Efforts, Strategies

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Efforts, Strategies CDM Earning Through Energy
Efficiency
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What is Climate Change ?

• Until the industrial revolution, concentration of
  Green House Gases (GHGs) had remained relatively
  stable but with expansion of economic activity
  of Annex1 countries and unsustainable use of
  fossil fuels, emission of GHGs has been
  increasing at an alarming level.
• This causes Enhanced Greenhouse Effect, resulting
  in increase in temperature, leading to Global
  warming which precipitates as Climate Change any
  where in the world .

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Likely Impacts of Climate Change
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Addressing Climate Change

• The possible options
• Mitigation
• Adaptation

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The UN Framework Convention on Climate Change,
1992

• The UNFCCC set forth certain principles for
  addressing climate change by a global effort, in
  particular, that of common but differentiated
  responsibilities of countries that development
  is the foremost concern of developing countries,
  etc.
• It also gave a soft target for industrialized
  countries (Annex I Parties) to return to 1990
  levels of GHG emissions by 2000.

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Kyoto Protocol 1997

• Legally binding Protocol setting out targets for
  GHG reductions by individual Annex I countries
  during first commitment period, 2008-2012,
  totaling 5.2 below their aggregate 1990
  emissions
• Actual percentages vary, e.g. US -7, Japan -6,
  Iceland 10, Australia 8 increase, France -8
• Protocol to come into force on 55 countries
  representing 55 of Annex I emissions ratifying
  Protocol
• USA and Australia major countries outside the
  Kyoto Protocol

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The Efforts and Strategies
This world, countries and their economies have
three options to manage climate change

• Increased efforts and investments in Mitigation
  of the generation and/or emission of Greenhouse
  Gases, i.e. mostly Carbon Dioxide (CO2 ) and
  Methane (CH4 ).
• Increased efforts and investments in CDM Projects
  i.e. Mitigation projects that would earn
  additional income for investors through sale of
  CERs.
• Accepting that Mitigation alone will not prevent
  or stabilize climate change and Adaptation
  measures will be necessary.

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CDM PROCESS
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Global Status CDM Today

• Registered projects 621
• Expecting 592 million CERs by 2012
• Host countries 34
• Buyer countries 13
• Issued CERs for 226 Projects 41,131,681
• CER price 5-6 Euro for medium-risk forwards,
  8-10 Euro for low-risk forwards, 11 Euro for
  registered projects , 12-13 Euro for issued CERs

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Host Country Approved Projects, as on March-2007
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GTZ -CDM India

• To institutionalize CDM through Capacity Building
  and support to public and private sector
  institutions for preparation and implementation
  of internationally acceptable CDM projects
• To foster high quality CDM Projects that will
  complete the project cycle
• To help reduce transaction costs in the early
  market development process
• Provide Experience through supporting learning
  by doing for widely replicable projects
• Priorities on energy efficiency and renewable
  energy projects
• To provide Cooperation to Designated National
  Authority, Ministry of Environment and Forests,
  Government of India.

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CDM Capacity Building in India and Role of GTZ
CDM-India

• The Indian DNA is proud to have been titled the
  most active DNA amongst all host countries
  (Source Point carbon). It has been working in
  close association with multilateral and bilateral
  agencies for capacity building.
• It has established a technical cell in the
  National CDM Authority for cooperating with
  Government of India for capacity building on CDM
  project development in various sectors.
• GTZ CDM-India has emerged in last three years as
  one of the main CDM Knowledge Management Centre
  in India. It is a neutral entity working to
  develop the Carbon Market in India. It has a
  dedicated team of national and international
  experts which provide technical support.

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GTZ CDM-India Achievements So Far

• Successfully completed four CDM Capacity building
  missions, 21 workshops in seven industrial
  sectors (Power, Cement, Iron and Steel, Pulp and
  Paper Industries, Petrochemicals, Renewable
  Energy), creating awareness amongst more than
  2000 potential project developers.
• Developed 10 PDDs and trained more than 80 PDD
  consultants since beginning 2004.
• Supported 30 TPD biodiesel project in Andhra
  Pradesh, where German companies provide
  technology transfer and foreign direct
  investment. The company has recently issued
  public shares worth 3 million Euros.
• Developed and maintaining the website of Indian
  National CDM Authority http//cdm.nic.in

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AchievementsCont

• Cooperation is provided to the Indian DNA for
  facilitating HC Approval to eligible CDM projects
  and capacity building of Indian CDM Project
  developers.
• The final Baseline CO2 emission data along with
  the updated user manual is available on CEA
  Website www.cea.nic.in. The baseline information
  is dynamic in nature and data would be updated
  every year or at appropriate time interval as
  needed.

