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Climate Change: Tackling Non-CO2 Greenhouse Gases Christa Clapp, U.S. EPA U.S. Embassy, Paris July 12, 2007 U.S. EPA Office of Atmospheric Programs 1 Overview •Importance of non-CO2 GHGs •Technical and economic analysis of non-CO2 GHGs •Inventory •Projections •Mitigation •Scenarios •Addressing project level barriers through voluntary partnerships •Conclusions U.S. EPA Office of Atmospheric Programs 2 Importance of Non-CO2 GHGs U.S. EPA Office of Atmospheric Programs 3 Non-CO2 Gases Important Contributors to GHG Effect N2O 7.1% Non-CO2 GHGs have contributed ~30% of total anthropogenic emissions since pre-industrial times High GWP Gases 0.4% CH4 22.9% CO2 69.6% Contribution of Anthropogenic Emissions of Greenhouse Gases to the Enhanced Greenhouse Effect from Pre-industrial to Present (measured in watts/meter2) (IPCC) U.S. EPA Office of Atmospheric Programs 4 Increasing Concentrations of GHGs in the Atmosphere •Global atmospheric concentrations of CO2, CH4 and N2O have increased markedly as a result of human activities since 1750 •Now far exceed pre-industrial values as determined from ice cores spanning many thousands of years Source: IPCC Fourth Assessment Report (2007) U.S. EPA Office of Atmospheric Programs 5 Non-CO2 Gases Vary in Potency & Atmospheric Lifetime Greenhouse Gas Global Warming Potential for 100 years Atmospheric Lifetime (years) Carbon Dioxide CO2 1 50-200 Methane CH4 21 12 +/- 3 Nitrous Oxide N2O 310 120 Hydrofluorocarbons HFCs 140 - 11,700 1.5 - 264 Perfluorocarbons PFCs 6,500 - 9,200 3,200 - 50,000 Sulfur Hexafluoride SF6 23,900 3,200 U.S. EPA Office of Atmospheric Programs 6 Current Snapshot of Non-CO2 GHG Emissions Non-CO2 gases constituted ~25% of global GHG emissions in 2000 N2O 9% CFCs, HFCs, PFCs, SF6 1% CH4 16% CO2 - Land Use Change and Forestry 19% CO2 - Fuel and Cement 55% Global GHG Emissions in 2000 = 40,702 MtCO2e U.S. EPA Office of Atmospheric Programs 7 Non-CO2 Gases Originate From a Variety of Sources METHANE ENERGY • Coal Mining Activities • Natural Gas and Oil Systems • Stationary and Mobile Combustion • Biomass Combustion INDUSTRIAL • Chemical Production • Iron and Steel Production • Metal Production • Mineral Products • Petrochemical Production • Silicon Carbide Production AGRICULTURE • Manure Management • Enteric Fermentation • Rice Cultivation • Agricultural Soils • Field Burning of Agricultural Residues • Prescribed Burning of Savannas WASTE • Landfilling of Solid Waste • Wastewater • Solvent and Other Product Use • Waste Combustion NITROUS OXIDE ENERGY • Biomass Combustion • Stationary and Mobile Combustion INDUSTRIAL • Adipic Acid and Nitric Acid Production • Metal Production • Miscellaneous Industrial Processes AGRICULTURE • Manure Management • Agricultural Soils • Field Burning of Agricultural Residues • Prescribed Burning of Savannas WASTE • Human Sewage • Fugitives from Solid Fuels • Fugitives from Natural Gas and • Oil Systems • Solvent and Other Product Use • Waste Combustion HIGH GWP GASES INDUSTRIAL • Substitutes for Ozone-Depleting Substances (HFCs, PFCs) • HCFC-22 Production (HFC-23) • Primary Aluminum Production (PFCs) • Magnesium Manufacturing (SF6) • Electrical Power Systems (SF6) • Semiconductor Manufacturing (HFC, PFCs, SF6) U.S. EPA Office of Atmospheric Programs 8 Methane – A Potent GHG and Valuable Resource Global Sources of Methane in 2000 •A primary constituent of natural gas and a valuable, relatively clean-burning energy source •Sources include: landfills, natural gas and petroleum systems, agricultural activities, coal mining, stationary and mobile combustion, wastewater treatment, and certain industrial processes. U.S. EPA Office of Atmospheric Programs 9 Technical and Economic Analyses: Inventory, Projections and Mitigation U.S. EPA Office of Atmospheric Programs 10 Non-CO2 Gases have Economic and Policy Benefits Incorporation of Non-CO2 Gases into climate economic analysis has provided important insights – Non-CO2 gases originate from a range of economic sectors, far more diverse than CO2 – Mitigation costs are typically lower than for energyrelated CO2 – The result: a large and diverse portfolio of mitigation options