Inventories and NAMAs assessing and reducing greenhouse gas emissions in the RAC&F sectors

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1 Inventories and NAMAs assessing and reducing greenhouse gas emissions in the RAC&F sectors GIZ Proklima 34th OEWG, Paris GIZ Side Event, 16 July 2014

2 Content NAMA concept NAMA project NAMA Handbook for the RAC&Foam sector Tools and Instruments Conclusions Page 2

3 Bali Action Plan (2007): NAMAs The Bali Action Plan calls for Nationally appropriate mitigation actions by developing country Parties in the context of sustainable development, supported and enabled by technology, financing and capacity building, in a measurable, reportable and verifiable manner. Developing countries to undertake mitigation actions (not only adaptation) Nationally appropriate = tailored to countries national circumstances and in line with the Convention s principle of common but differentiated responsibilities Context of sustainable development = linked to the countries broader sustainable development strategies NAMAs are to be measurable, reportable and verifiable and supported by developed countries Page 3

4 Rationale for NAMAs in the RAC&F sectors High relevance due to the forecasted emission growth, primarily driven by the transition to HFCs as substitutes for ODS and increased demand for RAC&F equipment, especially in developing countries Key factors for the emission growth are an increasing population, economic development, wealth effects and lifestyle, growing urbanisation and increasing ambient temperatures. Prognosis 2050: the contribution of HFCs emissions in comparison to global CO 2 emissions is estimated at 45% provided the 2 C target is met and all other GHG emissions are reduced. For a BAU scenario the HFC emissions would account for 9-19% (Velders et al. 2009) Emission reductions in the RAC&F sectors: Replacing high-gwp refrigerants with low-gwp refrigerants Introducing energy efficiency measures

5 Benefits for countries Cost-efficient climate and ozone layer protection International visibility and documentation of the country s efforts and achievements International financial and technical support for the preparation and implementation of mitigation actions Effective and sustainable transformation of the RAC&F sectors to low-gwp refrigerants and foam blowing agents (avoiding a double transition) First comprehensive data inventory of HFC emissions to be used for 3 rd National Communication (to UNFCCC) Page 5

6 MLF designed projects Substance based (CFC,HCFC,MB) Sector/subsector projects Focus on compliance Incremental costs Constrained to eligible activities NAMA design Impact based (MTCO 2 ) Cross/Multi/Sectoral project by project Focus on voluntary mitigation Reduction/Abatement costs Co-benefits are decisive Integrated approach Page 6

7 NOUs have already good knowledge to prepare NAMAs in the RAC/Foam sectors: Experienced in formulating and implementing sector plans Relationships with most key stakeholders established NOUs need support in: Building national HFC inventories (Methodology) Transparent decision making for technology selection (Tools) Monitoring, Reporting, Verification (Methodology) Page 7

8 NAMA project objectives and outputs Project: Development of NAMAs in the refrigeration, air-conditioning and foam manufacturing sectors Project is funded by the German International Climate Initiative (ICI) of BMUB Support for countries to develop NAMAs in the RAC&F sectors, including: draft NAMA strategy incl. financial support plan, Online available at submit NAMA for registry at UNFCCC, seek international funding, and implementation and mitigation action plan

9 NAMA Funding & Financing System Registry Private Sector Unilateral NAMA Domestic Financing ODA Bilateral Financing Supported NAMA Green Climate Fund Credited NAMA Not yet implemented Carbon Credits Page 9

10 Differentiating unilateral, supported and creditable NAMAs Page 10

11 Expectations and reality of NAMA funding 100 bn USD p.a. from 2020 pledged in Cancun, but The Green Climate Fund is no ATM Not only grants Not only public money Leverage & mobilization of private investments Particularly in regard of the huge sustainable development cobenefits of NAMAs Bilateral funding presently largest source

12 Overview of a typical NAMA workplan Part I: Inventory/ Stakeholder Engagement Step 1 Step 2 Stakeholder (Industry) Engagement Establishment of Inventory Part II: Preparing NAMA Description Document (NAMA-DD) Part III: NAMA Implementation Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Defining Sector BAU and Mitigation Scenarios Identification of Subsectors for Mitigation Action Alternative Technologies + Barrier Removal Policy and Financing Roadmap Upload NAMA DD for Registration Enabling implementation of measures NAMA support framework Institutional development and stakeholder engagement Step 11 NAMA Progress and verification of emission reductions

