Standardized national/sectoral baselines

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Standardized national/sectoral baselines
Manfred Stockmayer Managing Director Camco
International
UNFCCC Technical Workshop on Joint
Implementation Bonn, 16 October 2007
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Agenda

• Concept of standardized baselines
• Applicability of standardized baselines
• Case study Bulgaria
• Current issues
• Thoughts for the future

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The Camco Group structure

• Assets
• Camco is a leading carbon asset developer with
  one of the worlds largest carbon credit
  portfolios. We generate carbon credits by
  partnering with companies to identify, develop
  and manage projects that reduce greenhouse gas
  emissions.Camco then arranges the sale and
  delivery of carbon credits to international
  compliance buyers and into the voluntary market.

• Consultancy
• The consulting practice combines specialist
  technical, strategic and financial expertise and
  experience accrued over two decades to deliver a
  sustainable low carbon society. We are uniquely
  positioned to work with clients, leveraging our
  collective experience to turn climate change
  liabilities into economic, social and
  environmental assets.

• Camco Ventures
• Camco Ventures provide the management
  infrastructure, financial structuring, business
  planning and technical support required to take
  each start up business from inception to
  commercialisation.

ESD offices UK, Bulgaria, China, Kenya, South
Africa, Tanzania
Camco offices Vienna, USA, UK, China, Russia,
South Africa
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Concept of standardized baselines

• What are standardized baselines?
• Baselines for multiple projects in one sector
• Why are they applied?
• Reduction of transaction costs
• Increased transparency
• Better predictability of emission reductions
• Faster preparation of PDDs
• Who benefits from standardized baselines?
• All stakeholders

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Potential sectors for standardized baseline
studies

• ? Grid-based electricity generation (renewables
  and fossil fuels)
• ? Industrial energy efficiency
• ? Transport
• ? Demand side energy efficiency
• ? Landfill gas (methane component)

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Why are they not applied more often?

• Who prepares standardized baseline, who pays?
• No methodologies in early JI
• No priority in countries
• Not applicable for certain sectors
• Russia late in the JI process
• Linking directive is limiting potential in target
  sectors

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Guidance from JISC

• Guidance on Criteria for Baseline Setting and
  Monitoring
• 18. A baseline shall be established on a
  project-specific basis and/or using a
  multi-project emission factor
• 19. A multi-project emission factor may be used
  and its application shall be justified.
  Sector-wide baselines may e.g. be used if
• (a) The physical characteristics of the sector
  justify the application of a standard emission
  factor across the sector and/or
• (b) The emissions intensity does not vary
  significantly across the sector.
• Source JISC, Guidance on Criteria for Baseline
  Setting and Monitoring

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The first standardized baseline studies...
Source ERUPT, May 2004
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Case Study Bulgaria

• Study by NEK on Carbon Emission Factors for
  electricity sector
• Based on CDM ACM0002, with BM/OM share of 5050
• Dispatch data analysis basis for calculations
• More realistic data than ERUPT figures
• Baseline approved by Bulgarian Ministry of
  Environment and Waters

2008 2009 2010 2011 2012
ERUPT 0.761 0.743 0.725 0.707 0.689
NEK 1.006 0.888 0.850 0.834 0.791
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Issues with standardized baseline studies

• Who initiates and pays for preparation?
• Who supports data collection for monitoring?
• No approval process for standardized approaches
• Can we rely on precedents?
• How easy to refer to precedents?

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Where could we use them?
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Some thoughts for the future...

• Support from DFPs for development of standardized
  baselines
• Cooperation between DFPs and AIEs on standardized
  baselines (pre-validation?)
• Guidance for project developers from AIEs on
  reference to standardized baselines
• No additional procedure necessary, BUT stick to
  JISC rules...

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Thank you for your attention
Manfred Stockmayer manfred.stockmayer_at_camcoglobal.
com www.camcoglobal.com