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Latest CDM developments


									       “The Latest CDM developments"
        Jørgen Fenhann, UNEP Risø Centre
Third regional South American CD4CDM workshop,
       19-20 August 2004 Santa Cruz, Bolivia
Content of the presentation:
• 64 CDM baseline/monitoring methodologies
  proposed, 12 approved, 2 ”consolidated”, scopes
• New PDD ready
• 24 applicant DOEs, 4 designated, 3 indicative letters
• 31 CDM projects under DOE validation. Which
  sectors are prevailing?
• Quality of PDDs according to a DOE
• A new eligible small-scale CDM category
• Other issues
                      The first 64 proposed new
                    methodologies sent to the EB (1)
Meth. No.                                   Type                  1.Mark       2.Mark   GHG reduction/yr          Country                  Investor
         1   Bagasse power                                      B           A-AMc1            143 ktCO2    Brazil               Unilateral
      2+29   Fuel switch from coke to charcoal in steel works   C           On hold      ca. 1000 ktCO2    Brazil               IFC-Netherlands & Japan
         3   CO2 from NH3 production used in methanol prod.     C                             229 ktCO2    Trinidada & Tobago   Germany
         4   Landfill gas flaring                               AM2         AM2-AMc2      ca. 800 ktCO2    Brazil               Unilateral
         5   Landfill gas electricity                           B           AM3-AMc2      ca. 300 ktCO2    Brazil               WB NCDF
         6   Hydro Power                                        C                             144 ktCO2    Guatamala            PCF
         7   Burning HFC23 from HCFC22 production               AM1                          1400 ktCO2    South Korea          Japan
         8   Hydro Power                                        C                             100 ktCO2    Costa Rica           CERUPT
9+14+15+19   Rice husk power plant (el + steam + cement)        C           AM4               400 ktCO2    Thailand             Unilateral
        10   Landfill gas electricity                           B           AM10-AMc2         400 ktCO2    South Africa         PCF
        11   Bagasse Power                                      C                             100 ktCO2    India                Unilateral
        12   Wind farm                                          B           AMc1               53 ktCO2    Jamaica              CERUPT
        13   0,65 MW biogas power from palm oil waste water     C                              27 ktCO2    Malaysia             Japan
        16   Fuel switch from coal to natural gas               A           AM8                18 ktCO2    Chile                Japan (J-Power)
        17   Efficiency improvement of steam use at refinery    B           METH-12           100 ktCO2    China                Unilateral
        18   New cogeneration plant using natural gas           B           METH-A            115 ktCO2    Chile                Japan (J-Power)
        20   Hydro Power                                        AMc1?                          70 ktCO2    Colombia             Japan (J-Power)
        21   Landfill gas power for on site usage               A           AM11-AMc2          70 ktCO2    Brazil               CERUPT
        22   Biogas power from swine manure                     A           AM6                90 ktCO2    Chile                Canada
        23   Hydro power                                        A           AM5-AMc1           70 ktCO2    Mexico               PCF
        24   Wind farm                                          B           AMc1               45 ktCO2    Colombia             PCF
        25   Biomass residues power plant                       C                              85 ktCO2    India                Swedish Energy Agency
        26   Recovering associated gas in stead of flaring      A           AM9               670 ktCO2    Vietnam              Japan
        27   Bagasse power expansion                            Withdrawn                      23 ktCO2    Brazil               CERUPT
        28   Switch from coal/lignite to agro-biomass power     A           AM7               600 ktCO2    India                PCF
        30   Bagasse power and steam                            B           AMc1               95 ktCO2    India                Unilateral
        31   10 MW power from waste heat in iron kiln           METH-Bp                        37 ktCO2    India                Unilateral
        32   5.6 MW power from municipal waste                  A           AM12              100 ktCO2    India                PCF
        33   Energy efficient expansion of cement factory       B                              80 ktCO2    Costa Rica           CERUPT
        34   CH4 & N2O reductions from manure management        B           METH-12            20 ktCO2    Brazil               Canada
        35   Capacity augmentation component of NM28            Withdrawn                     600 ktCO2    India                PCF
              The first 64 proposed new
            methodologies sent to the EB (2)
Round Meth. No.                                   Type                                1.Mark   2.Mark          GHG reduction/yr          Country                Investor
  5             36 120 MW wind farm in Zafarana                                     AMc1                            227 ktCO2     Egypt              Japan (JBIC)
