Netherlands DO Update

Transcription

1 Domestic Carbon Offsets in Europe, Berlin, June 19th, 2015 GoldStandard/DEHSt Netherlands DO Update Jos Cozijnsen Consultant/Market Perspective Rene Korenromp Ministry/Government Perspective Robert van Lente The Hague/Local Perspective

2 Long History: NL Role on Global CO2 Market and interest in Domestic JI Netherlands 1st mover & demand on global carbon market since 2000: initial demand 50Mt for Kyoto Compliance Several succesful Avenues: CDM/CERUPT, JI/ERUPT, purchase tenders setting own standards and price Funds: Worldbank, PCF, regional development banks Contracts: Rabo Bank and bilateral: Indonesia Buying AAUs / Green Investments Scheme eg Latvia There was interest in the market for Domestic JI, Hosting JI projects Amendment proposal; did not make in Parliament No demand (yet), complexity, low hanging fruits New ETS Art24a ETS, allowances for projects, brought back interest in DO Letters supported by market (building sector, power, green firms) Motion in Parliament for study and legislation DO now in Dutch Law, formally waiting for elaboration and EU Vacuum on market mechanisms in non ETS Government: no further progress on link with EU ETS now What to do in the mean time?

3 Use the voluntary carbon market? Until 2008: VERs (many standards) After 2008, Kyoto regime, mean standard VCS: requires cancelling AAUs, Additionality issue in projects Now: some ISO certificates, no link to national reductions, limited market and carbon footprint work Green Foresty Fund, CarbonFix certificates, no sales yet Also local/regional funds: The Hague, Utrecht, Zeeland CO2 compensation by local projects, mainly RE. Example solar panels on schools, sometimes to fee EV How can we make voluntary market more robust, grow and meet environmental integrity demands?

4 Green Deal National CO2 Market *) Participants: Project developers, institutes, NGOs, local funds Launching buyers: bank, power company Market Infrastructure: verifier, trader, platform Government: ministries economic / environment affairs (support of Dutch Emissions Authority) Objectives: Establish robust national CO2 credit system and market Consider available space for crediting projects Facilitate local projects, local support, enhance demand, increase consistent messaging en relation with GHG Inventory Facilitate sectoral projects, (smaller/larger), test market instrument, identify reduction potential *) Convenant between government & stakeholders; initiative with latter

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6 Market Perspective Current NL CO2 compensation demand: 1 Mton Potential technical reductions in non-ets sectors: 1-4 Mton CO2e, depending on additionality Also because of low prices, CO2 value becoming more a co-benefit and collateral than key driver Tendency toward more holistic approach and more values: savings, social, labour, nature Identification of GHG reductions in non-ets Need create room for market instrument View also international developments on credits in non-capped sectors

7 Areas of Interest Green gas, RE to gas Waste heat to buildings Mine Water: buffer to cool/warm buildings Won EGEC European Geothermal Innovation Award 15 Waste heat/co2, geothermal to horticulture Manure digesters (beyond CO2 neutral power) Peatland projects Afforestation and Forest management Organic farming and carbon storage

8 Government perspective Market seems too small to set up an institutionalised government related body Experiment is welcome but caution is needed regarding double counting, shifting burden to other actors in the production chain, incomparable calculation methods During experiment, no formal relation with national goals for emissions reduction Main interest is to explore potential and encourage local initiatives to harmonise approaches and/or definitions Need of Governance body for independent oversight Above issues become part of the Green Deal work programme

9 Local perspective Increase support and demand for local projects Focus: energy saving, solar energy projects No additional administrative burden and unnecessary cost No price competition with larger projects Need to know impact of reductions for national inventory and role for city CO2 targets Already: Draft blueprint for cooperation between local funds

10 Examples of Potential Projects: Plot of 1000 houses: tco2/a (gas) Office 100m2: tco2/a (gas) Project: Green gas for ships (Energy Valley: mln m 3 : 278 kton CO 2 Geothermal for 8 horticulture firme: /a Minewater colling/heating buffer 31ktCO2 for m2 buildings/houses National: Energy Service Companies: shops (100 kt), offices (300 kt), assembly halls (600kt) Digesters: 58 Mton manure: 12 Mton CO2e (900 mln m3 green gas)

11 Tasks Ahead Mean items of the Work Programme: Avoid double counting: example of approach Is baseline emissions resp. reduction part of NIR? Peat: no reductions additonal (LULUCF developments) Electric Vehicles: emissions yes replaces fuel, additional power, so avoided CO2 additional unless subsidy Manure: emission yes reduction no additional Forest AR: emissions and reduction yes transparency Avoid double claiming: Reductions can only be sold domestic Transparency in chain (example waste-recycle-use)

12 Tasks Ahead, continued Factor out projects from national inventory (aggregated) Credible price setting Small/local vs large/sectoral NB sometimes just CO2 evidence wiuth certificate needed, not always to be traded Technical issues seem feasible, but how to built trust for a domestic voluntary carbon market, how to facilitate, who leads this Robust governance system seems key Start early involving accountants Longer term perspective: what does EU? How to finance the start of the process?

13 Conclusions Dutch voluntary carbon market still small, but there is interest in national projects and making it more robust and relevant Green Deal seems worthwhile exercise: In future more non-ets CO2 reductions needed Innovative financial instrument needed in non-ets Local projects enhances visibility, local ownership, awareness Lot of work to do: transparency, credibility of offsets, finding lean and mean system Local enthusiasm, national credibility

14 Thanks In Berlin Jos Cozijnsen: Rene Korenromp: Robert van Lente: