The document provides an overview of carbon credits and the carbon market. It discusses key topics like global warming, the IPCC, UNFCCC, and Kyoto Protocol. The Kyoto Protocol established a carbon market and flexible mechanisms like emissions trading, clean development mechanism (CDM), and joint implementation. CDM projects generate carbon credits that can be sold on the market. Requirements for CDM projects and examples of sectors are also outlined. Registry systems are described that record and verify transactions of carbon credits between countries.
the presentation was given at the 2009 Green Building and Energy Efficiency International Conference in August in Shanghai, China. The conference was organized by McGraw-Hill and sponsored by U.S. DOE, USGBC, Shanghai Green Building Council, etc.
The best overview of CO2 EOR I've seen crabtreeSteve Wittrig
Brad Crabtree, "The critical role of CCS and EOR in managing US carbon emissions" in "CO2 Summit II: Technologies and
Opportunities", Holly Krutka, Tri-State Generation & Transmission Association Inc. Frank Zhu, UOP/Honeywell Eds, ECI Symposium Series, (2016). http://dc.engconfintl.org/co2_summit2/3
Yanchang Petroleum CCS Project - Enhanced oil recovery using CO2 in North Wes...Global CCS Institute
The Global CCS Institute has recently published a report on the Yanchang Petroleum Group’s CCUS Project in the Shaanxi Province in China. This report focusing on the utilisation and storage of the CCUS Project is the topic of this webinar. It is the second report and webinar in a series on the Yanchang CCUS Project; the first detailed the capture technology.
Yanchang Petroleum Group is planning a carbon capture, utilisation and storage (CCUS) project in China. Yanchang are currently operating several coal to chemicals (CTC) projects in Shaanxi Province in North West China, which inherently have high CO2 emissions. Those projects will enable enhanced oil recovery (EOR) using the CO2 in a series of mature oil fields in the Ordos Basin. The benefits of this CCUS Project is twofold enabling the reduction in CO2 emissions whilst increasing oil production in an arid environment.
In this webinar, Dr Gao Ruimin of the Research Institute of Shaanxi Yanchang Petroleum Group provided a project update and discuss the local geology, as well as the technical aspects of utilisation and storage of the Project, covering:
- Background of the project and project update
- Ordos Basin geology
- Technical details of CO2-EOR operation
- Commercial drivers
- Project timeline
Carbon capture for coal to chemical industry in North West ChinaGlobal CCS Institute
Commercial coal-to-chemicals processes are being rapidly deployed as a clean coal technology, particularly in China. The process generally has a large carbon foot print. While CCS has been successfully applied to capture and store carbon emissions from coal-fired power stations, it is also one of the only technology options for reducing emissions from industrial coal-to-chemicals processes.
Among others, Yanchang Petroleum Group has developed/planned several coal to chemical projects. Yanchang Petroleum Group is located in Shaanxi Province, in North West China. Yanchang Petroleum owns large reserves of oil, gas, coal and salts. To optimise the utilisation of its resources, Yanchang Petroleum developed technologies to convert coal, natural gas, and residue heavy oil to chemical products at its Jingbian Industry Park, in conjunction with a whole chain CCS project. Yanchang Petroleum will produce four knowledge sharing reports on critical aspects of carbon capture and storage (CCS) based on its practice in CCS.
In this webinar, Yanchang Petroleum reported on the capture aspects of the project, covering:
- Background of the project
- Technical details of capture process
- Project timeline
- Commercial drivers
- Lessons learned
the presentation was given at the 2009 Green Building and Energy Efficiency International Conference in August in Shanghai, China. The conference was organized by McGraw-Hill and sponsored by U.S. DOE, USGBC, Shanghai Green Building Council, etc.
The best overview of CO2 EOR I've seen crabtreeSteve Wittrig
Brad Crabtree, "The critical role of CCS and EOR in managing US carbon emissions" in "CO2 Summit II: Technologies and
Opportunities", Holly Krutka, Tri-State Generation & Transmission Association Inc. Frank Zhu, UOP/Honeywell Eds, ECI Symposium Series, (2016). http://dc.engconfintl.org/co2_summit2/3
Yanchang Petroleum CCS Project - Enhanced oil recovery using CO2 in North Wes...Global CCS Institute
The Global CCS Institute has recently published a report on the Yanchang Petroleum Group’s CCUS Project in the Shaanxi Province in China. This report focusing on the utilisation and storage of the CCUS Project is the topic of this webinar. It is the second report and webinar in a series on the Yanchang CCUS Project; the first detailed the capture technology.
