outline of the presentation

Yuji MIZUNOInstitute for Global Environmental Strategies

Baseline for Waste Management Project

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism

24-26 March 2004, Siem Reap, Cambodia

Regional Workshop in Asia on Capacity Development for the Clean Development Mechanism, 24-26 March 2004, Siem Reap, Cambodia 2

Institute for Global Environmental Strategies

Outline of the Presentation

1. Overview of New Baseline Methodologies

2. Overview of Proposed CDM Projects

3. Concept of GHG reductions in Waste Management Project

4. Calculation of Emission Reductions

5. Approved Baseline Methodology (AM0003)




Number of submitted newbaseline methodologies 49

Considered by the Meth Panel 33

Not consideredyet 16

Recommended for approval 12

Recommended for revision or Other conclusion

2136%

1. Overview of New Baseline Methodologies



Number of projectswhich submitted newbaseline methodologies

44 12Number of projectswhose methodologyare approved


Asia50%

LatinAmerica

41%

Others9%

Asia42%

LatinAmerica

50%

Africa8%



Number of projectswhich submitted newbaseline methodologies

44


12

WasteManagement

22%

BiomassUtilization

22%Energy EfficiencyImprovement

14%

Hydro PowerGeneration

11%

Process Change7%

Wind PowerGeneration

7%

Fuel Switching5%

Waste HeatRecovery

5%

Others7%

Biomass Utilization17%

Energy EfficiencyImprovement

8%

Hydro PowerGeneration

8%

Fuel Switching8%

HFCdecomposition

8%

Oil FieldAssociated Gas

Recovery8% Waste

Management43%

Number of projectswhose methodologyare approved



Fuel Switching Hydro PowerGeneration

Energy EfficiencyImprovement

Biomass Utilization

WasteManagement

0

50,000

100,000

150,000

200,000

250,000

300,000


Average of Annual ERs by Project Type (among approved methodologies excluding HFC decomposition &

Oil Field Associated Gas Recovery)



3. Concept of GHG reductions in Waste Mgt Project

Landfill Gas(methane)

GWP=21 Methane Capture

Methane Flaring

CO2

GWP=1

Baseline Scenario(without CDM)

Project Scenario (with CDM)






GHG emissions = 100 t-CH4 /year = [100 x 21(GWP) ] t-CO2 /year = 2100 t-CO2 /year

1 t-CH4 2.75 t-CO2

GHG emissions = 2.75 x 100 t-CO2 /year = 275 t-CO2 /year

Emission Reductions = 2100 – 275 = 1825 t-CO2 /year

After Flared




To date

Proposed revision by the CDM Meth Panel (9th meeting)

The source of the methane and therefore CO2 emissions is the organic fraction in deposited waste, which forms part of the natural organic CO2 cycle

Given that after combustion each tonne of CH4 produces 2.75 tonne of CO2, these should be discounted from the total value of CH4 reduced by the project

Important Change !

CO2 emissions from landfill gas (methane) flaring = 0 t-CO2

CO2 emissions from landfill gas (methane) flaring will be counted




To date

Important Change !Baseline emissions = 100 t-CH4 /year = 2100 t-CO2 /year

Proposed revision by the CDM Meth Panel (9th meeting)

Emissions from the Pjt =0 t-CO2 /year

Emission Reductions = 2100 t-CO2

Baseline emissions = 100 t-CH4 /year = 2100 t-CO2 /year

Emissions from the Pjt =275 t-CO2 /year

Emission Reductions = 1825 t-CO2




Methane Capture

Methane Flaring

CO2

Applicability of this Methodology

orElectricity Generation

No emissions reductions are clamed for displacing or avoiding electricity by other sources




How to Determine Additionality

Methane Capture

BAU Scenario(without CDM)


No Change

(1) Justify there are only the project and BAU scenarios

(2) Calculate a conservative IRR, except revenue from sale of CERs

(3) If the project IRR is clearly and significantly lower than the conservatively acceptable IRR, the project is additionale.g. Gov bond rates, commercial lending rates




Methane Capture

CO2

Baseline Emissions



methane

In the absence of the project activity, the amount of captured and destroyed methane would be released to the atmosphere.Thus, this is the baseline emissions (basically).

For the PDD, baseline emissions will be estimated ex ante by using the Model.

Once the project activity is operational, baseline emissions will be determined ex post by metering actual quantity.




Baseline EmissionsEffectiveness Adjustment Factor (EAF)

Time

Baseline Emissions

Emissions from Project Activity

GHG emissions

Emission Reductions

Regulation or contractual requirement might impose methane capture

Discounted Emission Reductions




Baseline EmissionsEffectiveness Adjustment Factor (EAF)Taking into account the effectiveness of the gas collection systems that would be imposed by regulatory or contractual requirements, the final Emission Reductions will be discounted by EAF.

The default value for the EAF is 20%.

Deviations from the default value can be proposed and justified based on project-specific considerations

The EAF shall be revised at the start of each new crediting period.




How to calculate Emissions ReductionsMonitor the amount of landfill gas collected by a continuous flow meter

Monitor the percentage of methane in landfill gas by a continuous analyzer

Monitor the amount of electricity generated

Calculate the amount of methane destroyed : 100 t-CH4

Baseline emissions = 100 t-CH4

= 2100 t-CO2

Emissions from the Pjt =275 t-CO2

Emissions Reductions = 1825 t-CO2 x (1-EAF(20%)) = 1825 t-CO2 x 0.8 = 1460 t-CO2




LeakageEmissions resulting from generating the electricity used to pump the landfill gas

If sufficient electricity is generated from recovered landfill gas, there is no leakage

If purchased electricity is used, the associated emissions should be calculated

The resulting emissions should be deducted from Emission Reductions




Methane Capture Methane

Flaring

Applicability of this Methodology

The project activity is to collect and flare methane greater than the amount determined by the contractual requirement

There exists a contractual agreement which requires the amount of methane flaring

The contract was awarded through a competitive bidding process

The amount of landfill gas to be flared reflects performance among the top 20% in the previous five years

No generation of electricity using captured landfill gas occurs or is planned




Baseline Emissions

Baseline Emissions

Emissions from Project Activity

Methane emissions

Emission Reductions

The quantity of methane which should be captured by requirement of the contractual agreement

Methane Emissions from landfill gas

The quantity of methane which are captured by the CDM project

outline of the presentation

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