The earth’s atmosphere makes life possible on earth by trapping the sun’s heat. Without any atmosphere average temperatures would be around 30 degrees lower Greenhouse Gases & Emission Trading

The earth’s atmosphere makes life possible on earth by trapping the sun’s heat.

Without any atmosphere average temperatures would be around 30 degrees lower

Global Warming Increasing concentrations of Green House Gases (GHGs), namely, carbon dioxide, methane, ozone, chlorofluorocarbons, sulphur hexafluoride have increased the heat trapped. Out of these carbon dioxide is most closely linked with global warming

Increasing concentrations of Green House Gases (GHGs), namely, carbon dioxide, methane, ozone, chlorofluorocarbons, sulphur hexafluoride have increased the heat trapped.

Out of these carbon dioxide is most closely linked with global warming

Nine of the ten warmest years in this century have occurred since 1980 CO 2 concentration in the atmosphere estimated to increase almost 300% by 2100

Nine of the ten warmest years in this century have occurred since 1980

CO 2 concentration in the atmosphere estimated to increase almost 300% by 2100

Average CO2 emissions due to deforestation from 1980 onwards is around 1.8 bn metric tonnes CO2 release because of fossil fuel usage is around 5.3 bn mt/ annum

Average CO2 emissions due to deforestation from 1980 onwards is around 1.8 bn metric tonnes

CO2 release because of fossil fuel usage is around 5.3 bn mt/ annum

Out of this 7.1 around half remains in the atmosphere, rest being absorbed by oceans etc. Net accumulation in atmosphere around 3.6 bn mt / annum

Out of this 7.1 around half remains in the atmosphere, rest being absorbed by oceans etc.

Net accumulation in atmosphere around 3.6 bn mt / annum

Sea levels projected to rise by 15 - 95 cms by 2100 Increase in vector borne diseases present major threat to poor countries.

Sea levels projected to rise by 15 - 95 cms by 2100

Increase in vector borne diseases present major threat to poor countries.

Climate Change? Greenhouse effect CO 2 CH 4 N 2 O SF 6 HFC PFC Global warming Rising sea levels Changing precipitation pattern Changes in cropping patterns Changes in floral & faunal communities Changes in disease patterns

CO 2

CH 4

N 2 O

SF 6

HFC

PFC

Energy In developed countries per capita consumption @ 7kW Developing countries per capita consumption @ 1.1kW To avoid adding to CO 2 levels in atmosphere per capita consumption @ 0.5kW World average per capita GHG emission @ 3.87 t/a

In developed countries per capita consumption @ 7kW

Developing countries per capita consumption @ 1.1kW

To avoid adding to CO 2 levels in atmosphere per capita consumption @ 0.5kW

World average per capita GHG emission @ 3.87 t/a

International initiative 1992 Framework convention on Climate change at Rio de Janeiro 1997 Kyoto Protocol - required developed countries (Annex I) to cut down their total GHG emissions by 5% below 1992 levels (separate targets for individual countries).

1992 Framework convention on Climate change at Rio de Janeiro

1997 Kyoto Protocol - required developed countries (Annex I) to cut down their total GHG emissions by 5% below 1992 levels (separate targets for individual countries).

Kyoto Protocol & Mechanisms First commitment period 2008-2012 Optimization of costs for meeting commitments 3 new market based, flexibility mechanisms Emissions trading between Annex I countries Joint Implementation projects between countries with binding GHG targets Clean Development Mechanism (CDM) in developing countries (no binding targets)

First commitment period 2008-2012

Optimization of costs for meeting commitments

3 new market based, flexibility mechanisms

Emissions trading between Annex I countries

Joint Implementation projects between countries with binding GHG targets

Clean Development Mechanism (CDM) in developing countries (no binding targets)

Kyoto Protocol & Mechanisms To come into force Kyoto Protocol needs to be ratified by countries accounting for at least 55% of 1990 Annex I GHG emissions Ratified by 77 countries so far (including EU and Japan), accounting for 60% approx. of 1990 Annex I emissions USA accounts for 35% of Annex I emissions has refused to ratify Poland (3%), Canada (3.3%), New Zealand (0.2%) and Australia (2.1%) at advanced stage to ratify Has come into force effective 16 th February 2005

To come into force Kyoto Protocol needs to be ratified by countries accounting for at least 55% of 1990 Annex I GHG emissions

Ratified by 77 countries so far (including EU and Japan), accounting for 60% approx. of 1990 Annex I emissions

USA accounts for 35% of Annex I emissions has refused to ratify

Poland (3%), Canada (3.3%), New Zealand (0.2%) and Australia (2.1%) at advanced stage to ratify

Has come into force effective 16 th February 2005

What it means The long-term objectives of global action are: to de-couple emissions growth from economic growth, and to de-carbonise the economy (reducing emissions by >50%) This will mean a further shift: from energy profligacy to energy efficiency in supply and use, from coal to oil to gas to renewable in power generation, from petroleum to hybrids to hydrogen in transport, from waste as a by-product to waste as a value-stream, from free emissions to costly emissions

