17. UNIDO Representative Ms. ShadiaYousif Bakhait presenting the Guide Book to
UNFCCC Executive Secretary Ms. Christiana Figueres, Minister for Environment
Mr. Hamidullah Jan Afridi is also present on the occasion.
Soft Launching of
“CDM Guide Book For Pakistan”
8th February 2011
29. Overview of Kyoto Protocol and Clean
Development Mechanism (CDM)
1
This section presents an introduction of Kyoto Protocol and
CDM. It starts from an elaboration of basic environmental
terminologies and provides precise information to the
reader about the establishment of IPCC and UNFCCC,
evolution of Kyoto Protocol and development of various
emission trading schemes including Clean Development
Mechanism.
1Overview of Kyoto Protocol and Clean Development Mechanism (CDM)
40. 12 Overview of Kyoto Protocol and Clean Development Mechanism (CDM)
41. CDM Organization and Key Players
Involved
2
In this section, focus of the Guidebook completely diverts
towards CDM which is the area of prime interest among
other emission trading schemes. In this section a detailed
description of the key players involved in the entire CDM
cycle, such as Project Developers, CDM Consultants, CER
buyers, Designated National Authorities, Designated
Operational Entities, Executive Board, etc., along with
theirgeneralrolesisprovided.
13CDM Organization and Key Players Involved
51. CDM Project Categories
3
This section mentions the categories of a CDM project.
CDM projects are categorized on the basis of scale of the
project activity (large scale or small scale). Introduction to
Programme ofActivities (PoA) and sectoral scopes are also
brieflydescribed.
23CDM Project Categories
57. Eligibility Criteria for CDM Projects
4
This section is designed to raise awareness of the reader
about all the regulatory requirements which a project
activity needs to follow to become eligible and/or
registered as a CDM project activity. Mandatory
requirements of UNFCCC and national requirements for
CDMprojectsarealsodescribedinthissection.
29Eligibility Criteria for CDM Projects
61. CDM Procedures
5
This section provides highlights of all procedural
requirements in the course of a CDM project activity.From
the project design document development to issuance of
CERs,allthestepsaretabulatedinthissection.
33CDM Procedures
65. Key Steps Involved in CDM Project
Development
6
All the key steps involved in the development of a CDM
project activity are described in detail in this section. In
particular, a comprehensive description of the Project
Design Document (PDD), its components is provided in
suchawaysothatthereadercanhaveafullunderstandingof
thePDDdevelopmentprocess.
37Key Steps Involved in CDM Project Development
81. Programme of Activities (PoA)
7
This section aims to discuss CDM Programme ofActivities
(PoA) in detail. Eligibility criteria and procedural
requirements are discussed for a CDM project to be
undertaken as a CDM PoA.Comparison of a standard CDM
project to a CDM PoA, and project design documents
involvedinCDMPoAarealsodiscussedprecisely.
53Programme of Activities (PoA)
89. Diffusion of CDM in Pakistan
8
This section is focused on analyzing CDM activities in
Pakistan. To assess the diffusion of CDM in Pakistan, a
comparison of CDM project activities in Pakistan is made
withtheCDMprojectactivitiesinneighbouringcountries.
61Diffusion of CDM in Pakistan
97. Overview of Potential CDM
Opportunities for Industrial Sector
in Pakistan
9
In this section, focus of the Guidebook completely diverts
towards CDM which is the area of prime interest among
other emission trading schemes. In this section a detailed
description of the key players involved in the entire CDM
cycle, such as Project Developers, CDM Consultants, CER
buyers,DesignatedNationalAuthorities.
Overview of Potential CDM Opportunities for Industrial Sector in Pakistan 69
105. Detailed CDM Potential Assessment for Pakistan:
Cement, Sugar and Oil & Gas Sectors
10
A detailed CDM potential assessment for Pakistan in the
cement, sugar, and oil & gas sectors is carried out in this
sectionoftheGuidebook.Tobuildtheconceptofthereader,
assessmentofeachsectorisstartedwithgeneralmeasuresin
thesectorfollowedbyananalysisofregisteredCDMproject
across the globe in that sector.The analysis comprises of 72
registered projects in the cement sector, 78 projects in the
sugarsector,and24projectsintheoil&gassector.
77Detailed CDM Potential Assessment for Pakistan: Cement, Sugar and Oil & Gas Sectors
124. 96 Sugar Sector Analysis
Potential of Individual Sugar Mills
We have calculated the potential of export able power for each individual sugar mill for both the above
scenarios on the basis of their actual operating capacities in the following tables.
Table: Potential of Individual Sugar Mills
126. 98 Sugar Sector Analysis
Table: Potential of Individual Sugar Mills
Province wise exportable power
Province wise summary of exportable power potential is given in the following table.
From this table it can be seen that co-gen potential of the sugar industry ranges
from 600 to 1150 MW.
