Yuji MIZUNO Institute for Global Environmental Strategies Baseline for Waste Management Project Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism March 2004, Siem Reap, Cambodia

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 1 Institute for Global Environmental Strategies Outline of the Presentation 1. Overview of New Baseline Methodologies 2. Overview of Proposed CDM Projects 3. Concept of GHG reductions in Waste Management Project 4. Calculation of Emission Reductions 5. Approved Baseline Methodology (AM0003) 6. Approved Baseline Methodology (AM0002)

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 2 Institute for Global Environmental Strategies Number of submitted new baseline methodologies 49 Considered by the Meth Panel 33 Not considered yet 16 Recommended for approval 12 Recommended for revision or Other conclusion 21 36% 1. Overview of New Baseline Methodologies

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 3 Institute for Global Environmental Strategies Number of projects which submitted new baseline methodologies Number of projects whose methodology are approved 2. Overview of Proposed CDM Projects

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 4 Institute for Global Environmental Strategies Number of projects which submitted new baseline methodologies Overview of Proposed CDM Projects 12 Number of projects whose methodology are approved

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 5 Institute for Global Environmental Strategies Fuel SwitchingHydro Power Generation Energy Efficiency Improvement Biomass Utilization Waste Management 0 50, , , , , , Overview of Proposed CDM Projects Average of Annual ERs by Project Type (among approved methodologies excluding HFC decomposition & Oil Field Associated Gas Recovery)

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 6 Institute for Global Environmental Strategies 3. Concept of GHG reductions in Waste Mgt Project Landfill Gas (methane) GWP=21 Methane Capture Methane Flaring CO 2 GWP=1 Baseline Scenario (without CDM) Project Scenario (with CDM)

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 7 Institute for Global Environmental Strategies 4. Calculation of Emission Reductions Baseline Scenario (without CDM) Project Scenario (with CDM) GHG emissions = 100 t-CH 4 /year = [100 x 21 (GWP) ] t-CO 2 /year = 2100 t-CO 2 /year 1 t-CH t-CO 2 GHG emissions = 2.75 x 100 t-CO 2 /year = 275 t-CO 2 /year Emission Reductions = 2100 – 275 = 1825 t-CO 2 /year After Flared

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 8 Institute for Global Environmental Strategies 4. Calculation of Emission Reductions To date Proposed revision by the CDM Meth Panel (9 th meeting) The source of the methane and therefore CO 2 emissions is the organic fraction in deposited waste, which forms part of the natural organic CO 2 cycle Given that after combustion each tonne of CH 4 produces 2.75 tonne of CO 2, these should be discounted from the total value of CH 4 reduced by the project Important Change ! CO 2 emissions from landfill gas (methane) flaring = 0 t-CO 2 CO 2 emissions from landfill gas (methane) flaring will be counted

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 9 Institute for Global Environmental Strategies 4. Calculation of Emission Reductions To date Important Change ! Baseline emissions = 100 t-CH 4 /year = 2100 t-CO 2 /year Proposed revision by the CDM Meth Panel (9 th meeting) Emissions from the Pjt =0 t-CO 2 /year Emission Reductions = 2100 t-CO 2 Baseline emissions = 100 t-CH 4 /year = 2100 t-CO 2 /year Emissions from the Pjt =275 t-CO 2 /year Emission Reductions = 1825 t-CO 2

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 10 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) Methane Capture Methane Flaring CO 2 Applicability of this Methodology or Electricity Generation No emissions reductions are clamed for displacing or avoiding electricity by other sources

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 11 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) How to Determine Additionality Methane Capture BAU Scenario (without CDM) Project Scenario (with CDM) No Change (1) Justify there are only the project and BAU scenarios (2) Calculate a conservative IRR, except revenue from sale of CERs (3) If the project IRR is clearly and significantly lower than the conservatively acceptable IRR, the project is additional e.g. Gov bond rates, commercial lending rates

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 12 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) Methane Capture CO 2 Baseline Emissions Baseline Scenario (without CDM) Project Scenario (with CDM) methan e In the absence of the project activity, the amount of captured and destroyed methane would be released to the atmosphere. Thus, this is the baseline emissions (basically). For the PDD, baseline emissions will be estimated ex ante by using the Model. Once the project activity is operational, baseline emissions will be determined ex post by metering actual quantity.

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 13 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) Baseline Emissions Effectiveness Adjustment Factor (EAF) Time Baseline Emissions Emissions from Project Activity GHG emissions Emission Reductions Regulation or contractual requirement might impose methane capture Discounted Emission Reductions

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 14 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) Baseline Emissions Effectiveness Adjustment Factor (EAF) Taking into account the effectiveness of the gas collection systems that would be imposed by regulatory or contractual requirements, the final Emission Reductions will be discounted by EAF. The default value for the EAF is 20%. Deviations from the default value can be proposed and justified based on project-specific considerations The EAF shall be revised at the start of each new crediting period.

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 15 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) How to calculate Emissions Reductions Monitor the amount of landfill gas collected by a continuous flow meter Monitor the percentage of methane in landfill gas by a continuous analyzer Monitor the amount of electricity generated Calculate the amount of methane destroyed : 100 t-CH 4 Baseline emissions = 100 t-CH 4 = 2100 t-CO 2 Emissions from the Pjt =275 t-CO 2 Emissions Reductions = 1825 t-CO 2 x (1-EAF (20%) ) = 1825 t-CO 2 x 0.8 = 1460 t-CO 2

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 16 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0003) Leakage Emissions resulting from generating the electricity used to pump the landfill gas If sufficient electricity is generated from recovered landfill gas, there is no leakage If purchased electricity is used, the associated emissions should be calculated The resulting emissions should be deducted from Emission Reductions

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 17 Institute for Global Environmental Strategies 6. Approved Baseline Methodology (AM0002) Methane Capture Methane Flaring Applicability of this Methodology The project activity is to collect and flare methane greater than the amount determined by the contractual requirement There exists a contractual agreement which requires the amount of methane flaring The contract was awarded through a competitive bidding process The amount of landfill gas to be flared reflects performance among the top 20% in the previous five years No generation of electricity using captured landfill gas occurs or is planned

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, March 2004, Siem Reap, Cambodia 18 Institute for Global Environmental Strategies 5. Approved Baseline Methodology (AM0002) Baseline Emissions Emissions from Project Activity Methane emissions Emission Reductions The quantity of methane which should be captured by requirement of the contractual agreement Methane Emissions from landfill gas The quantity of methane which are captured by the CDM project