13 NAMA HANDBOOK & INSTRUMENTS

14 NAMA global handbook Concept and objectives Provide comprehensive handbook with basic guidance on technical, procedural and policy issues Provide practical tools for assessment, analysis and planning of NAMAs Guidance on economic aspects of strategy building and finance Assist in the development of propsals and funding reauests for supported NAMAs Guidance on implementation and monitoring Strengthening capacities to integrate with reporting procedures under the UNFCCC

15 NAMA handbook for RAC&F sectors NAMAs in the refrigeration, air conditioning and foam sectors. A technical handbook. Modules: Inventory Cooling needs assessment Technical options Economic assessment Mitigation scenarios Technology roadmap Measuring, reporting and verifying (MRV) Policy and financial options framework Implementation plan Co-benefits for the NAMA country Assessment tools and instruments Data Sampling Mitigation and Cost Scenarios Cooling needs assessment Co-benefits Tool MRV Tools Energy Efficiency VDMA Quick check

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17 Example: Inventory Module Builds on EU experience Takes into account Twinning activities Focused on national communication requirements under the UNFCCC Includes top down and bottom up assessment (Tier 2)

18 Relevant documents for F-gas inventory IPCC Good Practice Guidance and Uncertainty Management in National Greenhouse Gas Inventories (IPCC 2000) Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories (IPCC, 1997) IPCC Guidelines for National Greenhouse Gas Inventories, Vol. 3 (IPCC 2006) 16/07/2014 Page 18

19 Tier 1 and Tier 2 approach Tier 1 Aggregated data Production/import/export of chemicals Tier 2 Disaggregated detailed data Market data (appliances) Top-down approach Bottom-up approach 7/16/2014 Page 19

20 16/07/2014 Page 20

21 Sector Subsector Appliance systems Air conditioning Unitary air conditioning Self-contained air conditioners Split residential air conditioners Split commercial air conditioners Duct split residential air conditioners Commercial ducted splits Rooftop ducted Multi-splits Air conditioning/ Refrigeration Chillers Air conditioning chillers Process chillers Air conditioning Mobile AC Car air conditioning Large vehicle air conditioning Refrigeration Domestic refrigeration Domestic refrigeration Refrigeration Refrigeration Refrigeration RAC categories 16/07/2014 Commercial Refrigeration Industrial Refrigeration Transport Refrigeration Stand-alone equipment Condensing units Centralised systems for supermarkets Stand-alone equipment Condensing units Centralised systems Refrigerated trucks/trailers (UNEP RTOC, 2010, Page 21modified)

22 Foam categories Cell type Open cell type Closed cell type Closed cell type Closed cell type Closed cell type Closed cell type Closed cell type Sub-application Integral foam Refrigerated trucks Spray foam Commercial refrigeration Discontinuous panel Domestic refrigeration Continuous sandwich metal panel Closed cell type Closed cell type Continuous sandwich flexible facing panel Extruded Polystyrene Page 22

23 Inventory Tool: Draft RAC Manufacturing Figures (Units) S Appliance System/Application Upscale 2010 S1 Self-contained air conditioners 38,714 40,495 42,358 44,306 46,344 48,476 Split residential air conditioners 4,359,159 4,559,681 4,769,426 4,988,820 5,218,305 5,458,347 Split commercial air conditioners 224, , , , , ,568 Duct split residential air conditioners 1,868,211 1,954,149 2,044,040 2,138,066 2,236,417 2,339,292 Commercial ducted splits 96, , , , , ,672 Rooftop ducted Multi-splits 135, , , , , ,262 S2 Air conditioning chillers Process chillers S3 Car air conditioning 1,277,916 1,336,700 1,398,188 1,462,505 1,529,780 1,600,150 Large vehicle air conditioning 49,285 51,552 53,923 56,404 58,998 61,712 S4 Domestic refrigeration 4,516,782 4,724,554 4,941,883 5,169,210 5,406,994 5,655,715 S5 Stand-alone equipment 181, , , , , ,666 Condensing units (End user) Centralised systems for supermarkets (End users) S6 Integral Condensing units Centralised systems S7 Refrigerated trucks/trailers

