Non-CO2 Gas Offsets (Methane and fluorinated gases): EPA s voluntary program experiences

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1 Non-CO2 Gas Offsets (Methane and fluorinated gases): EPA s voluntary program experiences Paul M. Gunning US EPA Climate Change Division May 12, 2009 Resources for the Future Workshop: Modeling the Costs and Volumes of GG Offsets

2 What Are the Other Gases? Methane (C4) Nitrous Oxide (N2O) Ozone Depleting Substances (CFC, CFC) phased out by the Montreal Protocol igh Global Warming Potential (GWP) Gases (FC, PFC, SF6, NF3) including industrial gases and substitutes for Ozone Depleting Substances (ODS) Aerosols (sulfate, black carbon) Ozone and its precursors (CO, NMVOC, NOx) 2

3 Characteristics of Non-CO2 Gases Greenhouse Gas Atmospheric Lifetime (years) 100-Year GWP Key Sources Methane Landfills, coal mines, natural gas and oil systems, enteric fermentation, livestock waste management, rice cultivation, wastewater treatment CFCs and CFCs 1.3 1, ,400 Ozone-Depleting Substances (ODS), being phased out by Montreal Protocol and Clean Air Act FCs ,810 Substitutes for ODS in refrigeration, air conditioning, foam blowing, fire extinguishing, aerosol propellants, solvents FC ,800 Also a byproduct of CFC-22 production PFCs 2,600 50,000 7,390-12,200 Primary aluminum smelting, electronics manufacturing, minor use as ODS substitutes SF 6 3,200 23,900 Magnesium production and casting, electric utility switchgear, electronics manufacturing NF ,970 Electronics manufacturing 3

4 Non-CO2 Gases play important roles Anthropogenic Emissions of Non-CO2 Gases have been important contributors to an enhanced Greenhouse Effect Since Pre- Industrial Times Carbon Dioxide Methane 0.7 W/m 2 24% 5% Nitrous Oxide 0.15 W/m 2 Nitrous Oxide 5% Methane 8% PFCs, SF6, FC- 23 1% FCs 2% 49% 1.4 W/m 2 CFCs, FCs, 12% Total global forcing Total = 2.9 Watts/m 2 PFCs, SF W/m 2 10% Tropospheric O W/m 2 US Emissions: Total 7,260 Tg CO2 Eq. CO2 84% 4

5 Non-CO2 Reductions Offer Important Climate and Economic Benefits Degrees C Near-term climate benefits Mitigation costs are lower than for energy-related CO CO 2 Non - CO 2 GGs C Sox Non- GGs Impact of a 50% reduction from BAU in 2050, maintained to

6 Methane Emitted by many sources in energy, agriculture & waste sectors Principal component of natural gas Emissions can be reduced but not eliminated Mitigation efforts deliver many co-benefits Climate Change Energy Air Quality Mine/Industrial Safety Water Quality Odor Control Global Anthropogenic Methane Emissions by Source (2005) Other Agriculture 7% Rice Cultivation 10% Enteric Fermentation 30% Biomass Combustion 3% Oil and Gas 18% Landfills 12% Coal Mining 6% Wastew ater Manure 9% Management 4% Fuel (stationary and mobile) 1% 6

7 Methane Mitigation Opportunities Source Landfills Coal Mines Gas/Oil Systems Key Technologies Methane recovery and combustion (i.e., power generation, industrial uses, flaring) Methane recovery and combustion, flaring, ventilation air use Use of low-bleed equipment, and better management practices Livestock Waste Methane collection from anaerobic digestors and combustion (power, flaring) Ruminant Livestock Improved production efficiency through better nutrition and management Rice Production Water management, organic supplements 7

8 TgCO2Eq Trends - Methane Other 400 Livestock Oil and Gas Coal 100 Landfills As of 2005, the C4 partnership programs have successfully reduced US emissions 11% below 1990 levels With continued efforts, emissions are expected to remain below 1990 level in spite of economic growth through

9 F-GG Background Intentionally manufactured and by-product emission sources FCs, PFCs, SF6, NF3, FEs FCs generally ODS substitutes PFCs, SF 6, NF 3, FEs generally used in other industrial applications Small number of by-product sources All potent GGs FCs, FEs short-lived PFCs, SF 6, NF 3 long-lived Small part of current [and future] US and global GG inventory ~ 2% Used in socially valued applications ODS substitutes: essential to CFC phase-out Other industrial uses: critical inputs to climate protection technologies No substitutes for some uses FCs in residential A/C SF 6 in igh voltage T&D equipment Nevertheless, significant reduction opportunities exist Avoid growth 9 9