The long-term objectives of global action are:

to de-couple emissions growth from economic growth, and

to de-carbonise the economy (reducing emissions by >50%)

This will mean a further shift:

from energy profligacy to energy efficiency in supply and use,

from coal to oil to gas to renewable in power generation,

from petroleum to hybrids to hydrogen in transport,

from waste as a by-product to waste as a value-stream,

from free emissions to costly emissions

What it means Ratification has made several EU-countries start developing CDM initiatives. AUSTRIA to dedicate $36 million, starting Jan 03 DENMARK has committed $17 million SWEDEN has budgeted $22 million JAPAN bought an annual flow of 62 000 tonnes of CO2e from Kazakhstan The NORDIC COUNTRIES are setting up a $10 million fund Active participation by Annex 1 countries is likely to: Increase demand of credits Increase private companies’ sense of security of investing in CDM Increase transparency in all stages of project development

Ratification has made several EU-countries start developing CDM initiatives.

AUSTRIA to dedicate $36 million, starting Jan 03

DENMARK has committed $17 million

SWEDEN has budgeted $22 million

JAPAN bought an annual flow of 62 000 tonnes of CO2e from Kazakhstan

The NORDIC COUNTRIES are setting up a $10 million fund

Active participation by Annex 1 countries is likely to:

Increase demand of credits

Increase private companies’ sense of security of investing in CDM Increase transparency in all stages of project development

The mechanisms of Kyoto Does not impose any limits on emission Additional requirement of Annex II (sub set of Annex I) countries to support technically & financially developing countries.

Does not impose any limits on emission

Additional requirement of Annex II (sub set of Annex I) countries to support technically & financially developing countries.

The mechanisms of Kyoto Annex I countries provided with 3 flexible mechanisms to meet their commitments. Emission trading – between any two countries that have made commitments to reduce GHG gases where total amount of emissions permitted is predefined. Joint implementation (JI) – between any two Annex I countries

Annex I countries provided with 3 flexible mechanisms to meet their commitments.

Emission trading – between any two countries that have made commitments to reduce GHG gases where total amount of emissions permitted is predefined.

Joint implementation (JI) – between any two Annex I countries

The mechanisms of Kyoto Clean Development Mechanism (CDM) Between an Annex I country & non Annex I country Has two primary objectives Contribute to sustainable development in in developing countries Help Annex I countries achieve targets set under Kyoto Protocol

Clean Development Mechanism (CDM) Between an Annex I country & non Annex I country

Has two primary objectives Contribute to sustainable development in in developing countries Help Annex I countries achieve targets set under Kyoto Protocol

CDM Involves buying / selling of Certified Emission Reductions (CERs) Attributes of a CER Additionality - A CDM project activity is additional if anthropogenic emissions of GHGs by sources are reduced below those that would have occurred in the absence of the registered CDM activity. Permanence - sustainability of CERs’ Leakage - displacement of emission causing activities Baseline durability - changes in technology, social conditions

Involves buying / selling of Certified Emission Reductions (CERs)

Attributes of a CER Additionality - A CDM project activity is additional if anthropogenic emissions of GHGs by sources are reduced below those that would have occurred in the absence of the registered CDM activity. Permanence - sustainability of CERs’ Leakage - displacement of emission causing activities Baseline durability - changes in technology, social conditions

Eligibility criteria “ Project activity” initiated after Jan 1 2000 Environmental additionality Emission reductions generated are additional (above and beyond) those that would have occurred in normal course of events Other additionalities (technological, financial, investment) not officially required Meets host country sustainable development criteria

“ Project activity” initiated after Jan 1 2000

Environmental additionality

Emission reductions generated are additional (above and beyond) those that would have occurred in normal course of events

Other additionalities (technological, financial, investment) not officially required

Meets host country sustainable development criteria

Carbon Market by Segment Premium carbon Compliant Carbon Pre- compliant Carbon Retail Carbon Increasing price US$ 0.5 – 1.0 US$ 1.0 – 4.0 US$ 4.0 – 6.0 US$ 6.0 – 8.0 Increasing robustness of CER Brand backing Low delivery risk No leakages Validated With host country endorsement High contribution to sustainable development Additional

Brand backing

Low delivery risk

No leakages

Validated

With host country endorsement

High contribution to sustainable development

Additional

The ranking of CDM project types Methane gas capture HFC, PFC, SF 6 , N 2 O Biomass Fuel Switching-coal to biomass. Hydropower- Small hydropower. Energy efficiency-electricity producers Fuel Switching-coal to gas. Wind Power Energy efficiency-Process Energy efficiency - end user Agriculture. Solar Power Sink projects

The ranking of CDM project types

Methane gas capture

HFC, PFC, SF 6 , N 2 O

Biomass

Fuel Switching-coal to biomass.

Hydropower- Small hydropower.

Energy efficiency-electricity producers

Fuel Switching-coal to gas.

Wind Power

Energy efficiency-Process

Energy efficiency - end user

Agriculture.

