Transcript Climate change: priorities at global and EU level

Perspective of JI
in Hungary
József Feiler
Climate Change Unit
JI in Hungary
1. Experiences with JI projects
2. Criteria for project approval
3. Potentials
4. Status for Track 1
Experiences with JI projects
Recent JI statistics:
• 36 Project Idea Notes received until now
• 27 Letters of Endorsement / Letters of no
Objection issued
• 14 Letters of Approval issued
Experiences with JI projects
JI projects in Hungary
MtCO2e
16
Other
14
12
N2O red. in
acid plant
10
Wind
8
Landfill gas
6
Biogas plant
4
Fuel switch
to biomass
2
0
Submitted
Endorsed
Approved
Appr., impl.
Experiences with JI projects
Summary table – number of
projects
Project partner (country)
Projects
endorsed
Projects
approved
ERUPT (The Netherlands)
Austrian Government
10
10
5
4
PCF (World Bank)
Other
1
6
1
4
27
14
Total:
Criteria for project approval
Additonality:
1. Environmental additionality: the project results in emission
reductions compared to BAU scenario
2. Financial additionality: the project would not have taken
place without the additional financial resources provided by
carbon financing
3. Legal additionality: the investment is not required by law
4. No LoE for already running projects
5. No LoE for projects receiving other forms of investment aid
Potentials
Types of projects NOT endorsed:
• Fuel switching to gas no longer supported due to lack of
financial additionality
• Biomass potential from wood waste from forests already
exhausted by 5 relatively large biomass JI projects
• Large hydro projects not supported by current government
due to environmental considerations (> 5 MW)
• Effect of EU ETS and linking on power sector and some
district heating installations
Potentials
Types of projects currently endorsed:
•
•
•
•
•
•
•
•
Landfill gas utilisation in deposits to be closed before 2009
Wind projects with energy storage
Biomass + sink together (no projects to date)
Geothermal and solar power (no projects to date)
Methane capture in agriculture
Demand-side energy saving projects (no projects to date)
Off-grid solar power and wind power (no projects to date)
Sink projects – forestation (no projects to date)
So far, most projects have been renewables
Potentials
Types of projects MAYBE endorsed:
• Wind power
 a question of system operation
 financial additionality depends on new feed-in tariff
regulations for renewables – feed-in tariff of
23 HUF/kWh (9,2 Eurocent/kWh)
• Biogas Plants
Status for track 1
National System
NS in Hungary currently:
•
•
•
•
•
No responsible body for inventory preparation by law
No QA/QC yet
No uncertainty management
Basic management system
A staff of 1,5 persons
• Upgrade of the system is likely in early 2006
AA amount
• EU deadline 15th June 2006, UNFCCC deadline 31st of December
2006
• Hungary is likely to meet both deadlines
National Registry
• UK registry currently for EU ETS
Obstacles – Linking directive
Direct double counting: Art 11b (3): “Until 31 December 2012, for JI and CDM
project activities which reduce or limit directly the emissions of an installation
falling within the scope of this Directive, ERUs and CERs may be issued only if an
equal number of allowances is cancelled by the operator of that installation.”
The future of JI with direct linkage to the EU ETS sector
depends on mode of allocation and the difference between
the price of EUAs and ERUs.
Indirect double counting: Art 11b (4): Until 31 December 2012, for JI and CDM
project activities which reduce or limit indirectly the emission level of
installations falling within the scope of this Directive, ERUs and CERs may be
issued only if an equal number of allowances is cancelled from the national registry of
the Member State of the ERUs’ or CERs’ origin.
The future of JI with indirect linkage to the EU ETS sector
depends on political feasibility of including more projects
and reducing number of allowances elsewhere within the
total amount.
Scenarios for double counting...
120 000
110 000
100 000
ktCO2
90 000
80 000
Total (with LUCF removals) NEW
70 000
Total (without LUCF) NEW
Kyoto target
Kyoto target - ERUs (kérvényezett)
60 000
Kyoto target - ERUs (LoA, akt.)
Kyoto target - ERUs (kérv.) x 2
50 000
40 000
1985
Kyoto target - ERUs (LoA, akt.) x 2
1990
1995
2000
2005
2010
2015
2020
Thank you for your attention!
József Feiler, Hungary
[email protected]