Yanchang Petroleum Group is planning a carbon capture, utilisation and storage (CCUS) project in China. Yanchang are currently operating several coal to chemicals (CTC) projects in Shaanxi Province in North West China, which inherently have high CO2 emissions. Those projects will enable enhanced oil recovery (EOR) using the CO2 in a series of mature oil fields in the Ordos Basin. The benefits of this CCUS Project is twofold enabling the reduction in CO2 emissions whilst increasing oil production in an arid environment.
In this webinar, Dr Gao Ruimin of the Research Institute of Shaanxi Yanchang Petroleum Group provided a project update and discuss the local geology, as well as the technical aspects of utilisation and storage of the Project, covering:
- Background of the project and project update
- Ordos Basin geology
- Technical details of CO2-EOR operation
- Commercial drivers
- Project timeline
Carbon capture for coal to chemical industry in North West ChinaGlobal CCS Institute
Commercial coal-to-chemicals processes are being rapidly deployed as a clean coal technology, particularly in China. The process generally has a large carbon foot print. While CCS has been successfully applied to capture and store carbon emissions from coal-fired power stations, it is also one of the only technology options for reducing emissions from industrial coal-to-chemicals processes.
Among others, Yanchang Petroleum Group has developed/planned several coal to chemical projects. Yanchang Petroleum Group is located in Shaanxi Province, in North West China. Yanchang Petroleum owns large reserves of oil, gas, coal and salts. To optimise the utilisation of its resources, Yanchang Petroleum developed technologies to convert coal, natural gas, and residue heavy oil to chemical products at its Jingbian Industry Park, in conjunction with a whole chain CCS project. Yanchang Petroleum will produce four knowledge sharing reports on critical aspects of carbon capture and storage (CCS) based on its practice in CCS.
In this webinar, Yanchang Petroleum reported on the capture aspects of the project, covering:
- Background of the project
- Technical details of capture process
- Project timeline
- Commercial drivers
- Lessons learned
Lessons Learned on CO2 Storage from the Midwest Regional Carbon Sequestration...Global CCS Institute
Completing field tests that demonstrate that geologic storage of carbon dioxide (CO2) can be conducted safely and commercially is one step towards developing robust strategies for mitigating large point source CO2 emissions.
The Midwest Regional Carbon Sequestration Partnership Program (MRCSP) large volume CO2 injection test is providing data for improving capacity estimates and demonstrating storage capacity within a regionally significant resource. MRCSP is also evaluating CO2 storage potential in Ohio and other areas of the Midwest and the East Coast through regional mapping and exploratory site characterization. Lessons learned from pressure data analysis, modeling, monitoring technologies assessment, accounting, regional mapping and exploration enable technology advancements needed to help carbon capture and storage reach a commercial stage.
This webinar presented an update of the progress made to date and key findings from the MRCSP large volume CO2 injection test and regional exploration work. The topics that were covered include:
Background
- About the MRCSP
- Research objectives
Large Volume CO2 Injection Test, Approaches and Results:
- Description/Overview
- Data Uses
- Pressure Data Analysis and Modelling
- Monitoring Technology Assessment
- Accounting
Regional Mapping and Characterization of Storage Resources
- Known Sources and Sinks
- Studies of Reservoirs and Seals Underway
Dr. Per Christer Lund, Counsellor Science and Technology Norwegian Embassy in Tokyo, gave a briefing on CCS in Norway at the Global CCS Institute Japan study meeting in Tokyo on October 29, 2012
'Applying carbon capture and storage to a Chinese steel plant.' Feasibility s...Global CCS Institute
The Global CCS Institute has recently published a feasibility study report on applying carbon capture and storage (CCS) to a steel plant in China. Toshiba was commissioned to conduct the study in collaboration with Chinese corporations.
The feasibility suggests that carbon capture in Chinese steel plants is a cost effective means of reducing carbon emissions compared with similar plants around the world. In this webinar, Toshiba presented on the major findings of this feasibility study.
Webinar: 'Applying carbon capture and storage to a Chinese steel plant.' Feas...Global CCS Institute
The Global CCS Institute has recently published a feasibility study report on applying carbon capture and storage (CCS) to a steel plant in China. Toshiba was commissioned to conduct the study in collaboration with Chinese corporations.
The feasibility suggests that carbon capture in Chinese steel plants is a cost effective means of reducing carbon emissions compared with similar plants around the world. In this webinar, Toshiba presented on the major findings of this feasibility study.
