ODS CONVERSION Energy efficiency and standardized baselines. Julie Godin Carbon Finance Unit World Bank

Transcription

1 ODS CONVERSION Energy efficiency and standardized baselines Julie Godin Carbon Finance Unit World Bank 1

2 ODS Phaseout & GHG Mitigation Opportunities GHG Mitigation opportunities Energy efficiency Low GWP alternative Approved methodologies under the Clean development mechanism (CDM): Energy efficiency Destruction/avoidance of HFCs Destruction of unwanted ODS Approved protocol under the voluntary carbon market (VCM): California Action Registry (CAR) Voluntary Carbon Standard (VCS) 2

3 CDM Methodologies Refrigeration and A/C sectors 3

4 CDM Methodologies Refrigeration and A/C sectors Residential refrigerators Chillers Appliances (not specific) (e.g: chiller, A/C) Commercial cabinet (refrigeration) Energy Efficiency (EE) AMS IIC AM0070 AMS IIC AM0060 AMS IIC AMSIIE AMS IIC AMSIIE EE & HFCs AMSIIIX HFCs AM0071 AMSIIIAB

5 CDM Methodologies Applicability Residential refrigerators Chillers Appliances (not specific) (e.g: chiller, A/C) Commercial cabinet (refrigeration) Demand side activities AMS IIC AMSIIIX AMS IIC AM0060 AMS IIC AMSIIE AMS IIC AMSIIE Activities at manufacturing level AM0070 AM0071 AMSIIIAB

6 CDM Methodologies for appliances General requirements (demand side EE methodologies) Destruction of used equipment Required to avoid leakages. Scrapping of equipment need to be documented and independently verified. Limit to the Crediting Period Limited to the remaining lifetime of the existing equipment (i.e., technical lifetime or documented practices in the host country). Capacity of the new equipment Capacity of the new equipment cannot be significantly larger or smaller.

7 Use of the CDM methodologies (ref: UNEP Risoe, 01/03/2011) Methodologies Use for appliances for refrigeration (A/C, chiller, refrigerators) # CDM project activity # CDM Programme of Activities AMS IIC 0 2 (chiller/ac, at validation) AMS IIIX 1 (at validation) 0 AMS IIIAB 0 0 AMS IIE 12 1 (chiller, at validation) AM AM AM

8 Challenges to EE CDM projects/programs Initial investment costs Reaching large number of users (demand side management) Data collection for baseline and monitoring Additionality demonstration Transaction costs Complexity of institutional arrangements

9 Promising approaches for EE under CDM Decision of the Parties to the KP at COP16 in Cancun: Parties, projects participants, industrial associations are invited to submit proposals, through the host country s DNA, for standardized baselines for consideration by the CDM Executive Board (CDM EB). Standardized baselines: Baseline established for a Party or a group of Parties to facilitate the calculations of emission reduction and/or determination of additionality. Take into account specific national, sub-national or international circumstances, as appropriate. Priority given to methodologies that are applicable in underrepresented regions and underrepresented project activity types.

10 Standardized Baselines What can be standardized: Baseline determination Additionality Elements of the project emissions calculations Using: Benchmarks (e.g. energy consumed per type of equipment) Default factors (emission grid factor) Positive list (e.g. technology specific list for automatic additionality) Potential: Increase efficiency, simplify procedure, reduce transaction costs while ensuring environmental integrity Improve sectoral distribution

11 Example of Benchmark Approach for Energy Efficiency under the CDM AM0070 Baseline based on Benchmark approach (specific electricity consumption per refrigerator, per type, size) Automatic additionality if the fridges under the project activity are more efficient than the benchmark Benchmarks is the lowest between: Electricity consumption of the top performing refrigerators in the market of the host country. Average historical electricity consumption of the refrigerators produced by the manufacturer, involved in the project activity (manufacturer benchmark). Project Monitoring of fridges sale Rated electricity consumption Adjusted with measurement in sampling group

12 Conclusions Methodologies are approved under the CDM for refrigeration & A/C sectors. Low to negligible use of CDM methodologies in these sectors. Need for further simplifications to reduce transaction costs. Innovative schemes to provide underling financing and scaling-up, need to share experience, lessons learned. Post 2012 market uncertainties what are the opportunities under the emerging domestic carbon markets?

