Study on standardised baselines as an option to enhance CDM

Perspectives successfully completed the first phase of a study commissioned by the Department for International Development (DFID), UK, on the use of standardised baselines as a means for improving the CDM. Based on the present status of the CDM, and the extent to which standardised baselines has so far been used under the CDM, the study takes a look at how an increased use of standardised baselines could add efficiency and effectiveness to the CDM. The study explores in particular key issues related to the desing of standardised baselines and their particular implementation. It further analyses the expected impact of a greater use of standardised baselines under the CDM. In a second phase the study is to develop case studies on the use of a CDM based standardised baselines for selected sectors. The final report is to be published in May 2010. The interim report on phase I can be downloaded [here]. The summary for policy makers is also available [here].

 

New issue of "CDM Highlights" published

A new issue of the GTZ newsletter "CDM Highlights" was published recently. The newsletter, which is co-edited by Perspectives Climate Change,  provides carbon market news for the development community with a focus on the CDM and is published by the GTZ Climate Protection Programme on behalf of BMZ. The recent issue is available at: http://www.gtz.de/de/themen/umwelt-infrastruktur/umweltpolitik/14317.htm

 

Invitation to CDM-stakeholders to comment on draft rules & procedures for the DNA of Saudi Arabia

In June 2009, the Kingdom of Saudi Arabia fromally established its DNA by a High Royal Decree, and has provided UNFCCC with notification of the same. Perspectives as been engaged to support the Kingdom in developing the rules and procedures for the DNA. As the Kingdom of Saudi Arabia wishes to obtain additional feedback from external experts on the same, Perspectives invites all CDM stakeholders with relevant experience to provide comments and feedback on the DNA's draft rules. If you are interested in doing so by mid-November 2009, please contact Sonja Butzengeiger at butzengeiger(at)perspectives.cc

 

One more CDM project registered without request for review

The waste water treatmet project "AANE Belitung biogas recovery from Palm Oil Mill Effluent (POME) ponds and biogas flaring/ utilisation" in Indonesia was registered by the UNFCCC as project # 2612 on 11th October 2009 - only about a year after the work on the PDD commenced. Sonja Butzengeiger, Managing Director Germany and project coordinator: "The project had a challenging start in September 2008 as the more advantageous version 9 of AMS III.H was expiring in October 2008. However, the example shows nicely that even in today's regulative environment projects can be registered relatively quickly- if project owner, DOE and an experienced consultant work smoothly together. We are also happy to see that our work has once again been accepted by the UNFCCC smoothly."

 

Successful registration of 3 CFL projects

Three small-scale CDM projects on the dissemination of comapact fluorescent lamps (CFL) all taking place in India received successful registration by the CDM-Executive Board. After the first project received successful registration in February 2009, two additional projects got successfully registered in July 2009. Currently such projects are in the implementation and monitoring stage. Perspectives and OSRAM Germany have successfully been working jointly on developing a hands on approach for implementing project activities under the CDM scheme that generate certified emission reduction ( CERs) by distributing CFL lamps to households that have a power grid connection.

 

Perspectives analyses sectoral approaches for post-2012

The analysis includes the proposed mechanism "sectoral trading", "sectoral crediting", "standardised baseline" and "Crediting of NAMAs (Nationally Appropriate Mitigation Action)", and covers both qualitative and quantitative aspects. First results are expected prior to COP15. Perspectives conducts the study in close cooperation with Point Carbon and University of Zurich.

 

Perspectives and US partners achieve the first ever approval of a CDM methodology for the agricultural sector 

The United Nations, at its june meeting, gave approval for the broad application of the first agricultural methodology for Clean Development Mechanism (CDM) projects for reducing greenhouse gas emissions.

For more details, please read the press release  or contact us directly.   