Asserting Carbon Offsets from Landfill Gas Flaring at Regina’s Landfill Site - Presented at SWANA 5th Canadian Waste Symposium, Banff, Alberta April 21, 2010 By: Paresh Thanawala, P.Eng; QEP
The liquefied natural gas sector has experienced large growth in the last decade and is expected to grow more in the decades to come.
WorleyParsons recently completed a study for the Global CCS Institute to identify the trends in the LNG sector and to make a range of assessments on how these trends may impact on the CCS industry.
At this webinar, Graeme Cox, Principal Consultant from WorleyParsons focused on looking at industry wide and project specific aspects of LNG and relate these to industry wide and project specific aspects of CCS. The cost escalation of LNG projects was explained as well as the impact this may have on the deployment of CCS.
Graeme concluded by identifying opportunities whereby LNG and CCS can be integrated.
Lessons Learned on CO2 Storage from the Midwest Regional Carbon Sequestration...Global CCS Institute
Completing field tests that demonstrate that geologic storage of carbon dioxide (CO2) can be conducted safely and commercially is one step towards developing robust strategies for mitigating large point source CO2 emissions.
The Midwest Regional Carbon Sequestration Partnership Program (MRCSP) large volume CO2 injection test is providing data for improving capacity estimates and demonstrating storage capacity within a regionally significant resource. MRCSP is also evaluating CO2 storage potential in Ohio and other areas of the Midwest and the East Coast through regional mapping and exploratory site characterization. Lessons learned from pressure data analysis, modeling, monitoring technologies assessment, accounting, regional mapping and exploration enable technology advancements needed to help carbon capture and storage reach a commercial stage.
This webinar presented an update of the progress made to date and key findings from the MRCSP large volume CO2 injection test and regional exploration work. The topics that were covered include:
Background
- About the MRCSP
- Research objectives
Large Volume CO2 Injection Test, Approaches and Results:
- Description/Overview
- Data Uses
- Pressure Data Analysis and Modelling
- Monitoring Technology Assessment
- Accounting
Regional Mapping and Characterization of Storage Resources
- Known Sources and Sinks
- Studies of Reservoirs and Seals Underway
Dr. Per Christer Lund, Counsellor Science and Technology Norwegian Embassy in Tokyo, gave a briefing on CCS in Norway at the Global CCS Institute Japan study meeting in Tokyo on October 29, 2012
'Applying carbon capture and storage to a Chinese steel plant.' Feasibility s...Global CCS Institute
The Global CCS Institute has recently published a feasibility study report on applying carbon capture and storage (CCS) to a steel plant in China. Toshiba was commissioned to conduct the study in collaboration with Chinese corporations.
The feasibility suggests that carbon capture in Chinese steel plants is a cost effective means of reducing carbon emissions compared with similar plants around the world. In this webinar, Toshiba presented on the major findings of this feasibility study.
Webinar: 'Applying carbon capture and storage to a Chinese steel plant.' Feas...Global CCS Institute
The Global CCS Institute has recently published a feasibility study report on applying carbon capture and storage (CCS) to a steel plant in China. Toshiba was commissioned to conduct the study in collaboration with Chinese corporations.
The feasibility suggests that carbon capture in Chinese steel plants is a cost effective means of reducing carbon emissions compared with similar plants around the world. In this webinar, Toshiba presented on the major findings of this feasibility study.
Asserting Carbon Offsets from Landfill Gas Flaring at Regina’s Landfill Site - Presented at SWANA 5th Canadian Waste Symposium, Banff, Alberta April 21, 2010 By: Paresh Thanawala, P.Eng; QEP
The liquefied natural gas sector has experienced large growth in the last decade and is expected to grow more in the decades to come.
WorleyParsons recently completed a study for the Global CCS Institute to identify the trends in the LNG sector and to make a range of assessments on how these trends may impact on the CCS industry.
At this webinar, Graeme Cox, Principal Consultant from WorleyParsons focused on looking at industry wide and project specific aspects of LNG and relate these to industry wide and project specific aspects of CCS. The cost escalation of LNG projects was explained as well as the impact this may have on the deployment of CCS.
Graeme concluded by identifying opportunities whereby LNG and CCS can be integrated.
This webinar will review the various mechanisms agreed in the Kyoto Protocol with a particular focus on Clean Development Mechanism. The value at each stage of the CDM project will be explained, and market prices for carbon credits will be analysed.
In order to illustrate this type of project, real case studies carried out by Deuman will be discussed. Voluntary carbon credits will also be analysed.
http://www.leonardo-energy.org/webinar-carbon-market-and-cdm-projects
Carbon 101: Carbon accounting for hospitalsGraham Takata
Carbon 101: Carbon accounting for hospitals. Sources of GHG emissions in hospitals, current (2011) policy outlook, GHG Protocol, and tool kit. Canadian data.
