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Verifying Sinks and Verifying Sinks and Bio-energy Projects Bio-energy Projects

Irma Lubrecht

Société Générale de Surveillance

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Presentation overview Presentation overview

Validation, Verification & Certification

Sinks projectSGS Eligibility Criteria

Shortfalls

Bio-energy project Introduction of the project

Shortfalls

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Société Générale de Société Générale de SurveillanceSurveillance

Worlds largest inspection, testing and verification organisation

Offices in 140 countries, > 30 000 employees

Climate Change Programme, GHG Project Validation & Verification Service

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GHG project experience GHG project experience

Service started in 1997

9 JI and CDM land-use projects in 8 countries

8 JI Energy projects in Eastern Europe (ERU-PT)

WB PCF West Nile Hydro Power Project in Uganda

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Validation, Verification & Validation, Verification & CertificationCertification

JointImplementation

CleanDevelopmentMechanism

OE / IE

Validation No Yes OE

Verification Yes No IE

Certification No Yes OE

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ValidationValidation Process of establishing conformance with defined

criteria (i.e. Article 12)

Performed by accredited “Operational Entity”

Validation indicates acceptance of baseline and identification and management of leakage

Results in recommendation for registration as an eligible CDM project

Can be undertaken pre-project implementation

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VerificationVerification Process of verifying emission reductions or

sequestration relative to a defined baseline

Baseline may be defined via allocation of permits or simply approved by National Authority

Performed by an Independent Entity

Results in award of ERUs or additional credits

Carried out during and after project implementation

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CertificationCertification

Process of certifying emission reductions or sequestration relative to a defined baseline

Performed by an Operational Entity

Baseline is defined via Validation process

Results in the award of Certified Emission Reduction Units by CDM Executive Board

Performed during and after project implementation

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Type by LocationType by Location

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Climate Change Programme Climate Change Programme Eligibility Criteria Eligibility Criteria

Acceptability - National and International

Additionality - Environmental, Financial, Programme

Externalities - GHG and Non-GHG

Capacity - Financial, Management, Infrastructure and Technology, Demonstrability

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Project Shortfalls (1)Project Shortfalls (1)AdditionalityAdditionality

Environmental additionality: difference between baseline and with-project scenario

Programme additionality distinguishes additional activities from business as usual

Financial additionality

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Project Project Shortfalls (2)Shortfalls (2)Leakage for JILeakage for JI

Twin-track approach: If a country is in compliance, it is assumed

that leakage will be covered under the National Inventory

Possibility for Cross Border Leakage

If a country is NOT in compliance, then VALIDATION is required

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Project Project Shortfalls (3)Shortfalls (3)Leakage for CDMLeakage for CDM

Activity based leakage - widen project boundaries / reduce benefits

Market-based leakage - econometric studies / reduce benefits / test programme additionality

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Project Project Shortfalls (4)Shortfalls (4)Social and environmental Social and environmental

effectseffects Forestry projects in the past have had

significant negative social and environmental impacts

Host countries may set their own SD criteria; the international community should require no negative impacts as a minimum

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Protocol ShortfallsProtocol Shortfalls

Rating of emission reduction vs sequestered tonne of carbon:RMU

TCER

Accounting regimes

Permanence

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EERURU--PTPT

28 projects in 1st ERU-PT tender

9 projects assessed by independent validators

5 projects accepted by Dutch Government: ERU’s @ 8 Euro / t CO2

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The ProjectThe Project BTG Biomass Energy Portfolio

28 smaller projects in the vicinity of Prague, Czech Republic

24 municipalities, 3 private companies and state owned hospital

Capacity of approx. 130 MWth

Reduction calculated at 1.2 M t CO2 for 1st commitment period

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ObjectivesObjectives

Reduction of 1.2 M t CO2 by replacing fossil fuel, mostly brown coal and methane reduction

Know-how transfer

Establishment of firm basis for further investments in bio-energy

Generation of heat/electricity for local heating requirements

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AssessmentAssessment

Checklist reflecting requirements from ERU-PT guidelines, KP and SGS EC

Scientific methodology

Risk and uncertainty assessment

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ResultsResults

Project complies with mandatory requirements

Project design documentation comprehensive, robust and transparent account on expected number of ERUs

Uncertainty accounted

Highly likely to result in projected emission reductions when implemented

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Shortfalls (1)Shortfalls (1)LeakageLeakage

No data present on emissions related to transport of biomass or on the construction of new distribution systems

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Shortfalls (2)Shortfalls (2)MonitoringMonitoring

Monitoring to detect changes in land-use practices

Monitoring of environmental impacts, i.e removal of agricultural residues from soils

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Shortfalls (3)Shortfalls (3)Other projectsOther projects

Monitoring overall - training of personnel

Steps have not been taken to identify and analyse the uncertainty associated with the quantification of emission reductions

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More informationMore information

www.sgs.nl/climatechange:Eligibility Criteria

Executive summaries

Papers

www.senter.nl/erupt

www.btgworld.com

irma_lubrecht@sgs.com

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Uncertainty of methane (1)Uncertainty of methane (1)

Verify how much methane is actually reduced:On-site monitoring: how often and why

Scientific approach: IPCC values, UK ETS

Instruments: flow meters regularly calibrated by independent party e.g. SGS Redwood

Chemical analysis: approved laboratory otherwise include in the verification assessment

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Uncertainty of methane (2)Uncertainty of methane (2)

ERU-PT programme has to accept ERU’s resulting from methane avoidance