Economic potential of biomass gasification projects under clean development mechanism in India

The Clean Development Mechanism (CDM) of the Kyoto Protocol provides Annex-I (industrialized) countries with an incentive to invest in emission reduction projects in non-Annex-I (developing) countries to achieve a reduction in CO₂ emissions at lowest cost that also promotes sustainable development in the host country. Biomass gasification projects could be of interest under the CDM because they directly displace greenhouse gas emissions while contributing to sustainable rural development. However, there is only one biomass gasifier project registered under the CDM so far. In this study, an attempt has been made to assess the economic potential of biomass gasifier-based projects under CDM in India. The preliminary estimates based on this study indicate that there is a vast theoretical potential of CO₂ mitigation by the use of biomass gasification projects in India.The results indicate that in India around 74 million tonne agricultural residues as a biomass feedstock can be used for energy applications on an annual basis. In terms of the plant capacity the potential of biomass gasification projects could reach 31 GW that can generate more than 67 TWh electricity annually. The annual CER potential of biomass gasification projects in India could theoretically reach 58 million tonnes. Under more realistic assumptions about diffusion of biomass gasification projects based on past experiences with the government-run programmes, annual CER volumes by 2012 could reach 0.4–1.0 million and 1.0–3.0 million by 2020. The projections based on the past diffusion trend indicate that in India, even with highly favorable assumptions, the dissemination of biomass gasification projects is not likely to reach its maximum estimated potential in another 50 years. CDM could help to achieve the maximum utilization potential more rapidly as compared to the current diffusion trend if supportive policies are introduced.     

Fairness aspects of linking the European emissions trading scheme under a long-term stabilization scenario for CO2 concentration

Climate equity is a crucial but difficult element in negotiations on a post-2012 climate regime. With respect to the trading of greenhouse gas emissions the equity aspect is considered in the Kyoto Protocol which demands that emissions trading should be supplemental to domestic abatement efforts. The question arises whether a linking of the European Union Emissions Trading Scheme (EU ETS) to non-EU emission trading schemes or the Clean Development Mechanism (CDM) could have an impact on principles of climate justice and thus potentially affect ongoing negotiations. In this study, we present the results of a three step analysis: In a first step, it estimates mid-term greenhouse gas emission entitlements for Annex B and Non-Annex B countries for the year 2020 which keep within reach a stabilization of the CO₂ concentration at 450 ppmv in the long-term. In the second step, the resulting emission entitlements are used as an input to an economic partial-equilibrium model in order to assess the shift of abatement efforts under different scenarios of linking the EU ETS. In a third step, we analyze the outcome of the economic model with respect to the future trend of European per capita emissions under the current EU ETS relative to different scenarios of linking the EU ETS. The model results indicate that European per capita emissions have to be reduced to a considerably smaller extent if a linking of the EU ETS is accompanied by an optimal design of the National Allocation Plans and if low-cost CO₂ permits became available via the CDM to a large extent.

Foresty offsets in emissions trading systems: a link between systems?

An important aspect in the linking of different emissions trading schemes is the degree to which these systems allow (or ban) external offset project categories. The EU Emission Trading Scheme (EU ETS) currently allows the use of credits from energy and industry projects developed under the Kyoto Protocol’s Joint Implementation (JI) and Clean Development Mechanism (CDM) but excludes the use of carbon credits from forestry projects for compliance in the EU ETS. Forestry credits generated by the CDM have a limited lifetime and expire at the end of a project’s crediting period, or earlier if the carbon stock for which the credits have been issued ceases to exist. According to the recently adopted amendment of the EU ETS Directive forestry credits will remain to be excluded until 2020. The present article reviews how the New South Wales Greenhouse Gas Abatement Scheme (Australia), the Regional Greenhouse Gas Initiative (US) and the voluntary scheme of the Chicago Climate Exchange integrate forestry offsets into the respective system and how they deal with the risk of losing stored and credited biomass. By comparing the results of different scenarios this article shows how differences in the treatment of forestry offsets could impact the efforts to link various emission trading systems in future.