Similar to Understanding Carbon Credits Business (20)
Realizing Love and Longing by Cropping Millets!!Amit Chauhan
The article discribes the value realized by organically growing Pearl Millet at our farm. It describes the journey to realize love and sharing with other living organisms while also being selfish.
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Soil conservation will lead to food security. Moisture conservation will raise the overall sustainability of the aired ecosystem of Kachchh. Mass mobilization and collective efforts will play a crucial role.
I just know its what is needed. how will I do it? When will it be completed? where it will be done? what species will be planted? which partners will come together? I have no Idea/plan/strategy/resources/knowhow/ etc....But I know its what is needed....
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Life gives us so much. many a time without our qualification. Nature gives and gives unbound. without counting. we should count our blessings and always find ways to give back.
Charity & Service is the duel qualification in nature and spirit of the Rotarian around the world. they have served the humanity for more than a century now. next year is the centennial year of the rotary foundation. a lot has been achieved during the past century of service and charity by TRF. Doing my bit in ensuring that it stays doing good in the world for the next coming century.
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Originators of the major branches of scienceAmit Chauhan
Science is fascinating. A must learning and development for each and every child. this is an attempt to develop their interest and satisfy curiosity of some if anyone is a student and wants to know. Its a Science Quiz.
Kachchh is a region in Gujarat which is having very poor science education and adaptation. this leads to poor employee ability and diminished returns of education in the population. this is an attempt to reach international education hubs and trusts to start such a project. Education in Science leads to the broader an innovation base in the country which leads to resources conservation.
Adaptation from Science Reporter November 2015. Its about Plant Indicators which indicate different elements in nature and environment in which they grow.
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Multinationals, Government and private institutions still are suffering with consumer intolerance and have just one strategy of fleecing the customer and not giving him his due credit and respect for keeping them in business.
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To win one self is much more important to achieve the goal than to give an explanation to others. the first steps are difficult but important is to carry on the journey and stop not till the goal is reached.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
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The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Implicitly or explicitly all competing businesses employ a strategy to select a mix
of marketing resources. Formulating such competitive strategies fundamentally
involves recognizing relationships between elements of the marketing mix (e.g.,
price and product quality), as well as assessing competitive and market conditions
(i.e., industry structure in the language of economics).
1. Understanding the Carbon
Credits Business
Amit Gopal Chauhan
31st December 2009
Refresher course of Academic Staff College ,
University of Mumbai, Birla College, Kalyan
1
2. I will Talk About
• Governance
• Global Warming
• IPCC, UNFCCC, Kyoto Protocol
• Carbon Trading
• Requirements for a CDM project
• Examples
• Discussion on price factors
• Market strategy one should adopt
• CDM market failure
• Conclusion
2
3. Governance
• Three pillars
– Governments
– Institutions
– Markets
• When one fails other compensates
• When one fails it either self corrects and
evolves with new attributes. Or depends on
the other pillars for a change.
• The cycle should repeat it self.
3
4. Global Warming
• Its responsible for life on Earth
• Water Vapor, CO2, Methane, N2O caused
natural GW Historically
• Industrialization has magnified the emissions
of GHGs exponentially
• Increase in temperature, increase in sea water
level, extreme movements of draught/
hurricanes/ floods expected
4
5. IPCC, UNFCCC, Kyoto Protocol
• Intergovernmental Panel on Climate Change
• United Nations Framework Convention on Climate
Change
• North & South agree to mitigate climate change
before “it is too late”
• Agree that they have “Common but Differentiated
responsibilities”.
• Kyoto Protocol which in details describe how the
GHGs can be reduced entered into force on 16th
February 2005.
5
7. Kyoto Protocol
• It relies on market based flexible mechanisms
to reduce GHGs emissions to mitigate GW.
– Emission trading (trading of allowances between
Annex I governments)
– Clean Development Mechanism (CDM) (projects
in Non-Annex I countries with participation of
Annex I countries)
– Joint Implementation (JI) (projects between
Annex I countries)
7
9. GWP & Carbon Credits
Formula Name Global warming Potential
CO2 Carbon dioxide 1
CH4 Methane 21
N2O Nitrous oxide 310
PFCs Perfluorocarbons 9200
HFCs Hydrofluorocarbons 11700
SF6 Sulphur hexafluoride 23900
If one tonne of GHG emission is
reduced then number of carbon credits
issued will be equivalent to the GWP.
