Urban NAMAs and the use of carbon market mechanisms · 2015. 4. 20. · NAMAs " Urban NAMAs: ≠...

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Urban NAMAs and the use of carbon market mechanisms

Perspectives Climate Change Alberto Galante Cologne, 30.05.2014

www.perspectives.cc · [email protected]

Agenda

1.  Major sources of GHG emission in cities

2.  Experience of Urban CDM

3.  Barriers for Urban Mitigation Projects

4.  Lessons learnt & challenges for Urban NAMAs

2

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1. Major sources of GHG emission in cities


Major sources of GHG emission in cities

Cities usually attract high-density popula t ion which leads to increased demand for the energy resources that cause high levels of GHG emissions.



GHG emissions in cities come from several different sectors integrated in the urban environment. The priority sectors (higher GHG emitters) are:

1 Dodman 2009, p. 194ff; Satterthwaite 2008, p. 539, 543

BUILDINGS TRANSPORT WASTE INDUSTRY ENERGY



Source: Perspectives GmbH



The urban share of global GHG emissions is estimated to be between 30 - 40% and up to 75 - 80%1 Urban GHG emissions from a city à methodology / boundaries?

CITY

Power Generation

Industry

Waste

Buildings

Transport

Energy supply

1 Dodman 2009, p. 194ff; Satterthwaite 2008, p. 539, 543



As the population increases, GHG emissions resulting from energy use are likely to increase in Latin American cities :

•  The economy grows comparably quickly •  The demand for carbon-intensive fuel types may increase

•  The number of private cars (a primary source for GHG

emissions) is rising with people’s increased income and their

lifestyle choices


2. Experience of Urban CDM


Experience of Urban CDM

§  Urban CDM is understood as a city-wide CDM project that covers a specific technology, function or sector within the entire city

§  For an urban CDM, it is essential to apply methodologies that are not too narrow in their design and scope, i.e. one single technology at a certain project site or sector

§  Small-scale methodologies would be most suitable and applicable within the urban CDM context based on existing rules and standards



CDM Methodologies in the Urban CDM, e.g. Buildings


3. Barriers for Urban Mitigation Projects


Barriers for Urban Mitigation Projects (Experience within CDM)

§  Technical barriers: e.g. CDM project activities are traditionally technology and sector-specific; issue of eligibility for CDM post-2012

§  Institutional barriers: policy understanding and capacity of municipalities

§  Financial barriers: relatively high overall transaction costs due to dispersed project characteristics and high up-front costs with uncertain revenues from carbon

§  Political barriers: competing priorities, public support.


4. Lessons learnt & challenges for Urban NAMAs


Lessons learnt & challenges for Urban

NAMAs

§  Urban NAMAs: ≠ sectors and ≠ cities in a country à Dispersed mitigation activities

-  MRV systems should not be limited to certain project types or technologies

-  Standardized approaches (e.g. standardized baselines, benchmarks and default values) could be relevant and facilitate urban NAMAs

§  Possibility to integrate possible emission reduction certificates in the future carbon markets à Double counting risk (cross-sectorial counting)

-  National / regional GHG emission registry -  A participant of the Urban NAMA not able take part to other NAMAs


Urban NAMAs and the use of carbon market mechanisms

Perspectives Climate Change Alberto Galante [email protected] Cologne, 30.05.2014

THANK YOU FOR YOUR ATTENTION


Double counting of emissions reductions in Urban NAMAs

17

Definition: §  Double counting occurs when an GHG

emission reduction is counted more than once.

§  E.g.: both the host country and the buyer want to count the emissions reductions in their inventories

§  In UNFCCC’s agreements, double counting is mentioned but not clearly defined.

Double counting is very relevant in an urban NAMA context: §  Risk of accounting double for the same GHG emissions (cross-

sectorial counting)



CDM Methodologies in the Urban CDM, e.g. buildings (cont.)


CDM Methodologies for Urban CDM

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