PowerPoint Presentation - United Nations Environment Programme _UNEP_

					UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003


                                                   LULUCF CDM small-scale projects

                                                  -Small-scale energy projects
                                                  -Current draft text in SBSTA/2003/L.13
                                                  -Simplified procedures for energy projects
                                                  -Potential savings from simplified
                                                  procedures
                                                  -How large is small-scale?

                                                                            Jens Mackensen
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003
                                                  Energy projects that are eligible for
                                                  simplified modalities and procedures include:
                                                  (i) Renewable energy projects activities with a
                                                  maximum output capacity equivalent of up to 15
                                                  megawatts (or an appropriate equivalent);

                                                  (ii) Energy efficiency improvement project activities
                                                  which reduce energy consumption, on the supply and/or
                                                  demand side, by up to the equivalent of 15
                                                  gigawatt/hours per year;

                                                     (iii) Other projects activities that both reduce
                                                  anthropogenic emissions by sources and directly emit
                                                  less than 15 kilotonnes of carbon dioxide equivalent
                                                  annually.
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003


                                                  Baseline establishment   (Paragraph 24d, FCCC/SBSTA/2003/L.13)


                                                  “[In the case of afforestation and reforestation
                                                  project activities under the CDM that [remove at
                                                  most 15 kilotonnes of CO2 equivalent per year] [or]
                                                  [are implemented in an area of less than [XX]
                                                  hectares,] in accordance with simplified procedures
                                                  developed for such activities;]”
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003




                                                  Monitoring   (Paragraph 31d, FCCC/SBSTA/2003/L.13)


                                                  “[In the case of afforestation and reforestation
                                                  project activities under the CDM that [remove at
                                                  most 15 kilotonnes of CO2 equivalent per year] [or]
                                                  [are implemented in an area of less than [XX]
                                                  hectares, follows simplified monitoring procedures
                                                  developed for such activities;]]”.
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003
                                                  Simplified modalities and procedures for energy
                                                  small-scale projects include the following:
                                                  •Project activities may be bundled, but total size of
                                                  bundle should not exceed limits stipulated in paragraph
                                                  6 (c ) of decision 17/CP.7;
                                                  •Requirements for Project Design Document are
                                                  reduced;
                                                  •Baselines methodologies are simplified;
                                                  •Monitoring plans are simplified;
                                                  •Same operational entity may undertake validation,
                                                  verification and certification;
                                                  •CDM Executive Board may propose lower share of
                                                  proceeds to cover administrative costs and registration
                                                  fees.
                                                  Search costs (fixed)
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003

                                                  Negotiation costs (degressive)
                                                  Baseline determination costs (fixed)
                                                  Approval costs (fixed)
                                                  Validation costs (fixed)
                                                  Review costs
                                                  Registration costs (fixed)
                                                  Monitoring costs (fixed)
                                                  Verification costs (degressive)
                                                  Review costs
                                                  Certification costs (degressive)
                                                  Enforcement costs (proportional)
                                                  Transfer costs
                                                  Registration costs

                                                  Adopted from Michaelowa & Stronzik, 2002
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003




                                                  For small-scale projects (2-20 Kilotonnes
                                                  CO2 equivalent per year) transactions
                                                  costs are estimated to reach up to 10
                                                  Euro per t CO2). Michaelowa & Stronzik
                                                  (2002) estimate that the minimum fixed
                                                  costs for any CDM project amounts to
                                                  150,000 Euro, of which costs for baseline
                                                  determination and monitoring represent
                                                  approximately 30%.
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003




                                                  Method          Median   % of         % of
                                                                           profitable   profitable
                                                  Locatelli &      value   projects     projects
                                                                    (ha)
                                                  Pedroni, 2003
                                                                           <500 ha      <1000 ha
                                                  Ton-            11,000       0%         2.8%
                                                  year

                                                  ACS              3,000     5.1%        17.7%


                                                  TCER1            2,300    13.7%        30.2%


                                                  TCER2            3,250     9.7%        23.1%
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003
                                                  Extreme Ton-year ACS            TCER1      TCER2
                                                  condition
                                                  Crediting
                                                  period only 10
                                                                 275,000 14,200     3,000     50,000
                                                  years
                                                  CER price of
                                                  only 3$/tCO2
                                                                 30,000   6,750     4,500      6,550

                                                  Highest
                                                  transaction
                                                                 18,550   5,650     3,700      5,000
                                                  costs
                                                  2% risk
                                                  discounting
                                                                 11,000   5,150     2,400      3,250
                                                  per year
                                                  CER price to
                                                  increase 3%
                                                                 11,000   3,000    14,550     30,000
                                                  per year
                                                  Without any
                                                  condition
                                                                 11,000   3,000     2,300      3,250


                                                                           (Locatelli and Pedroni, 2003)
UNEP-IUCN-FAO „CDM and Forestry“ Addis Oct 2003




                                                  Thank you


                                                       Jens Mackensen, PhD
                                                       UN Environment Programme
                                                       jens.mackensen@unep.org
                                                       ++254 20 62 42 51/32 83

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:13
posted:3/24/2012
language:Latin
pages:10