Standardized national/sectoral baselines

Manfred Stockmayer Managing Director Camco International

UNFCCC Technical Workshop on Joint Implementation Bonn, 16 October 2007

Agenda  Concept of standardized baselines   Applicability of standardized baselines Case study Bulgaria  Current issues  Thoughts for the future

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< Assets The Camco Group structure Camco is a leading carbon asset developer with one of the world’s largest carbon credit portfolios. We generate carbon credits by partnering with companies to identify, develop and manage projects that reduce greenhouse gas emissions.

Camco then arranges the sale and delivery of carbon credits to international compliance buyers and into the voluntary market.

< Consultancy The consulting practice combines specialist technical, strategic and financial expertise and experience accrued over two decades to deliver a sustainable low carbon society. We are uniquely positioned to work with clients, leveraging our collective experience to turn climate change liabilities into economic, social and environmental assets.

< Camco Ventures Camco Ventures provide the management infrastructure, financial structuring, business planning and technical support required to take each start up business from inception to commercialisation.

Camco offices:

Vienna, USA, UK, China, Russia, South Africa

Standardized national/sectoral baselines

ESD offices:

UK, Bulgaria, China, Kenya, South Africa, Tanzania

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Concept of standardized baselines  What are standardized baselines?

• Baselines for multiple projects in one sector  Why are they applied?

• • • • Reduction of transaction costs Increased transparency Better predictability of emission reductions Faster preparation of PDDs  Who benefits from standardized baselines?

• All stakeholders

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Potential sectors for standardized baseline studies  Grid-based electricity generation (renewables and fossil fuels)  Industrial energy efficiency  Transport  Demand side energy efficiency  Landfill gas (methane component)

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Why are they not applied more often?

 Who prepares standardized baseline, who pays?

  No methodologies in early JI No priority in countries  Not applicable for certain sectors  Russia late in the JI process  Linking directive is limiting potential in target sectors

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Guidance from JISC Guidance on Criteria for Baseline Setting and Monitoring

18. A baseline shall be established on a project-specific basis and/or using a multi-project emission factor 19. A multi-project emission factor may be used and its application shall be justified. Sector-wide baselines may e.g. be used if: (a) The physical characteristics of the sector justify the application of a standard emission factor across the sector; and/or (b) The emissions intensity does not vary significantly across the sector.

Source: JISC, Guidance on Criteria for Baseline Setting and Monitoring

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The first standardized baseline studies...

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Belarus Bulgaria Croatia Czech Republic Estonia Hungary Latvia Poland Romania Russia Slovakia Slovenia Ukraine Table B1 504 904 634 774 824 638 362 819 677 554 613 776 815

Baseline carbon emission factors for JI projects generating electricity (in gCO 2 /kWh)

500 886 625 760 809 629 362 804 667 548 604 763 800 495 868 616 747 794 620 363 789 657 542 596 749 785 491 850 607 733 779 611 363 774 646 536 588 735 770 486 832 598 720 763 602 363 759 636 529 580 722 755 482 814 589 706 748 592 363 744 626 523 572 708 740 477 797 580 693 733 583 363 729 615 517 563 695 725 472 779 571 679 718 574 363 714 605 511 555 681 710 468 761 563 665 703 565 364 699 595 504 547 667 695 463 743 554 652 687 556 364 684 584 498 539 654 680 459 725 545 638 672 547 364 669 574 492 531 640 666 454 707 536 625 657 538 364 653 564 486 523 626 651 450 689 527 611 642 529 364 638 553 479 514 613 636 Source: ERUPT, May 2004

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Case Study: Bulgaria  Study by NEK on Carbon Emission Factors for electricity sector   Based on CDM ACM0002, with BM/OM share of 50:50 Dispatch data analysis basis for calculations  More realistic data than ERUPT figures  Baseline approved by Bulgarian Ministry of Environment and Waters 2008 ERUPT 0.761

NEK 1.006

2009 0.743

0.888

2010 0.725

0.850

2011 0.707

0.834

2012 0.689

0.791

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Issues with standardized baseline studies  Who initiates and pays for preparation?

  Who supports data collection for monitoring?

No approval process for standardized approaches  Can we rely on precedents?

 How easy to refer to precedents?

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Where could we use them?

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Some thoughts for the future...

 Support from DFPs for development of standardized baselines  Cooperation between DFPs and AIEs on standardized baselines („pre-validation“?)  Guidance for project developers from AIEs on reference to standardized baselines  No additional procedure necessary, BUT stick to JISC rules...

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Thank you for your attention

Manfred Stockmayer [email protected]

www.camcoglobal.com

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