Public-Private Partnership to Advance the Recovery and Use of Methane as a Clean Energy Source Presentation for BAQ 2006 by Kevin Rosseel, U.S. EPA

2 2 Overview  Why Methane?  The Methane to Markets Partnership  Methane to Markets Partnership Expo  Conclusions

3 3 Why focus on Methane? A potent GHG (100-year GWP of 23) The 2nd most important GHG accounting for ~18% of total climate forcing A primary constituent of natural gas and a valuable, clean-burning energy source Methane - 16% Nitrous Oxide - 9% CFCs, HFCs, PFCs, SF6 - 1% Carbon Dioxide (Fuel and Cement) - 55% Carbon Dioxide (Land Use Change and Forestry) - 19% Global Greenhouse Gas (GHG) Emissions in 2000 = 40,702 MtCO2e

4 4 Cost-Effective Projects Recover and Use Methane Oil and Gas Systems Coal Mines Landfills Livestock Waste

5 5 Significant Co-benefits of Methane Recovery and Use Projects  Important local energy source and reduced waste of a valuable fuel  Improved industrial safety and productivity  Improved air quality, water quality and reduced odors  Reduced greenhouse gas emissions  Progress toward sustainable development goals  Economic growth and energy security

6 6 Methane to Markets Partnership Overview  Advances recovery and use of methane as a valuable clean energy source  Encourages development of cost-effective methane recovery and use opportunities in –coal mines –landfills –oil and gas systems and –agriculture (manure waste management)  Private companies, multilateral development banks and other relevant organizations participate by joining the Project Network

Partner Countries – So Far Ecuador Germany India Italy Japan Korea Argentina Australia Brazil Canada Colombia China Mexico Nigeria Russia Ukraine United Kingdom United States

8 8 Methane to Markets Activities  Action oriented – focus on project development  Partners and Project Network members cooperate to: –Identify cost-effective opportunities for capturing methane emissions for energy production –Identify and remove legal, regulatory, financial, and other barriers to project development –Develop sector action plans and a process for evaluating their implementation –Conduct training, technical exchange, and demonstrations to support project development  Developed countries commit to assist developing countries and countries in transition in undertaking the activities listed above

9 9 Partnership Organization Steering Committee Chair - USEPA Agriculture Chair – UK Co-Chair – Argentina Project Network Coal Mines Chair – US EPA Co-chair – India Vice chair – China Project Network Landfills Chair – Italy Co-chair - Argentina Project Network Oil and Gas Chair – Mexico Co-chair - Russia Project Network ASG (Administrative Support Group EPA)

10 U.S. Involvement in M2M  U.S. EPA staffs the Partnership’s Administrative Support Group  U.S. has pledged up to $53 million over five years  Key activities to advance project development: –Identify and assess project opportunities Pre-feasibility and Feasibility studies –Support technology transfer, training, and capacity building Workshops and Conferences Study tours Developing Reports / Databases / Clearinghouses –Address barriers to project development and increase access to information Financial/market, regulatory, technical –Technology demonstration and deployment

11 The Project Network  Project network members are private firms, development banks, NGOs or other governmental and non-governmental entities with an interest in methane recovery and use projects –Private sector and broad stakeholder involvement is central to the success of the Partnership –Provide technical input and expertise –Participate in all activities and meetings –Identify and implement activities and projects  Currently almost 500 organizations including: –World Bank –CAI-Asia just joined in August 2006

12 The Project Network II  Participating organizations are those interested in methane recovery and use project development –Project developers –Financial institutions –Equipment manufacturers/vendors –Site and/or project managers –Non-governmental organizations –National and international policy makers, etc.

M2M Partnership Expo  Fall 2007, Beijing, China –China and the Secretariat working closely together  Key Objectives –Showcase methane project opportunities, identify projects with financing opportunities –Showcase methane recovery and use technologies and services –Sector tracks on key technical, policy, financial, and other project development issues

14 Case Study: ADB and M2M  EPA and ADB have a strong history of collaboration, especially in the coal mining sector –ADB and EPA are working through the China Coal Information Institute to identify coal mine methane recovery and use opportunities –EPA and ADB have co-sponsored several CMM workshops in China, most recently in September 2003 –Two successful projects are already underway: $117 million loan to the Jincheng project in Shanxi Province that will include CMM-based power generation and local gas distribution $70 million loan to use CMM in local distribution systems in Liaoning Province

15 Conclusions and Next Steps  M2M is a unique international partnership –Near-term –Voluntary –Public-private –Multiple benefits (energy, economic, environmental, safety)  M2M offers collaborative opportunities for participants  We look forward to future dialogues with interested parties to identify areas where we can work together

16 For More Information and to Follow up  Website –  Administrative Support Group –Tel: –Fax: