e-Serem – A Web-Based Manual For The Estimation of Emission Reductions From JI and CDM Projects

This paper presentse-SEREM (Smart Emission ReductionEstimation Manual), a cost-free, easilyaccessed and updated, web-based manual forestimating emission reductions from Joint Implementation (JI) andClean Development Mechanism (CDM) projects. e-SEREM's main functions arethe selection of a benchmark for a specificproject type in the power or heat sectorand the calculation of the annual andcumulative emission reductions accrued bythis project for its crediting lifetime.e-SEREM was developed in order to test itsapplicability and practicality in assistingproject developers and evaluators toelaborate baselines easily and calculatethe emission credits earned by candidate JIor CDM projects hosted in several countries.     

Baseline Standardisation with Optimising Energy-System Models

Determining adequate baselinesis a major methodological problem whenquantifying emissions reductions achievedwith the project-based flexibilitymechanisms. Possible methodologies forbaseline setting may be classified intomulti-project and project-specificapproaches. While multi-project approachesprovide baselines for a series of typicalprojects within a certain geographicregion, a sector, or a load range,project-specific (orproject-by-project/single-project)approaches only cover one specific project.Project-by-project baseline approaches havebeen tested extensively within theActivities Implemented Jointly (AIJ) pilotphase; multi-project methodologies, on theother hand, have only rarely been applieddue to the (perceived) political andeconomic complexity of the issue, whichmakes the process of introducingstandardised baselines a very sensitivetask. In particular, there is a lack ofmulti-project baseline approaches takingadvantage of optimising computer modelswithin the electricity sector, even thoughother fields of research have made use ofsuch models quite successfully in the past.Experiences made in the PROBASE projectwith the calculation of standardised,aggregated multi-project baselines forJI/CDM projects using optimising energysystem models are illustrated in this paperfor South Africa, Russia, and Indonesia.Increased transparency and credibility ofstandardised approaches along withpotentially lower transaction costs areidentified as the main arguments for theiruse and further development. In addition,the text gives recommendations wheremodel-based baseline standardisation canpreferentially be applied.     

Options for baselines of the clean development mechanism

The Kyoto Protocol created the Clean Development Mechanism (CDM) to allow industrial countries to reach part of their greenhouse gas (GHG) emission reduction through projects in developing countries. To calculate the achieved emission reduction a reference scenario has to be developed – the baseline. Despite efforts to develop realistic baselines, a certain degree of uncertainty regarding actual reductions will be inevitable. It is therefore necessary to compare the costs (including transaction costs) of developing a baseline against the informational benefit it can be expected to produce. While project-related baselines are already being applied, the proponents of country-related baselines have still to show the applicability of their approach for the CDM. The possibility of quantifying indirect effects and considering market distortions and subsidies through aggregation in the country-related baselines is weighed up by the manipulability and uncertainty of the assumptions required in such a baseline. Thus project-specific baselines are recommended. In cases of severely distorted markets undergoing liberalization or subsidy phase-out, a country-related baseline can be helpful. Sectoral or programme baselines would be suited to large-scale energy and sequestration projects. Moreover it has to be considered whether emission reductions are generally achieved in the context of relocation or done in the context of global emitting capacity expansion.     

The Multiple Benchmark System Application to Indonesia,Russia and Panama

Joint Implementation (JI) and theClean Development Mechanism (CDM) have beenestablished under the United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol asproject-based instruments to mitigategreenhouse gases of the industrialisedcountries to the levels imposed by theirKyoto commitments. An outstanding issueassociated with the implementation of thesetwo flexibility mechanisms concerns thechoice of appropriate baseline forcalculating the emission reductions. Thispaper applies a computerised tool thatconstructs and compares different types ofstandardised baselines for projects inIndonesia, Panama and the RussianFederation. It evaluates the effects of theselection of different baselines to theenvironmental integrity of the two Kyotomechanisms.     