24 F-Gas Data Collection Thailand Refrigerants/Aerosols Chemical Substances Manufacturers Dealers Car Manufacturers (A/C in Cars, Trucks, Refrigerated Vehicles) Refrigeration Manufacturers Direct Sales Dealers (Own Service) End users Garages (refilling services) Recycling Services Companies Appliances Manufacturers Chemical Substances Importers Direct Sales Substantial responses from data collection Low or No responses from data collection A/C Manufacturers (Chiller Type) A/C Manufacturers (Packages, Split Types) Heat Pump Manufacturers Direct Sales Dealers (Own Service) End users Retail stores, home commercial buildings industries other general use Recycling Services Companies Not relevant for Thailand Likely to have Substances Storages Services Companies (refilling services)

25 RAC NAMA Implementation STEP 1 Baseline STEP 2 Selection STEP 3 Action Establish Inventory/ Data Collection Direct and indirect emissions Baseline and BAU Emission Mitigation potential Sub-sector overview Criteria for subsector selection Shortlist of 2-3 possible subsectors Analysis of specific policy, technology options Outline of applicable policy instruments, technologies and incentive mechanisms Proposal Seeking Financial Support

26 Addressing Barriers to NAMAs Financial barriers o High upfront costs, Small project sizes o Split incentives (e.g. of owners and users) o Misallocation of resources for investments (e.g. subsidies for conventional technologies) Institutional barriers o Limited access to capital o Monopolies/ Limited access to markets Economic barriers o External effects Technical barriers o High transaction costs Informational barriers o Limited awareness of options o Lack of knowledge/ access to knowledge Capacity barriers o Lack of skilled labour o High transaction costs Page 26

27 foams Refrigeration & air condtioning Increasing direct and indirect GHG emissions in the RAC&FB Sectors CFC, HCFC Direct emissions HFC ODP CO2 eq. Indirect emissions CO % of global electricity consumption Page 27

28 Example: MRV Module Select criterias Determine Process Identify reporting formats Institutionalize MRV

29 NAMA Assessment Tools Assessment tools and instruments Data Sampling Mitigation and Cost Scenarios Cooling needs assessment Co-benefits Tool MRV Tools Energy Efficiency VDMA Quickcheck

30 InventoryTool: Draft Potential Emissions Net consumption = Potential emissions CFC 0 4,281 2,269 1,862 1,381 1, HCFC ,222 12,620 13,633 10,056 12,595 11,438 14,025 HFC ,130 1,724 1,791 2,057 2,305 2,435 3,411 3,638 4,227 SF Others

31 Mitigation scenarios: Detailed Anlaysis Split residential air conditioners Technical option 1) Leak reduction (design/const) no change 2) HC R290/ R1270 HC-290 3) HFC R32 HFC-32 4) Low-GWP + district cooling low GWP Alternative refrigerant ) ) 40 DER 40 DER Mt CO 2 eq DEREE BAU Mt CO 2 eq DEREE BAU ) ) Mt CO 2 eq DER DEREE BAU Mt CO 2 eq DER DEREE BAU page 31

32 Example: Ranking Tool for the evaluation of co-benefits Economy Sustainable Development Environment

33 Incentive Analysis Tools Page 33

34 Inventories and NAMAs Azerbaijan up to registration GIZ Proklima 34th OEWG, Paris GIZ Side Event, 16 July 2014

35 The workplan Part I: Inventory/ Stakeholder Engagement Step 1 Step 2 Stakeholder (Industry) Engagement Establishment of Inventory Part II: Preparing NAMA Description Document (NAMA-DD) Part III: NAMA Implementation Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Defining Sector BAU and Mitigation Scenarios Identification of Subsectors for Mitigation Action Alternative Technologies + Barrier Removal Policy and Financing Roadmap Upload NAMA DD for Registration Enabling implementation of measures NAMA support framework Institutional development and stakeholder engagement Step 11 NAMA Progress and verification of emission reductions 16/07/2014 Page 35