Development of an agroforestry carbon sequestration project in Khammam district,India

This paper addresses methodological issues in estimating carbon (C) sequestration potential, baseline determination, additionality and leakage in Khammam district, Andhra Pradesh, southern part of India. Technical potential for afforestation on cultivable wastelands, fallow, and marginal croplands was considered for Eucalyptus clonal plantations. Field studies for aboveground and belowground biomass, woody litter, and soil organic carbon for baseline and project scenarios were conducted to estimate the carbon sequestration potential. The baseline carbon stock was estimated to be 45.3 t C/ha, predominately in soils. The additional carbon sequestration potential under the project scenario for 30 years is estimated to be 12.8 t C/ha/year inclusive of harvest regimes and carbon emissions due to biomass burning and fertilizer application. Considering carbon storage in harvested wood, an additional 45% carbon benefit can be accounted. The project scenario has a higher benefit/cost ratio compared to the baseline scenario. The initial investment cost requirement, however, is high and lack of access to investment is a significant barrier for adoption of agroforestry in the district.

The Dutch National System for forest sector greenhouse gas reporting under UNFCCC

A full account for carbon dioxide (CO₂) and other greenhouse gas balance is presented for the Dutch forest and nature areas for 1990–2002 at a Tier 2.5 level. The paper outlines how complex guidelines can be turned into a practical system, appropriate for a small country, making use of the best knowledge and data available. The net total sink of all processes of the forest and other nature terrains balance is very stable through time around an average of 1.74 million tonnes of CO₂ per year. The sink is to a large extent determined by the growth of forest remaining forest, and the harvest taking place in there. Newly added processes in this new National System are significant as well, but they compensate each other. The sources from deforestation and nitrous oxide (N₂O) emissions (around 900 ktonne CO₂) are for two thirds compensated by the sinks from afforestation, dead wood, soil C changes due to land use changes, and trees outside the forest. The land use changes between 1990 and 2000 showed that The Netherlands has an annual deforestation of 2504 ha (0.7% of the forest area) and an afforestation of 3124 ha. Deforestation led in total over the 13 years of 1990–2002 to an emission of 11.2 million tonne CO₂ compensated by only 1.9 million tonne CO₂ due to afforestation.

Mitigation Options for Enteric Methane Emissions from Dairy Animals: An Evaluation for Potential CDM Projects in India

Enteric fermentation in livestock is an important source of anthropogenic methane emission. India, with its large livestock population, is estimated to contribute 10.8 Tg of methane annually from this source. An evaluation of various methane mitigation options indicate that some of the available technologies like, diet supplementation with feed additive and molasses urea product are highly cost effective in reducing enteric methane emissions. The gross cost of methane abatement from use of feed additive monensin premix ranges from €0.6 to €1.8/ton CO₂ equivalent, for buffaloes and indigenous cows, respectively. The gross cost of enteric methane mitigation from supplementing molasses urea products and dietary manipulation through increased concentrate feeding is much higher. But, as the monetary value of the increased milk production on application of these technologies was higher than the annual cost of reduction strategy for buffaloes and crossbred cows, the net costs of the former mitigation option was negative for buffaloes (€-28.1/ton CO₂) and of the latter for crossbred cows (€-7.0/ton CO₂,). The availability of cost-effective technologies suggest that the methane mitigation projects under CDM, can be planned in the Indian dairy sector to the mutual benefit of countries with emission targets and India. The vast dairy animal population of India and resulting methane emissions provide good opportunity these countries to buy reasonable quantum of emission credits from projects in India. Such projects will work to the benefit to India by providing a tool for technology transfer to increase animal productivity and attract capital that assists in more prosperous and environmental friendly milk production in the country.     

