1. Clean Technology
(PB386)
Click to edit Master title style Numfon Eaktasang, Ph.D.

2. 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
Individual, quantified emission targets for each industrialized country
GHGs: CO2, CH4, N2O, HFC, PFC, SF6

3. Kyoto Protocol
Annex 1: 43 parties

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

5. 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.

6. 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)

7. 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 $

8. 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

9. CDM Overview

10. 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 = ~ 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

11. How CDM project works?

12. 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

13. 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.

14. 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

15. 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.

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

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

18. Registered project by host countries*
Registered Projects
Statistics on July 1st 2006 from
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.

19. Registered Projects Registered project by Annex 1 countries involved
Statistics on July 1st 2006 from
Registered project by Annex 1 countries involved
Registered project by scope

20. Registered Projects CDM projects in each sector
Statistics on July 1st 2006 from (UNEP)
CDM projects in each sector
CERs until 2012 in each sector

21. 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

22. 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

23. Future demand for CERs

24. 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

25. CDM Projects for Solid Waste Management

26. CDM Projects for Solid Waste Management

27. CDM Projects for Solid Waste Management

28. CDM Projects for Solid Waste Management

29. CDM Projects for Solid Waste Management

30. CDM Projects for Solid Waste Management

31. CDM Projects for Solid Waste Management

32. CDM Projects for Solid Waste Management

33. Thank You !