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Presentation On Carbon Credits and Kyoto Protocol: in Birla Institute of Management Technology On 16 October 2008
Presentation On Carbon Credits and Kyoto Protocol: in Birla Institute of Management Technology On 16 October 2008
KYOTO PROTOCOL
in
Birla Institute of Management Technology
on
16th October 2008
J K Dadoo
Secretary (Environment)-cum-Chairman (DPCC)
Govt. of NCT of Delhi
1
CLIMATE CHANGE
2
GLOBAL CLIMATE CHANGE
SCENARIO
3
CLEAN DEVELOPMENT
MECHANISM (CDM)
6 Sulphur 23900
hexafluoride 5
WHY CITIES MATTER ?
• In 1800, 2% of world’s population lived in cities.
Currently, it is 50% and heading towards 60% by
2030. Urban populations are expected to grow by
2 billion people within 30 years.
• Cities in developing countries are expected to
absorb 95 percent of this increase.
• Over, 1 billion people live in urban slums. In the
least developed nations, slums house 70% of the
urban population.
• Droughts and floods in rural areas have increased
migration to cities. By 2030, if nothing is done,
slum population will reach 2 billion. 6
KEELING CURVE
380
7
REDUCING EMISSIONS REQUIRES
ACTION ACROSS MANY SECTORS
ENERGY
Industry
Power 14%
EMISSIONS 24% Other Energy
related
5%
Waste
3%
Agriculture
Transport
14% 14%
Buildings
8% Landuse NON-ENERGY
18%
EMISSIONS
8
Total emissions in 2000 42 GtCO2e
CO2 TOTAL EMISSIONS 1990 - 2005
7000
6000 5817
5050
5000
4852
Mt of CO2
4000
1990
3000
2005
2358
1937
2000
1544
1214 1147
1048 968
1000 813 569
591 454
421 549 530 397 449
236
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UK
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Ko
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Ja
Ru
Ca
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9
CO2 EMISSIONS PER CAPITA BY
GROUPS
12 11.25
10
8
Mt of CO2
6 Series1
4.81
4.2
4
2 1.23
0
10
Anex-I AGA BGA World Average
AGGREGATED PICTURE
Per capita CO2 emissions of different groups of countries (2005)
Group CO2 Total Total CO2 Population Per Capita
emissions emissions
(Mt of CO2)
$Some NAC have higher total and higher or similar per capita emissions
9 to 14 months process
Prepare
CDM
Letter of
Process
Project Approval Verification
Design Issuance of
(LOA) by Validation Registration and
Document CERs
Host Certification
(PDD) Country
India’s Designated
National Authority
National CDM
14
Authority (NCDMA)
HOW?
Exchanges Auctions
•Largely used for EUAs •Few auctions held for CERs/VERs
•Not much activity in CERs •CERs are not a commoditized
product – many features cause
•VER exchange in place (CCX)
differences in price
but commands lower prices
than OTC market •Seller’s credit, project type etc
Direct Sale Intermediaries
•Avoid Commission •Market professionals matching
•No Guarantee of market price buyers and sellers
(narrow lens on buyer market) •Develop optimal transaction
•Must deal with market risk and structures
complexity •Incentive structure to deliver the
highest price to the seller 15
WHEN ?
Project Development Process
Pre-PDD Why Sell Early?
•Certainty of revenue
PDD –May be necessary for project finance.
•Certainty of price.
Validation
Registered Why Sell Later?
•Delivery risk decreases.
Issued •Therefore price of credit increases.
Guaranteed
16
STATUS OF THE CDM MEASURING SUCCESS
An explosion of activities
3500
3000
3000 2900
2600
2500
2000
Registered Project Activities
1500 Project in the Pipe line
1183
1000 937
1000 826
750
685
471
500
183
114
1 39
0
May-- Dec-- May-- May-- Oct-- Feb-- Oct-- 17
05 05 06 07 07 08 08
GENERAL OVERVIEW OF THE CDM
To date : In Pipeline :
1183 registered CDM (639 LS + 544 SSC) projects 3000 projects
1.33 billion CERs expected to the end of 2012 2.7 billion CERs expected
to 2012
18
PROJECT PIPELINE – GLOBAL
Region Number of
projects
NAI-Africa 27
NAI-Asia and 773
the Pacific
NAI-Other 8
NAI-Latin 375
America
and the
Caribbean
20
STATUS OF THE CDM | ISSUANCE
India 31,122,524
China 120,105,788
Republic of 14,599,555
Korea
Brazil 19,433,547
21
STATUS OF THE CDM METHODOLOGIES
Scope No . of
Methodolo
gies
Energy industries 39
(renewable - / non-
renewable sources) (1)
Manufacturing 23
industries (4)
Afforestation and
15
reforestation (14)
Chemical industries (5) 14
Waste handling and 12 22
disposal (13)
HOST COUNTRY APPROVED
PROJECTS IN INDIA
AP 100 Maharashtra 142
Chattisgarh 63 MP 28
Gujarat 98 Orissa 51
HP 39 Punjab 54
Rajasthan 58 TN 120
Jharkhand 15 UP 93
Karnataka 113 Utarranchal 20
WB 47 Goa/Pondicherry -
23
23
POTENTIAL IN RENEWABLES
80000
70000 71703
68691
Investment in Rs. Crores
60000
50000
40000
36451
30000
20000
15933
10000
0 358 1794
2003 2004 2005 2006 2007 2008 25
Year
Historical CER Prices over the Last 4 years
Structure Euro/CER Price
Fixed Forward 4 5-7 7-10 8-11 Price firm irrespective of the market
until 2012 fluctuations.
