Concept and methodology of nam as development- selection creteria, mrv and template


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RCREEE Member States: from the first movers for the NAMAs
16-17 November 2011

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Concept and methodology of nam as development- selection creteria, mrv and template

  1. 1. Concept and methodology of NAMAs development: selection creteria, MRV and template Rafik Missaoui, Alcor 17.11.2011 Workshop “Existing CDM Potential and Perspectives for Carbon Finance in RCREEE Member States beyond 2012” Cairo, Egypt, 16. November ·
  2. 2. Selection criteria 2
  3. 3. National Development Policy criteria– Direct economic impact : techno- economic impacts • Cost reduction • Financial benefits, etc.– Strategic issues • Energy supply security, • Energy independency, • Long term technology positioning • Notoriety, etc.R. Missaoui, Cairo, Nov 2011
  4. 4. National Policy criteria– Environmental impacts • Mitigation potential, • local environment impacts– Indirect socio-economic development impacts • Job creation, • Industrial development, • Life standard improvement, etc.R. Missaoui, Cairo, Nov 2011
  5. 5. National Policy criteriaMitigation potential and CO2 abatement cost R. Missaoui, Cairo, Nov 2011
  6. 6. National Policy criteriaMitigation potential and CO2 abatement cost R. Missaoui, Cairo, Nov 2011
  7. 7. Technical criteria• Simplicity and basis of GHG calculation• MRV metric• Simplicity of determination of financing needs and split of unilateral and supported contributions• Potential for leveraging private investments• Donor attractiveness R. Missaoui, Cairo, Nov 2011
  8. 8. Technical criteriaExample of assessment Sector Transport Building Industry Waste Description Bus rapid EE tertiary cogeneration Diversion of transit buildings organic waste from land filling − Assessment Simplicity and basis low high high medium of GHG calculation MRV metric medium medium high medium Simplicity of high high high medium determination of financing needs and split of unilateral and supported contributions Potential for medium medium high medium leveraging private investments Donor high high high high attractiveness
  9. 9. Technical criteriaTypes of needsNo loose measures, but sometime many implementation barriers … • Technical and technological barriers: CSP, etc. Type of Needs – Emergent technology Technology transfer : TT – Low local technical capacity Technical assistance: TA Financial support • Market distortion Financing resources (loan, direct – Low attractiveness for end user investment, etc.): Fin Carbon market: CERs – Lack of market information , etc. Subsidies: Sub • Lack of framework condition – Financial – Institutional – Regulatory R. Missaoui, Cairo, Nov 2011
  10. 10. Technical criteriaTypes of needs: example of Morocco R. Missaoui, Cairo, Nov 2011
  11. 11. Measuring, Reporting and Verification (MRV) 11
  12. 12. The Measuring, Reporting and Verification (MRV) of NAMAs emission impact The Bali Action Plan has explicitly linked NAMAs to MRV in the paragraph 1(b) (ii) “Nationally appropriate mitigation actions…in a measurable, reportable and verifiable manner”. Standard of MRV  A national MRV system for unilateral NAMAs  A system that depends on MRV International operating rules of the UNFCCC for supported NAMAs (China and India insist on sovereignty) MRV approach :  Bottom up assessment (USA position)  Top down (China position)
  13. 13. The Measuring, Reporting and Verification (MRV) of NAMAs emission impact Scope Elements for MRVNational emission Inventory of national emissionsneutrality targets Means of neutralization (GHG sequestration)National emission  Selection of the base yearintensity targets  Establishing total national emissions and national GDP for the base year and the end year  Dividing emissions by GDP and comparing the values in the base and end yearNational emission Selection of the base yeartargets in terms of a Development of the reference emission scenario (Constantdeviation from intensity, Constant growth rate…)business as usual  Development of mitigation scenario (modelling of GDP growth, modelling of the link between GDP and emissions)Sectoral emission The same than before but at sectoral leveltargetsSpecific actions at The MRV has to be designed specificallynational and/or locallevel
  14. 14. The Measuring, Reporting and Verification (MRV) of support• What is “new and additional” resources for climate• investments as called for in the Cancun Accord?• How can climate-related finance be tracked?• How can additional support be defined?• Large potential for overlap with development aid efforts• Learning from existing systems (GEF, World bank) is essential R. Missaoui, Cairo, Nov 2011