Linking Russia with the European and global greenhouse gas emissions trading markets: three paths for greening the Russian assigned amount under the Kyoto Protocol

This article examines possibilities for linkage between the European Union Emissions Trading System (EU ETS) and Russia, with a view to enhancing cooperation on a broader scale than the project-based approaches that have been tested thus far. Three paths for possible EU-Russia linkage are presented by which the Russian Assigned Amount under the Kyoto Protocol can be greened in order to stimulate emissions trading: 1. Joint implementation—reductions earned via individual projects in Russia; 2. Greened allowances or green investment schemes; and 3. Linked cap-and-trade systems, in which a Russian domestic emissions trading system would link with the European Union Emissions Trading System. The authors conclude that the third option, emissions trading through linked domestic emissions trading systems, offers the best opportunities at the lowest transaction costs. The authors discuss useful innovative instruments like call options and slip level arrangements on government-to-government and business-to-business levels.

Ensuring the environmental effectiveness of linked emissions trading schemes over time

Linking emissions trading schemes allows the combined emissions cap to be achieved at lower cost. Linking is usually environmentally neutral, but some design features can lead to higher aggregate emissions if schemes are linked. Technical solutions to limit the potential emissions increases due to design differences implemented when schemes are linked are not sufficient to ensure the environmental effectiveness of the linked schemes over time. Technological, economic, administrative and other changes that can lead to higher aggregate emissions are inevitable. The administrators of the linked schemes must ensure the stringency of the emissions cap relative to the “business as usual” emissions of affected sources, the accuracy of the emissions reported by affected sources, the integrity of the allowance registry, effective compliance enforcement, and the environmental integrity of the credits issued for emission reduction projects over time. This will require a process for agreeing on revisions to the regulations of the linked schemes, a mechanism to provide assurance of the environmental effectiveness of each of the linked schemes, and a procedure for terminating the linking agreement.

Opportunities to reduce greenhouse gas emissions from households in Nigeria

Efforts to mitigate climate threats should not exclude the household as the household is a major driver of greenhouse gas (GHG) emissions through its consumption patterns. This paper derives an emission index that could be used to estimate inventories of carbon dioxide (CO₂) emissions from kerosene combustion for lighting in Nigeria and also looks at the implications of solar pv lighting replacing kerosene lamp in Nigeria. Findings indicate that (1) average CO₂ emissions from kerosene combustion for lighting in Nigeria is about 0.06 kg per hour per lamp, which can be taken as the kerosene lamp CO₂ emission index for Nigeria. (2) about 3 × 10W_p solar pv will be required to replace a kerosene lamp, while about 0.124 tonnes of CO₂ will be avoided per lamp per year, operating at 6 h daily. At the national level, under the kerosene lamp replacement projection assumptions made, between 0.4 and 1.0 million tonnes of CO₂ will be avoided per year. The household investment required to owe a solar pv, including the capital cost of switching from kerosene lamp, is about US356, while the national capital investment outlay is between 1,138.265 and US356, while the national capital investment outlay is between 1,138.265 and US2,848 million. (3) Certified Emission Reduction (CER) units, assuming CO₂ is traded, will generate significant annual revenues on the order of 6.96 to almost US17.4 million per year, while earnings from unspent household kerosene fuel could amount to between 2,520 and US17.4 million per year, while earnings from unspent household kerosene fuel could amount to between 2,520 and US6,300 million over the life span of the solar pv. The micro-economic assessment carried out indicates the non-attractiveness of solar pv use at the household level, and (4) to promote solar pv use, both long and short term policy measures that aim at cost reduction were suggested. The paper concludes that, factoring the suggested measures into the climate, energy, and financial policy decision discourse in Nigeria could empower the households to play a significant role in achieving global CO₂ emission reduction, but at the local level.     

