Beyond CDM: Options for the wind industry 21 April 2010, Warshaw EWEC 2010 Marion Vieweg.
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Transcript of Beyond CDM: Options for the wind industry 21 April 2010, Warshaw EWEC 2010 Marion Vieweg.
Beyond CDM: Options for the wind industry
21 April 2010, Warshaw
EWEC 2010
Marion Vieweg
Beyond CDM: options for the wind industry
Outline
Which options are discussed in the climate negotiations that could enhance wind energy beyond
CDM?
Sectoral approaches
Sectoral approaches NAMAsNAMAs
Defi-nitionDefi-nition
Road testing China
Road testing China
StatusStatus Defi-nitionDefi-nition OptionsOptions StatusStatus
Beyond CDM: options for the wind industry
What are sectoral approaches?
• Different options are discussed in the various negotiation texts in 20091:
…(
e) Sectoral targets, national sector-based mitigation actions and standards, and no-lose sectoral crediting baselines;
…
1 FCCC/AWGLCA/2009/8, B.1.73
Beyond CDM: options for the wind industry
Sectoral crediting
• Countries voluntarily pledging sectoral crediting baselines (dynamic, e.g. t CO2/t cement)
• Based on detailed, national, transparent analysis for each sector assessing feasibility and cost-effectiveness
• “No lose”: credits (to government) for reductions beyond baseline, no penalty if not achieved
• Governments have to pass on incentive to private entities (they decide how to do it)
• Needs demand for credits, i.e. stringent reduction commitments by other countries
Beyond CDM: options for the wind industry
Principle of sectoral crediting
The concept
Beyond CDM: options for the wind industry
Electricity sector scenarios
Beyond CDM: options for the wind industry
Key findings
• Data quality in power generation is rather good
• Large uncertainty of future energy demand intensity target
• Current policies already very ambitious
• Domestic institutional setup and involvement of the big utility companies is key
• Analysis needed on national implementation
Benefits for wind potentially high, but depend on sector boundary and national implementation!
Full results: see www.sectoral.org
Beyond CDM: options for the wind industry
Status of negotiations on ‘sectoral’
• Mostly discussed type of sectoral approach is sectoral crediting (mainly driven by the EU)
• Focus of negotiations has shifted away from sectoral approaches to NAMAs
• Details of a potential crediting mechanism are not yet clear
Copenhagen Accord
“decide to pursue various approaches, including opportunities to use markets, to enhance the cost-effectiveness of, and to promote mitigation actions”
Beyond CDM: options for the wind industry
What are NAMAs?
• Originated in the Bali Action Plan: Paragraph 1 (b) (ii) of the Bali Action Plan calls for: “Nationally appropriate mitigation actions’ by developing
country Parties in the context of sustainable development, supported and enabled by technology, financing and capacity building, in a measurable, reportable and verifiable manner.“
Beyond CDM: options for the wind industry
Examples for potential NAMAs in the wind sector
• Feed in tariff: provision of funds to cover incremental cost of a feed in tariff
• Grid extension: supported by international funds and technical assistance
• Regulatory measures: financial support and capacity building to create the necessary enabling framework, e.g. regulation on preferential grid access
Beyond CDM: options for the wind industry
Status of negotiations on ‘NAMAs’
• Funding for NAMAs will be provided, but details of funding sources/distribution are yet unclear
could potentially also be through bilateral action
• No clarity yet on the exact definition of a ‘NAMA’
Copenhagen Accord
Fast start funding: 30 bln US$ (2010-2012)
Total funding: up to 100 bln US$ per year in 2020
Both for adaptation and mitigation, from public and private sources
Annex with proposed NAMAs
Beyond CDM: options for the wind industry
Current developing countries’ proposed NAMAs Become climate neutral around 2020
• Costa Rica, Maldives
Percentage reduction of national emission below BAU or base year in 2020
• Brazil, Indonesia, Israel, Marshal Islands, Mexico, Moldova, Singapore, South Africa, South Korea
Percentage reduction of intensity (national emission per GDP) in 2020 from 2005
• China, India
Detailed list of projects
• Congo, Ethiopia, Jordan, Macedonia, Madagascar, Morocco, Sierra Leone
Beyond CDM: options for the wind industry
Conclusions
Sectoral crediting
• Approach tested and feasible under certain conditions
• Outcome of negotiations uncertain
• Potentially more beneficial for wind compared to higher cost options, depending on sector boundaries and mechanism details
Nationally appropriate mitigation actions
• Agreement to substantially support developing country actions
• Large potential to design an effective system in the coming months
• Several options for fund based support in the wind sector
Beyond CDM: options for the wind industry
More information available at
www.ecofys.com www.sectoral.org
Niklas Höhne, [email protected], +49 221 27070-101
Christian Ellermann, [email protected], +49 221 27070-104
Marion Vieweg, [email protected], +49 221 27070-184