 

Landfill aeration quickly reduces methane- new CDM methodology developed by Perspectives approved by CDM Executive Board

Collecting landfill gas and burning it is a cumbersome, lengthy process and frequently performs much worse than expected. Therefore, Perspectives enjoyed the assignment from US-based company Mundus Aer to develop a CDM methodology for landfill aeration. By blowing large amounts of air into a closed landfill, methane generation is prevented and the organic carbon in the deposited waste oxidizes quickly. Within a few years, waste can become almost fully inert. The challenge in the methodology development was to convince the CDM regulators that methane generation is actually prevented irreversible. Given that the technology addresses old landfills whose waste composition may be unknown, we also had to prevent prohibitive monitoring procedures. This is achieved by innovative sampling procedures. Axel Michaelowa, senior founding partner of Perspectives, sees the approval of methodology AM 0083 as necessary condition to harness CDM potential in the waste sector that hitherto could not be tapped: "Landfill aeration is a technology that can mobilize significant emission reductions in a short amount of time. It will not be plagued by the endemic performance problems of landfill gas collection." With the approval of AM 0083, Perspectives has further increased its methodology success rate to 89%.

 

First CDM project for energy-efficient lighting registered

The first project for the replacement of incandescent light bulbs (ILB) by energy efficient lighting technology was registered under the Kyoto Protocol's Clean Development Mechanism (CDM) in February 2009. The project takes place in the Visakhapatnam region in the Indian state of Andrah Pradesh. The project will reduce greenhouse gas emissions by reducing the electricity demand of households due to replacing energy-intensive ILB with efficient Compact Fluorescent Lamps (CFL). Since ILB consume five times more electricity than CFL, the project aims to earn approximately 112,000 carbon credits by the end of 2012.

Perspectives GmbH has supported OSRAM GmbH, the German project developer and one of the largest lamp manufacturers worldwide, in developing a workable approach to implement this very challenging project type under the CDM scheme. OSRAM and Perspectives also expect the registration of further two CDM projects of the same type during the next couple of months.

  

 

Major amendments to ACM0002

At its 47th meeting, the Executive Board approved substantial changes to ACM0002 proposed by Perspectives GmbH on behalf of of SN Power. The recent changes to the methodology expand its applicability conditions and open new opportunities at existing renewable power plants. With over 40% of all registered projects, ACM0002 is by far the most important large scale methodology. Previous versions of this methodology were very limited in their applicability conditions: only new plants and the addition of new units at existing plants were eligible.

Following the revisions of ACM0002 proposed by Perspectives GmbH for SN Power, the methodology will now also allow for retrofits of existing plants as well as replacements at existing plants. This represents a major expansion of the methodology 's applicability. Substancial increases in both generation efficiency as well as production capacity could be achieved at many existing renewable power generation sites worldwide. Hydropower plants as well as geothermal plants are expected to have the highest potential for such CDM projects. According to Perspectives GmbH, replacements and retrofits are highly sustainable projects as they do not lead to any of the side effects generally associated with the construction of new plants.

 

 

 

Point Carbon buys Perspectives to become carbon project "power house"

We are proud to announce that our long experienced business partner Point Carbon, with it's head office in Oslo and us, Perspectives GmbH will form a more globally acting, independent power house.

Your advantage will be that our combined competencies and experiences enable us to offer a full set of advisory services to offset projects and portfolios at all developmental stages and all places of the value chain. With extending our global network, we will also be available for you in Kiev, London, Malmö, Oslo, Tokyo, Washington D.C. and Zurich.

 

For more details, please read the press release  or contact us directly.

 

We are looking forward to a continuation of our business relationship.

Your Perspectives Team

 

 

CDM Project "Chumporn applied wastewater treatment" registered by CDM-EB

The CDM project that reduces GHG emissions by operating a modern wastewater treatment system and by energetically using the generated biogas is expected to generate 23,450 CERs per year. The fixed 10-year crediting period started on 9 February 2009. Perspectives managed the CDM registration process for Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ), who is also project participant and will use part of the CERs for offsetting its travelling emissions. The project is also applying for Gold Standard accreditation, underpinning its sustainable development benefits. Sonja Butzengeiger, Managing Director Germany of Perspectives: "We are proud that the project got registered without any request for corrections or review, especially in times where the CDM Executive Board becomes more and more stringent. This shows that even in this quickly changing and sometimes challenging regulative environment, solid project opportunities can make it throughout the registration process if high-quality support and experience are provided."  

