New Market Mechanism and MRV Workshop at Ulaanbaatar. Assistant Researcher, Market Mechanism Group, IGES

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1 Institute for Global Environmental Strategies Towards sustainable development - policy oriented, practical and strategic research on global environmental issues CO Reduction under the Law on Air -Case Study from Japan-China Co-benefits Joint Study- 4July011 New Market Mechanism and MRV Workshop at Ulaanbaatar Yuriko KOYANAGI Assistant Researcher, Market Mechanism Group, IGES 1. Introduction o Contents What is a Co-benefits Approach? Japan-China Co-benefits Cooperation Pollution Control Plan in Panzhihua City. Methodologies Case Study: Closure of Power Generation Unit Case Study: Closure of Kiln (Cement Sector) Results of Quantitative Evaluation 3. Way Forward Possibility of Co-benefits Quantitative Evaluation in Mongolia FYI: Co-benefits Evaluation Manual

2 Institute for Global Environmental Strategies Towards sustainable development - policy oriented, practical and strategic research on global environmental issues 1. Introduction The background of quantitative evaluation on Chinese local l government pollution control plan What is a Co-benefits Approach? An approach aimed at reducing greenhouse gas emissions and preventing environmental pollution at the same time. Measures for environmental pollution Co-Benefits Measures for climate change Examples: Improvement in efficiency of thermal power plants Upgrading of public transport networks Methane recovery and electric power generation in the wastewater treatment facilities 4

3 Japan-China Co-benefits Cooperation The Statement on the Joint Implementation of Co-Benefits Projects by the Ministry of the Environment of Japan and the Ministry of Environmental Protection of the People s Republic of China was signed. (December 007) Panzhifua City, Sichuan Province A joint study on evaluation of the impact of co-benefits on the environmental pollutant t reduction plan, as well as training for capacity building were carried out. The annual reductions of SO and CO by India air pollution control in iron and steel industry were 56 thousand tons and 10 million tons simultaneously. Panzhihua City, Sichuan Province Cooperation Target Area Kazakhstan Russia Mongolia Beijing Chongquing Shenyang Dalian People s Republic of China Shanghai Guangzhou Hong Kong Xiangtan City, Hunan Province 5 Pollution Control Plan in Panzhihua City Goal for 5 years during % energy consumption reduction 11 -SO emission reduction 33,741t/year Sectors - Air Management (SO ER) - Water Management (COD ER) - Waste Management Measures - Structural Adjustment - Project - Management National Level 11 th Five year Plan for Environmental Protection ( ) 010) Province Level 11 th Five year Plan for Environmental Protection ( ) 010) City Level 11 th Five Year Plan for Environmental Protection ( ) 010) ER=ER SA + ER P + ER M Pollutant Control Plan 6

4 Institute for Global Environmental Strategies Towards sustainable development - policy oriented, practical and strategic research on global environmental issues. Methodologies How to calculate SO and CO emission reduction? Case study on evaluating structural adjustment Case Study of ER SA : Closure of Power Generation Unit (50MW) Pollutant Emission Reduction SO Emission Reduction =SO Baseline Emission from the facility 0 (closure) ER(SO ) = M x S x (64/3 x 0.8) ) = 111,400 x x 1.6 = 1,83 t-so ER (SO ) :Annual SO emission reduction from facility M: Annual Coal consumption for power generation 111,400t S: Average sulfur content of coal 0.7% 64/3: Mass ratio between S and SO 0.8: Combustion efficiency of coal 80% Just changing the parameters M, S and 0.8,, the same methodology is applicable to Mongolian power generation unit. 8

5 Case Study of ER SA : Closure of Power Generation Unit (50MW) (cont.) GHG Emission Reduction CO Emission Reduction = CO Baseline Emission from the facility 0 (closure) ER(CO ) = M x C x (44/1) = 111,400 x 0.5 x 3.67 = 04,33 t-co ER (CO ) :Annual CO emission reduction from facility C: Average carbon content of coal 50% 44/1: Mass ratio between C and CO Just t replacing the parameter S(sulfur content t of coal) with C (carbon content of coal) ) and removing 0.8 (combustion efficiency of coal),, ER(SO ) formula is turned into ER(CO ). ER(SO ) and ER(CO ) are also applicable to calculate the emission reduction from steam boiler. 9 Case Study of ER SA : Closure of Kiln (Cement Sector) Pollutant Emission Reduction SO Emission Reduction = SO Baseline Emission from kiln 0 (closure) ER(SO ) = SO -EF x P =.638 x 10-3 x 10,398 = 70 t-so ER (SO ) :SO emission reduction from kiln SO 638x10 - -EF: SO emission factor per clinker t-so /t-clinker P: Annual production quantity of clinker 10,398 t-clinker/y Just t changing the parameters(so -EF and P), the same methodology is applicable to Mongolian cement sector. 10

