The Climate for Joint Implementation: Case Studies from Russia,Ukraine, and Poland

Joint implementation (JI) can provide flexibility in meetingKyoto Protocol commitments, and 44 nations have already participated inthe U.N. Framework Convention on Climate Change – Activities Implemented Jointly (AIJ) pilot. Thispaper surveys JI policy and projects in three countries – Russia, Ukraine,and Poland – over the past five years and examines the effects of domesticinstitutions, foreign policy, and investment trends on JI in each country.The institutional and economic situation in the three nations differs greatly,and these distinctions have resulted in very different circumstances for AIJprojects, affecting both their number and scope. Poland has a well-definedset of rules and procedures for JI and its economy is quite strong. Ukrainehas not yet established criteria or clear procedures for AIJ project reviewsalthough it does have an Interagency Commission on Climate Change.Ukraine's economy declined by over 40% in the 1990s. Russia'seconomy has also declined, to a lesser extent. Russia does have aprocedure for reviewing AIJ projects, though it has temporarily halted thesereviews. Countries seeking JI investment can take several steps to improve thenumber and quality of AIJ projects that they receive. In the long term,governments can create macroeconomic stability and a solid legalinvestment basis to attract investment for JI and other areas. In the shortterm, however, governments can undertake several simple and inexpensivesteps to promote JI. Establishing clear rules and procedures for AIJprojects is an important step. So too are clearly delegating responsibilityfor AIJ project review and providing a single JI point of contact in thegovernment to which investors and project developers can turn. Gainingmore experience in implementing AIJ projects now is important preparationfor fully implementing the Kyoto Protocol beginning in 2008.     

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.     

Regulatory and Mixed Policy Options for Reducing Energy Use and Carbon Emissions

This article discusses non-fiscal policy options to reduce energy demand and the resulting environmental impacts, and it reviews experiences with these options to date. Such policies include accelerating technology development and demonstration, stimulating product demand via procurement policies, applying efficiency standards to information-poor end-use sectors, and encouraging utility energy-efficiency programs. Efforts to implement such measures are underway in several industrialised countries and have begun in developing countries. Increasing energy efficiency is an important area for near-term carbon emission reductions, and a key strategy for cost-effective mitigation of global climate change. However, little of the energy-efficiency potential identified by technical studies will be realised in the absence of policies to reduce barriers to energy-efficiency investments. Performance standards can overcome the lack of information on the part of energy users, while technology procurement helps overcome the view of manufacturers that introducing efficient products is risky. The effects of these policy options on product markets are characterised, showing the synergy between different instruments and their potential to create and transform markets for energy-efficient products, systems and services. The existence of such energy-efficiency markets can stimulate new progress and innovation, providing the conditions in which the continuous process of technical improvement is significantly accelerated. Most policy analysis and discussions regarding climate-change mitigation have centred on various forms of carbon emission taxes and to some extent on tradable emission offsets or permits. This article concludes with an examination of why non-fiscal options are mostly absent from energy-economic models and climate-change policy studies, and we suggest approaches to include them more fully in energy-policy analysis and implementation.     

The 1997 Kyoto Protocol: What Does It Mean for Project-Based Climate Change Mitigation?

The Kyoto Protocol effectively ends the Activities Implemented Jointly (AIJ) pilot phase. However, it is premature to conclude that Articles 6 and 12 of the Protocol vindicate joint implementation and successfully conclude the AIJ pilot phase. Rather, Articles 6 and 12 can be seen as part of the price developing countries felt they had to pay to obtain a Protocol. Debate over Articles 6 and 12 is likely to be as contentious as the JI/AIJ debates that preceded it. Indeed, the AIJ pilot phase has not answered many concerns posed by developing countries and other interest groups. While companies and countries participating in AIJ have had wide latitude to pursue almost any projects they wished, it remains to be seen how much of this flexibility will be preserved as Articles 6 and 12 become operational. This will determine whether the importance and cost-effectiveness originally predicted for the joint implementation concept comes to pass. A review of the JI and AIJ literature suggests many potential stumbling blocks to achieving large-scale and cost-effective emissions reductions through project-based mitigation efforts under the Kyoto Protocol. This paper identifies these stumbling blocks and systematically assesses their potential implications. The Greenhouse Gas Offset Cost Assessment and Decisionmaking Model (GGOCAD©) is used to qualitatively as well as quantitatively evaluate the importance of key criteria and methodological decisions under Articles 6 and 12. It is easy to develop scenarios in which project-based mitigation through Articles 6 and 12 would not be permitted to contribute substantially to achievement of countries’ obligations under Article 3. Overcoming the challenges facing project-based mitigation efforts is important to achieving the larger goals of the Kyoto Protocol.     

