Combatting climate change by incentivizing the transformation of the nitric acid sector (NACAG)

Transcription

1 Combatting climate change by incentivizing the transformation of the nitric acid sector (NACAG) Presentation at German Pavilion Volker Schmidt, GIZ I4C Barcelona May /6/2017 Nitric Acid Climate Action Group - NACAG Seite 1

2 Nitric Acid Climate Action Group (NACAG) - Rationale Climate change is huge global challenge with Paris targets: Keep global warming well below 2 C above preindustrial level, efforts to stay below 1.5 C Difficult / expensive mitigation potentials (e.g. decarbonisation of energy sector) but also low(er) hanging fruit technically relatively easy at moderate cost. (e.g. N 2 O from HNO 3 production) Huge mitigation potential in Nitric Acid Sector (technical abatement up to 98%, app. 600 production facilities, reduction potential estimated at 300 million tons CO 2eq until 2020 and around 1 billion until 2030 (in developing countries and economies in transition million tons CO 2eq /year (app. 160 million tons CO 2eq until 2020) Wide coverage under CDM/JI, however, financial incentives currently not sufficient (existing stopped, no new being developed) World cannot afford to continue emissions that can be avoided with moderate effort Decision to address N 2 O from nitric acid Seite 2

3 Nitric Acid Climate Action Group (NACAG) - OVERVIEW Global Initiative open to Partners and Participants dedicated to transforming the nitric acid production sector and phasing-out related N 2 O emissions on a global level Vision: Equip all nitric acid plants worldwide with effective N 2 O abatement technology and sustaining permanent future operation Offer: Technical and financial support for implementation of effective abatement activities and establishing structures for sustainable maintenance of these Quality Assurance and Integrity: NACAG is making use of well proven and established structures of the CDM in order to maintain high standards in regard to monitoring and reporting (exceptional use of VCS) Innovative Approach: Utilising climate finance for supporting pre-2020 mitigation efforts and encouraging the regulation of the sector in partner countries post NACAG s goal is for N 2 O abatement to become part of all countries Nationally Determined Contributions (NDCs) under the UNFCCC s Paris Agreement after Seite 3

4 Nitric Acid Climate Action Group (NACAG) global overview on nitric acid production facilities Total number of nitric acid plants worldwide: app. 580 Countries in which Nitric Acid N 2 O Abatement Activities have been implemented under the CDM (19 countries, 130 Nitric Acid Plants, 97 reg. CDM Projects) Other Countries with Nitric Acid Production Facilities (app. 320 plants); N 2 O Abatement Technology implemented only in some plants Countries where N 2 O abatement is covered under EU-ETS (app. 130 plants) Seite 4

5 Overview of Non-Annex I countries with relevant N 2 O abatement activities 97 registered CDM in 19 countries exist MENA Region Europe & Central Asia Asia & Pacific Algeria: 2 reg. Egypt: 4 reg. Israel: 4 reg. Iran: 1 reg. project Syria: 1 reg. project Bosnia and Herzegovina: 1 reg. project Uzbekistan: 6 reg. China: 44 reg. / 1 at validation India: 8 reg. Indonesia: 2 reg. Central & South America Mexico: 2 reg. Colombia: 2 reg. Pakistan: 2 reg. Philippines: 1 reg. project South Korea: 4 reg. project Brazil: 4 reg. Chile: 3 reg. Legend Countries with reg. CDM (19) Countries without CDM, but nitric acid production: Bolivia, Costa Rica, Cuba, Iraq, Jordan, Georgia, Kazakhstan, Malaysia, North Korea, Peru, Saudi Arabia, Serbia, Singapore, Trinidad and Tobago, Tunisia, Turkmenistan, Thailand, Vietnam, Zambia Africa (Sub-Sahara) South Africa: 5 reg. Zimbabwe: 1 reg. Source: Analysis based on UNEP DTU CDM/JI Pipeline Analysis and Database, 1 st Jan Seite 5

6 Nitric Acid Climate Action Group STRUCTURE NACAG BMUB Secretariat + Financing Scheme Other Parties/ Partners (Governments, Companies, Organisations, etc.) as Donors, Implementers, Supporters Capacity Development - National Governments - Nitric Acid Plant Operators and Project Owners Financial Support Nitric Acid Plant Operators and Project Owners Countries in need of Financial Support Definition of eligibility criteria (i.a. eligibility for ODA) Seite 6

7 Capacity Development support offered by NACAG Government and Policy Technical support for plant and project owners Capacity building on individual level Support related to technical aspects of N 2 O abatement, MRV etc. Support for integration of abatement activities into national policies (e.g. inclusion in NDCs, national emission trading, etc.) Support for implementation of abatement technology (feasibility, due diligence, choice of abatement and monitoring technology, etc.) Support for implementation of CDM project (PIN, PDD, Monitoring, Validation, Verifications, etc.) by experienced experts Training and hands on support, knowledge sharing and international know how transfer Picture(s): Seite 7

8 Financial support offered by NACAG Government Plant and project owners Countries in need of Financial Support (e.g. ODA) NACAG countries need to commit to taking over responsibility for the sustained continuation of the abatement activities after 2020 (e.g. via MoU or NDC) Financing (grant) agreements will be offered to Nitric Acid Plant Operators (eligibility criteria apply) in countries taking on post-2020 commitment, covering all costs of the activity as follows: Investment costs for N 2 O Abatement Technology (incl. installation) Monitoring Equipment (incl. installation) Labour costs (e.g. monitoring, maintenance, project management) CDM related registration and issuance fees Picture(s): Seite 8

9 Thank You! Contact: Website: Seite 9