9
10. Carbon Credits are also Known as…
• Emission reduction unit (ERUs),
• Certified emission reduction (CERs),
• Assigned amount unit (AAUs)
• Removal unit (RMUs)
• Voluntary emission reduction (VERs)
10
11. Generating Carbon Credits
“Without project”
emission level Carbon
credits
GHG emissions
“With project”
emission level
Project commissioned Time
Project based emission reductions need to be calculated and verified
1 reduced Ton of Carbon Dioxide equivalent = 1 Carbon Credit
hereafter they can be sold on the open market. 11
12. Supposed benefits of the market
mechanisms
• Help identify lowest-cost opportunities
for reducing emissions and attract private sector
participation in emission reduction efforts.
• Cost of limiting emissions varies considerably from
region to region, the benefit for the atmosphere is the
same, wherever the action is taken.
• Developing nations benefit in terms of
technology transfer and investment brought
about through collaboration with industrialized
nations under the CDM.
12
13. The Carbon market (1)
International agreements to reduce greenhouse gases:
• EU Emissions Trading System (EU-ETS) requires
EU countries to reduce emissions of greenhouse
gases by 6% during 2005-2007
• Kyoto Protocol requires Annex I countries (West and
Eastern Europe, North America, Japan, New
Zealand, Australia) to reduce emissions of
greenhouse gases by 5.2% during 2008 – 2012
13
14. The Carbon market (2)
• Voluntary participation of Non-Annex 1
countries (Brazil, China, India, South Africa,
etc.)
• The Linking Directive allows credits from
Clean Development Mechanisms (CDM) and
Joint Implementation (JI) projects to help
companies comply with their obligations
14
15. Registry systems under Kyoto (1)
• National Registries: containing accounts within
which units are held in the name of the government
or in the name of legal entities authorized by the
government to hold and trade units
• CDM registry: for issuing CDM credits and
distributing them to national registries. Accounts in
the CDM registry are held only by CDM project
participants, as the registry does not accept
emissions trading between accounts.
15
16. Registry systems under Kyoto (2)
• In addition to recording the holdings of Kyoto
units, these registries “settle” emissions trades
by delivering units from the accounts of sellers
to those of buyers, thus forming the backbone
infrastructure for the carbon market
16
17. Registry systems under Kyoto (3)
• Each registry will operate through a link
established with the International transaction
log put in place and administered by the
UNFCCC secretariat. The ITL verifies registry
transactions, in real time, to ensure they are
consistent with rules agreed under the Kyoto
Protocol. The ITL requires registries to
terminate transactions they propose that are
found to infringe upon the Kyoto rules
17
18. Registry systems under Kyoto (4)
• In verifying registry transactions, the ITL
provides an independent check that unit
holdings are being recorded accurately in
registries. After the Kyoto commitment period
is finished, the end status of the unit holdings
for each Annex B Party will be compared with
the Party’s emissions over the commitment
period in order to assess whether it has
complied with its emission target under the
Kyoto Protocol 18
20. Requirements for South for
participating in CDM
• The host country where the project is executed is a
Kyoto signatory.
• The project meets the sustainable development
criteria framed by the country.
• The projects results in real, measurable, long-term
GHG reduction.
• The projects must be Additional (i.e. must face some
financial, technical, common practice barriers. It
should be proved that the project must not have
been commissioned without the CDM)
20
21. Basic data needed for CDM!
• Evidence of CDM consideration
• Start & commissioning dates
• Financial analysis (IRR calculation)
• Electricity saving data
• Barrier analysis information
• EIA report, if required by law
• Contractual agreement between each individual sub-project and the
bundling agency
21
22. CDM Sectors
All types of Energy Efficiency Energy Distribution Construction
Renewable in Industry loss prevention
energy (demand &
supply)
Transport Mining & Mineral Fugitive emissions Fugitive
Production from fuels emissions from
production and
consumption of
halocarbons and
Sulphur
hexafluoride
Solvent use Waste Handling Afforestration and Agriculture
and disposal reforestation
22
23. Outline of the CDM project process (1)
• An industrialized country that wishes to get credits
from a CDM project must obtain the consent of the
developing country hosting the project that it will
contribute to sustainable development.
• Then, using methodologies approved by the CDM
Executive Board (EB), the applicant (the
industrialized country) must make the case that the
carbon project would not have happened anyway
(establishing additionality),
23
24. Outline of the CDM project process (2)
• Must establish a baseline estimating the future
emissions in absence of the registered
project.