Challenges against CO2 abatement strategies in cement industry: A review

Cement industry is an intensive source of fuel consumption and greenhouse gases (GHGs) emissions. This industry is responsible for 5% of GHGs emissions and is among the top industrial sources of carbon dioxide (CO₂) emissions. Therefore, CO₂ emissions reduction from cement production process has been always an appealing subject for researches in universities and industry. Various efforts have been carried out to mitigate the huge mass of CO₂ emissions from the cement industry. Although, majority of these strategies are technically viable, due to various barriers, the level of CO₂ mitigation in cement industry is still not satisfactory. Among numerous researches on this topic, only a few have tried to answer why CO₂ abatement strategies are not globally practiced yet. This work aims to highlight the challenges and barriers against widespread and effective implementation of CO₂ mitigation strategies in the cement industry and to propose practical solutions to overcome such barriers.     

Promoting energy efficiency financing and ESCOs in developing countries: mechanisms and barriers

Developing countries have tremendous potential to increase energy efficiency but face several barriers before the potential can be realised. A lack of access to appropriate financing mechanisms is one of the important barriers. Energy service companies (ESCOs), a market oriented mechanism to improve energy efficiency, had successful experiences in developed countries such as the USA and Canada, and developing countries such as South Korea. ESCOs are in nascent stage in many developing countries and face several barriers that include market, finance and institutional barriers, poor energy pricing policies, high transaction costs etc. Market development through active involvement of governments as a customer, information provider, and policy maker is required to promote ESCOs. Development of specialised energy efficiency financing windows in appropriate financial institutions, development of skills for energy efficiency project appraisal and design of specialised financial products are other measures to accelerate the diffusion of energy efficiency.     

Energy service company and financial market development: experiences of the Global Environment Facility

Energy Service Companies (ESCOs) and the energy market for ESCO financing have been developing since 1976 when oil prices increased dramatically. ESCOs’ services cover projects in many energy areas, including energy extraction, power generation, energy conversion, transportation, power transmission, energy consumption, project financing, energy project audits, monitoring, and energy savings verification. In developing countries, there are many barriers in the energy market that are preventing ESCOs from developing. These barriers include lack of appropriate policy, financial mechanisms, and local capacities for ESCO development and management. Over the past 20 years, the Global Environment Facility (GEF) financed 39 ESCO projects in 25 countries and regions to remove these barriers. The results of these projects show that some countries, such as China, are very successful in ESCO development, but others are not. Different models of ESCOs in different financial markets in various countries are analyzed; and case studies are undertaken for China, India, Ukraine, and Brazil. This article concludes that, while developing financial markets for ESCOs, countries need to consider (1) initiating national government policy to stop energy subsidies and to reform energy pricing, (2) establishing a real, market based financial mechanism for ESCOs, (3) involving the private sector in project co-financing, (4) creating incentives to ESCOs in the market by investing part of government revenue from energy tax, and (5) incentivizing ESCOs by government corporate tax exemption.     

固体废物焚烧处置及其清洁发展机制

包含化石碳(如塑料等)在内的废物焚烧处置和露天燃烧是废物部门中最重要的CO₂排放来源之一. 在全国节能减排大背景下,废物焚烧发电成为温室气体减排的有效途径. 对我国固体废物焚烧处置现状及趋势进行了分析,同时研究了国内城市固体废物和危险废物焚烧的区域特征. 结果表明:随着经济发展和废物产生量的急剧增长,废物焚烧处置技术必将成为我国未来固体废物处置的主要方式;伴随着废物焚烧行业的发展,有大量项目可以注册CDM (清洁发展机制)项目,可为温室气体减排做出较大的贡献.      

Community and farm forestry climate mitigation projects: case studies from Uttaranchal,India

The methodologies for forest mitigation projects still present challenges to project developers for fulfillment of criteria within the Clean Development Mechanism (CDM) or other such mechanisms for the purpose of earning carbon credits. This paper systematically approaches the process of establishing carbon (C) stocks for baseline (BSL) and mitigation scenario (MSL) for two case studies i.e., community and farm forestry projects in Uttaranchal, India. The analysis of various interventions shows that both projects present high carbon mitigation potential. However, the C reversibility risk is lower in long-rotation pine and mixed species plantation on community lands. The project is financially viable though not highly lucrative but the carbon mitigation potential in this ‘restoration of degraded lands’ type of project is immense provided challenges in the initial phase are adequately overcome. C revenue is an essential driver for investors in community projects. The short-rotation timber species such as Eucalyptus (Eucalyptus), Poplar (Populus) have high internal rates of return (IRR) and high carbon benefit reversibility potential due to fluctuations in market prices of commodities produced. The land holdings are small and bundling is desired for projects to achieve economies of scale. The methodological concerns such as sampling intensities, monitoring methodologies, sharing of benefits with communities and bundling arrangements for projects need further research to make these projects viable.     

