1. Panel discussion Low Carbon Generation Technology
Björn Zapfel
UNFCCC Secretariat
JI Sub-Programme
Panel discussion Low Carbon Generation Technology
Carbon Forum America 2008
San Francisco, USA – 26 February 2008

2. Clean Development Mechanism (CDM)
Panel discussion: LCGT
Project-based mechanisms
Clean Development Mechanism (CDM)
Credits (CERs) for emissions avoided through sustainable development projects in developing countries
Joint Implementation (JI)
Credits (ERUs) for emissions avoided through projects in Annex I countries
Basic principles
Market mechanisms
Lowest marginal cost of abatement
Additionality to any ERs that would occur in the absence of the project
Bottom-up approach, re-use and broad application principles for standards
International supervisory and standard setting bodies (CDM EB, JISC)

3. CDM – General status Panel discussion: LCGT CDM – General status
948 projects registered to date
49 host countries
121,122,134 CERs issued
> 3000 projects in pipeline
2.7 billion CERs expected to end of 2012

4. CDM – Registered projects by sectoral scope
Panel discussion: LCGT
CDM – General status II
CDM – Registered projects by sectoral scope
Majority of registered projects (> 50%) in scope 01 (energy industries – renewable/ non-renewable sources)
(JI PDD pipeline: similar picture)

5. CDM – Methodologies Panel discussion: LCGT CDM – Methodologies
Energy industries - renewable/non-renewable sources (37/34%; > 50% of registered projects):
Electricity production from renewable energy Use of waste heat/gases to generate electricity Cogeneration Electricity generation from captured methane from industrial, municipal and agricultural waste Industrial fuel switching from coal or petroleum fuels to natural gas Improvement in heat generation efficiency or switch to renewable biomass for heating Expanding grid to isolated grids or less efficient self generating consumers Introduction of centralized and efficient district heating systems Better/more efficient technologies for generating power from fossil fuels Management systems to optimize power generation from hydro resources
Manufacturing industries (19/17%; ca. 6% of registered projects):
Mitigation of CH4 emissions in the wood carbonization for charcoal production Use of feed stock in pulp and paper production or in bio-oil production to avoid emissions from biomass wastes Replacement of SF6 with alternate cover gas in the magnesium industry Partial substitution of fossil fuels with alternative fuels or less carbon intensive fuels in cement manufacture Increasing the blend in cement production or the use of alternative raw materials that do not contain carbonates for clinker manufacturing in cement kilns

6. Panel discussion: LCGT
CDM – Methodologies II
Waste handling and disposal (12/11%; ca. 21% of registered projects):
Covering project activities that introduce technologies for better management of industrial, municipal, agricultural waste and capture of methane from waste, use of waste handling measures that avoid methane generation (composting, incineration to generate power, making fuel out of waste, using agriculture waste as raw material in production of pulp, use of aerobic treatment systems, gasification of waste, etc), methane capture from waste water, animal manure management and methane capture, use of captured methane for household/transportation use, etc.
Chemical industries (13/12%; ca. 2% of registered projects):
Covering project activities such as secondary catalytic N2O destruction in nitric acid plants, substitution of CO2 from fossil or mineral origin by CO2 from renewable sources in the production of inorganic compounds or the catalytic N2O destruction in the tail gas of nitric acid or caprolactam production plants
Energy efficiency of equipment and industry
Demand side efficiency
Transportation
Capture of CO2
Flared/vented gas
Mine methane
Biofuels

7. Panel discussion: LCGT
ACM0013
ACM0013: Methodology for new grid connected fossil fuel fired power plants using a less GHG intensive technology
Supports the transformation from (e.g. overcome R&D barriers) low efficiency technologies to more efficient fossil fuel based electricity generation technologies
Eligible for:
Construction & operation of a new fossil fuel fired grid-connected generation plant
All possible fossil fuel efficiency improvement measures
Limited too:
New electricity generation plants - no retrofit or co-generation
Most plausible baseline scenario is the construction of (a) new power plant(s) using the same fossil fuel type
Baseline fuel must be used in more than 50% of total generation by utilities in the geographical area
Benchmark emission factor determined based on the performance of the top 15% power plants that use the same fuel as the project plant and any technology available in the geographical area
Baseline needs to be reassessed for each crediting period
Incentive to improve efficiency of fossil fuel based electricity generation technologies, but decreasing with overall increased efficiency

8. CDM – Technology transfer (trends)
Panel discussion: LCGT
Technology transfer - trends
CDM – Technology transfer (trends)
Trends of UNFCCC study to be published soon
Technology transfer (TT): import of technology or knowledge or both
Basis: Statements of project participants in PDDs of projects in pipeline
Roughly 40% of all analyzed projects (covering 64% of annual emission reductions) claim TT
Likelihood of TT increases with project size and involvement of foreign project participant
Pattern heterogeneous by project type, but figures relevant for LCGT in many cases above average

9. as well as corresponding technology transfer
Panel discussion: LCGT
Conclusion
Conclusion
CDM (and JI), as market based mechanisms using a bottom-up approach, have proven as a means to enable low carbon generation technologies,
as well as corresponding technology transfer