Applying CDM to CBM/CMM Projects Beijing, China, October 2010 Soon Chan Hong, Associate Programme Officer UNFCCC secretariat, SDM
Outline of the Presentation o Kyoto Protocol o CDM Project Activity Cycle o CDM Status o Methodology for CBM/CMM Project Activity o Issues raised during Registration and Issuance o Methodology priorities in CBM/CMM projects
The Kyoto Protocol GHG Emissions A New Commodity Kyoto Protocol An international agreement linked to the United Nations Framework Convention on Climate Change. It sets binding targets for 37 industrialized countries and the European community for reducing greenhouse gas (GHG) emissions. Amount to an average of five per cent against 1990 levels over the five-year period 2008-2012.
The Kyoto Protocol Three market-based mechanisms Emissions Trading Clean Development Mechanism Joint Implementation System with GHG emission caps Project-based mechanisms International emissions trading (Article 17) Clean Development Mechanism (CDM) (Article 12) Emission reduction projects in developing countries Joint Implementation (Article 6) Emission reduction projects in any country with a commitment under the Kyoto Protocol
The Kyoto Protocol Clean Development Mechanism (Article 12) Emission reduction projects in developing countries CDM assists countries to achieve sustainable development goals, creates incentive for investment, provides additional support for adaptation CDM projects produce certified emission reductions (CERs) CERs are saleable/tradable units that can be used for compliance with KP targets
CDM Project Activity Cycle Issuance of CERs Project design requirements Verification/ Certification requirements Monitoring requirements Validation/ Registration requirements https://cdm.unfccc.int/projects/pac/index.html
CDM Current status 2,419 registered projects in 69 countries >4,200 projects in pipeline 441 million CERs issued to date >2.9 billion certified emission reductions expected to the end of 2012 Status: 08 October 2010
CDM Current status CBM/CMM CDM Project Activities First CBM/CMM project activities registered in February 2007 28 registered CBM/CMM projects activities All from China >70 CBM/CMM project activities in pipeline (mainly from China) >14 million CERs/year expected to be issued from 28 registered project activities > 3 million CERs already issued
Methodology for CBM/CMM Project Activity ACM0008 Consolidated methodology for coal bed methane, coal mine methane and ventilation air methane capture and use for power (electrical or motive) and heat and/or destruction through flaring or flameless oxidation Applicability: CBM, CMM & VAM capture and use for power (electrical or motive) and heat and/or destruction through flaring or flameless oxidation. Extraction activities involved: Surface drainage wells to capture CBM Underground boreholes to capture pre mining CMM Surface goaf wells, underground boreholes, gas drainage to capture post mining CMM Ventilation air methane (VAM) that would normally be vented
Methodology for CBM/CMM Project Activity The captured methane is destroyed through: Flaring Flameless Oxidation Production of electricity, motive power and/or thermal energy Dilution and venting of the remaining share of methane ** All the CBM or CMM captured by the project should either be used or destroyed, and cannot be vented. Methodology does not apply for: Abandoned/decommissioned coalmines Capture/or use of virgin CBM (CH 4 extracted independent of mining activities) Use of CO 2 or any other fluid to enhance CBM drainage It should be demonstrated that the ERs are additional to what would have happened in absence of the project activity.
Methodology for CBM/CMM Project Activity Emission Reductions calculation Emission Reductions = Baseline Emissions Project Emissions Leakage Baseline Emissions Emissions from methane destroyed in the baseline scenario Emissions from release into the atmosphere in the baseline scenario Emissions from energy production in the baseline scenario Project Emissions Emissions from energy use by the project activity Emissions from methane destroyed by the project activity Emissions from un-combusted methane from the project activity Leakage Emissions due to displacement of other baseline thermal energy uses Emissions due to other uncertainties https://cdm.unfccc.int/methodologies/pamethodologies/approved.html?searchon=1&searchmode=advanced
Issues raised during Registration and Issuance Issues raised during Request for Registration of the Project activities Input values validation- Invest and O&M costs, tariff (electricity & heat), PLF and CMM price Methane concentrations and policy clarifications Monitoring of the pre-mining and post-mining CMM Clarifications on the applicable Government subsidies and tax exemptions Elimination of the baseline scenario alternatives Baseline thermal energy demand- heat and cooling demands, heat tariff and boiler Determination of baseline scenario
Issues raised during Registration and Issuance Issues raised during Request for Issuance of CERs Baseline CMM/CBM utilization Double counting in case the CMM/CBM shared by multiple project activities Monitoring of pre-mining CMM and post-mining CMM
Methodology priorities in CBM/CMM projects Safety in coalmine operations and management From the Project Design Documents, it is noted that developing countries have set the safety standards but most of them are on trial i.e. in China (30% CH 4 concentration vent or flare) i. No clear enforcement mechanisms ii. No guidelines on implementation Energy production- Electrical, motive, and thermal Monitoring - 100% of all data to be monitored * The secretariat is working continuously with the stakeholders to simplify the methodology as evidenced in the above revisions * PP/DOE clarifications have in the past been helpful in effecting the revisions
Perspectives on CCS in the UNFCCC process FURTHER INFORMATION: http://cdm.unfccc.int/ THANK YOU Soon Chan Hong Associate Programme Officer Project and Entity Assessment Unit