  5             37 Energy efficiency in ammonia fertilizer plant                    METH-B                           23 ktCO2     India              Italy
  5             38 1,4 MW biogas power from sewage water                            METH-Bp                          73 ktCO2     Moldavia           Denmark (EPA)
  5             39 1,5 MW biogas power from palm oil effluent                       METH-A                           55 ktCO2     Malaysia           Japan
  5             41 Biogas for drying & power at starch factory                      METH-Bp                         372 ktCO2     Thailand           Not yet identified
  5             42 Water pumping efficiency improvement                             METH-Bp                          36 ktCO2     India              WB Carbon Finance
  5             43 A 86 MW hydro added & 2 units upgraded                           AMc1                             39 ktCO2     Panama             Unilateral
  5             44 Water pumping power factor improvement                           Review   METH-C                  36 ktCO2     India              WB Carbon Finance
  5             45 Fly ash utilization in cement production                         METH-B                          250 ktCO2     India              Unilateral
  6             46 Reconstruction of a district heating network                     METH-C                           50 ktCO2     Uzbekistan         PCF
  6             47 Reducing clinker component in cement                             METH-Bp                         100 ktCO2     Indonesia          PCF
  6             48 Fuel switch from coal to biomass & waste                         METH-Bp                         100 ktCO2     Indonesia          PCF
  6             49 Recovery of BOF waste gas at steel plant                         METH-C                           88 ktCO2     India              Unilateral
  6             50 34 MW bagasse power plant                                        AMc1?                           100 ktCO2     Thailand           Denmark
  6             51 30 MW hydro power in a hydro dominated grid                      AMc1?                            94 ktCO2     Brazil             Unilateral
  6             52 Expansion of the bus system in Bogoto                            METH-C                          250 ktCO2     Colombia           the Netherlands
  6             53 55 MW geothermal power at Lihir gold mine                        AMc1?                           300 ktCO2     Papua New Guinea   ?
  6             54 15 MW run-of-river hydro power                                   AMc1?                            68 ktCO2     Ecuador            CF
  6             55 110 MW geothermal power in west Java                             METH-C AMc1                     780 ktCO2     Indonesia          Unilateral
  6             56 Biogas from alcohol wastewater                                   METH-C                          100 ktCO2     Nicaragua          the Netherlands
  7             40 Fuel switch from coal to palm oil shells at cement plant         METH-13                         145 ktCO2     Malaysia           UK
  7             57 PFC reduction by continous feeding of Aluminium plant            METH-13                         286 ktCO2     India              Unilateral
  7             58 Power plant waste heat in new district heating system            METH-13                          90 ktCO2     China              Denmark (DANIDA)
  7          59+64 CO collection el-gen & el-motor savings at steel plant           METH-13                          47 ktCO2     Brazil             Unilateral
  7             60 Upgrade & expansion of biomass plant from 24MW to 53MW           METH-13                          80 ktCO2     Thailand           Unilateral
  7             61 Thermal destruction of N2O from adipic acid production           METH-13                       10500 ktCO2     South Korea        France (Rhodia)
  7             62 120 MW nat.gas. combined cycle replaces average fuel             METH-13                         232 ktCO2     India              Unilateral
  7             63 Avoiding landfilling by composting municipal waste in Dhaka      METH-13                          40 ktCO2     Bangladesh         the Netherlands

A: Means approved by the Executive Board
B: Means that the project participants must make some changes
C: Means that a new Project Design Document must be submitted
METH-A: Recommended to be approved my METH Panel
METH-Bp: Preliminary recommendations sent to the project developers by the METH Panel.
METH-B: Final recommendation to be a B-case by the METH Panel
METH-C: Recommended to be a C-case by the METH Panel
AMc1: Consolidated methodology for gridconnected electricity from renewables ([hydro], wind geothermal, solar, tidal, wave
AMc2: Consolidated landfill methodology
Sectoral scopes & approved
    The new PDD was ready
          1 July 2004
Main changes compared to version 1:
• The annexes used for new baseline/monitoring
  methodologies have disappeared. They now exist in
  separate forms.
• All guidance text has disappeared. Are now available
  as General guidance and as Specific guidance for the
  PDD and for new methodologies.
• The PDD is not applicable for A/R projects. The A/R
  Working Group has proposed a A/R PDD.
• The new PDD must be used after 1 August 2004.
  Must reach EB before end of 2004.
• The small-scale PDD has not been updated.
