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Transcript
Kyoto Protocol to the
United Nations Framework Convention
on Climate Change
UNFCCC-Kyoto Protocol
Joint Implementation (JI)
Clean Development Mechanism (CDM)
The CP linkage
Questions to consider
Country case studies (Costa Rica)
1
UNFCCC (1992)

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A global legal instrument on the control and
management of greenhouse gases (GHGs)
not controlled by the Montreal Protocol
Adopted in 1992; entered into force in 1994
Aim: stabilization of GHG emissions at a
level that would prevent dangerous
anthropogenic interference with the climate
system
Principle of “common but differentiated
responsibilities”
Affiliated instrument: Kyoto Protocol
(1997)
Kyoto Protocol (1997)



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
Adopted in 1997; not yet in force
121 ratifications; 44.2% of emissions
(as at 17 Mar 2004)
Target: An overall reduction of GHG
emissions by at least 5% below 1990 levels
Creates a more detailed and complex
regulatory structure for GHG emissions
Gives developed country parties “assigned
amounts” of GHGs that they may not
exceed in a specified period, 2008-2012
3 flexible mechanisms to facilitate costefficient implementation process
Kyoto Protocol (cont’d)


Greenhouse gases (GHGs): KP Annex A
– Carbon dioxide (CO2)
– Methane (CH4)
– Nitrous Oxide (N2O)
– Hydrofluorocarbons (HFCs)
– Perfluorocarbons (PFCs)
– Sulphur hexafluoride (SF6)
Importance of each gas is based on Global
Warming Potential (GWP)
Global Warming Potential (GWP)

Ratio of global warming, from one unit mass of a GHG to that
of one unit mass of CO2 over a period of time
–
Carbon dioxide (CO2)
1 [baseline]
–
Methane (CH4)
21
–
Nitrous oxide (N2O)
310
–
HFC-23
11,700
–
HFC-125
2,800
–
HFC-134a
1,300
–
HFC-143a
3,800
–
HFC-152a
140
–
HFC-227ea
2,900
–
HFC-236fa
6,300
–
HFC-4310mee
1,300
–
CF4
6,500
–
C2F6
9,200
–
C4F10
7,000
–
C6F14
7,400
–
SF6
23,900
Kyoto Protocol:
Sectors/source Categories

Energy
–

Industrial processes
–



fuel combustion, fugitive emissions from fuels
mineral products, chemical industry, metal
production, other production etc.
Solvent and other product use
Agriculture
Waste
–
solid waste disposal on land, wastewater
handling, waste incineration etc.
Land-use, Land-use Change and
Forestry Sector (LULUCF)



Effective via:
– increasing removal of GHGs through sinks
(e.g. planting trees)
– reducing emissions from sector
(e.g. curbing deforestation)
Removals from sinks generate removal units
(RMUs) and must be validated and offset by
greater emission cuts/removals else where
More work being done in this area on
methodologies including examples of good
practice guidance
UNFCCC-Kyoto Protocol:
Implementation Actors

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Conference of the Parties (COP)
Secretariat
Subsidiary Body for Scientific and
Technological Advice (SBSTA)
Subsidiary Body for Implementation (SBI)
Joint Working Group on Compliance (JWG)
National UNFCCC focal points
National CDM authorities (DNA)
Others (IPCC, GEF etc.)
UNFCCC-Kyoto Protocol:
Financial Provisions

Special Climate Change Fund (UNFCCC)
–

Least developed countries Fund (UNFCCC)
–



fund special work programmes for LDCs
Adaptation Fund (KP)
Global Environment Facility (GEF)
–

fund projects relating to capacity building,
technology transfer, climate change mitigation
activities, economic diversification
operating entity of the financial mechanism; main
funding channel for developing countries
Private investments
Community Development Carbon Fund
(Jul’03)
Kyoto Protocol:
Implementation Mechanisms

Joint Implementation
–

Emissions trading
–

activities implemented jointly between
developed/EIT country Parties (ERUs)
can be used as supplementary to actions to
meet reduction commitments (AAUs)
Clean Development Mechanism (CDM)
–
developing country Parties can volunteer to
reduce emissions via joint activities with
developed Parties (CERs)
Annex I Countries
Australia
Austria
Belarus*
Belgium
Bulgaria*
Canada
Croatia
Czech Rep*
Denmark
EC
Estonia*
Finland
France
Germany
Greece
Hungary*
Iceland
Ireland
Italy
Japan
Latvia*
Liechtenstein
Lithuania*
Luxembourg
Netherlands
New Zealand
Norway
Poland*
Portugal
Romania*
Russia*
Slovakia*
Slovenia*
Spain
Sweden
Switzerland
Turkey
Ukraine*
UK
USA
Joint Implementation:
An Overview
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
Article 6 of the Kyoto Protocol (KP)
Climate change mitigation projects
implemented between two Annex 1
countries
Creation, acquisition and transfer of
“emission reduction units (ERUs)”
JI projects eligible from year 2000, but
ERUs can only be issued for a crediting
period starting after 2008
Joint Implementation:
An Overview

ERUs prior to 2008?
–
–
–
can transact/transfer as “assigned amount
units (AAUs)” under Art. 17 of KP (ET)
claims and emission reductions need to be
negotiated between host, investor country
and project developer
need to meet eligibility criteria for
participating in ET (= JI first track projects)
Joint Implementation:
An Overview


Only GHGs covered under Annex A of KP: CO2,
CH4, N2O, HFCs, PFCs and SF6
Twin track approach for JI (COP6, Bonn, 2001)
–
–
–
two separate approaches for countries hosting a JI
project
track 1 ERUs are issued by the host country: host
country eligible to international emissions trading
(IET) may verify ERUs as being additional
track 2 ERUs are issued by the Supervisory
Committee (SC): when host country does not meet
eligibility criteria for IET, but is eligible to participate
in JI, ERU verification must follow procedure under
the SC
Joint Implementation:
An Overview

Eligibility requirements to transfer/acquire
ERUs under JI track 1:
(a) Party to the KP
(b) calculate/record assigned amounts (AA)
(c) national registry in place
(d) national system for GHG accounting
(e) annual submission of GHG inventory
(f) submission of supplementary info on AA
Plus the Additionality factor (emission
reductions additional to what would otherwise occur)
Joint Implementation:
An Overview

Eligibility requirements to transfer/acquire
ERUs under JI track 2:
(a) Party to the KP
(b) calculate/record assigned amounts (AA)
(c) national registry in place
* JI track 1 requirements less (d), (e) and (f)
Joint Implementation:
An Overview
JI Track 1 Projects
JI Track 2 Projects
• Verified according to the
• Projects in countries not in
criteria for JI as designed by
and applicable in the host
country
compliance with requirements for
monitoring/reporting of GHG
emissions (criteria d,e,f)
• Verification likely to be
• Need to follow verification
different for each country
• No Annex-1 country
procedure (to be designed by the
Supervisory Committee)
eligible as of yet
• SC - to be elected at 1st COP/MOP
once KP enters into force
• SC to accredit Independent Entities
(IEs) to validate/verify/certify
Joint Implementation:
An Overview

Eligible projects (same as CDM):
–
–
–
–
–
–
–
–
–
installations based on renewable energy source
fuel switch to lower carbon intensive fuels
energy efficiency at supply side
energy efficiency at demand side
combined heat and power (CHP) projects
agricultural sector projects (excl. landuse change)
transport sector
reduction in methane emissions
reforestation/afforestation projects
Joint Implementation:
An Overview

Eligible project developers:
–
–
–
–
–
–
–
Government bodies/agencies
Municipalities
Foundations
Financial institutions
Private sector companies
NGOs
Organisations acting as an intermediary
for any of the above
Joint Implementation:
An Overview

Eligible technologies:
–
–

no specific performance standards apply
project technology introduced should at
least have an equal or have a better
performance standard than the existing
operational technologies in the host country
SC to design the rules and procedures
for JI building on the CDM procedures
Project Cycle for JI Track 2:
Design and Operation
 Project
–
assess eligibility, feasibility etc.
 Project
–
idea note (PIN)
design document (PDD)
project description; baseline methodology; project
duration; monitoring methodology/plan; GHG
accounting; E/SIA; stakeholder comments;
additionality/sustainability assessment
 Project
validation by independent entity
(IE)
 Project registration
Project Procedure: Design Phase
Project
developer
Host country
National or
international
aministration
Independent
entity (IE)
JI Supervisory
Committee (SC)
Project Design Phase
Step 1: JI
project idea,
definition
Step 2:
Preparatoin of
Project Idea
Note (PIN)
Pre-screening
of eligibility
Positive
Step 4-5:
Preparation
of PDD
Undertake EIA
Pre-screening of
eligibility of the
proposed project
Negative
Step 3: Opinion
on the PIN
Possible
review PDD by
admin
Step 6-7:
Determination of
the PDD and other
docs by an IE
Submission of
IE report to SC
Registration of the
project with host
country
Registration of the
project by admin
Step 8: Possible
review by SC
Step 9: Project
confirmation by SC
Project Procedure: Operation Phase
Project
developer
Host country
National or
international
administration
Independent
entity (IE)
JI Supervisory
Committee (SC)
Project Operation
Step 1-2: Monitoring of
project performance
and submission of
monitoring
results/report to IE
Step 3:
Verification by IE
IE submits
verification
report to SC
Verified ERUs
recorded in host
government’s
national registry
Issue
ERU
s
Step 5: SC confirms
emission reduction
verification by IE
ERU transfer
recorded in the
national registry
Step 4: Possible
review by SC
CP and JI: The Link
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

Cleaner Production applicable to all
eligible projects mentioned
Stronger link with renewable energy, fuel
switch, CHP and supply-side energy
efficiency projects
CP Financing through JI process
(e.g. Co-operation between Bulgarian and
Dutch Governments)
Goals of CDM
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

Lower the overall cost of reducing GHG
emissions released to the atmosphere
Assist developed country (“Annex I”)
Parties in complying with their emission
reduction commitments
Support sustainable development
initiatives within developing countries
Clean Development Mechanism

CDM is essentially a market
–
–
–



product: certified emission reduction (CER)
demand: Parties with GHG reduction
commitments
supply: mainly developing country parties to
the KP
CERs verified/certified by accredited body
Resultant CERs added to parties with GHG
reduction commitments
Supplier benefits technology transfer / SD
CDM: Eligible Projects
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Fuel switch to lower carbon intensive fuels
Installations based on renewable energy
Combined heat and power (CHP)
Supply-side energy efficiency improvements
End-use energy efficiency improvements
Agriculture sector (except land-use change)
Reduction in methane emissions
Reforestation/afforestation projects
CDM: Project Cycle
CDM: Project Cycle

Many specific requirements:
–
–
–

validation of a project
registration with the CDM Executive Board
monitoring, verification and certification of GHG
offsets
Various steps in a CDM project cycle:
–
–
–
to ensure that the project activity achieves the
proposed emission reductions
detailed documentation, various kind of
agreements and mechanisms required adds up
to the transaction costs
large projects are able to absorb these costs
CDM: Fast Track Projects

Why do we need a fast track?
–
–
–
–

process not worth it for small projects (high
transaction costs)
many small projects deliver significant local
sustainable development benefits
small-scale technologies are some of the most
promising for solving the long term problem of
climate change (e.g. solar; wind; fuel cells)
CDM might lose public support if rules are biased
toward large capital-intensive projects
Smaller projects on a “fast track”
–
–
–
renewables up to 15 MW
energy efficiency up to 15 GWh/yr
other emissions reductions project less than 15
kilotons of CO2 annually
CP Practitioners:
Focal Points for Action
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Enabling activities - overcoming barriers
–
work with government
–
work with industry
KP implementation
–

work with JI or CDM projects
Follow up and preparation for next stages
–
auditing and on-going verification
Enabling Activities:
Working with Government
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Public sector awareness and education on climate
change, in co-ordination with National UNFCCC focal
point
Public sector awareness and education on
opportunities for key local industries
Policy advice related to industries’ needs to enable
JI/CDM projects, in co-ordination with National CDM
authority
Assistance in formulation of national implementation
programmes (i.e. inventories, needs, priorities,
dialogue, etc.)
Implementation of projects (pilot and full-scale) with
measures to mitigate climate change
Enabling Activities:
Working with Industry
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


Private sector awareness and education workshops
related to climate change, in co-ordination with
National UNFCCC focal point
Private sector awareness and education workshops
on JI/CDM, in co-ordination with National JI/CDM
authority
Continued emphasis on enhancement of energy
efficiency in relevant sectors including GHG
measurements
Promotion, application and diffusion of
technologies, practices and processes that control,
reduce or prevent GHG emissions in addition to
energy efficiency measures
Kyoto Protocol Implementation

Build relationship with National JI/CDM authority
–
–
–

co-operation on awareness-raising, workshops
co-operation with policy advice to government
co-operation with pilot studies, projects
Develop projects with industry
–
–
integrate greenhouse gas calculations into in-plant
assessments
transfer CP investment financing knowledge toward
JI/CDM related project development for:




renewable energy sources
energy conversion and recovery
new energy efficient processes
technology transfer for non-energy-related GHG reductions
CP and UNFCCC-Kyoto

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Policy advice on industry’s needs
to enable JI/CDM
With national focal point (NFP),
submit pilot and full-scale
projects to GEF
Engage in technology needs
assessments project with NFP
Propose JI/CDM projects
Raise awareness of JI/CDM
opportunities among local key
industries and partners
Assistance in formulation of
national implementation plans
(GHG inventories, needs etc)
Why Kyoto?

Likely that Kyoto Protocol will enter into force
in the near future
–

To be prepared, “a foot in the door”
–

potential partnerships, access to financial
resources and technologies
Existing experience
–

pending USA and/or Russia ratification
especially in the energy sector
Benefits for industries
–
sustainable business, expand business
opportunities and differentiate from competitors
Questions to Consider





What are the opportunities under the
Convention?
What are the national priority energy
issues and related industry sectors?
What kind of expertise/services can you
offer to implement priorities?
What kind of necessary expertise/services
you can obtain from the other
practitioners?
What kind of financial assistance are
available to implement projects under the
Convention?
Summary: Develop an Action Plan


Collect information
Define competitive advantages
–

Organise meetings/seminars/workshops
–

co-ordinate with the Convention implementation bodies to
exchange information and experiences and build capacity
Develop JI/CDM projects and training programs
–

experience of work in the priority sectors, existence of
developed methodologies for addressing GHG emissions,
successful training initiatives, trust of the main industry
actors etc.
relate to national priorities under the Convention and
Protocol
Explore funding opportunities
–
consider other UNFCCC and KP financing mechanisms
Questions?
For more information:
UNEP: http://www.uneptie.org/pc/cp/home.htm
Basel: http://www.basel.int/index.html
POPS: http://www.pops.int/
Kyoto: http://unfccc.int/
http://communitycarbonfund.org/
http://ttclear.unfccc.int
UNEP DTIE contacts:
[email protected]
[email protected]