and the potential for reduced costs for a given climate policy objective U.S. EPA Office of Atmospheric Programs 11 USEPA GHG Inventory Program: Essential Emissions Data • • Develop national GHG inventory (all gases, sources, sectors) Leadership on development of estimation methodologies Adapt national methods for disaggregated inventories (i.e., states, sectors) & accounting for partnership programs, and GHG projects HFCs, PFCs, & SF Nitrous Oxide 8,000 7,000 6 Methane Carbon Dioxide 6,519 6,571 6,242 6,186 6,286 6,444 6,831 6,856 6,920 7,065 7,104 7,204 7,262 6,931 7,147 7,027 6,000 Tg CO2 Eq. • 5,000 4,000 3,000 2,000 1,000 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 Source: Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2005 (EPA #430-R-07-002) U.S. EPA Office of Atmospheric Programs 12 Global Projections of Non-CO2 Greenhouse Gases • • • Provides a consistent and comprehensive estimate of global non-CO2 greenhouse gas emissions, covering: – All non-CO2 greenhouse gases (methane, nitrous oxide, high GWP gases) – Over ninety individual countries and eight regions – all emitting sectors (energy, waste, agriculture, and industrial processes) – Covers historic and projected emissions from 1990 to 2020 – Provides information that can be used to understand Global Anthropogenic Non-CO2 national contributions of GHG emissions, historical progress on reductions, and mitigation opportunities Greenhouse Gas Emissions: 1990–2020 (USEPA, 2006) Report has undergone an external peer review Report and data available on USEPA’s website: http:/www.epa.gov/nonco2/econ-inv/international.html U.S. EPA Office of Atmospheric Programs 13 Global Non-CO2 GHG Projections Global Non-CO 2 Emissions (MtCO2eq) 14,000 12,000 EU-15 10,000 United States Rest of OECD90 & EU 8,000 Non-EU Eastern Europe & FSU China/CPA 6,000 SE Asia Middle East 4,000 Latin America Africa 2,000 1990 1995 2000 2005 2010 2015 2020 More developed regions show sustained levels of non-CO2 emissions, while less developed regions show projected emissions growth. U.S. EPA Office of Atmospheric Programs 14 Global Non-CO2 GHG Projections •Competing effects in Waste sectors keeps emission projections flat: Global Non-CO2 GHG Emissions by Source Category •Growing population trends mean more waste emissions 14,000 12,000 10,000 MtCO2eq •Countered by increasing landfill controls & recycling, particularly in developed nations 8,000 6,000 4,000 2,000 •Growing emission trends in Energy, Industry & Agriculture sectors, as population grows and energy use per capita increases 0 1990 1995 2000 Waste 2005 Energy Industry U.S. EPA Office of Atmospheric Programs 2010 2015 2020 Agriculture 15 Global Mitigation of Non-CO2 Greenhouse Gases • • • • • Recent focus on multi-gas strategies calls for – improved understanding of mitigation potential – incorporation of non-CO2 greenhouse gas mitigation estimates in climate economic analyses, including “offsets” analyses and integrated assessment climate scenarios modeling USEPA has developed a comprehensive global mitigation analysis for non-CO2 GHGs, covering: – all non-CO2 greenhouse gases (methane, nitrous oxide, high GWP gases) – all emitting sectors (energy, waste, agriculture, and industrial processes) – all regions of the world Based on baseline emission projections from EPA’s sister non-CO2 projections report Reports have undergone an external peer review Reports and data available on USEPA’s website: Global Mitigation of Non-CO2 Greenhouse Gases (USEPA, 2006) http:/www.epa.gov/nonco2/econ-inv/international.html U.S. EPA Office of Atmospheric Programs 16 Mitigation Cost Analysis Methodology –Bottom-up analysis of mitigation option breakeven prices –Determines at what carbon price a mitigation option becomes economically viable –Breakeven price is where NPV (benefits of the option) = NPV (costs of implementing the option) –Breakeven price points form a marginal abatement curve (MAC), reflecting the economic potential for mitigation at various carbon prices T 1 TR P ER R TB 1 TR RC CC t t 1 DR t 1 t 1 1 DR T U.S. EPA Office of Atmospheric Programs 17 Aggregate Results – Global MAC Mitigation of non-CO2 gases can play an important role in climate