          Accreditation of Designated Operational
                      Entities (DOEs)
No.   Name                                                                              Country              Status                 Scopes
  1   Japan Quality Assurance (JQA)                                                     Japan       Prov. Designated      4,5,6,7,10,11,12
  2   Japan Audit and Certification Organisation for Env. And Quality (JACO)            Japan
  3   Det Norske Veritas Certification Ltd (DNV Cert.)                                  UK          Prov. Designated      1,2,3,4,5,6,7,10,11,12,13
  4   ChuoAoyama PwC Sustainability Research Institute Corporation (CHUO)               Japan
  5   TÜV Süddeutschland Bau und Betrieb GmbH (TÜV-SÜD)                                 Germany     Prov. Designated      1,2,3
  6   Tohmatsu Evaluation and Certiification Organization (TECO)                        Japan       Indicative letter
  7   Japan Consulting Institute (JCI)                                                  Japan
  8   Asahi & Co                                                                        Japan
  9   BVQI Holdings S.V. Ltd.                                                           UK          Indicative letter
 10   Société Générale de Surveillance (SGS UK Ltd.)                                    UK          Prov. Designated      4,5,6,7,10,11,12
 11   Korea Energy Management Corporation (KEMCO)                                       S. Korea
 12   PricewaterhouseCoopers Certification B.V.(PwC)                                    Netherlands Withdrew application
 13   TÜV Rheinland Angelagentechnik GmbH                                               Germany     Indicative letter
 14   KPMG Certification B.V.                                                           Netherlands
 15   URS Verification Ltd.                                                             UK
 16   ERM Certification and Verification Service Ltd. (ERM CVS)                         UK
 17   Clouston Environmental Sdn.Bhd.                                                   Malaysia
 18   British Standard Institution (BSI)                                                UK
 19   Nexant inc.                                                                       US
 20   Conestoga Rovers & Associates Limited. (CRA)                                      US
 21   Spanish Association for Standardisation and Certification (AENOR)                 Spain
 22   Rheinisch-Westfälischer TÜV (RWTÜV)                                               Germany
 23   Lloyd's Register Quality Assurance Ltd. (LRQA)                                    UK
 24   Colombian Institute for Technical Standards and Certification (ICONTEC)           Colombia
 25   Korean Foundation for Quality (KFQ)                                               S. Korea
      Indicative lettter: After the Desk Review and the On-site assessment is completed successfull, the CDM Assessment Panel recommend
      that the EB accredit the Applicant Entity (AE) once the CDM-AP has witnessed a CDM validation done by the AE. If this witnessing
      activity is successfull, the EB can consider to register the validated CDM project.
                                CDM projects under
                                validation by DOEs
                                      Type                                            Type              Validator     Country         Investor     GHG reduction/yr yrs.
GHG emission reduction by thermal oxidation of HFC23                                   AM1             SGS          India       Unilateral             3380 ktCO2      7
HFC decomposition project in Ulsan                                                     AM1             JQA          S. Korea    Japan                  1400 ktCO2      7
Salvador Da Bahia landfill gas management project                                 AM2 (=NM4)           DNV          Brazil      Unilateral               800 ktCO2     7
Hidroélectrica Candelaria (4.3 MW hydro)                                         Small scale, I.D      DNV          Guatamala   Japan (J-Power)            24 ktCO2    7
Wind electricity generation in Tamil Nadu (15 MW)                                Small scale, I.D      TÜV-SÜD      India       CERUPT                     38 ktCO2 10
Metrogas methane recovery from pipeline rehabilitation                         Small scale, III.D      DNV          Chile       Japan (J-Power)            12 ktCO2 10
Aquarius Hydroelectric Project                                                  Small scale, I.D.      DNV          Brazil      Japan (J-Power)         14.9 ktCO2     7
Mbumibiopower biomass power project                                         Small scale, I.D.(=NM39)   DNV          Malaysia    Japan                      55 ktCO2    7
NovaGerar landfill gas to energy project                                               AM3             DNV          Brazil      WB NCDF              ca. 300 ktCO2     7
18 MW biomass power porject in Tamilnadu, India                                   AM4 (=NM25)          DNV          India       Sweden                     85 ktCO2 10
Trojes 8 MW hydro project                                                       Small scale, I.D.      DNV          Mexico      PCF                        22 ktCO2    7
Benito Juarez 15 MW hydro project                                               Small scale, I.D.      DNV          Mexico      PCF                        41 ktCO2    7
Chilatán 15 MW hydro project                                                    Small scale, I.D.      DNV          Mexico      PCF                        52 ktCO2    7
El Gallo 30 MW hydro project                                                      AM5 (=NM23)          DNV          Mexico      PCF                        70 ktCO2    7
Kunak 14 MW palm oil solid waste power plant                                Small scale, I.D.          DNV          Malaysia    Denmark                    51 ktCO2    7
10 MW landfill gas to energy project at Lara landfill, Maua                            AM3             DNV          Brazil      Unilateral               700 ktCO2     7
Brazil MARCA 11 MW landfill gas to energy project                                      AM3             DNV          Brazil      Unilateral               230 ktCO2     7