Integrating Joint Implementation Projects for Energy Efficiency on the Built Environment with White Certificates in The Netherlands

In this paper we analyze policy interactions between two innovative climate and energy policy instruments, namely White Certificates (WhC) and Joint Implementation (JI) that target at energy efficiency improvement and reductions of Greenhouse Gas (GHG) emissions. We have selected The Netherlands and Bulgaria as a case study given that the former has a cumulated experience in energy efficiency policies and the latter for a growing potential in JI projects as a host country. Based on a method of analyzing policy interactions, we demonstrate how a possible design of such a scheme can take place and how it should function. A couple of parameters that deserve attention are a baseline definition and a conversion rate for credits. Our basic finding is that an integrated scheme is complementary and can assist substantially in achieving Dutch national United Nations Framework Convention on Climate Change (UNFCCC) Kyoto Protocol targets. Dutch electricity and gas suppliers (parties that receive energy efficiency obligations) can implement energy efficiency projects domestically and in other countries, hence reducing total abatement costs. Furthermore, such a scheme can stimulate further energy efficiency actions from other stakeholders participating in energy markets. Based on an ex-ante assessment, a carefully designed hybrid WhC and JI scheme appears to be effective in terms of targets, efficient, generating positive impacts on markets and society, while uncertain in stimulating innovation.

Carbon emission efficiency of thermal power in different regions of China and spatial correlations

In China, the power industry contributes significantly to carbon emissions, reducing carbon emissions in this industry is conducive to China's adaptation and mitigation of climate change. Researches on green and low-carbon power have attracted increasing attention. In this paper, we analyze and compare the carbon emissions from thermal power sector in 30 Chinese provinces, divided into three main regions. Based on the panel data over the period 2002–2016, we use a slacks-based measurement (SBM) model to measure the carbon emission efficiency of China’s power sector. The results show that the carbon emission efficiency of the system is relatively low, with marked differences among regions. Based on the Moran’s I, we further found spatial heterogeneity in carbon emission efficiency of provincial power sector. Policies for adaptation and mitigation of climate change should have regional differences. Interregional collaboration also plays a key role in adapting to and mitigating climate change. For China, it is an important issue to develop clean coal-fired power generation and vigorously develop renewable energy. From a global perspective, energy transformation needs to be continuously promoted. Promoting low-carbon transformation of global energy system requires deep technical cooperation and synergy. Global mitigation strategy should focus on the orientation of structural reform and constantly optimize the energy structure.

     

Opportunities for adaptation-mitigation synergies in geothermal energy utilization- Initial conceptual frameworks

In this article, the role of geothermal energy in mitigation and potential role in adaptation are discussed, and synergies between them developed. The article creates the Geothermal Adaptation-Mitigation (Geo-AdaM) conceptual frameworks that can be used in combining mitigation and adaptation in geothermal projects, e.g. by introducing adaptation additionality in Clean Development Mechanism or mitigation projects, using geothermal energy in climate vulnerable sectors, combining geothermal development with carbon forestry to improve recharge of geothermal systems in water stress areas, displacing fossil fuels in heating and cooling, and use of geothermal heat in raising tree seedlings in cold regions, and in greenhouses to create carbon sinks and green areas. The conceptual frameworks created in this research can cut across most regions, and types of utilization schemes with mitigation/adaptation co-benefits. The resulting co-benefits come with net positive environmental, economic and social impact. However, the co-benefits cannot be homogenous across all projects and regions. Tradeoffs may occur when using geothermal energy in adaptation projects, whose upstream activities are carbon intensive, or in adaptation and mitigation projects that have the potential of increasing vulnerability. The foreseen limitations of creating the synergies include; inadequate research on geothermal energy and adaptation, nature and scale of adaptation, involvement of different institutions and actors, access to finance and other resources especially in developing countries and lack of clear legal framework. Without proper legislation, fiscal incentives, to attract investment in adaptation aspects of geothermal energy, and to guard against tradeoffs, the interelationships between the two will remain a pipe dream.     