• The case is then validated by a third party
agency, called a Designated Operational
Entity (DOE), to ensure the project results in
real, measurable, and long-term emission
reductions.
24
25. Outline of the CDM project process (3)
• The EB then decides whether or not to
register (approve) the project.
• If a project is registered and implemented, the
EB issues credits, called
Certified Emission Reductions to project
participants based on the monitored difference
between the baseline and the actual
emissions, verified by the DOE.
25
26. Steps is CDM
PIN / PCN & PDD Development Project Developers / Consultant
Host Country Approval GOI / MOEF i.e. DNA
DOE
Validation
Registration CDM EB
Implementation Project Developers
Monitoring Project Developer + DOE
Verification DOE
Certification CDM EB
Issuance of CERs CDM EB
26
27. CDM Project Activity Cycle (1)
• Project Activity Design:
The Project design document (CDM-PDD)
and the Guidelines for completing CDM-PDD
including a glossary of terms (Approval,
authorization, project participants etc.) have
been developed by the Executive Board on
the basis of Appendix B of the CDM
modalities and procedures. Project
participants shall submit information on their
proposed CDM project activity using the
Project design document (CDM-PDD). 27
28. CDM Project Activity Cycle (2)
• Proposal of a New Baseline and/ or
Monitoring Methodology: The new baseline
methodology shall be submitted by the
designated operational entity to the Executive
Board for review, prior to a validation and
submission for registration of this project
activity, with the draft project design document
(CDM-PDD), including a description of the
project and identification of the project
participants.
28
29. CDM Project Activity Cycle (3)
• Use of an Approved Methodology: The
approved methodology is a methodology
previously approved by the Executive Board
and made publicly available along with any
relevant guidance. In case of approved
methodologies the designated operational
entities may proceed with the validation of the
CDM project activity and submit project design
document (CDM-PDD) for registration.
29
30. CDM Project Activity Cycle (4)
• Validation of the CDM project activity:
Validation is the process of independent
evaluation of a project activity by a designated
operational entity against the requirements of
the CDM as set out in decision 17/CP.7, the
present annex and relevant decisions of the
COP/MOP, on the basis of the project design
document, as outlined in Appendix B.
30
31. CDM Project Activity Cycle (5)
• Registration of the CDM project activity:
Registration is the formal acceptance by the
Executive Board of a validated project as a
CDM project activity. Registration is the
prerequisite for the verification, certification
and issuance of CERs related to that project
activity
31
32. CDM Project Activity Cycle (6)
• Certification/ Verification of the CDM project
activity: Verification is the periodic independent
review and ex post determination by the designated
operational entity of the monitored reductions in
anthropogenic emissions by sources of greenhouse
gases that have occurred as a result of a registered
CDM project activity during the verification period.
Certification is the written assurance by the
designated operational entity that, during a specified
time period, a project activity achieved the reductions
in anthropogenic emissions by sources of
greenhouse gases as verified.
32
33. Possible CDM projects in Energy
Sector for example
• Renewable Energy (wind, solar, biomass, hydro, geothermal
etc.)
• Energy Efficiency
• Combined Cycle Gas Turbines (CCGT)
• Super Critical Technology for Power Generation
• Renovations & modernization of Power plants
• Reduction in T&D loss
• Fossil fuel switch - Coal to Gas, Oil to Gas
• Waste gas: heat, pressure, electricity
• SF6 abatement
• Biomethanation
• Coal Mine Methane (CMM)
33
34. Possible CDM projects in Oil & Gas
Sector for example
• Gas flaring reduction,
• Re-injection,
• Associated gas recovery,
• prevent pipeline leakage,
• Geological storage of GHGs
34
35. Possible CDM projects in Iron &
Steel Sector for example
• Cleaner and more efficient coke production
• Furnace efficiencies and upgrades
• Heat Recovery from Direct Reduction Kiln
• Energy Capture from Waste Gas
• Fuel switch to natural gas / biomass, for
various ovens and kilns
• Green Belt Development & Afforestration to
act as a sink for CO2
35
36. Possible CDM projects in Chemical
Industry
• Energy Efficiency
• Wastewater/ Methane Avoidance
• Biodiesel and Biofuels
• Biomass Energy
• Fossil fuel switch - Coal to Gas, Oil to Gas
• Gas pipeline leakage
• HFCs abatement
• Renewable Energy: Biomass, Geothermal, Hydro, Solar, and
Wind
• Waste gas: heat, pressure, electricity
• Process modification
• Forestry - Afforestation and Reforestation etc.