Linking the EU emissions trading scheme: economic implications of allowance allocation and global carbon constraints

We investigate the role of domestic allowance allocation and global emissions constraints for the carbon-market impacts of linking the EU Emissions Trading Scheme (ETS) internationally. Employing a quantitative simulation model of the global carbon market, we find that the economic benefits from connecting the European ETS to emerging non-EU schemes strongly depend on the regional allowance allocation of the linking participants: In a world of moderate carbon constraints, an economically efficient regional allowance allocation induces a much stronger fall in total compliance costs than a sub-optimal (i.e. too high) domestic allocation of emissions permits. However, a more efficient (i.e. stricter) allocation shifts abatement efforts and compliance costs to energy-intensive industries which are covered by the domestic ETS. We further find that committing to ambitious global emissions reduction targets (compatible with stabilizing CO₂ concentrations at 450 ppm) induces much stronger regional abatement efforts and substantially higher compliance costs for the abating regions. In such an ambitious climate policy regime, an efficient domestic allocation of allowances is even more important from an economic perspective: Here, linking emissions trading schemes diminishes the associated compliance costs on the largest scale.

Impact of bioenergy crops in a carbon dioxide constrained world: an application of the MiniCAM energy-agriculture and land use model

In the coming century, modern bioenergy crops have the potential to play a crucial role in the global energy mix, especially under policies to reduce carbon dioxide emissions as proposed by many in the international community. Previous studies have not fully addressed many of the dynamic interactions and effects of a policy-induced expansion of bioenergy crop production, particularly on crop yields and human food demand. This study combines an updated agriculture and land use (AgLU) model with a well-developed energy-economic model to provide an analysis of the effects of bioenergy crops on energy, agricultural and land use systems. The results indicate that carbon dioxide mitigation policies can stimulate a large production of bioenergy crops, dependent on the level of the policy. This production of bioenergy crops can lead to several impacts on the agriculture and land use system: decreases in forestland and unmanaged land, decreases in the average yield of food crops, increases in the prices of food crops, and decreases in the level of human demand of calories.

Examining adaptation and mitigation opportunities in the context of the integrated watershed management programme of the Government of India

India occupies 2.4% of the world’s geographical area with a large percentage of its land under agriculture. About 228 Million hectares (Mha) of its geographical area (nearly 69%) fall within the dryland (arid, semi-arid and dry sub-humid) region. Of the total cultivated area of 142 Mha, major part of agriculture in the country is rainfed, extending to over 97 Mha and constituting nearly 68% of the net cultivated area, therefore making the agricultural sector vulnerable and exposed to the vagaries of weather conditions. Climate change adds to this dimension of stress. A strong need is felt for targeting programmes in these areas that address issues related to employing suitable soil and water conservation measures. In this context this paper seeks to examine the case for watershed development as an adaptive strategy. An examination of the possibility of fortifying the existing programme with a view to adapting to expected changes in climate in future is undertaken. Also, the possibility of watershed development integrating into a suitable mitigation strategy for the country is assessed.

Earliest zygodactyl bird feet: evidence from Early Cretaceous roadrunner-like tracks

Fossil footprints are important in understanding Cretaceous avian diversity because they constitute evidence of paleodiversity and paleoecology that is not always apparent from skeletal remains. Early Cretaceous bird tracks have demonstrated the existence of wading birds in East Asia, but some pedal morphotypes, such as zygodactyly, common in modern and earlier Cenozoic birds (Neornithes) were unknown in the Cretaceous. We, herein, discuss the implications of a recently reported, Early Cretaceous (120–110 million years old) trackway of a large, zygodactyl bird from China that predates skeletal evidence of this foot morphology by at least 50 million years and includes the only known fossil zygodactyl footprints. The tracks demonstrate the existence of a Cretaceous bird not currently represented in the body fossil record that occupied a roadrunner (Geococcyx)-like niche, indicating a previously unknown degree of Cretaceous avian morphological and behavioral diversity that presaged later Cenozoic patterns. Electronic supplementary material  The online version of this article (doi:) contains supplementary material, which is available to authorized users.

