Monali Ranade Financial & Technical solutions for Sustainable cities June 9, 2010
Role of cities is evolving and responsibilities increasing Municipal government agenda expands as city grows Municipal budgets are constant or declining Variance between legally mandated and de facto responsibilities Limited support from central government
GHG emissions in Cities Transport Traffic management systems Transportation of Waste Biogas-toenergy Waste Emission source: (+) Transport (+) Solid Waste (+) Energy usage (+) Water Pedestrian comfort Energy Sludge treatment Emission sink: (-) Urban Forestry Heat island effect Efficient water pumping Urban Forestry Grey water reuse Water Mathematically, it should be possible for a city to be carbon neutral by creating sufficient green areas
* Under CDM Options for cities to access carbon finance* City A City B City C Transport water Transport water Transport Waste Waste Waste Option 1: Stand-alone project in one large city [e.g., Bus Rapid Transit (BRT) project] Option 2: Bundle of two or more projects in one city or across multiple cities (e.g., EE in water pumping) Options 3: PoA across many cities (e.g., CAIXA Solid waste PoA )
City-wide approach to carbon finance* Enabling cities to improve urban services while reducing GHG emissions Characteristics of an urban program a. City Authority responsible for Aggregation of GHG reductions Implementation Monitoring and verification b. Baseline includes the urban area, current and projected growth c. Technology and policy interventions identified in each sector d. Strengthens on-going programs e. Implementation through publicprivate partnerships, sub-contracts, ESCOs, etc Water CPA 7 CPA 8.. Waste CPA 3 CPA 4.. Energy CPA 5 CPA 6.. Transport CPA 1 CPA 2.. Urban Forestry CPA 9, CPA 10 * This approach will be submitted to the CDM EB in June 2010
City-wide approach to carbon finance Program Coordinator (CME) Mayor / City Manager Municipal Departments (Multiple Sectors) Water Energy Waste Transport Urban Forestry Example of Projects (CPA) Water supply Building EE Street-light Composting Landfill Gas Public transport Low-carbon vehicles Parks
Creating city-wide programs 1 2 3 4 5 6 7 8 9 10 Establish a coordination office for the program Establish the geographical and sector boundary for the program Create an inventory of GHG emissions in the boundary Identify responsible departments and agencies Create appropriate incentives for relevant stakeholders (suggestion) Identify interventions and establish program eligibility Establish system for documentation and quality control Implement and monitor the interventions Quantify emission reductions: measure or estimate Validate or verify ER benefit
Building a GHG inventory ENERGY a) Stationary Combustion Electricity (incl. T&D losses) District energy and CHP Energy from waste Commercial & Institutional Residential Manufacturing Industries & Construction Other b) Mobile Combustion Road transportation: LDVs Road transportation: trucks Railways Domestic aviation International aviation Domestic marine International marine Other c) Fugitive Sources INDUSTRIAL PROCESSES Mineral industry Chemical industry Metal industry Electronics industry Other Solvent and product use AFOLU WASTE Solid waste disposal on land Wastewater handling Waste incineration Gases included: CO 2, CH 4, N 2 O, HFCs, PFCs, SF 6
How can we calculate ERs? There are many calculation options for city to choose from: By Activity: approved CDM Methodologies (to generate CERs) By geographical area: City-level transport assessment By sector: Integrated waste management tools
By Activity: Example Street-lighting Key data requirements (CDM Methodology: AMS II.C) Identification of streets covered under the project Detailed information on baseline light fittings: Number, type, wattage, lumen Mode and hours of operation of the street-lights Manufacturer data on new light fittings: Number, type, wattage, lumen Sample metering of light switching points to monitor hours of operation Sample random survey of lights
By geographic area: Transport in a city Vehicle Inventory Fuel Efficiency Activity Level Calculations can also be based on individual CDM methodologies AMS III.C, AMS III.S, AMS III.T, AM0031, ACM0016
By Sector: waste management AMS III.H Methane recovery in wastewater treatment (WWT) AMS III.I Avoidance of CH 4 production in WWT through replacement of anaerobic lagoons by aerobic systems ACM0014 Mitigation of GHG Emissions from Treatment of Industrial Wastewater AMS III.E Avoidance of CH 4 production from decay of biomass through controlled combustion AMS III.F Avoidance of CH 4 production from decay of biomass through composting ACM0010 Consolidated methodology for GHG emission reductions from manure management systems. Wastewater Solid Waste Manure AMS III.D CH 4 recovery in agriculture and agro-industrial activities AMS III.G Landfill gas (LFG) Capture & Flaring Landfill Gas (LFG) Flaring
Unit Tons of CO2e (Cumulative) Illustration of GHG mitigation impact GHG Emission Reductions Baseline Energy + Waste + Transport sectors Year 1 10 Assumptions: 10% Annual growth of emissions in the Business As Usual (BAU) scenario Project and policy interventions included for each sector Implementation start date and length varies for project interventions in the 10 year period Emissions and emission reductions are cumulative + Cost savings + Public health/safety + Aesthetic value + Benefit to natural environment
What to do with the Emission Reductions? Once we have a program in place, with carbon credits being generated, monitored and Verified. Tons of CO 2e CER ER VER Carbon Funds Kyoto buyers National govt. Private sector Carbon neutral events and tourism Future markets
THANK YOU!! The Urban Carbon Team: Monali, Hari and Alexandrina (Energy), Rama (Forestry), Holly and Nat (Transport), Claudia and Julie (water & waste), Dan Hoornweg (Urban) and Neeraj Prasad (CFU) For more information Visit: http://carbonfinance.org