Land use change and forestry climate project regional baselines: a review

Climate change programs have largely used the project-specific approach for estimating baseline emissions of climate mitigation projects. This approach is subjective, lacks transparency, can generate inconsistent baselines for similar projects, and is likely to have high transaction costs. The use of regional baselines, which partially addresses these issues, has been reported in the literature on forestry and agriculture projects, and in greenhouse gas (GHG) mitigation program guidance for them (e.g., WRI/WBCSD GHG Project Protocol, USDOE’s 1605(b) registry, UNFCCC’s Clean Development Mechanism). This paper provides an assessment of project-specific and regional baselines approaches for key baseline tasks, using project and program examples. The regional experience to date is then synthesized into generic steps that are referred to as Stratified Regional Baselines (SRB). Regional approaches generally, and SRB in particular explicitly acknowledge the heterogeneity of carbon density, land use change, and other key baseline driver variables across a landscape. SRB focuses on providing guidance on how to stratify lands into parcels with relatively homogeneous characteristics to estimate conservative baselines within a GHG assessment boundary, by applying systematic methods to determine the boundary and time period for input data.

UNFCCC Kyoto Protocol Clean Development Mechanism Baseline Construction for Vietnam National Electricity Grid

For projects under the UNFCCC Kyoto Protocol Clean Development Mechanism (CDM), a baseline has to be set to allow calculation of the greenhouse gas emissions reductions achieved. An important obstacle to CDM project development is the lack of data for baseline definition; often project developers do not have access to data and therefore incur high transaction costs to collect them. The government of Vietnam has set up all necessary institutions for CDM, wants to promote CDM projects and thus is interested to reduce transaction costs. We calculate emission factors of the Vietnam electricity grid according to the rules defined by the CDM Executive Board for small scale projects and for large renewable electricity generation projects. The emission factors lie between 365 and 899 g CO₂/kWh depending on the specification. The weighted operating and build margin reaches 600 g for 2003, while grid average reaches 399 g. Using three-year averages, a combined build and operating margin of 705 g is calculated. We hope that these data facilitate CDM project development in the electricity supply and energy efficiency improvement in Vietnam.     

Methodological and Practical Considerations for Developing Multiproject Baselines for Electric Power and Cement Industry Projects in Central America

The Lawrence Berkeley National Laboratory (Berkeley Lab) and the Center for Sustainable Development in the Americas (CSDA) conducted technical studies and organized two training workshops to develop capacity in Central America for the evaluation of climate change projects. This paper describes the results of two baseline case studies conducted for these workshops, one for the power sector and one for the cement industry, that were devised to illustrate certain approaches to baseline setting. Multiproject baseline emission rates (BERs) for the main Guatemalan electricity grid were calculated from 2001 data. In recent years, the Guatemalan power sector has experienced rapid growth; thus, a sufficient number of new plants have been built to estimate viable BERs. We found that BERs for baseload plants offsetting additional baseload capacity ranged from 0.702 kgCO2/kWh (using a weighted average stringency) to 0.507 kgCO2/kWh (using a 10th percentile stringency), while the baseline for plants offsetting load-following capacity is lower at 0.567 kgCO2/kWh. For power displaced from existing load-following plants, the rate is higher, 0.735 kgCO2/kWh, as a result of the age of some plants used for meeting peak loads and the infrequency of their use. The approved consolidated methodology for the Clean Development Mechanism yields a single rate of 0.753 kgCO2/kWh. Due to the relatively small number of cement plants in the region and the regional nature of the cement market, all of Central America was chosen as the geographic boundary for setting cement industry BERs. Unfortunately, actual operations and output data were unobtainable for most of the plants in the region, and many data were estimated. Cement industry BERs ranged from 205 kgCO2 to 225 kgCO2 per metric ton of cement.     

