UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

UNIDOIndustrial Energy Efficiency and Climate Change

UNIDO Activities in the context of the inter-agency project on capacity building for CDM

New Delhi, 25 October 2002

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

OverviewOverview Project Objectives

Capacity building through the learning-by doing approach

Project Partners

UNFCCC, UNDP, UNCTAD, UNIDO and WBCSD

Project Activities – the UNIDO Component

- guidelines for baseline assessment

- Promotion of CDM projects for ERs buyers

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

The UNIDO component activitiesThe UNIDO component activities(www.unido.org)(www.unido.org)

Engaging the private sector in CDM project activities

Preparatory activities - Preparatory tour - Workshop for key stakeholders

Capacity building for project analysis - Technical training seminars - Practical "learning-by-doing” project identification & formulation

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

The UNIDO The UNIDO component component

(cont’d)(cont’d) Assessment of CDM project portfolio

- Selection of viable opportunities (financial and economic analysis) - Assessment of baselines and additionality

Development of decision support tools - Preparation of guidelines to support decision making on baselines

CDM investment promotion - Placement of a delegate with a ITPN - Development of promotion mechanisms - Broad promotion activities through ITPN - Review promotion mechanisms

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

The relevance of project activitiesThe relevance of project activitiesto the CDM Project Cycleto the CDM Project Cycle

Project identification and project document

Baseline Study

Promotion of projects to buyers of emissions reductions

Implementation

MVP

Validation

Negotiation ofCER purchase

Implementation MV& transfer

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

Project historyProject history First guidance document

Case-studies in Brazil to validate approach

– Landfills, sustainable biomass use in the coke and steel industries, sugarcane bagasse utilization

Interaction with ERUPT guidelines

– UNIDO guidelines influenced ERUPT program design criteria which were used for a number of projects

Interaction with the WRI/WBCSD corporate accounting & project-based accounting modules

– Guidance document was reviewed and influenced design of project-specific baseline method design in project-based accounting module

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

Overview of the concept and the work Overview of the concept and the work progressprogress

Concept

– The relationship between corporate accounting of emissions and the accounting of project-based emission reductions

– Attributing changes of emissions to emission accounting factors

– Correlation of emission accounting factors to project typology

– Definition of boundaries

– Baseline methods

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

Key elements of UNIDO’s Key elements of UNIDO’s approachapproach

Corporate accounting = static snapshots of source-specific emission inventories (= balance sheet in financial accounting)

Project-based accounting = explaining year-to-year changes of static snapshots of source-specific emission inventories (= profit and loss statement in financial accounting)

Period Calculation of emissions

2001 inventory E01 = Q01 ((p1 ef1) + s1 (p2 ef2))

Intervention e = ( p1 ef1) + s1 (p2 ef2)

2002 inventory E02 = Q02 ((p1 ef1) + s1 (p2 ef2))

Scope 1Scope 1

Scope Scope 2&32&3

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

Project interventions & Project interventions & project based project based accountingaccounting Year-to-year specific emission changes are expressed as:

e = ( p1 ef1) + s1 (p2 ef2)

Whereby a project intervention alters p1, ef1 and/or s1

– Scope 1 change: carbon efficiency

– Scope 2 change: activity level change

p2 and ef2 are outside the control of the project intervention

Case studies show a strong correlation between project type & the factor that is changed as result of a project intervention

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

CDM Investor Guide forCDM Investor Guide for

BrazilBrazil

Prepared in cooperation with UFRJ;

Provides comprehensive information on institutional infrastructure, priority sectors in the energy and industry sector and on current projects (on-going and under development);

A comprehensive source of information for project developers, policy makers and investors.

UN

IDO

-SES

-IEC

UN

IDO

-SES

-IEC

Next StepsNext Steps

Programming of the methodological guidelines;

Workshop on the CDM Investor Guide in cooperation with UNCTAD;

Technical workshop for South Africa;

Placement of project developers with a UNIDO ITPO office.