Urban CDM Challenges & Opportunities-Kim


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Urban CDM Challenges & Opportunities-Kim

  1. 1. Urban CDMChallenges & Opportunities Kwi-Gon Kim, Ph. D. (UCL, England) Secretary General, UEA Emeritus Professor, Seoul National University
  2. 2.  Contents◆ Why is the Urban CDM Needed Urgently?◆ What is the Urban CDM?◆ What has been done?◆ What is suggested Roadmap?◆ What are Main Challenges for the Implementation of the Urban CDM and Low- Carbon Green City?◆ Conclusions & Suggestions 1
  3. 3. 1. Why is the Urban CDM Needed Urgently? Cities are main sources of global GHG emissions and a major pollutant - 50% of the world’s population now lives in cities. By 2050, three out of four people are expected to live in urban areas, due to urban migration This is - Urban areas currently uses 67% of the world’s energy and accounts for over 71% of global GHG emissions. (World Bank, 2011) time to look at Less than 1% of projects registered with the CDM the are credited to cities. - Interrelated “Cross-Project” and “Cross-Sectoral” approaches are not CDM implemented, even in the case of reduction activities of for the methodologies approved by UNFCCC. whole Efforts to reduce GHG emissions : The impact is marginal city. - Due to financial vulnerability of developing countries, efforts to reduce GHG emissions and investment in environment protection are economic burden for cities in developing countries. 2
  4. 4. 2. What is the Urban CDM? Urban CDM is a mechanism which gives financial incentives and provides Certified Emission Reductions(CERs) as much as amount of emission reduction at the city-scale compared with baseline emissions at the city level. Therefore, it can be used as a political carbon decision support system both for green growth and economy and for urban planning and management. Rationale behind the Urban CDM - A tool for carbon financing : market-based mechanism - A tool for Low Carbon Green City : urban metabolism-based mechanism - A tool for 3Cs(Carbon Centered Comprehensive) planning : land-use based mechanism 3
  5. 5. - Evolution of CDM Single CDM Project Guide & Tool Kit Bundling Guide & Tool Kit CDM PoA Guide & Tool Kit Multiple PoA Guide & Tool Kit How to expand CDM Concept into Urban CDM new, innovative thinking 4
  6. 6. - Comparison of Conventional CDM and Innovative CDM Methodology Conventional Innovative Methodology Methodology Theoretical ▷ Holistic, integrated, smart ▷ Isolated standalone view Underpinnings view ▷ Singular project development ▷ Urban planning and Context framework development framework ▷ Technology and products- ▷ Extension of CDM to include Scope oriented system policy, planning and governance ▷ Use of existing methods ▷ Combination of existing and Methods approved by UNFCCC new methods ▷ Considerations for population Baseline Scenario ▷ Constant level of emission and economic growth, etc. 5
  7. 7. Conventional Innovative Methodology MethodologyMeasurement ▷ Quantification ▷ Quantification and estimation ▷ Tradable certified emission ▷ Aggregated tradable certified Certification reduction(CERs) at single CDM emission reduction(CERs) at the project level city-scale and between cities ▷ Carbon markets implemented at ▷ Carbon markets to be Market the national or regional level implemented at the city level ▷ Tool for 3Cs (Carbon CenteredTool for Urban ▷ Tool for disconnected Comprehensive) planning Land- Planning infrastructure Use based mechanismEffectiveness ▷ Project cost-benefit analysis ▷ Carbon balance sheet analysis Analysis 6
  8. 8. 3. What has been done? 3.1. Hosting UEA SummitIn Gwangju, during the period from 11 to 13 October, 2011, more than 1,000individuals assembled for a summit entitled “Green City, Better City”.A. Overview Period : October 11~13, 2011 (3 days) Slogan : Green City, Better City Host : Gwangju Metropolitan City, United Nations Environment Programme (UNEP), City and County of San Francisco Participants : 1,024 attendees including domestic and foreign 126 mayors and delegates 7
  9. 9. B. Outcomes- Major findings of the feasibility study on Urban CDM were presented.- Messages to be delivered to G20, COP17, and Rio+20 were adopted by attending city representatives of Gwangju Summit.- Agreement on “Global Low-Carbon Green City Award” was reached.- Advisory Group Meeting Minutes, Gwangju Summit, was adopted (Thursday, October 13th, 2011)For any further information on the key outcomes of the event, please feel free to visit the following websites.(1)UEA Website (www.2011uea.com)(2)UNEP Website (www.unep.org)(3)World Bank’s Urbanization Knowledge Platform ( www.urbanknowledge.org) 8
  10. 10. 3.2. Undertaking Feasibility Study(1) Objectives of the Feasibility Study-Can the most relevant sectors responsible for the majority ofcarbon emissions in a city be adequately tackled under the currentsystem?-Towhat extent do the current CDM rules and procedures allow foran Urban CDM project?-What would be required to enable cities to participate further in theCDM?-How would the CDM need to be (re-)formed?-Would other mechanisms may be better suited for enabling carbonfinance in the urban context? 9
  11. 11. (2) Approach to the work 1. Mapping of the typical climate footprint of cities 2. Identification of major emission sources (“Priority Sectors”) 3. Evaluation of CDM methodologies for the urban approach 4. Identification, evaluation of project examples of urban CDM, incl. case studies 5. Discussion on first steps towards removing barriers for urban projects, e.g. PoAs 10
  12. 12.  Climate footprint of cities City is a multi-functional complex system. The proposed urban CDM should not be limited to one sector. Power Energy Generation Supply Power Economy/ Generation/ Industry Energy Supply Economy/ Waste/ Commercial Waste Management/ Buildings City Landfills Transport/ Residential sector/ Traffic Buildings Waste/ Waste Management/ Transport/ Landfills Traffic 11
  13. 13. (3) Preliminary findingsThe Urban Context-Emission reduction in specific “priority sectors”-Usually dispersed projects comprising different technologies-Multiple stakeholders, beneficiaries-Strong interrelations/mutual interference between sectors, institutions-Citiesrather follow holistic and policy related approach to reduce emissions,“Non-technical” projects with large mitigation potential (e.g. urban planning& policy and carbon governance)-Limited experience/number of CDM projects so far 12
  14. 14. A. CDM Reforma. Increased standardizationb. Multiple methodology approachc. Improved interaction of UNFCCC with stakeholders - Top-down and bottom-up approach 13
  15. 15. B. Urban CDM Model Here is my framework for the proposed Urban CDM. How I have arrived this framework is a reflection process of analyzing and validating documents, which have been conducted. This model is very useful to understand inter-relationships between energy suppliers and consumers, and between built form, urban infrastructure and CDM mechanism for them, in a total holistic manner. 14
  16. 16. Individual CDM Project Feedback Water and W aste water CDM for Low- Carbon Renewab le Energy Super- Building CDM for Total CDM for Low- Carbon Smart Low- Carbon Consum er Urban Factory <Urban Smart Grid System> CDM CDM for Transport Grid port Low- CarbonSolid waste Renewab le Land use andmanagem ent Energy Urban Spatial CDM for Ecology Residence Planning Low- Carbon H om es System Solid Waste Industry Land Total Urban <Total Urban CDM Model> System Water & BuildingW ater waste Engineering Transport Urban Facility Feedback <Integrated Urban Planning and Management> 15
  17. 17. C. Urban CDM Project Registration Procedure Responsible Step Activities Agency1. Development and - KEI Registration of New 1. Standardized Urban CDM Registration - UNEP Methodology - UEAMA for Urban CDM 2. Formation of Project Team - UEAMA2. Planning - World Bank 3. Capacity building/training for UEA member cities - UNFCCC 4. Identification of participating cities 5. Establishment of baseline scenario 6. Calculation of the emissions expected without PoAs 7. Development of Multiple PoAs 8. Formulation of policy actions and development plans at the city scale - UEAMA3. Project Design 9. Preparation of PoAs management plans - World Bank (Being Planned) 10. Establishment of monitoring methodology to - UNEP measure the actual level of emissions with PoAs 11. Establishment of aggregation methodology 12. Establishment of quantification and estimation methodology for cumulative volume of the emissions reduced with appropriate levels of aggregation 13. Preparation of Project Design Document(PDD) - UEAMA4. National Approval 14. Approval of PDD by designated national authority - World Bank 16
