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CDM and Transportation COP-9 December 2003 Mauricio Hurtado Climate Change, Foreign Affairs Ministry, Chile Jodi Browne Climate Change & Energy, IISD Eduardo Sanhueza Principle - CC&D, alternative member EB Franz Tattenbach FUNDECOR, Costa Rica, Vice-chair of EB and Meth Panel Transport and Climate Change The transport sector is responsible for ~ 25% of CO2 emissions worldwide, and this contribution is increasing Key factors Travel activity (vehicle kilometers traveled, tonkilometers) Mode split Vehicle energy intensity (efficiency, loading) Fuel carbon content (lifecycle) Transport & Climate Change The rate of increase of CO2 emissions from transport is much higher in developing countries than developed countries. Developing country growth = 3.2% per year Developed country growth = 1% per year (World Energy Outlook, 2001) CO2 Emissions From Transport Country Per Capita CO2 from Transportation (kg) (1998) Transportation Sector Cars Per 1000 People % of Total Carbon Emissions Chile 1028 28% 110 China 178 8% 8 India 120 13% 7 Mexico 1010 27% 143 South Africa 1740 20% 121 France 2257 35% 526 Japan 1971 22% 552 United Kingdom 2238 24% 441 United States 6082 30% 769 Sperling & Salon, 2002 Transport & CDM Of the 80 projects currently in the CDM pipeline only 5 are transportation…of those, none address travel demand CDM represents a crucial opportunity to develop a sustainable transportation sector e.g. Chile - increased funding flows - enhanced capacity - expanded technology Energy Sector GHG Emissions 1998 Commercial 9% Agricultural 1% Transport 33% Manufacturing 23% Electricity 34% In Chile, transportation represents 2nd largest source of GHG emissions in the energy sector approximately 33% Transport Emissions in Chile Airplanes 9% Buses 10% Ships 13% Cars & Light Trucks 36% Heavy Trucks 22% Taxis 10% Growth in Travel ‘Drives’ GHGs GHGs from Passenger Cars in Chile: 2000 - 2020 (Based on Pew Center Report) 2.50 Vehicle Kilometers Relative Growth (2000 = 1) 2.25 2.00 Total GHGs GHG Emissions Rate 1.75 1.50 1.25 1.00 0.75 2000 2005 2010 2015 2020 Transport & CDM Project: Chile Project Partners: IISD, CCAP, CC&D, CGTS Funded by Canadian International Development Agency (CIDA) Explore the potential to reduce GHGs and promote transportation CDM projects in Chile Project Goal To be of technical assistance to Chileans to reduce GHG emissions and promote involvement in the CDM, specifically in the transportation sector Potential for replication Help establish precedent for assessing transportation CDM projects Possible CDM projects currently being examined… 1) Area 10: Technology switch of buses within downtown area of Santiago 2) Bike Infrastructure: Developing bike lanes, storage, facilities 3) Location Efficiency: Concentrating mixed-use developments around metro stations Area 10: Technology switching Santiago: new design for public transport Segregated routes for articulated buses (Min EURO3) Feeding areas for buses of lower capacity (progressive switch from EURO1,2,3) Exploring potential for CDM to implement hybrid diesel-electric buses in the feeding areas Demonstration: Area 10 (downtown core = 34 buses) Area 10: Technology switching Methodological questions… • Set baseline as current or marginal technology? • Monitoring: Fuel based (sales)?...OR Distance based (calculate fuel use from VKT & efficiency)? What to do with crediting for a program…over a number of years – incentive declines… Because of interest to keep baseline stable…perverse incentives? Bicycle Infrastructure Increase non-motorized trips in Santiago Introduction of further bicycle infrastructure (lanes) Measure the emissions reductions from increased travel by bikes on a specific route (modeling, observation, etc.) Quantify those reductions and develop as a CDM project Bicycle Infrastructure – ?’s Methodological questions… Compare project to current or future projected mode split? What to do if data is not available for short (bike appropriate) trips? Monitoring: Surveys? (determine mode choice without bikes) Counting? (what sampling frequency is sufficient?) Modeling? Location Efficiency - background Urban form can: Reduce number of motorized trips Increase share of non-motorized trips Reduce travel distances, increase vehicle occupancy rates Through: DENSITY – i.e. lot size DIVERSITY – mix of land uses & proximity DESIGN – street layout, block design, parking Location Efficiency - examples Policy initiatives aimed at impacting travel demand: Location-Efficient Mortgage (LEM) Policy Guidance on using land use measures to improve Air Quality (US EPA) ‘Transit-Oriented Development’ (TOD) initiatives, such as Hong Kong’s metro station concession program; US programs (WMATA, BART, etc.) Other financial incentives, i.e., aimed at developers Location Efficiency: our project Densification or “location efficient” development around metro stations… - - - Identify specific real estate development opportunities Quantify the travel behavior impacts of those developments Estimate the net impacts on transportation greenhouse gas emissions of the prospective developments Determine how to fit this within the CDM. Supporting existent work looking at efficient dev’t (MINVU) or “neighborhood efficiency” Location Efficiency - ?’s Baseline and Additionality: Where would the developments have otherwise located? What would have been the travel characteristics and subsequent emissions of those alternative locations? Over what time period can the emissions reductions be realistically credited? To what degree are the reductions “additional” to businessas-usual? How can co-benefits (i.e., local air pollution reduction, other social benefits (costs)) be calculated and effectively incorporated into the methodology? Location Efficiency - ?’s Monitoring and verification: How can the emissions reductions be adequately monitored and verified? Could surveys be incorporated into the real estate projects to determine trip-making behavior (including all non-motorized trips)? Could public transport ridership be monitored • Track VKT or mode split? • Surveys? Local traffic counts? Metro boardings? Is it appropriate to use modeling results for current or projected data? Location Efficiency – ?s Subsidies - Urban renovation, historic preservation, low income housing CDM could bringing additional funds to support subsidies How/if subsidies could be modified to fit as a CDM project? Mechanisms to promote transit-oriented development; transport-efficiency subsidies (or mortgages), a fund in which a CDM investor could invest, others How to develop these?; Who would be the “players” (Metro, Ministry of Planning, Banks, Municipalities). Transport & Carbon Price At $5/tonne CO2… removing a car from the road would be worth about $15 to $20/year not sufficient incentive on its own added sweetener for otherwise locally beneficial projects Discussion – key questions How to compensate for impacts on own baseline? i.e. disincentives? If transportation projects are not feasible under the current CDM guidelines, is there a need for revised guidelines? If so, what type? How could these be developed and introduced? Upcoming Events UNFCCC Side Event: Wed, 10 Dec 1:00 p.m.- 3:00 p.m. “Getting there: tackling transport emissions” Multi-stakeholder, high-level event on technical and lifestyle fixes as options for reversing the transport emissions trend. Moderated by Simon Upton. ****************************************************************************** “CDM and Transportation: Challenges and Opportunities” Santiago, Chile, Sept 2004 Int’l workshop on Transport & CDM issues & presentation of the conclusions of the IISD/CCAP/CC&D work Thank you! FOR MORE INFORMATION... Jodi Browne Climate Change & Energy, IISD Tel: +1 (613) 238-9821 [email protected] Steve Winkelman Manager of Transportation, CCAP Tel: +1 (202) 408-9260 [email protected] Eduardo Sanhueza Director , CC&D Tel: +56 (2) 209-1770 Email: [email protected]