Advancing the climate regime through linking domestic emission trading systems?

More and more countries are incorporating the instrument of emissions trading into their national climate policies. This emerging mosaic of emissions trading schemes (ETS) raises the question of whether they should be linked with each other. From an economic point of view, linking of domestic schemes is supposed to increase the economic efficiency of carbon markets. In addition, linking is also expected by some to yield substantial political benefits in terms of the evolution of the UNFCCC/Kyoto regime. However, these optimistic prospects are based on a best-case scenario where all major countries establish environmentally effective emissions trading systems and then link them with each other. Real-life politics might develop rather differently. This paper therefore examines to what extent the current status of emissions trading in industrialised countries provides a basis for reinforcing and moving forward the international climate regime through linking domestic ETS. After comparing emerging emissions trading schemes from an institutional perspective, it emerges that not only emissions trading is at a very early stage in most countries, in addition the emerging systems are probably going to be designed very differently from the EU ETS. While for some design features such as the coverage design differences do not matter, there are some areas where the plans in many non-EU countries look crucially different from the EU system. The outlook for a linked international ETS is therefore currently still very uncertain. Given this state of affairs, the EU should pro-actively engage with the non-EU countries to try to harmonise their developing national emissions trading schemes with the EU ETS, widely disseminate the lessons it has learned from the EU ETS, strongly make the case for environmental integrity and at the same time make clear that systems that want to link to the EU ETS will need to meet certain quality criteria.

Greenhouse gas mitigation in developing countries through technology transfer?: a survey of empirical evidence

While greenhouse gas (GHG) emissions are projected to rise primarily in the developing countries, the potential for developing new GHG mitigation technologies exists primarily in the industrialized countries. It is thus important, not only for predictions about future emission paths but also for climate change mitigation policies, to understand how the international diffusion of such technologies takes place and how it affects the energy infrastructure and GHG emissions in developing countries. This paper provides an overview of the channels through which these technologies diffuse and focuses on the empirical evidence pertaining to the effects these technologies have on GHG emissions in developing countries.

Methodological issues in forestry mitigation projects: a case study of Kolar district

There is a need to assess climate change mitigation opportunities in forest sector in India in the context of methodological issues such as additionality, permanence, leakage and baseline development in formulating forestry mitigation projects. A case study of forestry mitigation project in semi-arid community grazing lands and farmlands in Kolar district of Karnataka, was undertaken with regard to baseline and project scenario development, estimation of carbon stock change in the project, leakage estimation and assessment of cost-effectiveness of mitigation projects. Further, the transaction costs to develop project, and environmental and socio-economic impact of mitigation project was assessed. The study shows the feasibility of establishing baselines and project C-stock changes. Since the area has low or insignificant biomass, leakage is not an issue. The overall mitigation potential in Kolar for a total area of 14,000 ha under various mitigation options is 278,380 t C at a rate of 20 t C/ha for the period 2005–2035, which is approximately 0.67 t C/ha/year inclusive of harvest regimes under short rotation and long rotation mitigation options. The transaction cost for baseline establishment is less than a rupee/t C and for project scenario development is about Rs. 1.5–3.75/t C. The project enhances biodiversity and the socio-economic impact is also significant.

The value of energy efficiency programs for US residential and commercial buildings in a warmer world

