns -- locationlocation

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““Sawdust 2000Sawdust 2000”” -- Success StorySuccess Story

� Eliminate the wood waste unused;� Mitigate greenhouse gas emission;� Implementation of new technology unharmful;� The continuous and stable thermal energy supply;� Little prices to thermal energy;� The acquisition of greenhouse gas emission;� Export services of consulting;� The possibility of creation and expand the relations of businesses;� To new heating systems centralized can be connected and another

apartment and buildings;� New technology for producing thermal energy with an minim period 20

years;� The local biomass resources utilization; � Reduce the subventions for thermal energy;� Creation of new jobs;� Creation and expand the relations of businesses; � To supply and sale of biomass.

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FutureFuture Activities/ChallengesActivities/Challenges

�� Implementing the National Strategy and Action Plan Implementing the National Strategy and Action Plan

�� Meeting all the eligibility criteria for Kyoto ProtocolMeeting all the eligibility criteria for Kyoto Protocol’’s flexible s flexible mechanismsmechanisms

�� Strengthening the National System for estimating the GHG emissioStrengthening the National System for estimating the GHG emissions ns and implementing the National Registryand implementing the National Registry

�� Elaborating and adopting the JI Track I procedureElaborating and adopting the JI Track I procedure

�� Establishing a Green Investment Scheme (draft Governmental Establishing a Green Investment Scheme (draft Governmental Decision) and cooperation with potential buyersDecision) and cooperation with potential buyers

�� Finalizing database with possible GHG emissions reduction projecFinalizing database with possible GHG emissions reduction projects ts (JI & GIS) (JI & GIS) -- great potential also outside EU ETSgreat potential also outside EU ETS

�� Clarifying the double counting procedural rules (EU ETS Clarifying the double counting procedural rules (EU ETS –– JI)JI)

�� Approving JI projects with environmental and social benefits Approving JI projects with environmental and social benefits

�� Increasing the institutional capacity and training new expertsIncreasing the institutional capacity and training new experts

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Outlook and trends for the futureOutlook and trends for the future

�� A JI Project:A JI Project:

�� Implies a lot of workImplies a lot of work�� Needs a dedicated team of various specialistsNeeds a dedicated team of various specialists

�� Needs good communication and cooperationNeeds good communication and cooperation

�� Internal (within the developing and implementing company)Internal (within the developing and implementing company)

�� External (between the company External (between the company -- Supplier and authorities, Supplier and authorities, Buyer, Buyer, ValidatorValidator, , VerificatorVerificator, etc), etc)

�� Open mind and flexibility of all stakeholders (sometimes the Open mind and flexibility of all stakeholders (sometimes the project strategy should be changed due to the changing project strategy should be changed due to the changing environment)environment)

�� Is a learning by doing activity (especially for early starters)Is a learning by doing activity (especially for early starters)

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Outlook and trends for the futureOutlook and trends for the future

�� Opportunities:Opportunities:�� CoCo--financing the investments financing the investments �� Recognition by the authorities of the emission reductions Recognition by the authorities of the emission reductions

and monitoring methods used by the cement industry and monitoring methods used by the cement industry �� EarlyEarly experiences with JI are essential for building experiences with JI are essential for building

capacity at company and corporate levelcapacity at company and corporate level

�� But also threats (due to various existing risks) Is a learning But also threats (due to various existing risks) Is a learning by doing activity (especially for early starters)by doing activity (especially for early starters)

�� Delays in project development (objective reasons) may Delays in project development (objective reasons) may lead to delay in contracted payments, penalties etclead to delay in contracted payments, penalties etc

�� Once CO2 reductions are given by Sellers to third parties Once CO2 reductions are given by Sellers to third parties like ERUPT, they are no longer available to ensure like ERUPT, they are no longer available to ensure compliance with future reduction targets at homecompliance with future reduction targets at home

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ConclusionsConclusions::

� Romania signed the Kyoto Protocol in 1999 and ratified it in January 2001 by Law 3/2001 being the first UNFCCC (United Nations Framework Convention on Climate Change) Annex I Party to do so;

� The target adopted by Romania is an 8% reduction until 2012compared to the base year 1989;

� Romania has been involved in Joint Implementation under the Kyoto Protocol for several years;

� Romania will fulfil the Kyoto target;

� The Romanian authorities are making efforts to implement the EU legislation regarding environmental protection;

� This will determine high costs of implementing the EU legislation required environmental protection measures, at source level.

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СпасибоСпасибо!!

TThank you for your attention!hank you for your attention!

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ContactContact

AncaAnca SimonaSimona BardiciBardici

Institute for Studies and Power Engineering (ISPE)Institute for Studies and Power Engineering (ISPE)

Power Systems DivisionPower Systems Division

11--3 3 LaculLacul TeiTei Blvd. Blvd.

020371 Bucharest020371 Bucharest

RomaniaRomania

ph. + 4021 2061268ph. + 4021 2061268

fax. + 4021 2061317fax. + 4021 2061317

ee--mail: mail: [email protected]@ispe.ro

www.ispe.rowww.ispe.ro

ISPE Presentation JI Romaniapromitheasnet.kepa.uoa.gr/images/files/BSEC_PROMITHEAS2_Bardic… · Ministry of Environment and Water Management - National Focal Point, coordinating

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