Estimating baseline carbon emissions for the Eastern Panama Canal watershed

To participate in the potential market for carbon credits based on changes in the use and management of the land, one needs to identify opportunities and implement land-use based emissions reductions or sequestration projects. A key requirement of land-based carbon (C) projects is that any activity developed for generating C benefits must be additional to business-as-usual. A rule-based model was developed and used that estimates changes in land-use and subsequent carbon emissions over the next twenty years using the Eastern Panama Canal Watershed (EPCW) as a case study. These projections of changes in C stocks serve as a baseline to identify where opportunities exist for implementing projects to generate potential C credits and to position Panama to be able to participate in the emerging C market by developing a baseline under scenarios of business-as-usual and new-road development. The projections show that the highest percent change in land use for the new-road scenario compared to the business-as-usual scenario is for urban areas, and the greatest cause of C emission is from deforestation. Thus, the most effective way to reduce C emissions to the atmosphere in the EPCW is by reducing deforestation. In addition to affecting C emissions, reducing deforestation would also protect the soil and water resources of the EPCW. Yet, under the current framework of the Clean Development Mechanism (CDM), only credits arising from reforestation are allowed, which after 20 years of plantation establishment are not enough to offset the C emissions from the ongoing, albeit small, rate of deforestation in the EPCW. The study demonstrates the value of spatial regional projections of changes in land cover and C stocks: The approach helps a country identify its potential greenhouse gas (GHG) emission liabilities into the future and provides opportunity for the country to plan alternative development pathways. It could be used by potential project developers to identify which types of projects will generate the largest C benefits and provide the needed baseline against which a project is then evaluated. Spatial baselines, such as those presented here, can be used by governments to help identify development goals. The development of such a baseline, and its expansion to other vulnerable areas, well positions Panama to respond to the future market demand for C offsets. It is useful to compare the projected change in land cover under the business-as-usual scenario to the goals set by Law 21 for the year 2020. Suggested next steps for analysis includeusing the modeling approach to exploreland-use, C dynamics and management ofsecondary forests and plantations, soilC gains or losses, sources ofvariability in the land use and Cstock projections, and other ecologicalimplications and feedbacks resulting fromprojected changes in land cover.     

Integrated assessment of CCS in the German power plant sector with special emphasis on the competition with renewable energy technologies

The study presents the results of an integrated assessment of carbon capture and storage (CCS) in the power plant sector in Germany, with special emphasis on the competition with renewable energy technologies. Assessment dimensions comprise technical, economic and environmental aspects, long-term scenario analysis, the role of stakeholders and public acceptance and regulatory issues. The results lead to the overall conclusion that there might not necessarily be a need to focus additionally on CCS in the power plant sector. Even in case of ambitious climate protection targets, current energy policy priorities (expansion of renewable energies and combined heat and power plants as well as enhanced energy productivity) result in a limited demand for CCS. In case that the large energy saving potential aimed for can only partly be implemented, the rising gap in CO₂ reduction could only be closed by setting up a CCS-maximum strategy. In this case, up to 22% (41 GW) of the totally installed load in 2050 could be based on CCS. Assuming a more realistic scenario variant applying CCS to only 20 GW or lower would not be sufficient to reach the envisaged climate targets in the electricity sector. Furthermore, the growing public opposition against CO₂ storage projects appears as a key barrier, supplemented by major uncertainties concerning the estimation of storage potentials, the long-term cost development as well as the environmental burdens which abound when applying a life-cycle approach. However, recently, alternative applications are being increasingly considered?Cthat is the capture of CO₂ at industrial point sources and biomass based energy production (electricity, heat and fuels) where assessment studies for exploring the potentials, limits and requirements for commercial use are missing so far. Globally, CCS at power plants might be an important climate protection technology: coal-consuming countries such as China and India are increasingly moving centre stage into the debate. Here, similar investigations on the development and the integration of both, CCS and renewable energies, into the individual energy system structures of such countries would be reasonable.     

