Clean Technology (PB386) Click to edit Master title style Numfon Eaktasang, Ph.D. numfon.e@fph.tu.ac.th

Kyoto Protocol Signed in 1997; in force since 16 February 2005. Ratified by more than 130 countries Major non participants: USA and Australia. Commits Annex 1 countries to reducing greenhouse gas emissions. GHG emissions may be reduced by ~ 5% below 1990 levels in 2008-2012 Individual, quantified emission targets for each industrialized country GHGs: CO2, CH4, N2O, HFC, PFC, SF6

Kyoto Protocol Annex 1: 43 parties

Kyoto Protocol 3 flexibility mechanisms for financing emission reduction abroad. Clean Development Mechanism (CDM) Joint Implementation (JI) International Emissions Trading (ET): Carbon trading

Clean Development Mechanism What is the Clean Development Mechanism (CDM) ? One of the market-based flexibility mechanisms under Kyoto Protocol To assist industrialized countries to lower the cost of achieving its GHGs emissions targets To support developing countries in achieving sustainable development who host CDM project through the implementation of project activities that reduce GHG emissions Annex 1 countries invest in GHG reduction projects in non-Annex 1 countries and receive Certified Emission Reductions (CERs) to fulfil their binding commitments.

Carbon Market Two main commodities traded in the carbon market > Emission allowance > Project-based emissions reductions Four different major markets > Kyoto Protocol > EU Emissions Trading Scheme > Canada Greenhouse Gas Offset System > Japan (voluntary trading system)

Certified Emission Reduction (CERs) CDM Concept CDM Annex 1 countries EU – 25 Canada Japan Other OECD Certified Emission Reduction (CERs) Developing Countries Developed Country Government and companies want to reduce GHG emissions Invest in their own country Invest in a project in Developing Country Developing Country Many opportunities for projects that reduce emissions Forestry planting Renewable electricity Energy efficiency Clean transport Biomass energy Project Produces CERs Investment CERs $

CDM Concepts: Emission reduction principle GHG Emissions Time Project Emissions Baseline Emissions Emissions reduction The difference between the actual project emissions and the emission baseline constitute the volume of CERs

CDM Overview

Types of CDM Projects Renewable energy > Wind power > Solar > Biomass power > Hydro power Waste management > Capturing of landfill methane emissions to generate power > Utilisation of waste and waste water emissions for generation of energy Energy efficiency measures > Boiler and steam efficiency > Pumps and pumping systems > Efficient cooling systems > Back pressure turbines > etc… Cogeneration in industries having both steam and power requirements Power sector > Induction of new technologies which are efficient (thermal) > Reduction in technical T&D losses Fuel switching > From fossil fuel to green fuel like biomass… Electrical energy saving 1 kWh = 0.8 ~ 0.9 kg CO2 Power generation (waste heat / renewable) 1 MW = 4.000 ~ 5.000 t CO2 Coal saving 1 kg = 1.3 ~ 1.6 kg CO2 Fuel oil saving 1 litre oil = 3 ~ 3.5 kg CO2 NG based power generation 1 kWh generation = 0.35 ~ 0.45 kg CO2 1 kg NG burning/saving = 2.4 ~ 2.5 kg CO2

How CDM project works?

How CDM project works? Host Party (non-Annex I) with no an emission cap Specific project in host country Specific project in a host country Non- Annex I Parties with benefit from projects activities resulting in CERs Annex I Party Baseline scenario Project scenario Acquired CERs are added to emission cap CERs

Fast track for small-scale CDM project Why do we need a fast track? Process not worth it for small projects (high transaction costs); Many small projects deliver significant local sustainable development benefits; Small-scale technologies are some of the most promising for solving the long term problem of climate change (e.g. solar; wind; fuel cells); CDM might lose public support if rules are biased toward large capital-intensive projects.

Fast track for small-scale CDM project Size limits for small-scale projects Electricity generation from renewable sources, up to 15 MW Energy efficiency projects saving, up to 15 GWh Project reducing emissions up to 15,000 t CO2eq

CDM Projects: Current Statistics Statistics of CDM (June 2006): 225 projects registered, for an average of 70 millions CERs/Year. 36 projects submitted for registration, for an average of 4,6 millions CERs/Year. 860 projects known to be prepared for registration. 165 proposed baselines methodologies were sent to the CDM EB for approval, 60 approved, 66 rejected and 39 are pending.

CDM Projects: Current Statistics Number of projects registered or known to be prepared for registration: End of 2004 End of 2005

CDM Projects: Current Statistics Annual volumes (million tCO2e) of project-based emission reductions transactions and annual average price in US$ per tCO2.

Registered project by host countries* Registered Projects Statistics on July 1st 2006 from http://cdm.unfccc.int/Statistics/ Expected average annual CERs from registered projects by host countries* Registered project by host countries* * List of host countries: Argentina, Armenia, Bangladesh, Bhutan, Bolivia, Brazil, Chile, China, Colombia, Costa Rica, Ecuador, El Salvador, Fiji, Guatemala, Honduras, India, Indonesia, Israel, Jamaica, Malaysia, Mexico, Morocco, Nepal, Nicaragua, Panama, Papua New Guinea, Peru, Republic of Korea, Republic of Moldova, South Africa, Sri Lanka and Viet Nam.

Registered Projects Registered project by Annex 1 countries involved Statistics on July 1st 2006 from http://cdm.unfccc.int/Statistics/ Registered project by Annex 1 countries involved Registered project by scope

Registered Projects CDM projects in each sector Statistics on July 1st 2006 from http://www.cd4cdm.org/ (UNEP) CDM projects in each sector CERs until 2012 in each sector

Who is buying CER? Buyers based in Europe (41% in 2004, 56% in 2005) and Japan (36% versus 38%) dominate the market for project-based transactions. January 2005 to March 2006 Overall volume: 453,5 million tCO2e January 2004 to December 2004 Overall volume: 110,0 million tCO2e

Location of Projects Asia accounted for the largest share (73%) of contracted volume of project-based transactions signed. January 2004 to December 2004 January 2005 to March 2006

Future demand for CERs

CDM Projects for Solid Waste Management Waste-to-energy (WET) project Anaerobic wastewater treatment Livestock farm, manure management Solid waste disposal landfill site Biomass energy utilization Carbon credit : CDM projects

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

CDM Projects for Solid Waste Management

Thank You !