  18. 18. C. Urban CDM Project Registration Procedure Responsible Step Activities Agency 15. Validation of designated operation entity (DOE)5. Validation - DOE 16. Request for registration6. Registration 17. Registration of PDD by CDM Executive Board (CDM EB) - CDM EB7. Construction & Operation 18. Monitoring of GHG reduction activities 19. Aggregation of monitoring results of PoAs - UEAMA8. Monitoring 20. Quantification or estimation of the cumulative volume of - World Bank the emissions reduced, compared with the BAU baseline - UNFCCC level of emissions 21. Preparation of monitoring report (MR)9. Verification & 22. Verification/certification of monitoring report by DOE & - DOE Certification request for issuance10. Issuance of CERs 23. Issuance of CERs by CDM EB - CDM EB11. Publication 24. Publication of the report on Urban CDM Joint Program 25. Selling and trading of CERs12. Post PoA 26. Post-PoA management - UEAMAManagement & - World BankEvaluation 27. Periodic evaluation - UNFCCC 28. Final Project Reporting 17
  19. 19. 3. 4. Operating International Advisory GroupCity has multiple-dimensions. To address these issues, we have createdan Inter-Agency Advisory Group. Advisory Group Meeting Minutes on Urban CDM Report - Main Conclusions and Next Steps(1) However, in line with discussions at the Summit, the report would explore new methodology development beyond the current CDM and explore options under Programmatic Activities (PoA) and NAMAs.(2) The CDM Report should also look at existing voluntary carbon markets and identify and explore other efforts for city and urban methodologies.(3) Dialogue with UNFCCC should continue, to ensure we are going in the right direction and to maintain institutional support for the Urban CDM efforts. International Advisory Group Meeting Attending Members - Thursday, October 13th, 2011 Mr. Kwi-gon Kim(Co-Chair), UEA Gwangju Summit Mr. Marcus Lee, World Bank Group Mr. Arab Hohallah(Co-Chair), UNEP Mr. Hyoung-gun Wang, World Bank Group Ms. Soraya Smaoun, UNEP Mr. Guenter Meinert, GIZ Mr. Young-woo Park, UNEP Ms. Patricia McCarney, University of Toronto Mr. Rafael Tuts, UN-Habitat Mr. Hyun-woo Lee, KEI Mr. Ishwaran Natarajan, UNESCO Mr. Jeong-hwan Bae, Chonnam National University Ms. Anne Isabelle Degryse Blateau, UNDP San Antonio City Government(Observant) Mr. Christopher Kennedy, OECD 18
  20. 20. 3.5. Undertaking an Interim Case Study To test the method, we conducted an Urban CDM case study for Gwangju Metropolitan City in general and Gwangju Multiple PoA as a planned program in specific.A. Types of CDM Program of Activities Practiced in Gwangju - Although Korea is not a mandatory greenhouse gas reduction country, there are many national and regional measures being enforced. Gwangju has been operating Carbon Bank system, Gwangju Green Action, and Creation of Low Carbon Apartments as self-measure of greenhouse gas reduction effort. ☞ Multiple Program of Activity - Gwangju Multiple PoA as a planned Program Residence PoA : 21 Common Ground PoA : 8 - Saving standby power at home - Carbon point system by connecting to home automation - Resource recovery out of - Development of model case and Common wastes…etc. 8 roadmap of Low-carbon Green Village Residence - Green-home…etc. Transport- 48 21 ation Transportation PoA : 9 9 - Establishing Bus Rapid Transit Commercial & Public PoA : 10 System Commercial - Disseminating and fostering High - Disseminating Telework & Public efficiency LED - Expanding Eco-Road…etc. 10 - Tightening low-carbon design when newly or re-built…etc 19
  21. 21. B. CPA Examples being practiced in Gwangju Urban Policy CPA : Gwangju City’s GHG Reduction Policy and strategy Urban Governance CPA : Carbon Bank System Grant points by reduction of CO2 Emission to the participants [Credits granted by Gwangju Bank]  Urban Technology CPA (Case 2) :  Urban Technology CPA (Case 1) : - LFG CDM business of waste landfill (already - LED (already accredited in Gwangju) accredited in Gwangju) 20