36
37. How is CDM relevant for Businesses?
Annex I party Emission
reduction project
Carbon Credits
The CDM project reduces
the carbon emissions
in the CDM country
Emission
Actual
cap
emissions
Carbon value (€)
Buyer
By selling the emission reductions from a project to a Annex I party
additional cash flows can be realised.
37
38. Impact on the IRR of The Project
16 %
CDM cash flow
The gap between 15 %
the project return
and the required
return on
investment 12 %
threshold
IRR Benchmark
Project Project
return return
excluding including
CDM revenue CDM revenue
The CDM cash flow increases the IRR of the project making it more interesting
for investors. (2%-100%, diversification, offshore revenue stream)
38
39. Project Example
Waste heat Power Generation Biomass Power Plant
50 MW combined cycle gas-steam 10 MW Rice Husk plant supply
turbine (CCGT) and grid export
12 MW condensing steam 70% load factor
generator (CSG) Displaces 70 GWh / a of fossil
85% load factor grid electricity
Displaces 500 GWh / a of fossil CER: 55,000 p a = Rs. 90
grid electricity million up to 2012
CERs: 400,000/p. a = Rs. 660
million up to 2012
39
40. Energy Efficiency Projects for
Example
• Doing the same with less
• Potential & Opportunities
– Cogeneration
– waste Heat/ gas Recovery
– Energy Management System
– Combustion Control
– Fuel Switching
– High efficient Refractory
– Industrial Process Modifications/Fuel Savings
40
41. Types of project
• Measures/technologies
– Diffuse/small scale energy efficiency:
• Energy efficient devices (bulbs, motor controller, appliances)
– Distribution
– Labelling/government programme
• Buildings’ energy efficiency (insulation, SSC renewable, etc)
– Large scale (industrial) energy efficiency (demand/supply
side)
• ‘Pure’ energy efficiency
• Waste heat/gas recovery
• Fuel switch
41
42. Methodologies
– Pure EE:
• AM0018 – Steam optimization
• AM0020 – Water pumping efficiency improvement
• AM0038 – Improved electrical efficiency in SiMnmetal production
• ACM0007 – Single cycle to combined cycle power generation
– Fuel switch:
• AM0017 – Natural gas cogeneration (BSL=gas-heat + grid-elec)
• AM0029 – Construction of new natural gas power plants
• AM0036 – Fuel switch Fossil fuel to biomass for heat generation
• ACM0003 – Fuel switch in cement plants
• ACM0009 – Fuel switch coal or petroleum to Natural gas
– Waste heat/gas recovery:
• AM0024 – Waste heat recovery in cement plants
• AM0032 – Cogen from waste gas/heat
• AM0037 – Flare reduction and gas utilisation at oil & gas facilities
• ACM0004 – Waste gas/heat for power generation
Applicability conditions! 42
43. Traditional project risks
Project does
not Project does not
meet regulatory operate reliably
commitments
Operational
risk
Community Regulatory Project does not pass
Technical
protests and risk completion tests
lead to permit political risks
denial or
revocation
Threats to
project
Social Completion
acceptability
risk
Market Financial Not enough
risk risk financing to
Project
complete project
boycotts
Bankers reluctant
to lend
Source: Miller and Lessard, 2000 43
44. Additional CDM project risks
• Institutional and regulatory risk
• Methodology risk
• Host country risk
• Validation risk
• Registration risk
• Monitoring and verification risks
44
45. Time frame and uncertainty
Step Propose Validatio LOA Annex 1 Registration Request for
methodology n appr review
oval
Consult. 3 weeks 30 days Variabl Not Up to 8 weeks LS Up to 2.5
e requ months
este
d
Time Up to 2 years 2-6 1 1-3 Up to 6 mo, if reviewed Up to 3 months
fram mont mo wee
e hs nth ks
–3
yea
rs
Rejectio ~50% Not Variabl Not Up to 70% request for ~33% formal
n know e kno review review
Leve n wn
l 45
46. Time frame and uncertainty
Formal Verificati Request for Formal
Step review on Issuance review review
Up to 1.5
Consult N/A N/A 15 days Month N/A
2-4
Up to 4 Mont Up to 5 Up to 4
Time Frame Months hs Weeks Up to 2 Months Months
Not Up to 75% Up to 66%
Rejection Know request for formal
Level 26% rejected n review review None Yet
46
48. The CER Price Structure
48
CER Price
15
Counterparty & Default Risk
Commissioning Risk
Late Delivery Risk
5
Underperformance Risk
Asset Transfer Risk
Baseline & CER Calculation risk
Registration Risks
Volatility risk
International Transaction Log & Cap risk
EURO
Hot Air & Supply Risk
UNFCCC Policy Risk, Political Risks
EU ETS market price
49. The Myth of the Carbon Credit
EUA ERU CER
European Union Emission Certified
Allowance Reduction Unit Emission
Reduction
Existence Allocated by Created by JI Created by CDM
Annex I projects projects
countries: Real
Commodity
