Eighth Conference of the Parties to the UNFCCC

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1 Eighth Conference of the Parties to the UNFCCC Industry Context A.K.Mehta Ministry of Environment and Forests

2 Conference of the Parties Climate Change INC UNFCCC KP COP MOP

3 Earlier Conferences COP-1: The Berlin mandate COP-2: Ministerial Declaration COP-3: K.P COP-4: BAPA COP-5: Consolidated Texts COP-6: The Hague COP-6bis: Bonn Agreement COP-7: Marrakech Accords

4 Mitigating Climate Change: The Industry Context Lower emission scenarios require different patterns of energy resource development Alternative development paths can result in very different greenhouse gas emissions Technological and financial resources are key considerations in climate change mitigation options. Climate change mitigation: Linked to development, sustainability and equity

5 Policy Making The effectiveness of climate change mitigation can be enhanced when climate policies are integrated with broader societal objectives. There is no single path to a low emission futurecountries and regions will have to choose their own paths Forests, agricultural lands and other terrestrial ecosystems offer significant carbon mitigation potential though not necessarily permanent National responses to climate change can be more effective if deployed as a portfolio of policy instruments

6 Global Greenhouse Emission Reduction in 2010and 2020 Potential Potential emission reductions in 2010 (M tc eq /yr) Potential emission reductions in 2020 (M tc eq /yr) Net direct costs per tonne of carbon avoided Buildings Most reductions available at negative direct costs Transport CO2 only Industry Energy Efficiency Material Efficiency ~ ~600 More than half available at net negative direct costs Industry ~100 ~ /t Ceq. Non CO2 Agriculture Non / t Ceq. CO2 Waste CH 4 ~200 ~200 About 75 % at net negative costs Energy Supply and Conversion CO2 only Limited negative cost options exist

7 India s GHG Emission in 1990 ALGAS Agriculture: 34 % Waste :7 % Industrial Processes: 2 % Energy: 57% Fuel Combustion % Fugitive Emissions-2.28 %

8 Mitigation Options Electric Power Generation Coal Washing Fuel Switching Efficiency Improvement Reduction of T&D losses Renewable DSM

9 Industry Sector Units Average Consumption Best Technology Cement Kwh/ ton Paper Mwh/ ton Caustic Soda Kwh / ton Aluminium Kwh/ tnn Steel (SAIL)G.Cal / ton

10 Forestry and Land Use Change Forest Conservation Enhancement National Goal

11 Transport Rail Infrastructure Intra City Transport Traffic Management Technology Alternative Fuels

12 Agriculture Reduction in use of nitrogenous fertilizers and animal manure Better management of draining of paddy fields Reduction of open manure treatment

13 Approaches Market based Technology Legislative Regulatory Economic

14 The Clean Development Mechanism Article 12 of K.P Meaningful Participation of Developing Countries Two fold objective Sustainable development of developing countries Assist Annex I Parties in compliance to QELRC

15 CDM: Key Decisions at COP 7 Crediting Period: After date of registration of CDM activity Project starting as of eligible for registration Last Date for request for registration: 31st December, 2005 Crediting period of such projects can begin as early as

16 Share of Proceeds Cost of adaptation and administrative expenses Share of proceeds to cover cost of adaptation: 2 % of CER LDCs exempted Share of proceeds for covering administrative expenses of CDM: to be decided on recommendation of the executive board The E.B. shall charge a fee till such decision to cover project related expenses Parties invited to make contributions to UNFCCC fund

17 Prompt Start of CDM Marrakech Accord adopts decision to facilitate prompt start of CDM COP to assume responsibilities of MOP CDM executive Board elected Two meetings of the Board have been held

18 Work Program of the CDM Executive Board up to COP 8 Develop rules of procedure for adoption by COP Accredit and designate operational entities on provisional basis Develop and recommend simplified procedures for specified category of projects Prepare recommendations on all relevant matters Modalities for seeking collaboration with SBSTA

19 Simplified Procedures Accreditation of operational entity Simplified procedure : Renewal Energy up to 15 MW or appropriate equivalent energy efficiency improvement project activities up to 15 Gigawatt Hours/Year project activities that emit less than 15 Kilo ton of Carbon dioxide equivalent)

20 Role of COP/MOP COP/MOP-Authority over CDM Executive Board on rules and procedures Designation of Operational Entities and accreditation standards Review of Annual Report of the Executive Board Review regional/ subregional distribution of CDM/OEs Assist in arranging CDM funding

21 Role of the Executive Board Supervision Make recommendations to COP/MOP on rules and modalities for CDM, rules and procedures for E.B. Approve new methodologies relating to baselines, monitoring, and project boundaries Review provisions on simplifies procedures Accreditation of O.Es including suspension, withdrawal and reaccredidation

22 Role of the Executive Board Operationalization of accreditation procedures and standards Review of accreditation standards Reporting on regional and sub regional distribution of CDM project activities CDM registry Repository

23 Operational Entities and Role of COP/MOP Designation of the Operational Entity on the basis of recommendation by the EB Accreditation Standards General supervision

24 Showcasing India s Achievements Role of Industry Exposure CDM Technology Transfer Exhibitions Special Events

25 THANK YOU