  22. 22.  C. The Interim Results : An Illustration- Estimated cumulative GHG emission reduction by planned programmes during the period from 2011 to 2020 is shown in figure 2. <Figure 2> Illustrative GHG Emissions Trajectory for Gwangju City - While 22,239kilotons of CO2 compared to BAU is projected to be reduced from 2010 to 2020, lack of Monitoring method and related institute keeps it from being certified as CDM. 21
  23. 23.  The results highlight the presence of very significant and commercially viable opportunities for GHG reduction at the city-scale. Implementing these would generate wider social and economic benefits(Figure 3). 22
  24. 24. <Figure 3> Application of measurable planned reduction activities (When BAU is cut down by 40% by 2020) - When Urban CDM is applied which is leading project that can comprehensively monitor by sector, 92.2% of greenhouse gas emitted by cities can be gauged. - According to 10 year reduction activity compared to BAU for 6 sectors, greenhouse gas reduction is 20,505ktCO2 with economic benefit of 72,382,000€ (3.53€/ton) 23
  25. 25. 4. What is Suggested Roadmap? 1. Feasibility Study 2. Review by Inter-Agency Advisory Group 2012 3. Development of Urban CDM Framework 2013 4. Development of Methodology for Baseline Scenario, Monitoring and Data Set 5. Establishment of the Volume Target to reduce the Urban GHG emission and reduction measures (policies/governance/techniques) 6. Case Study applying Urban CDM Methods to verify them. 2014 7. Verification and supplement of the model and manuals (toolkit) 8. Suggestion of Urban Carbon Finance 9. Registration to UNFCCC and certification from it. Launching Initiative for Global Urban CDM & Low-Carbon Green Cities 24
  26. 26. 5. What are main challenges for the implementation of the Urban CDM and Low-Carbon Green City? International Agreement – UNFCCC CDM Executive Board vs Voluntary Carbon Market (NAMAs) Financing – Access to Global Carbon Fund Institutional Support for the Urban CDM Efforts – Local, National and International, Institutional Support Capacity Building- Limited Experience - CDM Opportunities Biased towards Developed Countries Data Availability - Data for Baseline Scenario and Quantification or Estimation of Emission Reduction Communication - Dialogue among Stakeholders and Beneficiaries Legislation related to Emission Trading Scheme at Urban Scale Time Framework - Time-Horizons of Decision Making - Time Framework for Inventory, Monitoring, Reporting and Verification, CDM Project Cycle To address new challenges, please spread “Global Urban CDM Initiatives” 25
  27. 27. 6. Conclusion & Suggestions 6.1. Conclusions Urban CDM is the name given to my belief that the mitigation of the GHG emissions towards “Low-Carbon Green City” must be seen in the context of urban development in a holistic manner and that economic incentives should play a key role especially in cities of developing countries. Through review on best practices in Gwangju and other ticies, I realized that the role of the city is changing. I hope Urban CDM issue will be put to world leaders here in Rio de Janeiro and be New Agenda for the next 20 years. The Summit cannot be addressing environmental, social and economic problems, but about pointing to practical solutions. Please work together to make “Global Urban CDM Iniitiaves” work!!! 26
  28. 28. 6.2. Suggestions on Resolution to be submitted to UN Secretari General – through Rio+20 In order to build Low-Carbon Green City, useful and innovative policies and plans must be developed such as Urban Clean Development Mechanism (Urban CDM). While international consent on the Urban CDM needs to be collected to be recognized as it is valuable, the agreement should be made on the feasibility of the Urban CDM on its occasion. In this end, it is strongly appealed that the active involvement and support to promote Urban CDM for the sake of low-carbon green city shall be sincerely needed from international communities, especially from United Nations. 27
  29. 29. Thank you very much for your kind attention!AcknowledgementsThe ideas of this presentation are meant as parts of an ongoing researchand subject to any changes for improvement. The contents in thispresentation were partly quoted from statistics and related materialsmade by UEA, UNEP, and the authority of Gwangju Metropolitan City.