(without Current Fixed Forward Price
recourse to the a) €8 for the project planning
company stage.
b) €10 for registered projects.
c) €12 for Registered projects and
in operation
Spot NA NA 10-24 12-17 Price dependent on the EUA Price
Current spot price : €15-17
1) Energy Conservation
2) Use of CFL and Electric Chokes
3) Solar Water Heating Systems
4) Efficient Street-lighting
5) Efficient use of water pumps.
6) Energy efficient buildings
7) Promotion of LEDs
8) Solar Air-conditioning, etc.
35
9) Afforestation 35
Department of Env. & Forest and
Wildlife.
• PDD ready for small-scale afforestation and
reforestation projects activities in Dera Mandi
and Bhatti Mines
• Another PDD is under development for Asola
Wild Life Sanctuary.
• Project proposals under consideration in the
area of Energy efficiency:
- CFL replacement (3 million households) expected
volume of CERs will be approx 12 million per annum
- solar water heating systems (5 lakh households)
expected volume of CERs will be approx 0.65 million
per annum.
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36
PWD
• PWD proposes to adopt following initiatives in all its
projects:
i. Sustainable site planning and adoption of Green
Building concept.
ii. Optimum Energy efficiency
iii. Use of renewable forms of Energy
iv. Water and waste Management Strategies
v. Use of fly ash bricks.
• Projects proposed based on the above practices are:
a) 500 bedded new ward Block of GTB Hospital
b) 500 bedded Dwaraka Hospital
c) Thyagaraja Sports Complex.
d) Delhi Institute of Pharmaceutical Sciences
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DIAL
Has CDM potential in the following areas:
• Green Buildings
• Energy efficiency in lighting, heating operations
• Energy efficiency in water and wastewater
treatment by setting up STP, and reuse of water
for air-conditioning and horticultural purposes.
• M/S PWC has been appointed as consultant for
CDM in September,2008
• For adopting Green Building certification, M/S L
&T has been appointed as consultant.
38
NDMC
NDMC has potential for CDM projects in the
following activities:
Development, Construction, Operation and
maintenance of an integrated Municipal
waste Processing at Okhla
Integrated multilevel parking facilities-
Sarojini Nagar, B.K.S Marg & K.G Marg
proposed under PPP mode
Up gradation of Street Lighting
General energy conservation measures for
reduction of demand for energy by 1500
KW by 2009.
39
MCD
MCD is in process of developing a methane extraction
project under CDM, with World Bank, for the existing
three land filed sites.
MCD is also working with M/S ILFS in other waste to
energy and compost projects and it is envisaged that
carbon credits @0.2 per Mt. Ton of garbage shall be
earned.
Civic Centre built up in an area of 1.16 Lac Sq. Mts., is
designed on the Green Building Concept and is likely
to be registered under TERI’s GRIHA rating scheme.
LED based Street lighting as well as automation
control & dimmer based system for getting energy
savings and earning Carbon Credits.
Mechanized/Automated Car Parking: The work at
Kamala Nagar (Capacity – 863 ECUs) is in full swing.
40
DJB
Energy Efficiency Improvement Programme in
water supply, wastewater treatment and methane
recovery.
Rithala STP alone is estimated to provide CER’s
worth of 7.88 Cr annually.
STPs at Kondli and Yamuna Vihar are good
contenders for getting carbon credits.
• M/s FICCI, has been appointed as Due Diligence
consultant for evaluating the CDM potential of DJB
• For methane recovery Project from Kondli & Yamuna
Vihar, RFP will be issued shortly
41
DMRC
43
DTC
CDM potential exists in the:
Introduction of low floor buses, which are fuel
efficient and carry more passengers per trip
491 Non AC & 25 AC Low Floor CNG Buses have
been procured. 134 non AC LF buses are likely to
be inducted by Oct.2008. Order for purchasing of
additional 2500 low floor buses is in progress.
EOIs has been invited and received from
following firms-M/s Ernst and Young Pvt. Ltd,
Asian carbon and ICF international for appointing
a CDM consultant.
New Pan Delhi Mega Carpool Scheme has been
proposed, estimated potential of 8 lakh CERs
(initially for 4 lakh car members).
Likely to appointment a consultant shortly 44
Tapping Delhi’s CDM Potential
• It has been estimated that several plan schemes
have the potential of generated carbon credits, if
adequate capacity is built in each department for
recognizing such projects and preparing the
necessary documentation for the same.
• All departments are being requested to attend
the workshops regularly conducted by the
Department of Environment to expose few Nodal
Officers for this purpose.
• If the numbers are large, training programmes
could also be organized with the help of expert
Faculty at the Directorate of Training. 45
45
• Some Departments have requested for creating
a base line Consultant in the Department of
Environment, who can advise all the
Departments. We are initiating this process
soon.
• CDM is a bonus, which must be understood and
acted upon accordingly. It can provide ARM and
make certain unviable projects viable. In this
sprit, if the the departments approach this issue,
a large inflow of additional funds is possible.
• With the help of Finance Department, a circular
is being issued to all HODs to keep CDM
perspective in mind, in all infrastructure based
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projects.
• On the lines of the Customs Department,
Environment Department may move a
Cabinet proposal for providing 1% of the
revenue earned by the carbon credits to
the concerned Department, who
formulates the project and generates this
additional revenue.
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