Download Why Kyoto?

UNIDO Vietnam
Support for CDM projects in the Industrial sector: Pilot
Project in Co-operation with the Austrian Industry
Training Sessions on the Kyoto CDM
Brief background to Kyoto & progress of
the flexible mechanisms to date
Mike Bess
Hanoi, Vietnam
26th and 27th June 2006
© ESD 2006
Summary
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Why the Kyoto Protocol?
The UNFCCC – key actions on the road to the
Kyoto Commitment Period, 2008-2012
Key actions in the Kyoto process:
– Ratification
– The European Union Emissions Trading
Scheme (EU ETS)
Operations of the UNFCCC CDM Executive
Board (EB) and its ‘Methodology Panel’
Status of CDM and JI, and prospects preCommitment Period
Implications for CDM in Vietnam
© ESD 2006
Why Kyoto?
© ESD 2006
UNFCCC roadmap
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Rio Conference in 1992 resulted in three UN
‘conventions’:
– Climate Change (UNFCCC)
– Biodiversity
– Desertification
The Global Environment Facility (GEF) was
put in place post-Rio to address all three
On the UNFCCC ‘Activities Implemented
Jointly’ were allowed & took place until 1997
Kyoto ‘Conference of Parties’ (COP)
November 1997 resulting in Climate Change
Protocol – the ‘Kyoto Protocol’ (KP)
© ESD 2006
UNFCCC roadmap
(cont)
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© ESD 2006
Kyoto market the most significant
development in international environment
politics
Kyoto divided the world into two groups –
Annex 1 and Annex 2, with Annex 1 primarily
OECD, Annex 2, primarily emerging &
developing countries
Annex 1 countries agreed to take a ‘cap’ to
reduce greenhouse gas (GHG) emissions by
5% to 8% in the ‘Commitment Period’ (CP) of
2008 to 2012
UNFCCC roadmap
(cont)
Three ‘mechanisms’ were created at Kyoto:
• Two ‘project-based’ mechamisms:
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and 1 trading market-based mechanism:
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© ESD 2006
Clean Development Mechanism/CDM (noncapped countries)
Joint Implementation/JI (Annex 1, capped
countries)
International Emissions Trading (EIT)
UNFCCC roadmap
(cont)
Marrakech Accords (COP7, Marrakech, November
2001) said:
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CDM could begin from 2000, crediting from then
before the CP
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JI could begin immediately, but no credits before
2008 (CP)
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Emissions Trading under Kyoto would begin 2008
Marrakech Accords also set the ‘rules of the game’, &
actualised the CDM ‘Executive Board’ (EB) & put
in place the JI ‘Secretariat’ under the UNFCCC
© ESD 2006
Summary of Kyoto
to date
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© ESD 2006
Rio 1992 – UNFCCC, GEF & more
Activities Implemented Jointly (AIJ) – 1992 to
1997
Kyoto 1997 – international watershed
Differentiating ‘capped’ & non-capped
participants
Marrakech 2001 – Kyoto operationalised
USA withdraws from Kyoto 2001
Evolution of EU ETS from January 2005
Russia & Kyoto ratification 2005
Over 160 countries participating
under Kyoto now
Operations of the UNFCCC
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UNFCCC, after Marrakech, set up the Executive
Board
EB meets regularly, is now, post-Montreal 2005,
fully financed, & has approved nearly 50 CDM & JI
projects
EB has a ‘methodology panel’ (‘Meths Panel’)
which approves all methodologies acceptable for
projects under CDM & JI
This sets standard for PDDs, validation &
verification
JI Secretariat fully operationalised in Montreal
2005
© ESD 2006
CDM Executive Board
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Appointed by Kyoto Protocol signatories
Ultimate authority on CDM, meets regularly
Has a number of technical committees
Most important committee for CDM is the
‘Methodologies Panel’ (Meths Panel) – 10
members (http://cdm.unfccc.int/Panels/meth)
Meths Panel approves all methodologies for CDM
Assigns numbers & approved methodologies are
like ‘torts’ in law – they are ‘precedent’, & then get
used by all CDM project developers
Approved methodologies for all sorts of projects
from renewable energy, methane capture, etc.
© ESD 2006
Status of JI & CDM
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After slow start, Kyoto projects now well
underway
Are 30 approved methodologies (AM) & 9
approved ‘consolidated methodologies’
(ACM)
(http://cdm.unfccc.int/methodologies/PAm
ethodologies/approved.html)
JI project developers are using many CDM
approved methodologies
© ESD 2006
Overview CDM projects
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After a very slow start, first CDM projects
registered in 2004
Number of projects ‘in the pipeline’: 800 (16 June
2006) of which:
– Number of registered projects increasing
dramatically (216 from Nov 2004 to June 2006):
• 2004: 1 project (Brazil)
• 2005: 62 projects
• 2006 (to 16/6/06): 153 projects (including
Rang Dong Oil Gas Recovery)
– Number of projects in pipeline is increasing: 53
now with EB (including 1 Vietnam project Song
Muc)
© ESD 2006
Status of CDM now
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9th June 2006, the Climate Change Secretariat of
the United Nations published news that projects
with emission reductions worth more than
1,000,000,000 (1 billion) tonnes of carbon dioxide
equivalent (CO2e) had just been approved!!!
CDM is happening faster than anyone would have
predicted two years ago
All registered CDM projects in just over 18
months!!!
Current demand for CERs is more than supply!
Kyoto is happening!!!
© ESD 2006
CDM projects by sector
© ESD 2006
Status of JI & CDM
(cont)
Reductions/ % Total
No
Reductions project
CDM
Registered (CO2e
(CO2e
Reductio
Country
Projects
tonnes)
tonnes)
ns
Brazil
44
11,796,868
268,111
17.4%
China
10
25,277,924 2,527,792
37.3%
India
67
9,222,053
137,643
13.6%
Republic of Korea
4
10,759,607 2,689,902
15.9%
Sub-Total
125
57,056,452
456,452
84.1%
© ESD 2006
Number of registered projects
by region
% Registered Projects
Asia
Latin America
Africa, Carribean, Pacific
(ACP)
Europe
© ESD 2006
Number of registered projects
by country
© ESD 2006
Expected annual reductions
by country
© ESD 2006
Expected annual CO2e
reductions by region
% Reductions (CO2e tonnes)
Asia
Latin America
Africa, Carribean, Pacific
(ACP)
Europe
© ESD 2006
Thank you!
Mike Bess
Director, International Division
Energy for Sustainable Development Ltd.
+44 1225 816 808
[email protected]
www.esd.co.uk
© ESD 2006