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GTZ Supported Energy Efficiency Projects in India

• Gubbi Energy Efficiency Project, Karnataka by
  Deloitte Touché and Tohmatsu India Pvt. Ltd,
  Bangalore.
• Replacement of coke through coal tar and coal
  dust in Blast furnace at Bhilai Steel Plant,
  Chattisgarh by Infrastructure Development Finance
  Company Ltd. (IDFC), Chennai
• Energy Efficiency In Lotus Suits At The Orchids
  Hotel Project Of Kamats Hotel, Mumbai,
  Maharashtra by Development Alternatives, New
  Delhi.
• Energy Efficiency Fuel Switching in boiler at
  M/s Cadbury India Ltd, Thane, Maharashtra by
  SEE-Tech Solutions Pvt. Ltd., Nagpur, Maharashtra
  
• RM of 4 coal based power generating units of
  Indraprastha Power Station, New by Delhi Mecon
  Ltd., Ranchi, Jharkhand.

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Potential EE CDM Projects

• Preparation and Approval of CFL Methodology by
  EB
• Preparing and testing Methodology for Energy
  Efficient refrigerators
• Identification development of Energy Efficiency
  projects for SME Clusters with SIDBI BEE
• Potential EE projects will be from Iron Steel,
  Cement, Pulp Paper and Glass Foundries.

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Post Kyoto Position

• In COP 13 ,signatory countries are meeting to
  discuss post Kyoto positions. This is a good
  signal that the process is going to continue.
• Presently Legally binding EU-Emission Trading
  System already in place.
• UK which currently holds the rotating presidency
  of the Security Council proposes to discuss
  Energy, Security and Climate an open debate
  exploring the relationship between energy,
  security and climate.
• USA has no objection on discussing CC at the
  Security Council
• USA GHG emission will rise to 37 above 1990
  levels by 2020. (ref draft version of US 4th
  NATCOM to UNFCCC).
• The state of California legislates laws for GHG
  reduction and 6 other States to follow the
  path.

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Post Kyoto 2012 Positions

• Environment Ministers meeting of G8, Brazil,
  China, India, Mexico and South Africa met on
  15-17th March 2007 in Potsdam to discuss
  strategic issues of Climate protection energy
  policy.
• Post 2012 commitments are discussed in Europe
  along the following lines
• If EU goes alone - 20
• If US Japan join with EU - 30 reduction
• If all of Europe takes up -30 then Germany
  would consider -40
• If EU is going for strong commitments then it
  expects Developing Country's to reduce the
  growth rate of emissions by 2020 as well.

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Other German TC/FC Climate Change Initiatives

• ASEM, Indo German Environment Programme with
  focus on urban and industrial management
  (Mitigation in industry and urban sector 2003
  -2012)
• Proklima, Phase out of Cloro-Fluor-Carbons (CFCs)
  and Carbon-Tetra-Cloride (CTCs) (Mitigation 2004
  -2008)
• Adaptation under National Resource Management,
  NRM, Programme in cooperation with MoEF,
  (2007-2012)
• Renewable Energy and Energy Efficiency Financing
  and Brokerage of CERS of CDM projects by KfW
• EU/WB/DFID/GTZ Climate Change Adaptation
  Discussions
• MoP/GTZ/ADEME Cooperation on Energy Efficiency
• GTZ Climate Change Unit, CCU, to bundle all
  measures in mitigation, urban and rural
  adaptation and special instrument CDM/Carbon
  Trading (2007- )

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Way Forward

• Identifying new potential industrial sectors that
  need CDM capacity building and have a relevant
  CDM project potential
• Development of dissemination tools to raise CDM
  awareness of Indian Project developers.
• Development of a standard Emission Reduction
  Sellers Agreement which will be made available to
  all project proponents on the Website.
• Support the development of up to 5 large CDM
  projects with emphasis on energy efficiency in
  the power sector.
• Promotion of Indian CDM projects in international
  meetings, fairs and climate negotiations.

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• THANK YOU
• Ms. Pamposh Bhat, Director,
• Climate Change, B 5/1 (GF), Safdarjung Enclave,
• New Delhi - 110029
• Tel [phone] / 7618,
• Fax [phone]
• Web www.cdmindia.com