US residential and commercial buildings were responsible for about 41 exajoules (EJ) of primary energy use per year in 2002, accounting for approximately 9% of the world fossil-fuel related anthropogenic carbon (C) emissions of 6.7 Gt that contribute to climate change. US Government-sponsored building energy efficiency research and implementation programs are focused on reducing energy consumption in US residential and commercial buildings and reducing these carbon (C) emissions. Although not specifically intended for adaptation to a warmer climate and less effective than under today’s cooler climate, these programs also could help reduce energy demand in a future warmer world. Warming scenarios projected by the United Nations Intergovernmental Panel on Climate Change (IPCC) in 2001 imply net overall decreases in both site energy and primary energy consumption in US residential and commercial buildings, largely because of the reduced need for heating. However, there would be as much as a 25% increase in building space cooling demand and a significant part of the increase could be offset by energy-efficiency improvements in buildings. Overall, in the US, buildings-related energy efficiency programs would reduce site energy consumption in buildings in the US by more than 2 EJ in 2020 and primary energy by more than 3.5 EJ, more than enough to offset the projected growth in cooling energy consumption due to climate change and growth in the US building stock. The savings would have an estimated annual net value at 2005 energy prices of between $45.0 and $47.3 billion to consumers.

Challenges and opportunities of a post-Kyoto mitigation regime: a survey of the European electricity sector

This paper empirically shows how the uncertainty associated to the absence of a mitigation regime which follows the United Nations Framework Convention on Climate Change Kyoto Protocol (UN FCCC Kyoto Protocol) is affecting investments in abatement activities in the EU electricity sector and, thus, future emissions levels. Based on a survey of EU electric utilities, it identifies the most likely post-Kyoto scenarios considered by them and how they are coping with such uncertainty in their investment decisions. It is found that firms react differently to such uncertainty and adopt different strategies to cope with it, diversifying their emissions control activities. Although most companies foresee post-Kyoto compliance regimes with emissions trading systems, they differ in their perceptions of the form that a post-Kyoto regime could take and are, thus, positioning differently to face such regime. The particular features of each company and the country where they operate affect their perception of the uncertainties, their position regarding a possible post-Kyoto regime and their inclination to carry out mitigation activities. Complying with Kyoto (and, eventually, post-Kyoto) targets significantly influences the investment decisions of European electricity companies. Uncertainty about a post-Kyoto regime may already be affecting investments in mitigation activities in the electricity sector. Therefore, significant progress has to be made in the definition of a post-Kyoto regime. It is urgent to define and agree internationally the emissions reduction objectives and the mitigation instruments that will be accepted for compliance, ensuring continuity of the international emissions trading system foreseen in the Kyoto Protocol.

Complementarity between mitigation and adaptation: the water sector

The water cycle, a fundamental component of climate, is likely to be altered in important ways by climate change. Climate change will most likely worsen the already existing water related problems. Then the question is how should policy makers respond to this dilemma. Climate change mitigation, through greenhouse gas (GHG) emissions reduction and sequestration is not a sufficient response. Adaptation will also need to feature as a response strategy. Mitigation and adaptation need to be viewed as complementary responses to climate change. Complementarity between adaptation and mitigation in the water sector will be addressed in this paper. The paper will also outline the main impacts of climate change on water resources and identify those areas that are most dependent and vulnerable to hydrological systems (e.g., hydroelectric systems, irrigation, agriculture) and any changes thereof resulting from climate change. It will aim to assess the impact of water demand and water use, with a view to identifying the main relationships between mitigation and adaptation in the water sector and the means through which individual mitigation and adaptation actions can potentially interact with each other for the benefit of the water sector as a whole. It will also explore the implications of climate change on the management of water resources. Adaptation and mitigation options would be considered in the context of their socio-economic and environmental impacts and their contribution to sustainable development. A brief evaluation of how this information can be directly used for planning purpose will also be presented.

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Assessing the dynamic efficiency of internal mitigation projects. An evolutionary perspective

Internal mitigation projects have recently been proposed as an additional flexibility mechanism, particularly in the context of the European Union. Their main objective is to engage sectors not included in the European Union emissions trading scheme (EU ETS) in cost-effective emissions reductions. However, in this paper it is argued that, when assessed in terms of dynamic efficiency, the instrument is likely to be, at best, irrelevant to induce the scale of systemic technological changes which are required to tackle the climate change problem and, at worst, detrimental for this task. Insights from the Evolutionary Economics of technological change complemented with political economy considerations are used to support this claim.