西气东输工程的环境协同效应研究

协同效应研究是气候变化政策研究的新领域,也是非常重要的领域.西气东输工程的主要目的是为我国中东部地区输送丰富的天然气资源,但其实施同时也有助于减少东部地区大气污染物排放,改善大气质量.利用较成熟的中国区域环境与经济综合评价模型(AIM-LOCAL/China模型),从用气项目的SO₂和CO₂排放的常规情景(BAU)和利用天然气后的情景(NGS)两方面进行了量化比较,分析西气东输工程的环境协同效应.研究发现:在用气项目的范围内,NGS情景下的SO₂排放相比BAU情景明显减少,同时CO₂等温室气体排放也大幅减少.2003-2020年,累计可以减排约312×104 t SO₂和3 475×104 t CO₂,分别比BAU情景减排40.5%和17.9%.从4个用气部门来看,不论是SO₂还是CO₂,电力部门用气项目的减排量都占突出位置.      

SO_2和NO_x基准线排放因子的计算研究

根据清洁发展机制(CDM)执行理事会(EB)公布的电力系统排放因子计算工具,结合文献调研数据,计算了全国7个电网的SO2和NOx基准线排放因子,比较了不同电网CDM项目的污染物减排效益以及不同类型CDM项目的减排效益.结果表明,华中电网的CDM项目单位供电量的SO2减排效益最高,东北电网的最低;而对于项目单位供电量的NOx减排效益,最高的是东北电网,最低的是南方电网和海南电网.目前,CDM项目在各电网的分布与其单位供电量的污染物减排效益存在着不平衡的状况.如南方电网开发CDM项目较多,其项目单位供电量的污染物减排效益并不高.对于不同类型的CDM项目,风电及太阳能发电项目的污染物减排效益相对较高.     

Methods for project-based mechanisms (JI/CDM)—relevance of IPCC inventory guidelines

A baseline for a project consists of estimates of annual emissions of greenhouse gases (GHG) for a given time period without implementing the project. A general three-step process for determining the baseline is suggested. The emission reduction of the project is given by the difference between the baseline and the monitored annual emissions. A preferred method, direct measurement of the emission reduction, is possible for some types of projects. Methods for estimating the annual baseline emissions are not necessary for the latter category, and a definition of this project category is suggested. IPCC Guidelines for National GHG Inventories categorise the emission sources so that only direct emissions from consumption of fuel and feedstock are calculated. There are thus no emission factors for indirect emissions (e.g. electricity consumption or km transported) or emission factors that depend on technology only, independent of consumption of fuel and feedstock. Technology-dependent emission factors may thus need to be developed for estimating indirect emissions and multi-project baselines. Consistency should be sought with the IPCC Guidelines when estimating annual baseline emissions and in monitoring project emissions to ensure comparability with the National Inventories.     

后京都时代全球碳排放权配额分配模拟研究

采用自底向上和自顶向下两种建模方法,构建了一个全球碳排放权配额分配模型.通过对排放水平控制方案、单一原则方案和加权原则方案的情景模拟和分析,结果发现:当前全球试图通过气候谈判制定的减排方案是一种排放水平控制方案.由于在减排方式、基准年份和减排比例方面各国仍无法统一,该方案具有很大的不确定性.虽然单一原则方案可在某一指标上体现公平,但各区域对不同原则的偏好程度差异悬殊,甚至在某些原则下可能出现极端的分配结果,如人均累计碳排放均等原则.与前两类方案相比,加权原则方案更具公平性、可行性、可扩展性和可操作性.实施加权原则方案应尽可能多地涵盖不同原则,并以投票方式决定相关原则权重.     

Forest Management for Greenhouse Gas Benefits: Resolving Monitoring Issues Across Project and National Boundaries

Demand for new environmental services from forests requires improved monitoring of these services at three scales: project-, regional-, and national-level. Most forest management activities are organized at the project scale, while the Framework Convention on Climate Change (FCCC) recognizes the nation as the party to the agreement. Hence, measurement and monitoring issues are emerging at the intersections of the project and national scales, referred to here as monitoring-domain edge effects. The following actions are necessary to improve existing monitoring capabilities and to help resolve project/national edge effects: (1) consensus on standard methods and protocols for monitoring mitigation activities, their off-site greenhouse gas (GHG) impacts, the fate of forest products and their relation to national GHG inventories (baselines); (2) a global program for collecting land use, land cover, biomass burning, and other data essential for national baselines; (3) the development of new nested-monitoring-domain methods that allow projects to be identified in national GHG inventories (baselines), and permit tracking of leakage of GHGs and wood product flows outside project boundary and over time; and (4) presentation of a set of credible, carefully designed, and well-documented forest mitigation activities that resolve most of the current issues.     