Role of Bio-Energy Plantations for Carbon-Dioxide Mitigation with Special Reference to India

Fuelwood plays an important role in the rural economy of the developing countries of Asia and Africa. Optimizing energy fixation in forest trees through high density energy plantations (HDEP), gasification of wood, and conversion of forest tree biomass, are some of the potential areas whereby additional research and development input for efficient management of atmospheric carbon in our energy system can be incorporated. For example, the photosynthetic efficiency of forest trees is rarely above 0.5%, which on the basis of theoretical considerations can be increased by up to 6.6%. Thus there is an ample scope to improve the efficiency up to 1%, which amounts to doubling of the productivity of the forests. Recent policy changes and experiences with wood-based bio-energy programmes in several countries indicate that woodfuels may become increasingly attractive as industrial energy sources. Use of biodiesel and the formulation of a project for undertaking 13.4 million ha of Jatropha plantations in India highlight the seriousness with which the Government of India is promoting carbon neutral energy plantations. The cost of establishment of plantations primarily for fuel production and its conversion to energy are major deterrents in this pursuit. Some of the issues in developing countries, like low productivity on marginal lands, degraded forest lands, and unorganized units for biomass energy conversion, result in cost escalation as compared to other energy sources. This paper revisits the scope for raising energy plantations, a comparison of the direct and indirect mitigation potential uses of plantations as an adaptation strategy through reforestation and afforestation projects for climate change mitigation and socio-economic issues to make this venture feasible in developing countries.     

Concerns about climate change mitigation projects: summary of findings from case studies in Brazil,India, Mexico and South Africa

The concept of joint implementation as a way to implement climate change mitigation projects in another country has been controversial ever since its inception. Developing countries have raised numerous issues at the project-specific technical level and broader concerns having to do with equity and burden sharing. This paper summarizes the findings of studies for Brazil, India, Mexico and South Africa, four countries that have large greenhouse gas emissions and are heavily engaged in the debate on climate change projects under the Kyoto Protocol. The studies examine potential or current projects/programs to determine whether eight technical concerns about joint implementation can be adequately addressed. They conclude that about half the concerns were minor or well managed by project developers, but concerns about additionality of funds, host country institutions and guarantees of performance (including the issues of baselines and possible leakage) need much more effort to be adequately addressed. All the papers agree on the need to develop institutional arrangements for approving and monitoring such projects in each of the countries represented. The case studies illustrate that these projects have the potential to bring new technology, investment, employment and ancillary socioeconomic and environmental benefits to developing countries. These benefits are consistent with the goal of sustainable development in the four study countries. At a policy level, the studies' authors note that in their view, the Annex I countries should consider limits on the use of jointly implemented projects as a way to get credits against their own emissions at home, and stress the importance of industrialized countries developing new technologies that will benefit all countries. The authors also observe that if all countries accepted caps on their emissions (with a longer time period allowed for developing countries to do so) project-based GHG mitigation would be significantly facilitated by the improved private investment climate.     

Joint Implementation Under the U.N. Framework Convention on Climate Change: Technical and Institutional Challenges

The U.N. Framework Convention on Climate Change (FCCC) allows for the joint implementation (JI) of measures to mitigate the emissions of greenhouse gases. The concept of JI refers to the implementation of such measures in one country with partial or full financial and/or technical support from another country, potentially fulfilling some of the supporting country's emission-reduction commitment under the FCCC. At present, all JI transactions are voluntary, and no country has claimed JI credit against existing FCCC commitments. Nevertheless, JI could have important implications for both the economic efficiency and the international equity of the implementation of the FCCC. This paper discusses some of the information needs of JI projects and seeks to clarify some of the common assumptions and arguments about JI. Issues regarding JI are distinguished according to those that are specific to JI and those that apply to JI as well as other types of regimes and transactions. The focus is on the position of developing countries and their potential risks and benefits regarding JI.     

Capital assets and institutional constraints to implementation of greenhouse gas mitigation options in agriculture

Agriculture is one of the major sources of greenhouse gas (GHG) emission. It accounts for approximately 15% of the total global anthropogenic emissions of GHGs. Emissions could be twice as much if indirect emissions are also taken into the consideration. However, unlike other high emitting sectors such as transport or energy, agriculture is potentially a significant carbon “sink”. It has high technical potential as a carbon sink and if tapped, can substantially enhance global sequestration efforts. The technical potential, however, may not translate into actual GHG reduction because of the capital assets and institutional constraints faced by the smallholder farmers in the developing countries. In this paper we develop a capital assets based framework of physical, financial, social, human and natural barriers to agricultural carbon mitigation initiatives and through analysis of current initiatives, we set out policy based options to reduce each of these barriers. Fundamentally, barrier removal will entail designing agricultural carbon mitigation initiatives in collaboration with farmer communities, through strengthening local institutions, understanding land tenure and natural resource cultures, ensuring legitimacy and equity in payments and fast tracking training and information. We provide a framework that simultaneously aids the dual objectives of alleviating poverty in the poor farming communities of developing countries and lowering global greenhouse gas emissions.     

