Pilot Project on the Use of Flexible Instruments for Climate Policy in Baden-Wuerttemberg:

A Manual to Facilitate Companies Participation

Fraunhofer Institute for Systems and Innovation Research

EnBW Energie Baden-Württemberg AG -EnBW Kraftwerke AG-EnBW International

Output: Manual / Workshop

Objective of the Project:Gaining experience with Kyoto-Mechanisms (KM):

Application of the criteria for project related KM - Clean Development Mechanism (CDM) and Joint Implementation (JI) - to existing investments of EnBW

Information on the current status of negotiations regarding planned emissions trading systems on a national, European (Green Paper) and international level (Kyoto-Protocol)

Structure of the project for CDM / JI:

Eligibility Criteria

- Thailand- Hungary

Results of COP 6

Application to existing EnBW

projects

- Additionality- Sustainable development- Baseline rules- Positive List (EU)

Manual

- Checklist for the eligibility criteria- Project cycle: Steps for the successful implementation of a CDM/JI project

Electricity production with fossil fuels

Baseline

Eligibility Criteria

Application to existing

EnBW projects

- UNFCCC requirements 31. and 32- Additionality

- emissions (baseline) 57. (a)- financial (no ODA/GEF) 57. (b)- investment 57. (c)- technology 57. (d)

or - significantly better performance than reference scenario 58. and 59.

- Sustainable development- Consistency with national policy goals 37. (b)- Environmental benefits/Env. Imp Ass. 44. (e)- Social benefits 44. (e)- Participation by stakeholders 44. (d)

- ? Positive list ? : Renewable energy sources, Efficient electricity production, Combined Heat and Power

Manual

FCCC/SB/2000/10/Add.2:

Eligibility Criteria/

Baselines

Application to existing

EnBW projects

Manual

- Thailand: Combined electricity and heat production by new CCGTs (400 MW) based on gas, partly replacing electricity from lignite, partly additional electricity generationadditional heat for industrial park

- Hungary: Efficiency improvements in lignite-fired power plant (836 MW)

Eligibility Criteria

Requirements: Thailand Hungary (CDM) (JI)

UNFCCC-requirements e.g. Ratification of KP ? ? Additionality

Technology additionality - (?) - (?)

Financial additionality + +

Investment additionality

- Substantial increase in profitability through CERs - (?) - (?)

- Project not commercially "viable" without CERs - (?) - (?)

Positive List + (?)

Sustainable Development

Host-Country policy goals ? ?

Social Benefits ? n.a.

Other environmental Benefits + n.a.

Environmental Impact Assessment ? ?

Baselines

General Rules 64.-69.

Application to existing

EnBW projects

Manual

b) most reasonable economic technology for activity

c) better-than-average current industry practice in host or appropriate region

d) technology used in existing source in Annex I / II

New Source

(71)

Existing Source

(70) a) actual emissions prior to the project

Questionnaire Part A

3. Zubau neuer Anlagen

a) neue Anlage/Anlagenteil Kapazität [KW]:Prognostizierte Stromerzeugung p.a. [KWH]:Unterer Heizwert [J/g]:Kohlenstoffgehalt Brennstoff [%]:Jahresnutzungsgrad [%]:

b) Vergleichsanlage/Anlagenteil Kapazität [KW]:Unterer Heizwert [J/g]:Kohlenstoffgehalt Brennstoff [%]:Jahresnutzungsgrad [%]:Ablaufdatum der ökonomischen Lebensdauer:

Excel Spreadsheet Potential CERs

Part A:

Technology:

Capacity (MW):

Electricity production (kWh):

Heat production (MJ):

Efficiency (%):

CO2 emission factor

(1000mt/MWh):

(For project as well as for

Baseline case)

CERs

CO2

Data processing for Baseline scenario

Project A Project B

CERs

Eligibility Criteria/

Baselines

Application to existing EnBW

projects

Manual

Contents A Joint Implementation (JI)

B Clean Development Mechanism (CDM)

1. Introduction

2. Checklist for eligibility criteria

3. Baselines

4. Project cycle

5. Additional information

1. Introduction

2. Checklist for eligibility criteria

3. Baselines

4. Project cycle

5.Additional information

+ Disc or CD with Excel spreadsheets

- International Level: Kyoto Protocol

- EU-Level: Commission Green Paper

- National Level: New Climate Protection Programme (IMA)

Approach Emissions Trading

Status Negotiations

Resu

lts of C

OP

6Manual

Framework Conditions /

Rules

1. Analysis of existing emission sources2. Analysis of probable monitoring

requirements 3. Which mitigation options exist

within the company?4. Decision making process

(“Make-or-buy” the mitigation?)

5. Trading Contracts

Status Negotiations

Manual

Framework Conditions /

Rules

Analysis of EnBW:

ManualStatus

Negotiations

Manual

Framework conditions /

Rules

Steps for a successful participation of

companies in Emissions Trading

Contents

C Emissions-Trading

1. Introduction

2. Instructions for emission quantification

3. Instructions for the identification of

emission reduction potentials

4. Decision-making process