strategies. – Worldwide, the potential for costeffective non-CO2 greenhouse gas abatement is significant (> 500 MtCO2eq). – As the breakeven price rises, the mitigation potential grows. The global mitigation potential at a price of $10/tCO2eq is approximately 2,000 MtCO2eq. – In the higher range of breakeven prices, the MAC becomes steeper, and less mitigation potential exists for each additional increase in price. – Negative breakeven price points indicate options that are cost effective without a carbon price, but may not be deployed in the market due to information or other barriers Global Total Aggregate MAC in 2020 U.S. EPA Office of Atmospheric Programs 18 Aggregate Results – MACs by Sector Globally, the sectors with the greatest potential for mitigation of non-CO2 greenhouse gases are the energy and agriculture sectors. – At a breakeven price of $10/tCO2eq, the potential for reduction of non-CO2 greenhouse gases is greater than 750 MtCO2eq in the energy sector, and approximately 500 MtCO2eq in the agriculture sector. – While less than that of the energy and agriculture sectors, mitigation potential in the waste and industrial process sectors can play an important role, particularly in the absence of a carbon price incentive. Global 2020 MACs by Major Sector U.S. EPA Office of Atmospheric Programs 19 Aggregate Results – MACs by GHG Methane mitigation has the largest potential across all the non-CO2 greenhouse gases. – At a cost-effective level, the potential for methane mitigation is greater than 500 MtCO2eq. – The potential for reducing methane emissions grows three-fold as the breakeven price rises from $0 to $20/tCO2eq. – While less than that of methane, nitrous oxide and high-GWP gases exhibit significant costeffective mitigation potential. Global 2020 MACs by Greenhouse Gas Type U.S. EPA Office of Atmospheric Programs 20 Aggregate Results – MACs by Region Major emitting countries of the world offer large potential mitigation opportunities. – China, the United States, the European Union, India and Brazil emit the most non-CO2 greenhouse gases. As the largest emitters, they also offer important mitigation opportunities. – These countries show significant mitigation potential in the lower range of breakeven prices, with the MACs getting steeper in the higher range of breakeven prices as each additional ton of emissions becomes more expensive to reduce. Global 2020 MACs by Major Emitting Countries U.S. EPA Office of Atmospheric Programs 21 EMF-21: Cost-effective non-CO2 mitigation Stanford University’s Energy Modeling Forum Working Group 21 (EMF-21) •Coordinated international modeling effort •18 models run using a consistent approach •Time horizon out to 2100 for most models •Incorporated new non-CO2 emissions and mitigation data into economy-wide models •Focused specifically on multiple gas strategies •Results published in special issue of Energy Journal, Multi-Greenhouse Gas Mitigation and Climate Policy Stabilization at 4.5 W/m2 by 2100 U.S. EPA Office of Atmospheric Programs Source: Weyant and de la Chesnaye (2006)22 EMF-21: Cost-effective non-CO2 mitigation •Model results show lower carbon prices in Multigas Scenarios versus CO2-only Scenarios (for 17 out of 18 models). •Majority of results indicate 20-60% lower carbon permit prices in the Multigas Scenarios. Ratio of Carbon Permit Price in Multigas Scenario vs. CO2-Only Scenario 1.0 AIM AMIGA COMBAT 0.8 EDGE EPPA GEMINI-E3 0.6 GRAPE GTEM IMAGE 0.4 IPAC MERGE MESSAGE 0.2 MiniCAM PACE POLES 0.0 2000 SGM 2025 2050 2075 2100 Note: EPPA model reports in 1997 USD. All other models report 2000 USD values. FUND model results show higher carbon prices in the multigas scenarios. FUND results are not show n in this graphic due to scale. Source: Weyant and U.S. EPA Office of Atmospheric Programs WIAGEM 23 de la Chesnaye (2006) IPCC Fourth Assessment Report “Mitigation of Climate Change” Including non-CO2 mitigation options provides greater flexibility and costeffectiveness for achieving stabilization. Office of Atmospheric Programs Source: IPCCU.S. Fourth EPA Assessment Report, Working Group III, “Mitigation of Climate Change” 24 Continuing Efforts in Non-CO2 Analysis •Purdue University’s Global