 

 

Guidebook on PoA development under the CDM/JI

Commissioned by KfW Bankengruppe, Germany, Perspectives has developed "PoA blueprint book: Guidebook for PoA operators under the CDM/JI". The CDM/JI project cycle entails a substantial amount of transaction costs with a high fixed element. As this was felt to be prohibitive for small CDM projects with high development benefits, the programmatic approach was introduced by the CDM Executive Board in 2007 and is likely to be introduced for Track 2 JI in 2009. However, the practical experience with PoAs to date is relatively limited because the instrument is still new and there are several bottlenecks in the regulatory framework. 

By offering PoA blueprints for selected programme types, this guidebook aims to help potential PoA operators to understand the way a PoA can generally be developed. The guidebook assesses six key types of PoAs - energy efficient lighting for households, improved biomass stoves, biodigesters for small farmers, solar water heaters, refurbishment of industrial boilers and improvement of building energy efficiency. The analysis provides concrete examples for methodological, financial and institutional requirements for the successful PoA operation.

 

 

France pioneers JI methodology for N2O reduction from adipic acid production

After the successful development of a CDM methodology for N2O reduction from adipic acid production, Perspectives has supported French chemical company Rhodia in getting approval for a methodology to be used in a Joint Implementation (JI) project in France. The French JI focal point only approves JI projects in France after a methodology has been developed. The challenge regarding the methodology was to take into account the existing N2O abatement plant installed under a voluntary agreement of the chemical industry in the late 1990s. That plant has a relatively low efficiency of around 90% due to a complex configuration of the adipic acid plant; it will be upgraded to destroy at least 98%. Total ERU volume of the project by 2013 is estimated to reach 2.5 million.

 

 

Methodology support for first carbon-neutral city

The Abu Dhabi Future Energy Company (Masdar) has hired Perspectives for support of methodology development of exciting CDM project ideas. The most innovative project is the construction of an entirely carbon neutral city for 90'000 people (40'000 inhabitants and 50'000 commuters) in Abu Dhabi. The city will be fully powered by renewable energy. With higly energy-efficient buildings and a novel transportation system that will allow to ban private cars from the city's roads, the city will be a lighthouse project in the traditionally energy profligate Middle East. Perspectives' Senior Founding Partner Axel Michaelowa on the CDM perspectives of Masdar City: "With an entirely integrated and optimized greenhouse gas reduction programme for an urban structure, Masdar City is a challenge for CDM methodology development, as methodologies have been traditionally developed along narrow lines of specific technologies. We will use our experience to support a differentiated methodology strategy that will eventually cover all key greenhouse gas reductions achieved by Masdar City".

 

 

Perspectives launches  www.cdm-cooperation.de

Perspectives has developed the CDM networking tool and project database www.cdm-cooperation.de for the German Ministry for the Environment, Nature Conservation and Nuclear Safety.

This platform serves the facilitatation of information exchange between Latin American and German CDM actors in order to enhance CDM-investments in Latin America, effectively match CER-supply and demand, increase clean technology transfer between Germany and Latin America as well as to provide the advantages of a wide and interdisciplinary CDM-network.

The main features of www.cdm-cooperation.de are:

• An interesting CDM project database with young projects from the steadily growing Latin American CDM-pipeline.
• Detailed member profiles of attractive CDM actors like project developers, investors, technology suppliers, consultants and CER-buyers from Germany and Latin America.
• Comprehensive host country profiles with key information on the national CDM environment, host country approval procedures, current CDM numbers and interesting links.
• A CDM news section offering insights on the latest developments of the Latin American carbon market.

The website is operated by Perspectives - see more at www.cdm-cooperation.de

 

 

First CDM CFL projects in the pipeline

... developing countries. Perspectives and OSRAM Germany have successfully been working on developing a hands on approach for implementing project activities under the CDM scheme that CERs by distributing Compact Fluorescent Lamps (CFL) to households that have a power grid connection. A household can save up to 80 % of electricity per replaced lamp. In total, each project can save up to 60 GWh electricity per annum. This would result in annual emission reductions of up to 55.000 tCO₂.

A highly sophisticated implementation and monitoring approach was necessary to link regulatory requirements given in the CDM with processes that make this project type operational for project developer. The highly complicated concept is the reason that this project type has not been registered under the CDM so far. The first two projects of OSRAM and Perspectives are expected to get UNFCCC registration soon and a third project is currently in the validation stage. 