  15. 15. NAMAs template 15
  16. 16. NAMAs template– Country and sector Background;– Description of the planned activities;– Rationale behind the activities: National strategy that constitute the framework of the activities, link to emission reduction, planned impacts of the measures (direct, indirect, co- benefits);– Responsibility of implementation;
  17. 17. NAMAs template– Mode of implementation of the activities;– Schedule of the implementation, including uncertainties and risks;– MRV: indicators to verify the implementation, framework, etc.;– Support need in terms of financing, technological and technical assistance.
  18. 18. Example of NAMAs 18
  19. 19. Example of NAMAs : TunisiaTunisian Solar Plan Installed RE capacity (MW) wind solar others  Target : reduce by 40% the primary energy consumption by 2030 compared to the business as usual scenario.  RE target: 4500 MW of RE for electricity generation capacity by 2030,
  20. 20. Example of NAMAs in MENA region: TunisiaTunisian Solar Plan NAMAs description Description of the planned activities: 40 projects in the fields of:  Solar energy,  Wind energy,  Energy efficiency,  Biogas and studies. Rationale behind the activities:  Existence of active long term national strategy for energy efficiency and renewable energy;  Integration of the Tunisian Solar Plan into a regional initiative;  Emission reductions of 1.5 MtCO2e per year, compared to the current yearly emissions in Tunisia of 35 MtCO2e;  Annual energy saving of 660 kteo, which is 22% of the overall forecast for Tunisias energy consumption by 2016.
  21. 21. Example of NAMAs : Tunisia Responsibility of implementation: National Energy Conservation Agency (ANME). Mode of implementation: mainly by private sector. Schedule of the implementation: 2010-2016. MRV of emissions reductions: bottom up approach based mostly on metric indicators (m² of collectors, installed MW, m² of houses isolated, etc.). Support need:  Total cost: 1 852 Million Euro,  National contribution: 1 472 Million Euro,  Need of international support: 371 Million Euro
  22. 22. Example of NAMAs : MoroccoMorocco Solar Plan Objective: 2000 MW of CSP and PV by 2020 Cost: 9 billions UD$ Electricity generation : 4500 GWh / y since 2020 Mitigation potential: 3,2 METCO2 /y.
  23. 23. Example of NAMAs : MoroccoMorocco Solar Plan: organisation IPP selection through biding process Coverage of electricity price gap by Morocco state and international cooperation
  24. 24. Example of NAMAs : Morocco Morocco Salor PlanMitigation - Mitigation potential : 800 kTECO2 /ypotential - CO2 abatement cost  : 250 USD to 300 USD/TECO2Technical - Technical assistance to MASEN and its partners inassistance the implementation of the Solar Plan program  (Technology watch, technology transfer, capacity buildingNeed of financing - Investment subsidy : 20% à 25% of the total investment cost of the CSP of Ouarzazate, so 0.45 to 0.625 billions USD - Soft loan : 20% à 30% of investment cost of CSP of Ouarzazate, so 0.45 à 0.75 billions USD - Technical assistance to MASEN  : 3 à 4 Millions USDType of NAMA - Supported - Credited Source: BM-Département de l’Environnement / Alcor-ADS, 2011 R. Missaoui, Cairo, Nov 2011
  25. 25. ThanksR. Missaoui, Cairo, Nov 2011
  26. 26. Technical criteriaComplexity and uncertainty of GHG estimation R. Missaoui, Cairo, Nov 2011
  27. 27. Technical criteria Implementation complexityTechnical barriers: Technical barriers: Technical barriers: Technical barriers:low medium low lowOrganizational: Organizational: Organizational: Organizational: lowmedium high high R. Missaoui, Cairo, Nov 2011
  28. 28. Technical criteria Determination of support needsR. Missaoui, Cairo, Nov 2011
  29. 29. Technical criteria Financing potential and attractivenessR. Missaoui, Cairo, Nov 2011
  30. 30. Technical criteriaMRV complexityR. Missaoui, Cairo, Nov 2011
  31. 31. MRVMRV of GHG mitigation Actions reported every two years in national communications R. Missaoui, Cairo, Nov 2011
  32. 32. Approche de sélection des NAMAsExample of MRV indicators • GHG emissions – measured or based on fuel used – modelled • Proxies for GHG emissions – Energy used – Material produced • Other than GHG emissions – Technical: build units, capacity, no. of vehicles – Economic and financial: funds granted, investment triggered – Process: number of workshops conducted • R. Missaoui, Cairo, Nov 2011