15. Sea level rise of 9 - 88 cmThis projected temperature rise is greater than that experienced in the last 10,000 years !!! IPCC : Intergovernmental Panel on Climate Change
21. Kyoto Mechanisms Overall target - at least 5.2% reduction below 1990 levels in net anthropogenic emissions* of Annex I countries by 2008-2012. No targets for developing countries Joint implementation
22. Emissions Trading: Article 17 Allowances Annex I countries Annex I countries Allowances Allowances allocated by Annex I Govts. to Emission Intensive Industries Allowances allocated by Annex I Govts. to Emission Intensive Industries Within an Annex I country and between Annex I countries Allowance based mechanism
23. Joint Implementation: Article 6 ERUs Annex I countries Annex I countries Investment Implement projects or carbon sequestration ERUs removed from the national budget Project based mechanism
24. Clean Development Mechanism: Article 12 CERs Developed countries Developing countries Resources High cost of domestic emission reduction Low cost of emission reduction Guiding principles Achieve SD, TT, Investment Meet ER targets in a cost effective way Project based mechanism
25. Carbon Credits Emissions trading (among Annex I countries) Assigned Amount Units (AAUs) Joint Implementation (between Annex I countries) Emission Reduction Units (ERUs) Clean Development Mechanism – CDM (between Annex 1 and non-Annex 1 countries) Certified Emission Reductions (CERs)
30. How to Indentify a CDM Project CDM Project Requirements Project implemented in developing nations – Non-Annex 1 countries Project should result in net CO2 Emission Reduction (real, Measureable, Verifiable) Contribute towards sustainable development of the nation Annex I public funding for CDM to be additional to ODA and financial obligations No nuclear projects in CDM
31. CDM Project Requirements…. Establishment of a credible emissions baseline Project should establish Additionality Contribute towards Sustainable Developmentof the Host Country Concept of CDM, Emission reductions and Carbon revenue should be incorporated in the Planningstage of the project
32. CDM Prior Consideration Within 6 month from the project start the DNA and UNFCCC must be informed EB49 annex 22: The project participant must inform the Host Party DNA and the UNFCCC secretariat in writing of the commencement of the project activity and of their intention to seek CDM status. Such notification must be made within six months of the project activity start date and shall contain the precise geographical location and a brief description of the proposed project activity, using the standardized form F-CDM-Prior Consideration.
33. Emissions Baseline emissions (most Plausible scenario/existing project) Emissions from a green / new project Time Baseline
34. Additionality STEP 0: Claiming credits for project with start date prior to date of registration – if not applicable go to step 1 directly CDM consideration proved: Pass STEP 1: Identification of alternatives consistent with current laws and regulations - If proposed CDM project only alternative left: NON-ADDITIONAL (NA) More than one alternative: Pass STEP 3: Barrier Analysis No barriers: NA STEP 2: Investment Analysis CDM financially attractive CDM financially not attractive CDM faces Barriers STEP 4: Common Practice Analysis – credibility check - If similar activity observed with no essential difference: Project NA No similar activity or similar activities present but difference in circumstances STEP 5: Impact of CDM registration - If CDM benefits have no impact: Project NA
36. Project Scale Small-Scale CDM (SSC) project categories RE projects up to 15 MW Energy efficiency projects reducing energy consumption by up to 60 GWh/yr Other project activities that reduce emissions less than 60 ktCO2eq
42. How Emission Trading works? Emissions limit after trading (60tCO2) +10 Units bought Emissions limit before trading (50tCO2) -10 Units sold Carbon dioxide/ GHG emissions Emissions limit after trading (40tCO2) 50 50 Company 2 Company 1 Source: UK Emission Trading Group
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44. Another illustration for ETS Company A can reduce 1000 tons CO2e at $2/ton = $2000 Company B can reduce 1000 tons CO2e at $6/ton = $6000 BUY SELL 1000 tons CO2e at $4/ton = $4000 $2000 Profit $2000 Savings Company B - Buyer Company A - Seller
45. The Way of Emission Trading Make or Buy decision Developing countries Carbon market Company CO2 € Carbon Credit € Invest in energy efficiency Fuel switching Modification of operation procedure Emission trading Sustainable Development
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47. and then distributes permits for a “right to emit” the global atmosphere, which can be traded as private property.
82. Targets pledged by developed countries that have ratified the Kyoto Protocol, have been formally recognised, anchoring commitments covering the large part of global emissions
83. Establishment of a Global Climate Fund to support pollution reduction in developing countries with goal of mobilising $100bn by 2020 (reconfirmation & progress)
84. New program established to reduce emissions from deforestation and forest degradation (REDD+)
85. Increased emphasis on "adaptation" support for vulnerable countries Whatz Next in South Africa Dec-2011 ??