 

 

Study on state and reform options of the CDM

A consortium under the lead of Perspectives was awarded a contract by the British Ministry of Environment (DEFRA) to develop a study on the state and reform options of the CDM. Under the title “Flexible Market Mechanisms for Carbon Mitigation-Specification for further work on Mechanism Design and Reform” Perspectives, Ecofys and Arrhenius Institute will review the current state of the CDM, assess potential options for reform of the CDM as well as expected evolution in national and international climate regimes.

 

The focus of the review lies on the success and the criticism the CDM has experienced so far, and identification of points for improvement regarding present and future challenges (environmental integrity and barrier reduction).

 

On the basis of the review of current CDM performance, Perspectives and its partners will assess Ex ante Benchmarks at a project level, Ex ante Benchmarks at a sector level, Programmatic approaches and further proposed options to reform the CDM.

 

The analysis will also evaluate which changes in types of climate change regimes applied to different countries are likely in the Post 2012 regime. Furthermore, the likely graduation of some CDM host countries to more stringent commitments and effects of such a change are going to be analyzed, with a view of their final participation in a global cap and trade system.

 

The final report is expected to be published in early July 2008.

 

 

Perspectives presents new CDM Guide Book on behalf of DEFRA

At a packed side event at the 13th UNFCCC Conference of the Parties in December 2007, the Guide Book on CDM rules and methodologies was unveiled. The guidebook written by Perspectives and EcoRessources had been commissioned by the UK Department of Environment, Food and Rural Areas (DEFRA). It describes the principles and different levels of CDM rulemaking as well as the most widely applied baseline methodologies and their pitfalls. Hence, the CDM Guide Book will be an important reference for all CDM project developers and investors.

The 150 participants in the side event engaged in a lively discussion of challenges encountered in applying CDM methodologies and ways to integrate the different ongoing efforts to provide more transparency regarding CDM rules.

 

The Guide Book can be downloaded here.

 

 

 

Supercritical coal power plant methodology approved by CDM EB

At its 34^th meeting, the CDM Executive Board approved ACM 13 for "new grid connected fossil fuel fired power plants using a less GHG intensive technology”. This methodology is largely based on Perspectives' methodology submission “Grid-connected supercritical coal-fired power generation”, developed for the National Thermal Power Corporation in India. Development of this methodology had been financed through the Japanese government.

Axel Michaelowa, CEO of Perspectives: “We are proud that with the approval of Perspectives' second methodology for power plant efficiency improvement we continue to play a key role in making the CDM incentive available to thermal power plant projects in China and India. Whether the global effort to reduce greenhouse gas emissions will succeed depends on investment decisions in new coal power plants within the next two decades. - Unfortunately, for political reasons the CDM EB has introduced a sunset clause which will limit the application of the methodology to 15% of the power generation in a country."

 

 

First large greenfield gas power plant CDM project registered

On August 11, the 1147 MW gas power plant of Torrent Power in Gujarat, India was registered by the CDM Executive Board. Perspectives had supported the development of the Project Design Document. Torrent Power’s project is the second project registered under baseline methodology AM0029, which was developed by Perspectives for Torrent Power. However, the first registered project has a capacity of only 120 MW. Torrent Power’s Sugen plant forecasts an annual CER volume of 3.2 million, which makes it comparable in size to the biggest CDM projects in the chemical industry. The power plant will start operations in early 2008.

 

Axel Michaelowa, CEO of Perspectives, sees the registration of Torrent Power’s project as a breakthrough for power plant efficiency improvement in developing countries: “Bending the emissions paths of rapidly industrializing countries downwards requires incentives to improve the efficiency of new fossil fuelled power plants. By registering Torrent Power’s project, the CDM Executive Board has shown its willingness to support such activities. We hope that this willingness will also extend to greenfield supercritical coal-fired power plants, where the EB currently discusses a methodology developed by Perspectives.”

 

 

Perspectives next CDM methodology approved by the CDM EB “Efficiency improvement by boiler replacement or rehabilitation and optional fuel switch in fossil fuel-fired steam boiler systems”

Today, the CDM Executive Board approved yet another CDM methodology developed by Perspectives. The methodology is applicable for retrofitting or replacing inefficient industrial or utility boilers and is abbreviated AM0056.

