Methodological Approaches and Tools to Assess the Sustainability of CDM Projects
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Methodological Approaches and Tools to Assess the Sustainability of CDM Projects Christoph Sutter, [email protected] Indian cell: 98180 95366
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Methodological Approaches and Tools to Assess the Sustainability of CDM Projects. Christoph Sutter, [email protected] Indian cell: 98180 95366. Contribution to Sustainable Development is explicit goal of the CDM. - PowerPoint PPT Presentation
Transcript of Methodological Approaches and Tools to Assess the Sustainability of CDM Projects
Methodological Approaches and Tools to Assess the Sustainability of CDM Projects
Christoph Sutter, [email protected] Indian cell: 98180 95366
2 ETH Zurich
CDM and Sustainable Development
Contribution to Sustainable Development is explicit goal of the CDM
"The purpose of the clean development mechanism shall be to assist Parties not included in Annex I in achieving sustainable development…“
(Kyoto Protocol, Art.12)
Clear sovereignty of host country
„... it is the host Party’s prerogative to confirm whether a clean development mechanism project activity assists it in achieving sustainable development“
FCCC/CP/2001/13/Add.2 Decision 17/CP.7
How to assess the projects?
Evaluation / approval of the first CDM projects by non-Annex 1 countries already began…but clear procedures / methodologies are often lacking.
3 ETH Zurich
Finding the Balance
Negotiated Targets
Thresholds
Guidelines
Technology Lists
(Weighted) Criteria
Tools to assess Sustainability of CDM projects
4 ETH Zurich
Example: CERUPT
Technology lists
Technology Max. Price CER
Renewable energy (excluding biomass) EUR 5.50
Energy production by using clean, sustainably grown biomass (excluding waste)
EUR 4.40
Energy efficiency improvement EUR 4.40
Others, among which fossil fuel switch and methane recovery
Source: Senter, 2001
EUR 3.30
5 ETH Zurich
Example: Colombian Wind Power Project , PCF
Negotiated Targets
Well defined “Institutional and Communitary Strengthening Plan“. Indicators to be monitored.
Payment of a) Emission Reduction price AND b) premium if the Social Plan is implemented
“If the plan is not implemented, the project entity enters into default. In this case the project entity has a cure period, if the default is not cured, PCF can stop payments.”
Source: C. Steck / K. Newcomb, October 2002
6 ETH Zurich
Example: Indian Guidelines
Guidelines
“The following aspects should be considered while designing CDM project activities:
Social well-being: The CDM project activity should lead to alleviation of poverty by generating additional employment, removal of social disparities and contributing to provision of basic amenities to people leading to improvement in their quality of life …”
Followed by statements covering ”Economic well-being”, “Environmental well-being” and “Technological well-being”
Source: Indian Ministry of Environment and Forests, 2002
7 ETH Zurich
Example: The Carbon Label, WWF
Thresholds
Does the project contribute to the mitigation of Global Climate Change?
Does the project contribute to local environmental sustainability
Does the project contribute to net employment generation?
Does the project contribute to the transfer of new skills?
Source: WWF International, 2002
8 ETH Zurich
p r o j e c t r e j e c t i o n
p r o j e c t a p p r o v a l
C D M p r o j e c t p r o p o s a l
C r i t e r i a f o r e v a l u a t i o n
D i f f e r e n t t y p e s o f p r o j e c t s
W e i g h t i n g o f c r i t e r i a
H o s t c o u n t r y
d e c i s i o n m a k e r s
P r o j e c t - l e v e l s u s t a i n a b i l i t y i n d i c a t o r s C D M T o o l
T e c h n o l o g y d a t a b a s e
S y s t e m a t i s e d c o u n t r y p r i o r i t i e s
P r o j e c t - l e v e l s u s t a i n a b i l i t y i n d i c a t o r s C D M T o o l
T e c h n o l o g y d a t a b a s e
S y s t e m a t i s e d c o u n t r y p r i o r i t i e s
P r o j e c t - l e v e l s u s t a i n a b i l i t y i n d i c a t o r s C D M T o o l
T e c h n o l o g y d a t a b a s e
S y s t e m a t i s e d c o u n t r y p r i o r i t i e s
Example: Multi criteria decision tool, ETH Zurich
(Weighted) Criteria
9 ETH Zurich
Sustainability Criteria: Objective tree
Social Environmental Economic
Global Environment
Local Environment
Sustainable Development
Stakeholder Participation
Improved Service
Availability
Capacity Development
Equal Distribution
Energy / Mineral Resources
Soil Resource
Public Budget Local Economy
Microeconomic Efficiency
Employment Generation
Sustainable Technology
Transfer
Water Resource
Air Resource
(Weighted) Criteria
10 ETH Zurich
Weighting of Criteria: Pairwise Comparison
Sustainability preferences of individuals
AHP
9 8 7 6 5 4 3 2 1 2 3 4 5 6 7 8 9Level of uncertainty in
decision
Criterion A
ext
rem
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gly
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ua
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po
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slig
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m
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imp
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imp
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Criterion B
1= certain2= slightly uncertain3= strongly uncertain4= very uncertain5= extremely uncertain
Air Resource Water Resource
Air Resource Minersl / Energy Resources
Water Resource Land Resource
Air Resource Land Resource
Water Resource Minersl / Energy Resources
Land Resource Minersl / Energy Resources
Effects on local environment Global climate change
Criterion A more important Criterion B more important
xx
x
(Weighted) Criteria
11 ETH Zurich
Sustainability Weights: Survey South Africa
All
0% 5% 10% 15% 20% 25% 30% 35%
Stakeholder Participation
Improved Service Availability
Equal Distribution
Capacity Development
Minerals / Energy Resources
Air Quality
Water Quality
Land Resource
Regional Economy
Microeconomic Efficiency
Employment Generation
Sustainable Technology Transfer
(Weighted) Criteria
12 ETH Zurich
Comparison of approaches
Low transaction cost ++ -- + --
Flexibility -- ++ + -- +
Investor‘s certainty ++ - -- + +
Comprehensive approach - -- - ++
Sel
ecte
d T
hre
sho
lds
Gu
idel
ines
Tec
hn
olo
gy
list
s
(Wei
gh
ted
) cr
iter
ia
Neg
oti
ated
Tar
get
s
13 ETH Zurich
Next steps (Dec 02 - Jan 03)
Sustainability mapping of Indian stakeholders
Indian case study: Biomass project
Discussions about the method and potential
CO-OPERATION are most WELCOME!