36 Data collection understanding the country Economic History of Azerbaijan since 1990 s Azerbaijan has had since the 1990 s different economic phases firstly, the recession ( ) recovery ( ), boom ( ) and recession which started in The understanding is important to understand how a possible BAU scenario would look like. Page 36

37 Data collection understanding the country The households development is quite stable between urban and rural population Other indicators - GDP growth - GDP pro capita Provide already an idea of the household appliances Tier 1 2 link Page 37

38 Data collection going into the detail The approach for determining the inventory is a Tier 2 as a means to determine: - RAC servicing forecasting goes only through a bottom up approach - Replacement of goods which affects RAC and Foam starts from the installed base - Technology options and their mitigation effect Tier 2 as a means to define the subsectors, development and selection criteria for mitigation action Page 38

39 Data collection Production units - imports Local production units and their productive capacity understanding through visits! Not on the base of installed capacity are keys for adoption of mitigation actions On the other hand the share of imported goods are subject to cross border issues available technology suitable for the mitigation plan - 100% of split air conditioners are imported % of commercial refrigeration is locally produced Page 39

40 Data collection stakeholders assessment visits/ Interviews Production of commercial refrigeration Domestic refrigeration company which during the Sovjet Union area produced abt. 1 Million units a year nowadays less than Further Interviews with questionnaire's but much more effective a face to face discussion with local consultant appositely instructed and trained with GIZ Expert Page 40

41 Data collection stakeholders workshops Once the preliminary scenarios are assessed aimed workshops were held: - To asses the technology options ad barrier removal - Needs for adaptation of these and implications - Policy and financing - Roadmap and scenarios discussed for a round the table consensus Page 41

42 There are climate-friendly, sustainable alternatives for (nearly) all applications! Mobile AC CO2, (HC) Domestic Ref. Comm. Ref. Industr. Ref. AC Foams HC CO2, NH3, HC NH3, HC HC, NH3 CO2, HC Page 42

43 Modelling the mitigation scenario Domestic Production Imports & Exports Penetration Rates of different abatement options Input Sales figures Refrigerant Distribution Sales figures Stock figures Refrigerant Distribution Stock figures Initial charge Emission factors Growth rates Energy consumption Calculations Emissions Demand per refrigerant Sub-sector Calculations Demand Bank Sub-sectors Results Total emssions Total Demand Total Bank UNFCCC CRF

44 Selection discussion Sector Domestic and Commercial refrigeration Potential for a NAMA proposal Split residential air conditioners Combined with insulation Car air conditioning Domestic refrigeration Refrigerated transport vehicles Centralised systems for supermarkets (in combination with foam) XPS foam PU sandwich panels Discussion High emission reduction potential No local production facility High emissions reduction potential No influence/lobby No local production Moderate reduction potential Production facility Technology widely available Small reduction potential Production facility Relative small reduction potential Production facility Production just started; Currently low emissions Production just started/not started yet; Currently low emissions

45 Project aspects The major aspects for a sector approach in e.g. the commercial sector would cover the complete cold chain and include: Technology transfer & study tours Good practices in foam and refrigeration Eco-design know how Legislative aspects, standards, guidelines Training of stakeholders Awareness

46 Roadmap and supported UNFCCC registration The total emission savings over the project period accumulate to 510,202 tonnes CO2eq up to The preliminary budget for the NAMA implementation is given with approx. 5.8 Mio which splits up to different cost components for: - investments of technology upgrade, - training and awareness raising, - supportive measures for policy and MRV

47 Conclusions NAMAs.provide a framework to institutionalize cooperation and to multiply mitigation efforts across sectors and participating countries...could be a key instrument to reduce GHG emissions in RAC&Foam sector in an integrated manner...the possibility to include co-benefits is particular suitable for overcoming the barriers to the uptake of low-gwp technologies. Page 47

48 GIZ on RAC&F sectors using natural refrigerants Page 48

49 Thank you for your attention!