Calculation of CER
Theoretically
1MW = 1Ton of CO2
But in case of Co-generation
1 MW Production by Biomass = 1 CER
Calculation of CERs-2
According to UNFCCC
1MW Produced by Biomass = 1 MW Replaced from the Grid
Pakistan's Grid Mix is
MW = 0.465TCO / MW h2
Therefore:
1 MW Produced by Biomass = 0.465 CERs
127. Sugar Sector Analysis 99
Province wise exportable power
Revenue Potential from CERs
Revenue Potential from CERs
CDM revenue in Scenario 1 is Rs 1.024 Billion which comes to Rs. 12.96 Million per Mill on the
average.
CDM revenue in Scenario 2 is Rs 0.549 Billion which comes to Rs. 7 Million per Mill on the average.
128. 100 Sugar Sector Analysis
Demand Side Energy Saving
Assumptions: Fiber % cane = 13.5, Baggasse % = 30
Cane Milling
Sugar Processing
Steam Generation
Cane Milling
Adoption of complete mill house automation
Use of electric motors for cane cutters and fibrizer
Use ofVFD at cane carriers, rake carriers
Use of high efficiency planetary gear drive
Use of anti-friction bearings at head and tail shafts of cane carrier and mill transmission gears
Use of belt conveyor in place of chain and slat conveyor
Sugar Processing
Optimization of evaporator design to minimize exhaust steam needs and maximize vapor bleeding.
Incorporation of direct contact heater or adding heaters for using low temp steam.
Use of continuous pans for massecuite boiling.
Use of efficient condensers.
Recovery of flash heat from the condensates.
Heating of air by condensate at sugar dryer.
Boilers
Automation of Boiler operation.
Addition of economizer
Use of baggasse dryer.
Improving insulation /lagging of the boiler.
Hear recovery from the blow downs.
Effect of Energy Saving on Power Export/CERs
151. Pakistani Scenario: Current Status of CDM
inTarget Sectors
11
This section analyses status of CDM projects in Pakistan
within the targeted sectors (cement, sugar, oil & gas).
Causes for low participation of Pakistani industrial sectors
in CDM are critically analyzed and enumerated. Measures
to boost CDM in Pakistani industrial sector are also
proposed.
123Pakistani Scenario: Current Status of CDM inTarget Sectors
157. High Potential CDM Projects for the Industrial
Sector in Pakistan
12
This section is designed to encourage the project
proponents to undertake CDM projects. For this purpose,
eleven success stories of CDM projects are depicted for the
reader to gain the knowledge of objective, technology
involved, and environmental benefits associated with the
particularCDMproject.
129High Potential CDM Projects for the Industrial Sector in Pakistan
160. 132 High Potential CDM Projects for the Industrial Sector in Pakistan
CDM Status: Registered
Annual CERs: 1,050,000 t CO2 / yr
161. High Potential CDM Projects for the Industrial Sector in Pakistan 133
CDM Status: Registration Request
Annual CERs: 23,319 t CO2 / yr
162. 134 High Potential CDM Projects for the Industrial Sector in Pakistan
CDM Status: Completeness Check
Annual CERs: 18,703 t CO2 / yr
163. High Potential CDM Projects for the Industrial Sector in Pakistan 135
CDM Status: Registered
Annual CERs: 218,988 t CO2 / yr
164. 136 High Potential CDM Projects for the Industrial Sector in Pakistan
CDM Status: Registered
Annual CERs: 21,486 t CO2 / yr
165. High Potential CDM Projects for the Industrial Sector in Pakistan 137
CDM Status: Registered
Annual CERs: 108,686 t CO2 / yr
166. 138 High Potential CDM Projects for the Industrial Sector in Pakistan
CDM Status: Registered
Annual CERs: 11,179 t CO2 / yr
167. High Potential CDM Projects for the Industrial Sector in Pakistan 139
CDM Status: Registered
Annual CERs: 87,477 t CO2 / yr
168. 140 High Potential CDM Projects for the Industrial Sector in Pakistan
CDM Status: Registered
Annual CERs: 34,892 t CO2 / yr
169. High Potential CDM Projects for the Industrial Sector in Pakistan 141
CDM Status: Registered
170. 142 High Potential CDM Projects for the Industrial Sector in Pakistan
CDM Status: Registered
171. CDMValues and Benefits for Pakistan
13
This section focuses on developing a consensus of CDM
valuesandbenefitsforPakistan.
143CDMValues and Benefits for Pakistan
175. CDM Project Risks
14
Certain risks are also associated with the Clean
Development Mechanism e.g. registration, post-
registration performance, counter-party, and marketing
risks. These are briefly discussed in this section for the
awareness of CDM project proponents. The section ends
withsomeproposalsofmitigationmeasurestominimizethe
CDMprojectrisks.
147CDM Project Risks
181. Appendices
The Guidebook has 17 appendices which provide additional
information to the reader. Each appendix is precisely
referred wherever required. The appendices include,
contact information of DNA,list of DOEs and CER buyers,
project design document templates, case studies of CDM
project in Pakistan,list of CDM consultants in Pakistan,and
list of companies in the targeted sector of Pakistan. Finally,
an analysis of the approved CDM methodologies for the
targetedsectorsispresented.
153Appendices