in the name of god Interaction between Energy and Environment and Policies to Facilitate Transition to Low Carbon Fuels Prepared by: Mandana Maghsoodi Darbeh Climate Change Expert, Department of the Environment, Islamic Republic of Iran. 13-14 May 2009 5/25/2009 www.climate-change.ir 1
Presentation Overview Challenges about climate change in Iran Examples of the main approach pursued by Iran to address climate change Energy sector in Iran Energy sector and it's share in GDP Trend of primary energy production, domestic consumption and import and export Final energy consumption Energy intensity Energy demand projection and trend of greenhouse gases emission Primary energy resources 5/25/2009 www.climate-change.ir 2
Presentation Overview Opportunity for low carbon energy resources Barriers on transition to low carbon energy supply systems Country practice on low carbon supply systems 5/25/2009 www.climate-change.ir 3
Challenges High level CO2 emissions High energy consumption that we are managing it Vulnerability in Iran that are one of the most vulnerable countries in the world because as were mentioned in article 4 paragraph 8 of Climate Change Convention we have low-lying coastal, areas prone to natural disaster, areas liable to drought and desertification, areas of high urban atmospheric pollution and our economies are highly dependent on consumption of fossil fuels and associated energy intensive products 5/25/2009 www.climate-change.ir 4
Examples of the main approach pursued by Iran to address climate change We have Climate Change Committee in Department of Environment This committee prepared a Rules of procedure that it ratified in our parliament and panel of our government should communiqué this to our ministries. This rules of procedure includes executive articles about adaptation, mitigation in Iran. We have Climate Change affair that prepared first national communication and second of it is under the last editions. 5/25/2009 www.climate-change.ir 5
16000 Energy sector in Iran: Energy sector and its share in GDP 14000 12000 Services 10000 8000 6000 4000 Water, Electricity and Gas Mining Construction Manufacturing O il 2000 Agriculture 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 GDP Growth by Sector(bn. Rial- constamt price 1997) 5/25/2009 www.climate-change.ir 6
Energy sector in Iran: Energy balance in 2007 Final consumption 39% O thers 0% Export 48% Consumed by energy industry 4% Losses 9% 5/25/2009 www.climate-change.ir 7
Energy sector in Iran: Petroleum products consumption by sector (MBOE-1997-2007) 450Res./Com. Buildings Industry Transport Agriculture Pow er Plants Refineries 400 350 300 250 200 150 100 50 0 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 5/25/2009 www.climate-change.ir 8
Energy sector in Iran: Contribution of different sectors to total CO2 Eq. emissions in 2007 (%). Source: Initial National Communication Forest 8% Agri cul ture 7% W aste 2% ` Industry 6% Energy 77% 5/25/2009 www.climate-change.ir 9
Energy sector in Iran: Trend of CO2 emissions by sector (fuel combustion-ktons) 5/25/2009 www.climate-change.ir 10
1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 350000 Energy sector in Iran: Trend of CO2 emissions by fuel type (Fuel combustion-ktons) Petroleum Products Natural Gas Solid Fuel 300000 250000 200000 150000 100000 50000 0 5/25/2009 www.climate-change.ir 11
20 Energy sector in Iran: Trend of CO2 emission per capita (tons/capita) and per GDP (tons/mn. Rial-constant price 1997 ) per capita per GDP 18 16 14 12 10 8 6 4 2 0 1970 1975 1980 1985 1990 1995 2000 5/25/2009 www.climate-change.ir 12
Energy sector in Iran: Energy intensity of GDP (BOE/Mn. Rial - at constant price of 1997) 56 52 48 44 40 36 32 28 24 20 16 Primary Energy Final Energy 12 5/25/2009 1970 1975 www.climate-change.ir 1980 1985 1990 1995 2000 13
Opportunity for low carbon energy resources: Natural Gas: Proved natural gas reserve by the end of 2003 is 26.75 trillion cubic meters Hydro: The total theoretical potential for hydro power generation is 40,000 MW which 3000 MW is operational, 7000 MW is under construction phase and 15000MW under study. Wind: The total potential for wind energy is about 6500 MW. In 2002, 31.6 GWh electricity was produced by wind powers in Iran and 2 wind farm with total capacity of 90 MW is under construction. 5/25/2009 www.climate-change.ir 14
Opportunity for low carbon energy resources: Solar: The average daily solar radiation in Iran is about 4KWh/M^2 and average annual sunny hours is more than 2800 hours. Nowadays, 1050 household is using solar systems for heating and 3 photo-voltaic systems is operational with 45, 30 and 5 KW capacity. Geothermal: The potential for geothermal energy in Iran is about 60,000 PJ. Ministry of Energy has already started the installation of 100 MW geothermal steam power plant in Khoy region of the country. 5/25/2009 www.climate-change.ir 15
Opportunity for low carbon energy resources: Nuclear Energy: Proved uranium reserves in Iran by the end of 2002 is about 3,400 Ton and current capacity for Uranium Oxide production (yellow cake) is about 50 Ton/yr. For diversification in energy mix, the energy council has decided to produced 10-20% of total electricity by nuclear power plants (7000 MW) by the end of 2010. 5/25/2009 www.climate-change.ir 16
Opportunity for low carbon energy resources: NGV master plan Promoting CNG use in transport: By the end of 2020, 70% of total fleet population will be used CNG(10,000,000 vehicles) 5/25/2009 www.climate-change.ir 17
Opportunity for low carbon energy resources: NGV master plan 5/25/2009 www.climate-change.ir 18
Removal Barriers on Transition to Lower Carbon Energy Systems Creating Financial incentives Rationalization of fuel price Carbon tax and environmental penalties Subsidy for low carbon fuels Financial aid for clean and low carbon energy supply systems 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Domestic Sales Subsidies Gasoline Kerosene Diesel Oil Heavy Oil Total The Volume of the Subsides Paid for Petroleum Products in 1381 5/25/2009 www.climate-change.ir According to the Persian Gulf FO B Price 19
Removal Barriers on Transition to Lower Carbon Energy Systems Rules and regulations (national level) Setting tariffs for old technology import Facilitate rules and regulation on low carbon and efficient energy technology import 5/25/2009 www.climate-change.ir 20
Removal Barriers on Transition to Lower Carbon Energy Systems Removing barriers on transfer of technology Removing barriers on high-tech. transferring to developing countries in Removing political barriers to transfer of nuclear fuel technology to developing countries Strengthen the international mechanism for clean, low carbon and energy efficient supply systems under environmental agreements like that UNFCCC Convention and Kyoto Protocol. Objective guarantee for execution of UNFCCC/KP commitments for Annex I countries on transfer of technology( articles 4.5 Conventions) 5/25/2009 www.climate-change.ir 21