Offsetting Principles and The CDM, JI Basics.

1. Offsetting Principles and the CDM, JI BasicsLucas BelenkyACX Executive Climate Change and Carbon Trading Course November 12th2012

3. Gas
Factor
Example Source
Carbon Dioxide (CO2)
1
Combustion
Methane (CH4)
21-24
Waste
NitrousOxide (NO2)
298
Fertilizer
Hydro Fluorocarbons(HFC)
4,000-12,000
Refrigerant Production
SulfurHexafluoride (SH6)
16,000
Transmission Lines

4. What is a Carbon Credit?
•Definition:Acarboncreditisagenerictermforanytradablecertificateorpermitrepresentingtherighttoemitonetonneofcarbondioxideorcarbondioxideequivalent(eCO2).
•Bought,sold,traded,andhedgedasotherglobalcommodities.
•Currencyoftheinternationalcarbonmarkets.
•Considered“retired”or“cancelled”ifusedtocoveremissions

5. $25Billion

6. Example of an Emission Trading Scheme
800 tons
Cap
EU-ETS
1,200 tons
400 tons

7. The Principle of Offsets

8. 800 tonsCap
EU-ETS1,200 tons
400 Credits
Example of an Emission Trading Scheme (Offsets)

9. •Mechanism under the Kyoto Protocol
•Promotes carbon reduction projects in developed countries
•Project-based Mechanism
•Guidelines for certifying offsets from annex I counties for compliance purposes
The Joint Implementation (JI) Mechanism

10. •Mechanism under the Kyoto Protocol
•Promotes Low Carbon Development and Technology transfer
•Project-based Mechanism
•Guidelines for certifying offsets from non-annex I counties for compliance purposes in Annex I countries = Certified Emission Reductions (CERs)
The Clean Development Mechanism (CDM)

11. 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
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Share of projects
All CDM Projects in the Pipeline in Brazil + Mexico + India + Chinaas a fraction of all projectsMexico
Brazil
ChinaIndiaHFCs, PFCs & N2O reduction68%
Renewables18%
CH4 reduction & Cement & Coal mine/bed6%
Supply-side EE4%
Fuel switch3%
Demand-side EE0%
Afforestation & Reforestation0.0%
Transport0%
CERs issued in each sector
Status of CDM projects
Number
At validation
3685
Request for registration
74
Request for review
27
Correction requested
3
Under review
Total in the process of registration
104
Withdrawn
53
Rejected by EB
213
Validation negative by DOE
198
Validation terminated by DOE
1049
Registered, no issuance of CERs
2389
Registered. CER issued
1354
Total registered
3743
Total number of projects (incl. rejected & withdrawn)
9045
The CDM at a Glance

12. Financial Crisis
Nuclear Disaster in JapanDouble Dip and Over-supply