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A regional response to global climate change
The Baltic Sea region as a testing ground for for the Kyoto
protocol
A climate policy initiative by the Baltic Sea Region Energy
Cooperation – BASREC under the CBSS umbrella
Ministry of Industry, Emp loym ent and Com m unications Swe den
Starting points
• Climate change is a global issue.
• Reduction of emissions of greenhouse gases is the main abatement
instrument
• From a climate point of view it does not matter where you reduce
emissions - the effect is the same on the GHG concentration in the
atmosphere
• Cost-efficiency is of major importance
• The Climate convention and the Kyoto protocol therefore
acknowledge the use of flexible mechanisms like joint
implementation
Ministry of Industry, Emp loym ent and Com m unications Swe den
Baltic Sea Region: a testing ground for mechanisms
Tasks decided by the BASREC energy ministers:
• Write a JI handbook
• Simulation of emissions trading and arranging a conference on the
results
• Prepare and set up a JI investment facility
• Prepare a Testing Ground Agreement
• Information: [email protected] and [email protected]
Ministry of Industry, Emp loym ent and Com m unications Swe den
The BASREC JI handbook
• First version of the handbook – now ready – but on-going process, subject to
revisions
• Interpretation of the international agreements– Kyoto Protocol and the Marrakech
Accords (COP7), Nov 2001
• Covers two key areas:
1. Requirements that Parties have to meet to participate in JI - BSR status in meeting
them
2. Advice to project developers on the Track 2 procedures, & steps to a succesful
ERU purchase agreement
• translated into Russian and available on website
Ministry of Industry, Emp loym ent and Com m unications Swe den
Testing ground framework agreement
Objectives
• to build capacity and competence to use the Kyoto mechanisms and promote
common understanding of concepts
• to promote realisation of high quality projects in the energy sector generating
emissions reductions
• to gain experience with the Joint Implementation (JI) mechanism in the energy
sector
• to develop methods and procedures
• to collaborate in addressing administrative and financial barriers, especially
regarding small scale JI projects
• to facilitate generation, ensure issuance and transfer of ERUs from JI projects
• to implement projects early and offer credits for emission reductions prior to 2008
by appropriate means
Ministry of Industry, Emp loym ent and Com m unications Swe den
The BASREC Testing Ground Agreement
• Open to participation for BASREC governments and companies ( and
others! )
• “As if” application of Kyoto rules before start in 2008 on projects
within the energy sector. From 2008 and onwards Kyoto rules apply in
full
• Projects to be approved by investor and host country
• Core element: already decided Testing Ground Facility to invest in JI
projects for 10-20 million Euros in BASREC TGA countries
• Model project agreements and handbook to support activities
Ministry of Industry, Emp loym ent and Com m unications Swe den
Testing Ground Facility
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Managed by NEFCO – Nordic Environment Financing Corporation
Decision by the Nordic Council of Ministers
Initially BASREC investor countries
Open for others
Fund Management Agreement with NEFCO being finalized right now
Ministry of Industry, Emp loym ent and Com m unications Swe den
BASREC work ahead in the climate field
• Implement the testing ground agreement and
facility (the agreement has been signed by 9
countries and the TGF is being capitalised)
• Analyse effects of EU accession
• Revise and improve the JI-handbook as needed
• Baseline development in Arkangelsk
• Continue building capacity and knowledge
Ministry of Industry, Emp loym ent and Com m unications Swe den