Standardized national/sectoral baselines

UNFCCC Technical Workshop on Joint Implementation

Bonn, 16 October 2007

Manfred Stockmayer

Managing Director Camco International

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Agenda

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

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The Camco Group structure

Assets< 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.

Camco offices: Vienna, USA, UK, China, Russia, South Africa ESD offices: UK, Bulgaria, China, Kenya, South Africa, Tanzania

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.

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.

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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 504 500 495 491 486 482 477 472 468 463 459 454 450 Bulgaria 904 886 868 850 832 814 797 779 761 743 725 707 689 Croatia 634 625 616 607 598 589 580 571 563 554 545 536 527 Czech Republic 774 760 747 733 720 706 693 679 665 652 638 625 611 Estonia 824 809 794 779 763 748 733 718 703 687 672 657 642 Hungary 638 629 620 611 602 592 583 574 565 556 547 538 529 Latvia 362 362 363 363 363 363 363 363 364 364 364 364 364 Poland 819 804 789 774 759 744 729 714 699 684 669 653 638 Romania 677 667 657 646 636 626 615 605 595 584 574 564 553 Russia 554 548 542 536 529 523 517 511 504 498 492 486 479 Slovakia 613 604 596 588 580 572 563 555 547 539 531 523 514 Slovenia 776 763 749 735 722 708 695 681 667 654 640 626 613 Ukraine 815 800 785 770 755 740 725 710 695 680 666 651 636

Table B1 Baseline carbon emission factors for JI projects generating electricity (in

gCO2/kWh)

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 2009 2010 2011 2012

ERUPT 0.761 0.743 0.725 0.707 0.689

NEK 1.006 0.888 0.850 0.834 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 Stockmayermanfred.stockmayer@camcoglobal.com

www.camcoglobal.com