Bio-Energy and Forestry

Hamburg Institute of International Economics International Climate PolicyInternational Climate Policy

Michael Dutschke

Bio-Energy and ForestryBio-Energy and Forestry

Capacity Development for the CDMCOP 10 Side Event, Dec. 11, 2004


OverviewOverview

• Rationale for project integration• Services provided by afforestation and

bioenergy• Small (scale) is beautiful?• Outlook on research agenda


Why integrate CDM AR & Energy?Why integrate CDM AR & Energy?

• Land use change contributes to 20 – 25% of anthropogenic GHG emissions

• Expiring CERs (tCERs & lCERs) have low present value

• Restoration forestry is unprofitable except for carbon credits


Rationale for integrated projectsRationale for integrated projects

Millennium Development Goals:– Eradicate poverty and hunger (goal 1)– Ensure environmental sustainability (goal 7)– Build a global partnership for development

(goal 8)Renewable Energy and Energy Efficiency

Partnership (REEEP):– Foster renewable energy & energy efficiency

systems in pursuit of national environmental, economic, social and security objectives


Rationale for integrated projectsRationale for integrated projects

UNFCCC:– Development and poverty eradication

are the first and overriding priorities of the developing country Parties (Art. 4.7)

– In order for developing countries to progress towards that goal, their energy consumption will need to grow

– Measures should be comprehensive, cover all relevant sources, sinks & reservoirs (Art. 3.3)


Services provided by afforestationServices provided by afforestation

• Soil protection• Protect quantity & quality of water level• Reduce forest depletion by fire wood

substitution• Increase incomes for local communities• Increase land asset value for local

communities• Capacity building for local communities in

sustainable management techniques


Bio-energy in DCsBio-energy in DCs• Renewable energy supply 14 percent of

the world's primary energy use (WEA 2004):

• Predominantly biomass used for cooking and heating in rural areas of developing countries, (e.g. 50 – 60 % in Asia, 70 - 90 % in Africa)

• Biomass power occurs commonly in form of direct combustion in developing countries

• Anaerobic digestion to produce biogas for use in engines also common

• Most feedstock from agricultural and forest industry residues


Services provided by bioenergyServices provided by bioenergy

• Residential and commercial cooking and hot water (wood, crop, dung, charcoal)

• Rural small industry, agriculture and other productive uses (mainly residues from production)

• Grid-based power generation • Transport fuels (ethanol from sugar cane,

biodiesel, synthetic fuels from residues)• Rural residential and community lighting,

television, radio and telephony (biogas)


Small biofuels and developmentSmall biofuels and development

• Costs of fossil fuels to increase• CDM “leapfrogging effect”, if shift to

fossil energy is avoided• No radical change in energy use

patterns required• Better fire wood availability frees

women’s workforce• Cleaner stoves improve health

situation


Integrated project C accountingIntegrated project C accounting

Stand level

Landscape level

(Example: Schlamadinger et al. 2001)

Expiring CERsExpiring CERs

Definitive CERsDefinitive CERs


Example for combination scenarioExample for combination scenario

5 10 15 20 25 30 35 years

general lifetime of a biomass boiler

Switch from fossil to CO-neutral fuel2

BioenergyProject

combinedwith

ARProject

check for possible partial fuel switchretrofitting for sustainable fuel (at maintainance)co-firing

experience withnew biofuel from AR

increasingresidue prices

sustainable bio-energy from ARresidues at a lowprice level

1. biomass boiler2. biomass boiler

rotation periodof AR

available amount of sustainable biofuel from AR (simplified)

1. harvest (e.g. thinning)


Risks of integrated projectsRisks of integrated projects

• Large areas blocked• Former land uses disrupted• Fast-growing species vs. biodiversity• Drainage of arid soils• Increased use of fertilizers• Soil depletion by short rotation forestry


Risks of integrated projectsRisks of integrated projects

t

CCrediting for fuel wood use may lead to short rotation and lower C fixation

C0

C1


Small is beautiful?Small is beautiful?

Conditions for source projects• Renewable energy < 15 MW or• Energy consumption reduction < 15

GWh y-1, or • Emission reduction & emissions < 15

kt CO2e y-1, orConditions for AR projects• Net removal <8 kt CO2e y-1, and• developed or implemented by low-

income communities and individuals


Small is beautiful?Small is beautiful?

• Combinations between source & sink ssc projects do not add up to one full-scale project

• Each activity to be treated separately• Small PDD cost reduction• EB-level practical problems (which

Meth Panel is responsible, or both?)


Outlook on furtheOutlook on further researchr research

• Combine different scale activities• Find suiting project examples• Pooling on different levels & timescales• Project quality indicators• Options for co-financing the core activity

– Ssc fund options– Potential ODA involvement in CDM

Ssc A/RSsc Bioenergy

Lsc A/RSsc Bioenergy

Lsc A/RSsc Bioenergy

Lsc A/RLsc Bioenergy


Michael Dutschke

Thank you for your attention!

Bio-Energy and Forestry

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