AM0056 has been developed by Perspectives under the Future CDM Project financed by the Japanese Ministry of Economy, Trade and Industry (METI). It will be widely replicable because the methodology incorporates boiler replacement and boiler retrofit as well as fuel switching. The key features of the methodology are procedures to calculate specific fuel and energy consumption of baseline equipment taking into account best possible operating conditions of the old boiler system. AM0056 is applicable for single and for multi boiler installations. The methodology meets the requirements of conservative emission reduction calculation as required by the Methodology Panel as well as the need of project developers to receive CERs according to the real achieved GHG emission reduction.

 

According to Matthias Krey, Managing Director of the Zurich office of Perspectives, the methodology is especially interesting for projects where inefficient coal-fired boilers of a large size are replaced by modern natural gas-fired systems.

 

 

CDM-Potential in Vietnam: Partnership with VNEEC established

Perspectives has confirmed its partnership with the Vietnamese CDM experts at VNEEC - Energy and Environment Consultany Joint Stock Company. The objective of the partnership is to jointly analyse the CDM potential in Vietnam and target the most promising sectors. An example hereof is the vast potential in the Hydro Power sector. Several CDM project opportunities are being identified that can also be used in the EU Emission Trading Scheme (EU-ETS).

 

Further Informationen on VNEEC can be found here.

 

 

Next CDM project managed by Perspectives registered

Today, the CDM EB registered the greenhouse gas reduction project “Talia Landfill Gas Recovery Project and Electricity Production” as a CDM project activity. The project involves methane extraction from two landfill sites 40km east of the city of Nazareth (Israel). Power will be generated from the extracted biogas. In total, the project will generate 515,484 CERs up to 2013 with the option to generate further CER amount until 2027.

 

The project has been implemented by Madei Taas Ltd, a biogas technology provider in Israel. A participant of the project is the Kommunalkredit Public Consulting GmbH from Austria, which purchases CERs on behalf of the Austrian government to fulfil the countries’ greenhouse gas reduction target under the Kyoto Protocol.
Investment to the project was in the amount of over 2 million € which will bring environmental and social well-being to the local communities through generation of clean power, job creation and odour reduction.

 

The project is another greenhouse gas reduction project that has been successfully managed by Perspectives and received CDM project activity status. Perspectives currently manages a portfolio of more than 15 potential CDM projects for various clients in India, Brazil, Vietnam, Thailand and South Africa.

 

 

Perspectives next CDM methodology approved by the CDM EB: “Distribution of efficient light bulbs to households”

Today the CDM EB approved the CDM methodology “Distribution of efficient light bulbs to households” (AM0046) which has been designed by Perspectives GmbH on behalf of the German light bulb manufacturer Osram GmbH. The methodology is applicable to programmes that aim to reduce greenhouse gas (GHG) emissions through the distribution of compact fluorescent light bulbs (CFLs) to a large number of households in developing countries that currently use incandescent light bulbs that are 85% less energy efficient than CFLs. It took the CDM EB more than 2 years to approve the methodology due to its complexity. The methodology incorporates novel features such as control group monitoring on a large scale that cannot be found in any other approved methodology. The project types for which AM0046 is applicable have a high replication potential in almost any country in the developing world. Most CERs can be expected in countries where the grid is dominated by coal-fired power plants and the dissemination level of CFLs is low.

The AM0046 is another proposed CDM methodology developed by Perspectives and approved by the CDM EB. In 2005, the governing body of the CDM already accepted Perspectives’ “Baseline Methodology for decomposition of N₂O from existing adipic acid production plants” (AM0021). Perspectives also made important contributions to the approved methodologies AM0029 for combined-cycle gas turbine power plants and AM0036 for biomass utilization in boilers.

Perspectives is now among the most successful methodology developers in the world. According to its CEO, Dr. Axel Michaelowa, Perspectives is currently developing three additional CDM methodologies in the areas of supercritical coal-fired power plants, fossil fuel-fired boiler refurbishment or replacement and synthetic fertilizer offsetting in soybean production via inoculation.