Olvarria landfill gas recovery project                                         Small scale, III.D      DNV          Argentina   CDCF                       12 ktCO2    7
E7 Bhutan 70 kW micro hydro power project                                       Small scale, I.A.      JACO         Bhutan      E7?                       0,5 ktCO2    7
Cececapa (2,9 MW) run of river Hydroelectric Project                            Small scale, I.D.      DNV          Honduras    Finland                     2 ktCO2 10
Yojoa Small (0,6 MW) run of river Hydropower Project                            Small scale, I.D.      DNV          Honduras    Finland                   1,1 ktCO2 10
Rio Blanco (5 MW) Small Scale Hydroelectric Project                             Small scale, I.D.      DNV          Honduras    Finland                    18 ktCO2 10
Zacapa (0,5 MW) run of river Mini Hydro Station Project                         Small scale, I.D.      DNV          Honduras    Finland                    1 kt CO2 10
9 biomass gasifier based power plants totalling 2.25 MW                      Small scale, I.A.+ I.D.   DNV          India       Unilateral              12,3 ktCO2 10
La Esperanza Hydroelectric 12.7 MW small scale project                          Small scale, I.D.      DNV          Honduras    CDCF (Finland)             39 ktCO2    7
Cortecito (5.3MW) and San Carlos (4.0 MW) small-scale hydro project             Small scale, I.D.      DNV          Honduras    2E Carbon Access           37 ktCO2 10
Guyamapa 12.2 MW Hydroelectric small scale project                              Small scale, I.D.      DNV          Honduras    2E Carbon Access           36 ktCO2 10
Landfill Gas capture and flaring at Chisinau Landfill, Moldova (see NM38)             AM11             DNV          Moldova     Denmark (EPA)              60 ktCO2    7
Landfill gas extraction on the landfill Villa Dominico (Buenos Aires)                 AM11             SGS          Argentina   Unilateral               700 ktCO2 10
Graneros Plant Fuel Switching Project                                                  AM8             DNV          Chile       Japan (J-Power)            18 ktCO2    7
Clarion 12 MW (Gross) Renewable Sources Biomass Power Project                   Small scale, I.D.      TÜV-Rhein    India       Unilateral                 40 ktCO2    7
Which sectors are prevailing?
    Jørgen Fenhann, UNEP Risø Centre, 16-08-04
    Type                              Proposed        Under
                                    methodologies    validation
    Wind                                         3                 1
    Hydro                                        7                14
    Biomass power                               11                 4
    Biogas power                                 6                 1
    Geothermal                                   2
    Natural gas power                            2
    Oil & gas sector                             1
    Energy distribution                          3                1
    Energy efficiency, industry                  6
    Energy efficiency, households
    Energy efficiency, service                   1
    Transport                                    1
    Fossil fuel switch                           2                1
    HFCs, PFCs, SF6                              2                2
    Cement                                       2
    Other industrial processes                   2
    Landfill                                     5                7
    Other waste                                  1
    Agriculture                                  1
    Total                                       58             31
    Share of CDM project which are small-scale:              65%
     Quality of PDDs according
              to a DOE
• Project developers are often unaware of the
  project cycle
• Too many things are taken for granted (we will
  not include xx because it is insignificant)
• GHG calculation usually not transparent
• GHG reductions are usually overestimated
• In monitoring some write they will measure
  everything, not how,when,where,how often,
• PDDs seldom short & concise.
                 Other issues
• Continuation of existing practices on hold (NM2), split
  view in Meth Panel
• Perverse incentives (paper being prepared for EB), in
  AM12 ok if compliance rate<50%.
• A small-scale working group will be made at EB15
• When the DOE send in the registration form for a CDM
  project a “modalities of communication with the EB”
  statement signed by the project participants should be
  attached telling with whom to communicate when the
  CERs are to be issued.
• Draft decision for COP10 on M&P for A/R project
  decided at SB20. Unresolved issues: Bundling, leakage,
  def. of low-income communities, and monitoring.
                 New eligible small-scale
                  CDM project category
Project types       Small-scale CDM project activity categories
TypeI I:            A. Electricity generation by the user
Renewable           B. Mechanical energy for the user
energy projects     C. Thermal energy for the user
<15 MW              D. Renewable electricity generation for a grid
Type II:            A. Supply side energy efficiency improvements - transmission and distribution
Energy efficiency   B. Supply side energy efficiency improvements - generation
improvement         C. Demand-side energy efficiency programmes for specific technologies
projects            D. Energy efficiency and fuel switching measures for industrial facilities
<15 GWh savings     E. Energy efficiency and fuel switching measures for buildings
Type III:           A. Agriculture
Other project       B. Switching fossil fuels
activities          C. Emission reductions by low-greenhouse emission vehicles
always <15 ktCO2    D. Methane recovery
                    E. Avoidance of methane production from biomass decay through controlled combustion
Types I - III:         Other small-scale project

 •Small-scale Afforestation/Reforestation (A/R) projects must reduce emissions <
 8 ktCO2.
 • A/R Working Group formed at EB14, are preparing A/R categories.

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