Mark Wagner ICF International. Financial Agents Workshop April 7, 2009 Washington, D.C.
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1 Status of the ODS Disposal Study Mark Wagner ICF International Financial Agents Workshop April 7, 2009 Washington, D.C. ICF International The World Bank
2 Study Summary To determine the opportunities for financing the destruction of unwanted ODS through the voluntary carbon market while also Reviewing existing methodologies for validation and verification of ODS disposal and/or developing a methodology for recommendation to the Executive Committee and Evaluating specific case studies. Presentations at Regional Meetings, OEWG, MOP
3 Elements of the Study Determine opportunities for funding the destruction of ODS through voluntary carbon markets; Develop specific case studies on ODS emission reduction projects; Consult with stakeholders to develop understanding of benefits and challenges of voluntary carbon markets; Review existing methodologies for validation and verification of ODS disposal and/or develop one for recommendation to the Executive Committee; Generate a robust, transparent and homogeneous emission reduction monitoring and verification framework for disposal of unwanted ODS; and Utilize practical experiences from existing and/or planned ODS emission reduction project.
4 Expected Deliverables Feasibility analysis of ODS disposal methodologies Recommendations for an ODS destruction methodology, either developed or adopted Practical experiences from: DuPont and CCX; Indonesia Holcim cement plant; ODS disposal in Russia; ODS decommissioning, storage, and destruction in GCC; and CTC disposal in Argentina Strategic recommendations for financing ODS destruction through voluntary carbon markets
5 Expected Outcomes Strengthened th and expanded d carbon voluntary markets beyond CCX; Streamlined project cycles for ODS disposal; Value of carbon credits from ODS disposal enhanced; ODS disposal market in Article 5 countries created; Revenue sharing to support collection costs, and; Article 5 countries enabled to determine additional external assistance required.
6 Status of Study ICF International under contract (03/09) Kick-off meeting held (03/09) Informal Steering Committee assembled Draft inception report to be developed (04/09) approach, schedule, and criteria for assessing existing ODS disposal methodologies Methodology to be completed (07/09) All work to be completed (12/09)
7 Feasibility Assessments Technical feasibility, e.g.: Ability of voluntary markets (including OTC) to absorb volumes of ODS available for destruction Country-specific issues (e.g., capacity, legislation) Financial feasibility, e.g.: Predictability/availability of financing ODS destruction costs Additional support for A5 countries
8 Assessing ODS Disposal Methodologies (1) Looking to move beyond U.S.-focused CCX methodology Destruction takes place in U.S. Methodology requirements based on U.S. regulations Developing criteria that a global ODS disposal methodology should meet, related to: Applicability/eligibility Additionality Emission reduction calculations (including baseline scenario, project emissions, leakage, etc.) Monitoring and verification
9 Assessing ODS Disposal Methodologies (2) Project Activity Eligibility/Applicability: Clear specification of the types of ODS that are eligible, including qualification rules by gas type, virgin versus used ODS, essential/critical use material, and origin/generation of material Clear specification of geographic eligibility (i.e., where destruction can take place) Clear specification of the types of destruction technologies that are eligible
10 Assessing ODS Disposal Methodologies (3) Project Activity Eligibility/Applicability: Clear specification of the technical requirements for regular destruction facility performance testing, DRE, and other emissions limits Ensure that ODS are destroyed by facilities legally ype permitted ttedtodoso to do Ensure that ODS produced for the purpose of earning destruction credits are not eligible Ensure that the origin of the ODS can be demonstrated and verified Ensure that ODS is imported/exported in accordance with national regulations and international treaties
11 Questions? Mark Wagner Senior Vice President ICF International 1725 Eye St. NW, Suite 1000 Washington, DC Phone: (202) Fax: (202)
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