Transcript Slide 1

Carbon Financing in the Residential Sector
Latin American Carbon Forum
Alberto Carrillo Pineda
San José, Costa Rica
28 September, 2011
All data in this presentation is drawn from public or commercial sources; no client-proprietary data has been used. The analyses and conclusions contained in this document are based on various assumptions that Carbonding has developed which may or may not be
correct, being based upon factors and events subject to uncertainty. Future results or values could be materially different from any forecast or estimates contained in the analyses. The analyses are partly based on commercially-sourced information that has not been
generated by Carbonding and has not, therefore, been entirely subject to independent verification. Carbonding believes such i nformation to be reliable and adequately comprehensive but does not represent that such information is in all respects accurate or complete.
Objective and Contents
Objective
Contents
• To discuss the potential of
CDM to finance and
facilitate the adoption of
“third-generation” lowcarbon measures in the
residential sector in Latin
America.
• To present one case study
of “third-generation”
Program of Activities
under development in the
region.
Setting the Context
Case study: Demand-Side Water
Efficiency and Carbon Finance
environmental market solutions
Objective and Contents
Objective
Contents
• To discuss the potential of
CDM to finance and
facilitate the adoption of
“third-generation” lowcarbon measures in the
residential sector in Latin
America.
• To present one case study
of “third-generation”
Program of Activities
under development in the
region.
Setting the Context
Case study: Demand-Side Water
Efficiency and Carbon Finance
environmental market solutions
Three mega-trends shaping the climate in the region
Increasing GHG Emissions
•
•
•
Cities represent between 40 and 80% of the global greenhouse gas emissions. (ICLEI, 2010)
According to the International Energy Agency cities accounted for 67% of the world primary
energy demand and more than 70% of global CO2 emissions in 2006.
Continued urbanization and economic growth is expected to increase the GHG emissions
associated with cities.
Urbanization
• LA is the region with the
highest urban population
concentration in the
developing world. (IAI, 2007)
• By 2030, about 83% of
the population in LA will
be living in cities. (IAI, 2007)
• Cities (and especially
capital cities) concentrate
a large share of the GDP
in the region.
Increasing GHG
Emissions
Vulnerability
• The high (uncontrolled)
urban growth has
considerably increased the
vulnerability to natural
disasters of a large share of
the population in the region.
• Climate change is likely to
increase many of the
already existing urban
stresses (i.e. heat islands,
insufficient sanitation /
water supply, inadequate
housing, etc.).
environmental market solutions
Need to design and implement carbon-finance instruments
that respond to these mega-trends
1st Generation
Carbon
Initiatives
2nd Generation
Carbon
Initiatives
3rd Generation
Carbon
Initiatives
Key Elements
Type of Projects
• Strong focus on
• Landfills
• LFG (several
• WWTP (not Industrial)
throughout the region)
projects that reduce
emissions from urban
infrastructure (supply
side).
• Some co-benefits
addressing urban
issues.
• Projects that reduce
emissions changing
energy consumption
patterns (demand-side)
• Typically
disaggregated project
activities
• Energy consumption
• BRT
• Demand-Side Energy
Efficiency
• Demand-side water
patterns and/or urban
efficiency
infrastructure (demand • Sustainable Housing
side)
• Mitigation + Adaptation
Co-benefits
Examples
• BRT(Transmilenio,
Medellin, Mexico City,
Guatemala)
• Solar Water Heaters
(Peru, Chile), Efficient
appliances (Mexico,
Brazil)
• Green Mortgage /
Subsidy (Mexico)
• Water & Energy
Efficiency PoA
(Mexico)
environmental market solutions
Objective and Contents
Objective
Contents
• To discuss the potential of
CDM to finance and
facilitate the adoption of
“third-generation” lowcarbon measures in the
residential sector in Latin
America.
• To present one case study
of “third-generation”
Program of Activities
under development in the
region.
Setting the Context
Case study: Demand-Side
Water Efficiency and Carbon
Finance
environmental market solutions
Case study: Demand-Side Water Efficiency and Carbon
Finance
Water Marginal Cost Curve
Water Demand Scenario
Cost
Efficient
Water
Fixtures
Water
Availability
CO2 Marginal Abatement Curve
Household Hot-Water Efficiency
CO2
H 2O
0.5 – 1 tCO2
/ yr
Cost
30 – 50%
Efficient Water
Fixtures
environmental market solutions
Case study: Demand-Side Water Efficiency and Carbon
Finance
Mitigation Potential for the largest cities in the region
6,000,000
1.2
• AMS-II.M “Demand-side
5,000,000
1
4,000,000
0.8
3,000,000
0.6
2,000,000
0.4
1,000,000
0.2
energy efficiency
activities for installation
of low-flow hot water
savings devices”
Gold Standard
• Indicative Program,
Baseline and Monitoring
Methodology for LargeScale Supply and
Distribution of Efficient
Light Bulb, Showerheads
and Water Saving
Products to Households
tCO2 / yr
Clean Development
Mechanism
0
tCO2 / household / yr
Methodologies
0
environmental market solutions
Case study: Demand-Side Water Efficiency and Carbon
Finance
Financial profile for a 100,000 household project
Who gets
gets the
the waterwater
Who
benefits?
saving
benefits?
Low
volume
High
volume
Very low
income
Low
income
Middle
income
High
income
Household
Government
environmental market solutions
Case study: Demand-Side Water Efficiency and Carbon
Finance
Sustainability co-benefits
Environmental
• Reductions of GHG emissions
and water-consumption
• Reduction in local air pollution
and generation of wastewater
Social / Economic
• Significant savings for
households and governments
(or water utilities)
• Economic way to address
water stress issues
Challenges / Barriers
Cultural
• Water perceived as a free,
infinite resource
Regulatory
• Post 2012-deadline
Economic
• Difficult to realize the watersaving benefits benefits for
investors
• Unusual project for
traditional financing
environmental market solutions
Thanks for your attention!
Contact Information
Alberto Carrillo Pineda
Managing Partner
[email protected]
We are looking for
partners!
Carbonding Climate Community
S. de R. L. de C.V.
Tel. +52 55 8421 7749
www.carbonding.com
environmental market solutions