Ownership AAA rated Medium and large Small, medium &
companies scale companies large sized
companies
Country- and No risk Medium risk High risk
project risk
Delivery risk No risk Medium risk High risk
49
Price high Medium Low
50. Key Price determinants for CDM
projects
• Risk allocation
• Creditworthiness & experience of project sponsor
• Viability of underlying project
• Contract structure (e.g. upfront payments incur
discount, penalties for non-delivery, ability to pay
penalties)
• ER vintage & seniority
• Cost of validation & potential certification
• Host country support & willingness to cooperate
• Additional environment and social benefits
50
51. Contract Types
1) Seller does its utmost to deliver a flexible/non-firm volume, buyer
guarantees to buy
- Few preconditions
2) Seller does its utmost to deliver a flexible/non-firm volume, buyer
guarantees to buy
- The contract is only valid on a set of preconditions
3) Seller guarantees to deliver a firm volume, buyer guarantees to buy
- The contract is only valid on a set of preconditions
4) Seller guarantees to deliver a firm volume, buyer guarantees to buy
- Non-delivery: seller pays mark-to-market/liquidated damages CERs
or cash
51
52. Cost of developing a CDM Project
• Apart from the project development, implementation cost. The
developer has to pay for
– The consultant fees
– Registration with the Designated National Authority (MOEF)
• Public hearing
– Validation fees (to Designated Operational entity)
– Registration fees at the UNFCCC
– Monitoring & Verification fees (to third party DOE)
– CERs Issuance fees
– Contribute to the UNFCCC adaptation fund
• Then bargain for the price of the CERs with the Buyers
• A picture of Market Failure!!
52
53. CDM Market in India is
• Consultant driven
• Buyers are there but few and offer low price
• Brokers promise good price but reliability record is
poor
• Size of the projects is very small though the quantity
is large… hampers bargaining capacity of the project
developer
• Most project developers hoard( do not sell) CERs in
expectation of higher price
• Most projects face problems in implementation.
53
54. Why CDM is a market failure? (1)
• Too sophisticated/complex a market
• Too expensive to enter
• The future beyond 2012 is yet uncertain
• Does not survive the Cost Benefit analysis
• Huge Markets like agriculture untouched
• Forestry projects are too complex
• The project developer doesn’t get a fair price
• The ultimate buyer doesn’t get a fair price
54
55. Why CDM is a market failure? (2)
• Profits go in the pocket of middlemen
• CDM popular only in developing countries not in
Lower developed countries
• Technology transfer which CDM promises already
exist with South in some cases
• Little initiative by government entities to take up
CDM projects
• Proving additionality is very difficult in most of the
cases
• Carbon exchanges have played limited role till yet
55
56. Critiques & Concerns (1)
• Some emission reductions under the CDM are
false or exaggerated
• In 2007 the CDM was accused of paying €4.6
billion for projects that would have cost only
€100 million if funded by development
agencies
• Where as the project developers feel they did
not get a fair price
56
57. Critiques & Concerns (2)
• The first commitment period of the Kyoto
Protocol excluded forest conservation/avoided
deforestation - carbon emissions from
deforestation represent 18-25% of all
emissions, and will account for more carbon
emissions in the next five years than all
emissions from all aircraft since the Wright
Brothers until at least 2025.
57
58. Market strategy one should adopt (1)
• Enter as early as possible….project conceptual
stage
• Educate oneself and staff thorough…before going to
consultant
• Invite a buyer as a project participant at an early
stage
• Appoint a consultant for CDM PDD writing and
handling UNFCCC matters…note your job is to
execute the project
• Option of in-house PDD development can also work
for you…delegate the job
58
59. Market strategy one should adopt (2)
• Sell some CERs in advance and hold some
portion for expectation of higher price…don’t
hold all the CERs
• Carbon market will stay in some way or the
other….the market will correct itself or be get
corrected
• Expect local carbon markets in the
future….say in next 7-12 years
59
60. Conclusion
• The market need a major makeup
• Simplify
• Active role from institutions to take up
programme of activities CDM
• Efficient, transparent, carbon exchanges
• More information and education
• Considering other than market approach to
mitigate climate change
60