TV SD Carbon Management Service

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TÜV SÜD Carbon Management Service

• Factors for success for the Gold Standard from
  a certification perspective
• Hamburg June 7, 2004
• Michael Rumberg
• TÜV Industrie Service GmbHTÜV SÜD Group

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Presentation overview

• 1. Introducing TÜV SÜD Carbon Management Service
• 2. First impression
• 3. Single items
• 4. Outlook

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• Introducing
• TÜV SÜD Carbon Management Service

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TÜV SÜD Carbon Management Service

• Background
• TÜV Holding AG
• gt 11.500 employees active world wide in the field
  of inspection and auditing
• Carbon Management Service
• Interdisciplinary team (economists, natural
  sciences, engineers) and a pool of experts
• Basic idea
• know-how in plant engineering and energy
  management,
• experiences in industry and
• competencies in strategy consulting and risk
  management
• ? offering to the market as a qualified
  certification organisation
• Services
• Validation, verification and certification of
  GHG projects (national/JI/CDM)
• Verification and certification of emission
  inventories (EU-Directive)
• Certification of energy from renewable sources
• Knowledge management (www.netinform.net)

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Project expertise gt 50 projects
Projekt types- Renewable energy - Energy
efficiency - Fuel switch- Landfill gas -
Afforestation
....and Germany
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• 2. First Impression

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First Impression

• The Gold Standard does reflect also the original
  intention to have a balance between the
  objectives of climate protection and sustainable
  development.
• At the same time, the standard defines
  sustainable development objectives, which have
  always been claimed to be defined by the host
  country.
• Certification organisation at an early stage
  started with very comprehensive project
  assessment procedures and criteria similar to the
  standard.
• The standard is supported by certification
  organisations.
• Demand for certification according to the
  standard is limited.

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• 3. Single Items

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Sustainable Development Indicators I

• Generally, SD is an item of major importance.
• Set of indicators covers major items but various
  further parameters could be included. In
  different projects different parameters will be
  of different importance.
• Stakeholder consultation is the key. Demanding
  requirements for the stakeholder consultation
  processes.
• Long time horizon to be considered in advance to
  the actual validation process.
• Open issue Stakeholder processes in bundled
  projects.

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Sustainable Development Indicators II

• It will difficult in many projects to obtain
  reliable data.
• Puts a lot of weight to the judgement of the
  auditor in all cases the parameter can only be
  decided based on expert opinions.
• Open issue Stakeholder opinion versus Expert
  opinion.
• Example Who is decisive if the perception of the
  local stakeholders is different from the expert
  opinion regarding the potential disturbance of
  the bird population by a new wind farm?
• Monitoring is more demanding and might increase
  the project implementation and verification
  costs.

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Additionality Concept

• The additionality criteria are mainly the same as
  the ones for non Gold Standard projects, which
  means the general approach will be the same.
• Additionality is already due to its concept a
  difficult issue for project developers. The
  introduction of different levels of additionality
  increases the problem of concept understanding.
• The examples listed in the GS-PDD put a lot of
  weight on specific documents, which might cause
  problems for project developers in small sized
  projects.

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Baseline setting
The appropriateness of the choice of the
local/regional expert is difficult to check for
the auditor. The option to choose any expert
causes the question whether such an approach
really improves the process. The general rules
for conservativeness does not differ from the
conventional approach in non Golden Standard
projects. The recommendation to the auditor to
consult with a local expert, is already today
common practice.
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Where is the demand?

• Why has the Golden Standard not been widely
  applied so far?
• How can a project developer make use of the
  standard in monetary terms?
• Does the validation of a GS project cost more?
• How does the GS affect the costs for verification
  audits?
• How can certification organisations promote the
  GS?

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• 4. Outlook

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Conclusion

• The concept is a valuable element for the CDM and
  JI idea.
• The standard might not be widespread, but will
  allow single projects to highlight their very
  specific characteristics.
• First broader experiences will make the question
  regarding increased generation costs more
  transparent.
• Additional parameters are no problem to be
  included in the assessment procedure.
• Certification organisation appriciate the
  comprehensive approach of the standard.

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TÜV Industrie Service GmbH TÜV SÜD Group Carbon
Management Service

Michael Rumberg Tel. [phone]
79 Michael.Rumberg_at_tuev-sued.de www.netinform.de