Trade Analysis Project •Working with EPA towards a non-CO2 emissions database that is integrated with GTAP economic activity, energy volume, and CO2 emissions databases •International Energy Agency •Incorporating EPA methane mitigation into Energy Technology Perspectives modeling •Results to be published in a chapter devoted to methane in 2008 publication of IEA’s Energy Technology Perspectives •Continuing work & collaboration to improve data and refine analyses U.S. EPA Office of Atmospheric Programs 25 Project Level: Voluntary Partnerships Address Barriers U.S. EPA Office of Atmospheric Programs 26 Significant Benefits of Methane Mitigation Projects Methane mitigation technology exists: • Landfill gas flaring or capture for direct use or electricity generation • Natural gas systems equipment upgrades/replacements and changes in operational practices, inspection & maintenance • Oil systems flaring or capture for direct use or enhanced oil recovery • Coal mine methane flaring or capture through degas procedures or ventilation air methane for direct use or electricity generation • Animal waste management using anaerobic digesters Multiple benefits of methane mitigation projects: • Increased energy efficiency & reduced energy waste • Improved industrial/mine safety and productivity • Improved air quality, water quality and reduced odors • Reduced greenhouse gas emissions U.S. EPA Office of Atmospheric Programs 27 Despite Benefits, Barriers Exist Despite potential for project level cost savings and environmental benefits, barriers to mitigating methane emissions continue to exist: • • • • • • Lack of awareness of emission levels and value of lost fuel Lack of information on and training in available technologies and management practices Traditional industry practices Regulatory and legal issues Limited methane markets and infrastructure Uncertain investment climate U.S. EPA Office of Atmospheric Programs 28 International M2M Voluntary Partnerships Address Barriers M2M Partner Countries •International Framework to Advance the Recovery and Use of Methane as a Clean Energy Source •20 Partner Countries & 550 public and private Project Network Members •U.S. commitment of $53 million over five years, with total leveraged investment of over $235 million •Ongoing projects and activities are expected to achieve annual emission reductions of 5 MtCO2e •New Opportunity: Partnership Expo, Beijing (30 Oct - 1 Nov, 2007) Argentina Japan Australia Korea Brazil Mexico Canada Nigeria Colombia Poland China Russia Ecuador Ukraine Germany United Kingdom India United States Italy Vietnam U.S. EPA Office of Atmospheric Programs 29 International M2M Voluntary Partnerships Address Barriers Goal: Advance cost-effective recovery and use of methane as a valuable clean energy source in four sectors: • Coal mines • Landfills • Oil and gas systems • Agriculture (manure waste management) Key activities to advance project development • Identify and assess project opportunities • Support technology transfer, training, and capacity building • Address barriers to project development and increase access to information • Technology demonstration and deployment Coal Mines Landfills Oil and Gas Systems Agriculture U.S. EPA Office of Atmospheric Programs 30 Conclusions • Non-CO2 GHGs offer significant opportunities for costeffective mitigation, particularly in the near-term • From a range of diverse sources with varied mitigation options • Can reduce costs of meeting a given climate policy objective • Commercially available mitigation technologies and practices • Multiple project level & local benefits • Barriers exist but are being addressed through Methane to Markets voluntary public-private international partnership U.S. EPA Office of Atmospheric Programs 31 Contact Information For more information: EPA’s Climate Change Website www.epa.gov/climatechange EPA’s Non-CO2 Projections and Mitigation Reports http://www.epa.gov/nonco2/econ-inv/international.html EPA’s Methane to Markets Program http://www.epa.gov/methanetomarkets/ Christa Clapp Economist, Climate Change Division U.S. Environmental Protection Agency [email protected] 202-343-9807 U.S. EPA Office of Atmospheric Programs 32