Methodological approaches regarding baseline setting and monitoring

1
Methodological approaches regarding baseline
setting and monitoring

• UNFCCC Technical Workshop on JI
• Bonn, 15-16 November 2007
• Lennard de Klerk
• Global Carbon BV

2
Global Carbon B.V.

• Global Carbon B.V. is an international consultant
  with an exclusive focus on JI projects
• Areas of operation are Bulgaria, Ukraine, and the
  Russian Federation.
• Enthusiastic team based in The Hague, Budapest,
  Sofia, Kyiv, Donetsk and Moscow.
• Expanding company with currently 17 experts
  active in all different JI project types.

3
Experience

• Experience in final determination
• Ever first JI project JI 0001 Switch from
  wet-to-dry process at Podilsky Cement
• Experience in monitoring and verification
• First Ukrainian monitoring and verification
  completed for 2004 2006 of project Utilization
  of CMM at the Coal Mine named after A.F.
  Zasyadko
• Pre-monitoring completed for Podilsky Cement
  project
• Global Carbon working on transferring the first
  ERUs and AAUs.

4
JI guidance on baseline setting

• Guidance on criteria for baseline setting and
  monitoring offer different options for baseline
  settings. In applying the guidance for baseline
  setting (section B) the most practical approach
  is
• Use an existing CDM methodologies, or
• Use elements of existing CDM methodologies, or
• Use approach of registered JI project, or
• If no CDM methodology is available, use the
  underlying principles of CDM methodologies
• This requires a clear understanding of the PDD
  consultant and the AIE of the underlying
  principles of CDM methodologies.

5
Most common projects in JI world

• In JI countries like Ukraine and Russia the focus
  is about modernization of the existing
  infrastructure. Hence energy efficiency projects
  are (or should) provide the majority of the
  projects.
• For energy efficiency projects not many
  methodologies are available. However if the
  baseline scenario is the continuation of the
  existing situation, take the three-year average
  of the specific energy consumption prior to
  project implementation. Such approach is
  applicable for most energy efficiency measures
  (like Podilsky Cement project).
• Other projects in JI countries
• CMM, LFG CDM methodologies exist
• Cement CDM methodologies exist
• Podilsky Cement approach can be used

6
Specific baseline issues JI

• Energy efficiency in steel industry is large
  potential, but there is not much experience in
  CDM. The energy flows within the steel process
  are very much interlinked. Therefore special
  attention should be given to drawing the correct
  project boundaries.
• Energy efficiency projects that increase
  production capacity at the same time. Question on
  how to deal with the baseline emissions for the
  incremental capacity?
• How to deal with biofuels double-counting issue
  and exported biofuels? -gt follow the discussion
  as under CDM.

7
JI guidance on monitoring (section C)

• Article 37 The project participants are
  encouraged to improve the monitoring process and
  its results. Revisions, if any, to the monitoring
  plan to improve its accuracy and/or completeness
  of information shall be justified by project
  participants and shall be submitted for the
  determination referred to in paragraph 37 of the
  JI guidelines by the AIE.
• A pre-monitoring visit is vital to ensure a
  correct monitoring of baseline and project
  monitoring. Main focus is on correct data
  management and storage.

8
Deviations from PDD

• The practice is that some projects are built
  differently than originally designed in PDD.
• Example cogeneration project Instead of
  originally two cogeneration plants of 2 x 20 MWel
  40 MWel, the project participant implemented a
  3 x 15 MW 45 MWel plant.
• If such a change does not materially changes the
  basis on which the baseline was determined by the
  AIE, the AIE should have the possibility to
  assess whether such a change does not change the
  assumptions on which the project was determined
  (a non-material change).

9
Contacts

• Global Carbon BV
• Lennard de Klerk
• Tel. [phone]
• deklerk_at_global-carbon.com
• Offices in The Hague, Sofia, Kyiv, Donetsk and
  Moscow
• For more information see www.global-carbon.com