13 THANK YOU Julie Godin The World Bank Carbon Finance Unit 13

14 Demand Side EE Projects under the CDM Solvent use 0% Afforestation and reforestation 0% Agriculture 5% Fugitives (others) 1% Fugitives (fuels) 6% Metal 0% Mining/ mineral 1% Transport 0% Construction 0% Chemical industries 3% Manufacturing industries 5% Energy demand 1% Waste 18% Energy Projects 60% Source: UNFCCC, 26/02/2010

15 Overview of CDM Methodologies EE Measures and HFCs Reductions in the Refrigeration Sector Methodologies Summary of Applicability Conditions Manufacturing of Energy Efficient Domestic Refrigerators AM0070 Activities undertaken by manufacturers of refrigerators that increase the energy efficiency of manufactured refrigerators. Covers units sale in the host country only. Manufacturers have minimum 3 years of historic data (i.e., quantities of units manufactured and sold in the Host country and their standard electricity use and adjusted storage volume). GWP of refrigerants and foam blowing agents of the new units shall be lower than GWP of gases used by the manufacturer during the three years prior to CDM project. Manufacturing and Servicing of Domestic Refrigerators using low GWP gases AM0071 Source: unfccc.int Activities undertaken by manufacturers of refrigerators that switch from HFCs charged appliances to low GWP gases. The manufacturer has been producing units charged with HFC-134a or other refrigerant with a high GWP for at least three years and has not been using refrigerants with a low GWP prior to the start of the project activity. The refrigerant used in the new units allows for the same or a better energy efficient than prior to the start of the project activity. The project activity covers only refrigeration appliances that are manufactured (as defined above) by the manufacturer, involved in the project activity, in the Host country. Imported refrigeration appliances shall not be included in the project activity; 15

16 Overview of CDM Methodologies Power Saving through EE Appliances (A/C, Refrigerators, Chillers) Methodologies Summary of Applicability Conditions Energy Efficient Technologies (AMS IIC) Activities that encourage the adoption of energy efficient equipment, e.g., refrigerator, chiller, A/C. Replacement of existing equipment or new activities Aggregate energy saving may not exceed 60 GWh/y. Chiller Replacement (AM0060) Activities that replace existing chillers by more EE chillers. Replacement is not required directly by law or regulations. Existing chiller shall be destroyed. Refrigerant shall be recovered and destroyed, or store for reuse. Source: unfccc.int 16

17 Overview of CDM Methodologies EE Measures and HFCs Reductions in the Refrigeration Sector Methodologies Summary of Applicability Conditions Energy Efficiency and HFC-134a Recovery in Residential Refrigerators AMS IIIX Avoidance of HFCs Emissions in Standalone Commercial Refrigeration Cabinets AMS IIIAB Source: unfccc.int Activities that replace existing, functional domestic refrigerators with more efficient units utilizing refrigerants and foam blowing agents having no ODP and low GWP (lower than 15). Aggregate energy saving may not exceed 60 kt CO2 Average volume capacity of the project refrigerators installed is at least 80% of the average volume capacity of the existing unit. The existing residential refrigerators shall be replaced at no or low cost to the refrigerator's owner. Fluorinated gases shall be recovered and destroyed, or store for reuse Neither replacement of refrigerators nor recovery of refrigerants and foam blowing agents are required directly or indirectly by laws or regulations (e.g. to comply with safety or pollution standards), except for situations where non-compliance with the law or regulation is widespread and occurs in more than 50% of the cases;. Activities resulting in the avoidance HFC-134a during the lifetime of the unit (covers: fugitive emissions during manufacture, usage, servicing and disposal of units). Aggregate energy saving may not exceed 60 kt CO2. Applicable to producer of commercial refrigeration cabinets charged with HFC-134a or other refrigerant with a high GWP, for at least three years. The new units proposed should used low GWP and be equally of more EE than the existing units. 17