Development of regional climate mitigation baseline for a dominant agro-ecological zone of Karnataka,India

Setting a baseline for carbon stock changes in forest and land use sector mitigation projects is an essential step for assessing additionality of the project. There are two approaches for setting baselines namely, project-specific and regional baseline. This paper presents the methodology adopted for estimating the land available for mitigation, for developing a regional baseline, transaction cost involved and a comparison of project-specific and regional baseline. The study showed that it is possible to estimate the potential land and its suitability for afforestation and reforestation mitigation projects, using existing maps and data, in the dry zone of Karnataka, southern India. The study adopted a three-step approach for developing a regional baseline, namely: (i) identification of likely baseline options for land use, (ii) estimation of baseline rates of land-use change, and (iii) quantification of baseline carbon profile over time. The analysis showed that carbon stock estimates made for wastelands and fallow lands for project-specific as well as the regional baseline are comparable. The ratio of wasteland Carbon stocks of a project to regional baseline is 1.02, and that of fallow lands in the project to regional baseline is 0.97. The cost of conducting field studies for determination of regional baseline is about a quarter of the cost of developing a project-specific baseline on a per hectare basis. The study has shown the reliability, feasibility and cost-effectiveness of adopting regional baseline for forestry sector mitigation projects.

Institutional and cost implications of multi-project baselines

Starting from a theoreticalnotion of capacity building this paperfocuses on the implications ofmulti-project baselines for costs andinstitutions. Availability of data and thelevel of data aggregation determine to alarge extent the cost of derivingmulti-project baselines. For localinstitutions this implies that theircapacity development needs are linked todecisions made on strictness of baselines.The initial higher costs of multi-projectcalculations in the development stage areeasily offset once more projects will usesuch a baseline. This paper argues theseinitial demands are not as high asexpected. Multi-project approaches willreduce transaction costs, especially forsmall-scale projects, will reducevalidation costs and likely reduce humanresource demands in other stages of theproject cycle.     

The elephant in the room – A comparative study of uncertainties in carbon offsets

The clean development mechanism (CDM) is a flexible mechanism under the Kyoto Protocol, which makes it possible for developed countries to offset their emissions of greenhouse gases through investing in climate change mitigation projects in developing countries. When the mitigation benefit of a CDM project is quantified, measurable uncertainties arise that can be minimised using established statistical methods. In addition, some unmeasurable uncertainties arise, such as the rebound effect of demand-side energy efficiency projects. Many project types related to land use, land-use change and forestry (LULUCF) have been excluded from the CDM in part because of the high degree of statistical uncertainty in measurements of the carbon sink and risk of non-permanence. However, recent discussions within the United Nations Framework Convention on Climate Change (UNFCCC) have opened up for the possibility of including more LULUCF activities in the future. In the light of this discussion, we highlight different aspects of uncertainties in LULUCF projects (e.g. the risk of non-permanence and the size of the carbon sink) in relation to other CDM project categories such as renewables and demand-side energy efficiency. We quantify the uncertainties, compare the magnitudes of the uncertainties in different project categories and conclude that uncertainties could be just as significant in CDM project categories such as renewables as in LULUCF projects. The CDM is a useful way of including and engaging developing countries in climate change mitigation and could be a good source of financial support for LULUCF mitigation activities. Given their enormous mitigation potential, we argue that additional LULUCF activities should be included in the CDM and other future climate policy instruments. Furthermore, we note that Nationally Appropriate Mitigation Actions (NAMAs) are currently being submitted to the UNFCCC by developing countries. Unfortunately, the under-representation of LULUCF in comparison to its potential is evident in the NAMAs submitted so far, just as it has been in the CDM. Capacity building under the CDM may influence NAMAs and there is a risk of transferring the view on uncertainties to NAMAs.     

