Transportation andGreenhouse Gas

Emissions

Transportation andGreenhouse Gas

EmissionsExploring Opportunities for the

Clean Development Mechanism in Chile

Transportation and Climate Change

The transportation sector is responsible for approximately25 per cent of carbon dioxide (CO2) emissions world-wide. This share is increasing annually in many coun-tries, particularly those in the developing world. InChile, for example, transportation represents the secondlargest source of greenhouse gas (GHG) emissions.

2001 Global C02 Emissions by Sector (IEA, 2003)

Transportation 24%

Electricity and Heat Production 39%

Industry 18%

Other 19%

Source: CO2 Emissions from Fuel Combustion 1970/2001 – 2003Edition. Paris, IEA/OECD.

Growth in the transportation sector and in related emis-sions is projected to rise in Santiago as in many otherurban centres. Efforts to curb the rate of growth—for cli-mate change-related reasons as well as for other local co-benefits—are key components of sustainable development.

The primary entry point to the Kyoto Protocol fordeveloping countries remains the Clean DevelopmentMechanism. Credit for emissions reduced in the trans-portation sector could conceivably contribute to a moresustainable pattern of growth in this sector. However, ofthe methodologies and projects currently in the CDMpipeline, none address the key issue of transportationdemand.

Project Overview

Current and projected future growth in the transporta-tion sector makes the issue of monitoring and reducinggreenhouse gas emissions a concern for developed as wellas developing countries. One of the options available topolicy-makers in developing countries interested inreducing transportation emissions is the CleanDevelopment Mechanism (CDM). To date, however, thetransport sector has received less attention than othersectors because of the challenges associated with theseprojects. The International Institute for SustainableDevelopment (IISD), Climate Change andDevelopment Consultants (CC&D) and the Center forClean Air Policy (CCAP) are undertaking a joint projectto analyze this issue.

The project examines possible scenarios for using theClean Development Mechanism (CDM) as a tool topromote sustainable development in the transportationsector. Working with Chilean government agencies, pri-vate sector stakeholders and non-governmental organiza-tions, the project is developing methodologies for assess-ing potential transportation-related GHG reduction ini-tiatives eligible under the CDM.

The unabated growth of the transportation sector indeveloped and developing countries highlights theimportance of monitoring and reducing greenhouse gasemissions for a wide range of reasons. In Chile, withoutmitigative efforts, the total number of tonnes of CO2from transportation is projected to almost double by2020. The Clean Development Mechanism (CDM)

Transportation and Greenhouse Gas EmissionsExploring Opportunities for the Clean Development Mechanism in Chile

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offers the possibility of increasing funding for transporta-tion projects, enhancing local planning and project eval-uation capacity, and expanding technology transferopportunities.

This project addresses technology and demand-side solu-tions to transportation challenges, and examines how theCDM may contribute to more effective sustainabletransportation initiatives in the future. It delves into keyCDM questions including project baseline, additionality,methodology, monitoring and leakage of emissions fromthe transportation sector. It also aims to shed light onhow a range of transportation projects fits with the cur-rent CDM and what creative solutions exist for encour-aging the use of CDM in this sector in the future (policyor sector-wide initiatives).

Case Studies

Technological and demand-side approaches to GHGreduction from transportation are included in the threecase studies:

1. Bicycle infrastructure – examining the methodologi-cal challenges involved in baseline, measuring andmonitoring emissions reductions from potential newbicycle lanes, as well as from complementary policiessuch as bicycle storage, and encouragement of a shiftfrom other transportation modes.

2. Bus technology switching – examining the potentialGHG benefits from switching bus technologies inSantiago (e.g., diesel to hybrid electric), and analyzingthe “CDM-ability” of this type of initiative given cur-rent guidelines. The methodologies for this study aretied to the new system-wide Transantiago plan andthe project is working closely with stakeholders fromgovernment as well as the private sector.

3. Location efficiency – examining the GHG impactsfrom particular land development strategies aimed at

reducing travel demand and the potential use of theCDM to attract financial resources to “location effi-cient” urban development. The ultimate goals of thiscase study are to identify opportunities for “transit-ori-ented development,” quantify the travel behaviourimpacts of those developments and estimate the netimpacts on transportation greenhouse gas emissions ofthe developments if they were to be realized. The studyalso identifies how the CDM could be used to attractfinancial resources to urban development projects ofthis kind, in order to make them more attractive invest-ments and encourage their associated co-benefits.

Cross-Cutting Issues

Despite the potential offered by the CDM, projects inthe transportation sector have been slower to developthan those in other sectors—due in large part to the dif-ficulty of fitting transportation into the current CDMrules and modalities.

The project addresses a number of cross-cutting issues thathave an impact on transportation CDM projects:

a) Structure of projects: In practice, how can the CDMencourage better transportation projects? What arethe mechanics of project design options?

b) CDM Projects vs. Sectoral CDM: Can individualCDM projects be part of broader sectoral policies?Are transportation sector-wide CDM initiatives aviable option?

c) Development Dividend: How can we account forlocal development goals in the price per tonne of car-bon in transportation projects? Can we use OfficialDevelopment Assistance creatively to encourageGHG reductions in the transport sector that are alsoCDM eligible?

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Join the Discussion: InternationalTransportation and CDM Workshop

The Chilean government welcomes participants toSantiago to share in the results of this project and toexpand dialogue on the crossover of climate change,transportation and the CDM.

When? August 25–27, 2004

Where? Santiago, Chile

Who? The international workshop will include key par-ticipants from governments and NGOs working on theissues of climate change, transport and the CDM fromdeveloping and developed countries. Limited travel sub-sidies are available for developing country participants.

Why? The primary goal of the workshop is to bringmembers of the transport, development and climatechange communities together to advance the discussionof the fit between the Clean Development Mechanismand the transport sector with a focus on the following:

■ bringing international experience and expertise tobear on the cutting edge analysis currently being con-ducted as part of the transport and CDM project inChile;

■ furthering discussion on limitations of the currentCDM rules, and what types of creative solutionsmight better facilitate sustainable transport initiatives;and

■ providing constructive suggestions to policy-makersand transport planners on how to incorporate emis-sion reductions considerations into transportationplanning in both developing as well as developedcountries.

For More Information

John Drexhage International Institute for Sustainable Development jdrexhage@iisd.ca

Eduardo Sanhueza Climate Change and Development ConsultantsJ.Sanhueza@mi-mail.cl

Ned HelmeCenter for Clean Air Policynhelme@ccap.org

Project Web Sitehttp://www.iisd.org/climate/south/ctp.asp

Brochure photo credits: S. Winkelman & E. Silsbe, CCAP

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This project is undertaken with the financial support of theGovernment of Canada provided through the CanadianInternational Development Agency (CIDA), with additionalcontributions from Canada’s CDM/JI Office.