The current methodologies: applicability and scope CDM Methodology Workshop on Gas Flaring Amsterdam, December 3, 2008 Alexandrina Platonova-Oquab Carbon Finance Unit of the World Bank

Unlock CDM impact through appropriated methodologies Limited success of CDM in reducing gas flaring Only 3% of contracted CDM volumes in 2007 Why the opportunity is not picked-up yet ? Methodologies are available but their applicability is restricted Source: De Gouvello, Dayo, Thioye (2008)

Limited success of CDM in reducing gas flaring

Only 3% of contracted CDM volumes in 2007

Why the opportunity is not picked-up yet ?

Methodologies are available but their applicability is restricted

“ Working space” for flaring reduction methodologies Complex integrated systems Variety of utilization options Variety of flared gas origins Variety of market access options Variety of end users Measurement Monitoring Baseline assessment (scenarios) Project emissions Project boundary Project boundary Leakages

Significant gap remains between AM0009 “coverage” and the scope of practicable flaring reduction solutions Concerns in relation to widening the scope: Complex/ integrated flaring reduction options not fully recognized Different origins of flared gas not accepted Responses are referring to the insufficient set of AM0009 tools/scenarios Recent clarifications on applicability: filling the gaps?

Significant gap remains between AM0009 “coverage” and the scope of practicable flaring reduction solutions

Concerns in relation to widening the scope:

Complex/ integrated flaring reduction options not fully recognized

Different origins of flared gas not accepted

Responses are referring to the insufficient set of AM0009 tools/scenarios

Need for confidence building tools in the flaring reduction methodologies Balanced approach to technicalities that supports the “generic” applicability of the methodology Making use of lessons learned from other CDM methodologies: “ Framework” approach (driven by ASM experience) Combined approach (driven by ACM experience) Substantial benefits of coordinated effort: Combining larger scope of expertise & backgrounds Access to comprehensive set of practical examples Independent references on existing sound operational solutions and practices Possible ways forward: what is to be done to fill the gaps?

Need for confidence building tools in the flaring reduction methodologies

Balanced approach to technicalities that supports the “generic” applicability of the methodology

Making use of lessons learned from other CDM methodologies:

“ Framework” approach (driven by ASM experience)

Combined approach (driven by ACM experience)

Substantial benefits of coordinated effort:

Combining larger scope of expertise & backgrounds

Access to comprehensive set of practical examples

Independent references on existing sound operational solutions and practices