Biogas in the United States: estimating future production and learning from international experiences

The substitution of biogas, an energy source derived from biological feedstock, for fossil natural gas (NG) can mitigate the build-up of greenhouse gases in the atmosphere, making it an attractive renewable energy source in a carbon-constrained future. Although upgraded, pipeline-quality biogas can augment the NG market supply in the United States of America (USA), researchers and energy industry experts have little studied its long-term potential. This report estimates (1) levelized costs of energy for biogas production facilities operating with landfill waste, animal manure, wastewater sludge, and biomass residue feedstocks, (2) feedstock and technology pathway-specific biogas supply functions, and (3) the aggregate national biogas supply potential for the USA by 2040. Under a range of specified assumptions, generation of biogas could be expanded to approximately 3–5 % of the total domestic NG market at projected prices of $5–6/MMBtu, with the largest potential source coming from thermal gasification of agriculture and forest residues and biomass. As market signals have not spurred widespread adoption of biogas in the USA, policy incentives, similar to those used in the European Union (E.U.), may be necessary to increase its production and use. Bioenergy policy in the E.U. and the resulting market penetration achieved there therefore provides important lessons for how biogas markets in the USA can overcome barriers to market expansion and, in doing so, provide substantial climate mitigation benefits.     

Promoting energy efficiency financing and ESCOs in developing countries: experiences from Korean ESCO business

Promotion of ESCO business is one way of increasing energy efficiency. However, it has a lot of barriers and challenges to be successful. The Korean case is a good example to show the reason why economically viable energy savings measures cannot be implemented and how this can be corrected. Although financing is essential for promoting energy efficiency investment and ESCO business, it is not the most crucial barrier to overcome. Along with a financial barrier, an institutional barrier should also be lifted for energy efficiency investment. In this regard, the role of government as a market creator as well as a rule setter through removing barriers and mobilizing necessary capital needs to be emphasized.     

Scale and benefit of global carbon markets under the 2 °C goal: integrated modeling and an effort-sharing platform

Global climate change mitigation needs all countries’ efforts under the United Nations Framework Convention on Climate Change’s guideline of equity and common but differentiated responsibilities and respective capabilities. The medium-to-long term regional emissions pathways simulated by integrated assessment models with global mitigation costs minimized to achieve the 2 °C goal might be very different from the regional emissions allowances allocated based on effort-sharing principles. Global carbon trading is a cost-effective mechanism to bridge the gap. Insight of previous papers has mainly focused on the impact of a single effort-sharing scheme on global carbon market, while this study attempts to explore the scale and benefit of global carbon market under different effort-sharing principles to achieve the 2 °C goal, with the application of a consistent modeling framework, consisting of an integrated assessment model and an effort-sharing platform. The results indicate that scale of global carbon market would be highly related with the effort-sharing principles. The global trading volumes would change from 1.8 Gigatons (Gt) carbon dioxide (CO₂) to over 12 GtCO₂ per year and largely peak between 2030 and 2040 under different kinds of effort-sharing principles. Correspondingly, annual global finance flows in the carbon market would increase gradually and reach the scale of hundreds of billions United States (US) dollars since 2020. Global carbon market would lower the abatement costs of developed countries, and the overall global abatement costs would drop by 0.4–2.6% during 2011–2050. The developing countries would not only acquire revenues from global carbon trading but also be provided with an opportunity to accelerate their domestic low-carbon energy transformation, local environmental improvement, job creation, and economic development. Linking national and regional carbon markets to develop global carbon market will be critical to maximize the utility of the market mechanism.     

城市酒店业的碳排放核算及低碳指标分析

随着中国的快速城市化和服务业的发展,旅游业逐渐成为主要的温室气体排放者之一,酒店面临节能减排的压力并缺乏相关的评价标准.本文建立了生命周期的酒店业碳排放核算框架和低碳指标,并以宁波市为案例城市,对其3种类型的酒店进行碳排放核算和低碳指标的分析.结果表明,能源消费是酒店业最大的碳排放源,占93.5%~94.1%;各类酒店的碳排放量在2013—2015年间有约8.2%~9.2%的减少;从低碳指标看,五星级酒店的单位建筑面积的碳排放最小,单位出租间天数和单位旅客的碳排放最大,而四星级酒店的单位营业额碳排放最小.优化区域电力碳排放水平和酒店的软硬件设施是减少酒店碳排放的有效措施,碳标签是有效的酒店业低碳管理的政策工具.