Solar Power

Sink projects

CDM PROJECT CYCLE

CDM Project Stages

Calculation of CO 2 emissions Carbon Dioxide is emitted whenever any fossil fuel is burnt Fossil fuels are coal, fuel oils, natural gas etc. Amount of CO 2 generated depends on the carbon content in the fuel and the air fuel ratio

Carbon Dioxide is emitted whenever any fossil fuel is burnt

Fossil fuels are coal, fuel oils, natural gas etc.

Amount of CO 2 generated depends on the carbon content in the fuel and the air fuel ratio

Amount of carbon in fuel is obtained from the ultimate analysis. Assumption is that sufficient air for complete combustion of carbon is available. Also important is the efficiency at each stage between fuel burning & energy end use.

Amount of carbon in fuel is obtained from the ultimate analysis.

Assumption is that sufficient air for complete combustion of carbon is available.

Also important is the efficiency at each stage between fuel burning & energy end use.

C + O 2 = CO 2 12 + 32 = 44 1 + 32/12 = 44/12 Therefore X of CO 2 produces 3.66 X tons of CO 2 where X is total qty of fuel in tons multiplied by % carbon content of fuel.

C + O 2 = CO 2 12 + 32 = 44 1 + 32/12 = 44/12 Therefore X of CO 2 produces 3.66 X tons of CO 2 where X is total qty of fuel in tons multiplied by % carbon content of fuel.

GHG emissions along value chain

Calculate Energy From fuels - used for generation of steam or electricity or heating (Coal, HSD, LDO, SKO, NG,etc.) Calculate the energy generated from these fuels either from the Calorific value or IPCC emission factors. 1) If calorific value (CV) in Kcal/ Kg is available, Energy in TJ/ tonne = CV * 4.186 * 1,000*1,000/ 10 12 = CV * 4.186 * 10 -6 Energy in TJ = Q * energy in TJ/tonne (Q is quantity of fuel in tonnes)

Calculate Energy

From fuels - used for generation of steam or electricity or heating (Coal, HSD, LDO, SKO, NG,etc.) Calculate the energy generated from these fuels either from the Calorific value or IPCC emission factors. 1) If calorific value (CV) in Kcal/ Kg is available, Energy in TJ/ tonne = CV * 4.186 * 1,000*1,000/ 10 12

= CV * 4.186 * 10 -6

Energy in TJ = Q * energy in TJ/tonne (Q is quantity of fuel in tonnes)

Calculate Energy 2) Using IPCC energy conversion factors, Energy in TJ = Q * conversion factor (conversion factor for coal :0.01988 TJ/T, HSD: 0.0389 TJ/l, NG : 0.0348 TJ/m 3 )

Calculate Energy

2) Using IPCC energy conversion factors,

Energy in TJ = Q * conversion factor (conversion factor for coal :0.01988 TJ/T,

HSD: 0.0389 TJ/l,

NG : 0.0348 TJ/m 3 )

1 Direct Emissions (From fuels used) CO 2 emission (Tonnes) = A * emission factor (IPCC factors: FO = 77.4 t CO 2 /TJ Coal = 98.22 t CO 2 /TJ LPG = 63.07 t CO 2 /TJ) 2 CO 2 emissions (Tonnes) from the electricity purchased = Electricity in MWhr * 1.085

1 Direct Emissions (From fuels used)

CO 2 emission (Tonnes) = A * emission factor

(IPCC factors: FO = 77.4 t CO 2 /TJ

Coal = 98.22 t CO 2 /TJ

LPG = 63.07 t CO 2 /TJ)

2 CO 2 emissions (Tonnes) from the electricity purchased

= Electricity in MWhr * 1.085

3. Emission from the travel (Tonnes) CO2 = emission factor * distance travelled in Km * number of vehicles. (Emission factors: petrol car - 0.0002, diesel car - 0.00012, diesel bus – 0.001034 Tonnes of CO 2, /Km) 4. Emission from Freight transportation (Tonnes) a. By Road : CO 2, = Emission factor * materials transported in km. ( Emission factor: petrol vehicles 0.000924, diesel vehicles 0.001072 T CO 2 /Km) b. By Rail, Air, Ship: CO 2 = Emission factor * materials transported in Tonne-Km , ( Emission factors: rail - 0.00003, air - 0.001158, ship - 0.000014 Tonnes of CO 2 /T-Km , )

Sequestration Taking carbon dioxide from atmosphere and “fixing” it as biomass, in such a manner so that it remains as carbon for certain period of time. Trees are the most convenient

Taking carbon dioxide from atmosphere and “fixing” it as biomass, in such a manner so that it remains as carbon for certain period of time.

Trees are the most convenient

Sequestration 50% of mass of tree is carbon C + 0 2 = CO 2 12 + 32 = 44 i.e 1 ton of carbon in plant tissue results in 44/12 = 3.66 tons of carbon dioxide captured Additional amounts sequestered are in subsoil (as humus) and root stock

50% of mass of tree is carbon C + 0 2 = CO 2 12 + 32 = 44 i.e 1 ton of carbon in plant tissue results in 44/12 = 3.66 tons of carbon dioxide captured

Additional amounts sequestered are in subsoil (as humus) and root stock