Reside0ntial solar water heating as a potential Clean Development Mechanism project: A South African case study

A community-based Clean Development Mechanism (CDM) project – asolar water heating project in a low-income community in South Africa –is analysed to illustrate the methodological and policy challenges that faceimplementation of the Kyoto Protocol to the United Nations FrameworkConvention on Climate Change. We evaluate four baseline options, andthree potential CDM interventions. The emissions reductions range from –670 to +5 929 Mg CO₂ per year, with all option but oneshowing positive emission reductions. Using metered solar water heatingwith liquefied petroleum gas back-up as the CDM intervention, and electricstorage geysers as the baseline, the annual emissions reductions are 5686 Mg CO₂. The cost-effectiveness from the national perspective,which is the incremental life cycle costs divided by the lifetime emissionsreductions, is –$18 per Mg CO₂ From the perspective of theCDM investor, however, the cost-effectiveness is $5.2 per mgCO₂, assuming that the investor receives all of the carbon credits forproviding the incremental capital investment. From our analysis, weconclude that using the current technology (kerosene stoves) as a baselineis probably not appropriate because it does not reflect likely future trendsand also penalises the community for their poverty and current lack ofinfrastructure. We also highlight the importance of credit sharing, and howit affects the cost-effectiveness of the project from the CDM investor'sperspective. The lessons from this analysis are important for the currentinternational policy debate on how to preferentially treat small-scale CDMprojects.     

Evaluating electricity sector reforms in Argentina: lessons for developing countries?

In Argentina, prior to the macroeconomic crisis of early 2002, power sector reforms had proven successful in delivering low electricity tariffs and increasing private investments. This had been achieved through the unbundling of electricity supply businesses and the introduction of competition, paying due attention to the lessons learned by forerunners in power sector reform, including neighbouring Chile. The reforms that had been implemented in Argentina were therefore deemed to have been a success. However, in the wake of the macroeconomic crisis and the devaluation of the peso, generators and gas suppliers found themselves in critical financial straights, which caused a halt to additional investment. The current challenge facing reforms in the Argentine power sector is to rebound from the financial ramifications of peso devaluation and to promote private investment. Given these basic facts, this paper traces the history of reforms in the Argentine electricity sector, assessing the progress that has been achieved and suggesting lessons for developing countries. It is often the case in developing countries that the unbundling of vertically integrated state-owned industries into privatised enterprises requires efforts to improve infrastructure as a prerequisite for the introduction of competitive practices. Bearing this in mind, this paper lays out measures that would be useful to consider for electricity sector reforms in developing countries from the following three perspectives: (1) Transition from a state-owned power companies to private enterprises; (2) Development of conditions required to promote infrastructure projects; and (3) Development of conditions for the establishment of a healthy and fair competitive environment, assuming that liberalisation is achieved once the conditions in (1) and (2) are met.     

Domestic UNFCCC Kyoto Protocol Mechanisms Project Supply Coordination Through Tendering – Lessons from the New Zealand Experience

A United Nations Framework Convention on Climate Change (UNFCCC) Joint Implementation (JI) host country has to make sure that JI projects are additional to avoid extra costs to generate the reductions necessary to cover the deduction of Emission Reduction Units (ERUs) from the country’s Kyoto Protocol emissions budget. A tender of ERUs by the government allows to generate additional reductions beyond the ERUs issued if it thoroughly checks project additionality. The government of New Zealand is running a tender for JI projects under the title “Projects to Reduce Emissions” since 2003. In two rounds, 10 million ERUs have been awarded and several projects have already entered into contracts with European buyers. The ratio of ERUs awarded to reductions achieved was 0.8 in the second tender. However it remains to be seen whether the additionality test of this tender is sufficient to exclude clearly non-additional projects.