CDM Methodology Workshop on Gas Flaring

Amsterdam 3 December 2008

The International Mandate

• The ultimate objective of this Convention …. stabilization of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system…. achieved within a time-frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened and to enable economic development to proceed in a sustainable manner.

UNFCCC Article 2

 • The purpose of the clean development mechanism shall be to assist Parties

not included in Annex I in achieving sustainable development and in contributing to the ultimate objective of the Convention

 Kyoto Protocol, Article 12

• Project participants to develop and submit, and the Executive Board to approve, more methodologies with broad applicability conditions to increase the availability of different technologies and measures and thereby ease the use of approved methodologies;

CMP/2007

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Objecitives for the Workshop

January, 2008Carbon Limits AS

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• Develop a perspective of gas flaring as a priority both in terms of GHG emissions and sustainable development

•Improve understading of the scope and limitations of the exisiting gas flare methodologies

• Consider ways that methodologies that can be more successful in reducing gas flaring emissions

• Initiate a pro-active approach to increase the number of CDM projects such that there is a measurable impact on gas flaring and sustainable development

Use to-date of CDM for Gas Flaring

AM0009 2006 2007 2008

CDM Projects Reg. 2 1 1 Est Annual Red. (Mtons) 2.2 2.5 0.4 % of Gas Flare Emissions 0.5% 0.6%0.1%

AM0037 CDM Projects Reg. 1 1 Est Annual Red. (Mtons) 0.1 0.01 % of Gas Flare Emissions neg neg

Number of Gas Flaring Projects awaiting review by the Ex Board as of 28 Nov 2008: Zero

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Why are Gas Flare Methodologies Difficult

• While technology is well understood, the projects are in brown field sites that require unique project designs that makes standardization problematic

• Almost by definition projects are in remote and difficult locations and environments that present challenges for validation, monitoring and certification

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Increasing Limitations on the Use of Gas Capture

• In AM0009 and 37 increasing limitations and focus on the source of the gas rather than the emissions

• Increasing burdens on the calculations and monitoring that reduce benefits from the projects

• Increasingly enlarging project boundaries that makes project definition increasingly difficult

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The Need for Gas Reinjection

•Locational reasons why gas is flared, means that in many cases capture and immediate use is not possible

•Only possibility of reducing near-term emissions is re-injection.

•Re-injection can have no/limited economic benefits, therefore is applicable to CDM

•Gas re-injection methodologies should be viewed within the technology and practices of gas storage

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Concluding Points

•Reducing emissions now has more value than reducing in the future

•To date, CDM has had almost no impact on GHG emissions and unless there are steps taken, it is unlikely to have any significant impact in the next few years.

•The flaring of gas in developing countries is a major lost to sustainable development

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What Can We Do such that CDM can Have a Meaningful Impact on Gas Flaring/GHG

Annex 1 (Project Participants, et al)

•Organize to share information and work together:

• Improve and Expand Existing Methodologies• Develop New Methodologies in Priority Areas• Provide impartial technical information

•Establish a level of organization/framework • Broad based (public entities, companies, reseach

institutions) • Either ad hoc or linked with entities like GGFR/WB

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Developing Countries

•Highlight within the UNFCCC system the role gas flare reduction can play in development

•More pro-active in incorporating CDM into development planning and strategies

•Use such stategies to move into overall carbon managment

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Meth Panel and Executive Board

•Consider emission impact as well as CDM technical issues

•Provide more avenues for technical inputs into methodologies and revisions

•Recognize the development value and challenges that using of methodolgies entails

•Don’t overvalue “conservatism”

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