6 Case Study of ER SA : Closure of Kiln (Cement Sector) (cont.) GHG Emission Reduction CO Emission Reduction =CO Baseline Emission from kiln 0 (closure) ER(CO ) = CO -EF x P = x 10,398 = 63,384 t-co ER (CO ) :Annual CO emission reduction from kiln CO -EF: CO emission factor per clinker t-co /t-clinker Just replacing the parameter SO -EF with CO -EF EF, ER(SO ) formula is turned into ER(CO ). 11 Results of Quantitative Evaluation Measure SO ERs (t-so /y) CO ERs (t-co e/y) Structural Closure of 4 Power Generation Units (50MW) 6,757 1,006,363 Adjustment Closure of Sintering Machines 19 0 Closure of Wet Rotary Kilns ,384 Closure of 8 Coke Ovens 1, ,487 cf. Goal for 5 yrs( ): 010): 33,741t-SO /y Closure of 3 Shaft Kilns ,80 Closure of 5 Steam Boilers 3, ,333 Closure of Limekilns 43 9,197 Closure of 1 Shaft Furnace 40 8,470 Project 1 Waste Gas Settlement utilizing ammonia water Flue Gas Settlement utilizing desulfurization 3,116 -,074 Installation of 5 Desulfurization Equipment 9,744 0 Upgrading of Sintering Machines 11,000 0 Total 55,843,103,96 Source: Dr. Hiroaki TAKIGUCHI (011) GHG Reduction in Developing Countries and a Co-benefits Approach, Environmental Research Quarterly, Feb 011 No. 160, p. 69 1

7 Institute for Global Environmental Strategies Towards sustainable development - policy oriented, practical and strategic research on global environmental issues 3. Way Forward A Co-benefits Approach is a useful tool to evaluate the Air Pollution Reduction Program in Mongolia. Conclusion: Possibility of Co-benefits Quantitative Evaluation in Mongolia Synergy will be expected between: i) Pollution control measures under the Law on Air ii) GHG mitigation actions under Mongolia s NAMA i) and ii) can be calculated l using almost the same methodologies with one or two parameters replaced. We can utilize the following material: -Result of Japan-China Co-benefits Joint Study -Co-benefits Evaluation Manual 14

8 The Manual For you information: Co-benefits Evaluation Manual Provides quantified and simple methods to evaluate effectiveness of Co benefits, including environmental pollutionimprovement improvement and GHG mitigation measures Promotes public/private i entities to implement effective CDM or new market based mechanism projects with Co benefits Approach 15 Co-benefits Evaluation Manual (cont.) Evaluation Methodologies Level Tier 1 Tier Tier 3 Description of Evaluation Methodology No calculation Based on evaluation criteria corresponding to the actual details of the activity. Explanation When it is difficult to obtain the data for the quantitative evaluation. This approach is the easiest to implement. Using a predetermined Use actual measurement data. equation and dthe available Where no measurement data is measurement data. available, default values are used. Using measurement data for Use actual measurement data and activities and parameters, specific equations. and using specific equations. 16

9 Co-benefits Evaluation Manual (cont.) Evaluation Criteria for Tier 1 Evaluation Criteria Example Category: Air quality improvement Expected Emission Reduction Grade (Certainty of reduction) Certain Fuel switching (to fuels with low sulphur and low Large 5 nitrogen content) improvement of combustion equipment. Upgrading to high-performance boilers installation of waste-heat and exhaust-gas recovery equipment. High Installation of flue gas desulfurization equipment. Large 3 probability Installation of flue gas denitrification equipment. Installation of particulate precipitators. Regulation of air pollutant emissions. Small Low interest financing and tax incentives relating to investments needed to promote implementation ti of air pollutant t emission i reduction measures. Subsidy programs for research and development Likely to Provision of related information through related - 1 organizations Technical guidance Education and awareness raising 17