10 ow Are F-GGs Emitted? Fluorinated F Gases Gases Other Industrial Sources Substitutes for Ozone-Depleting Substances Produced as Byproduct Emitted During during use Use Emitted Emitted During during Use & use Disposal Primary Aluminum Production Magnesium Production and & Casting Refrigeration & Air Conditioning Foam-Blowing Agents Manufacturing CFC-22 (ODS) Electronics Manufacturing Fire Suppression Cleaning Solvents Electric T & D Equipment Aerosols Metered-Dose Inhalers Other Uses Fumigants Nonessential Uses10 10

11 igh GWP Gas Mitigation Opportunities Source Aluminum Magnesium Electric Power Semiconductors FC-23 ODS Substitutes Key Technology Reduce frequency and duration of anode effects Improved process management, Alternative chemicals Improved gas handling, recycling, new equipment Improved process management, thermal destruction, alternative chemicals Improved process management, thermal destruction Improved gas management, alternative chemicals and processes, ban nonessential uses approaches and costs are highly dependent on end-use 11

12 Tg CO2-eq Trends FCs, PFCs and SF 6 Emissions istorical Projected ODS Substitutes (mainly FCs) Magnesium Prod. (SF 6 ) Electric Transmission (SF 6 ) Semiconductor Prod. (mainly PFCs) Aluminum Prod. (PFCs) CFC-22 Production (FC-23) Emissions from ODS substitutes have risen from nearly zero in 1990 to 123 MtCO2-eq today; rise will continue through 2030 as ODS phaseout continues. Emissions of FCs, PFCs, and SF6 from industrial sources have fallen by 55% since 1990, primarily due to EPA-industry partnership programs. 12

13 Current Policies and Measures to Reduce Emissions of Non-CO2 Gases in the US Public-private partnership programs target major sources Landfill Methane Outreach Program Coal Mine Methane Outreach Program Natural Gas STAR AgSTAR Voluntary Aluminum Industry Partnership (VAIP) Semiconductor Partnership Utility SF6 Partnership Magnesium Partnership FC-23 Reduction Partnership FCs in Mobile Air Conditioning ODS partnerships (GreenChill, RAD) Avoid igh GWP Gas emissions by stratospheric ozone regulation Refrigerants (no venting, mandatory recovery and recycling, leak-repair if exceed emission limits) ODS Substitutes SNAP Program (Ban or limit use where more environmentally friendly substitutes exist) Reduce methane emissions as a co-benefit of air quality regulation CAA New Source Performance Standards - Landfills and Oil and Gas Sector APs, VOCs 13

14 Offsets Performance Standard Approach EPA has applied a performance standard approach (Climate Leaders) The performance standard approach reduces complexity, cost and subjectivity Proposed projects are required to demonstrate that they are additional by achieving a level of performance that, with respect to emission reductions or removals, or technologies or practices, is significantly better than businessas usual Project developers are aware of the accounting rules in advance Methodologies prepared for specific set of project types Equations needed for estimating and calculating emissions and reductions/removals are provided Reduces the complexity, cost and subjectivity of constructing individual project-specific arguments and subsequent review In general, consistent with WRI/WBCSD GG Project Protocol, CCAR, RGGI Can be used for a variety of project types (sectors and geographic areas) Minimizes risk of accepting a project that is not additional or rejecting a project that is additional 14

15 Methane Offsets Measurable Additional Permanent Verifiable Ag - ruminants L M/ M/ L Ag manure mgmt M Coal mines -VAM -Drained gas -Abandoned M M Landfill M Oil & Gas M L/M L/M M (=high; M=medium; L=low) 15

16 F-GG Offsets Measurable Additional Permanent Verifiable Al M M Elect M M M M Mg CFC-22 M /M EPS M M M L (=high; M=medium; L=low) 16

17 Non-CO2 gas projects can be attractive offsets Many discrete types of non-co2 reduction projects are wellsuited as offset project types and have critical co-benefits. Mitigation technologies and mitigation practices exist form many source categories Certain project types can be demonstrated to be clearly additional above and beyond business as usual. For example, Ventilation air methane emitted from coal mine shafts Landfill gas to energy projects below a certain size Agriculture biogas recovery Real emissions reductions can be achieved at low cost Some sources are easily verifiable Established measuring and monitoring procedures 17

18 Thank you! For more information, please contact Paul Gunning Pamela Franklin 18