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Emissions trading: Commission adopts decision on Italy's national allocation plan for 2008-2012, 21 May 2007
BRUSSELS (EU - Commission) - The European Commission today concluded the assessment of Italy's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The Commission accepted Italy's national plan on condition that certain changes are made, including a reduction in the total number of emission allowances proposed. The cleared annual allocation is 195.8 million tonnes of CO2 allowances, 6.3% less than Italy had proposed. The Emissions Trading Scheme ensures that greenhouse gas emissions from the energy and industry sectors covered are cut at least cost to the economy, thus helping the EU and its Member States to meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "Europe is fully committed to achieving its Kyoto target and to making the Emissions Trading Scheme a successful weapon for fighting climate change. Today's decision, like our previous ones, sends a strong signal of that commitment. The Commission is assessing all national plans in a consistent way to ensure equal treatment of Member States. This is how we have assessed Italy's plan, and we will apply the same standards to the remaining plans."
Following the Commission's decisions in November 2006, January 2007, February 2007, March, April and May 2007, Italy's is the 21st national allocation plan (NAP) for the 2008-2012 period to be assessed by the Commission.
NAPs determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive.
The Commission is responsible for assessing Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full.
The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and Member States' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions. In this context, the Commission is requiring Italy to reduce its proposed cap by 13.2 million tonnes of CO2 equivalent per year, to 195.8 million tonnes.
Other assessment criteria relate to non-discrimination, EU competition and state aid rules, and technical aspects. In this regard, the Commission is requiring further changes to Italy's plan concerning the following issues:
- More information needs to be provided on how Italy will treat new entrants to the emissions trading scheme.
- Italy needs to include combustion installations (e.g. chemical crackers) covered by all other Member States in their allocation plans.
- Several intended expost adjustments must be eliminated.
- The maximum overall amount of Kyoto project credits - credits from emissionsaving projects carried out in third countries under Kyoto Protocol rules - which may be used by operators for compliance purposes may not represent more than approximately 15 % of its annual allocation.
The Commission's approval of the plan will become automatic once Italy has made the appropriate changes.
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New: German Pavilion at CARBON EXPO, 4 April 2007
COLOGNE (Koelnmesse) - For the first time, German exhibitors will make a joint trade show appearance at CARBON EXPO 2007. The leading global Trade Fair and Conference for emissions trading and carbon abatement solutions. Under the coordination of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety, German market players will join forces at the stand between May 24, 2007 when all key players in the greenhouse gas (GHG) market gather in Cologne.
At the center of the pavilion will be the joint stand of The Federal Ministry for the Environment and The German Emissions Trading Authority at the Federal Environment Agency (DEHSt). The pavilion aims to present the whole spectrum of German suppliers of technology and services in the GHG market. The Ministry is extending an invitation to German businesses, institutions and consultants from all areas in the GHG market, in particular the Joint Implementation (JI) and Clean Development Mechanism (CDM) market, i.e. project development and technology offers or financial services, to participate. This collective appearance emphasizes the presence of German enterprises at the Trade Fair and provides visitors with easy access to information during their visit to CARBON EXPO.
Over the past four years, CARBON EXPO has grown remarkablywith 185 exhibitors from 50 countries presenting to over 2,000 visitors at CARBON EXPO 2006. This year the organizers. The World Bank, the International Trading Emissions Association (IETA) and Koelnmesse GmbH are expecting around 200 exhibitors from over 50 countries and more than 2,300 visitors.
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First Japanese Pavilion at CARBON EXPO, 4 April 2007
COLOGNE (Koelnmesse) - From May 2 through 4, 2007, CARBON EXPO 2007 - The leading global Trade Fair & Conference for emissions trading and carbon abatement solutions will again be presenting the total value chain for a wellfunctioning emissions trading market. This is the event where all the main greenhouse gas (GHG) market players come together in Cologne. The organizers, the World Bank, the International Trading Emissions Association (IETA) and Koelnmesse GmbH, are expecting around 200 exhibitors from over 50 countries, and over 2.300 participants. This fourth edition will again see numerous international group participation. Following the success of their joint stands over the past years, France, Spain and the United Kingdom will once again have their own pavilion. This year, for the first time, Japan will be present with its own joint stand. The Japan Bank for International Cooperation (JBIC) has organized a joint trade show appearance of Japanese companies operating in the GHG market.
As a government financial institution and a leading financial institution in the carbon market, JBIC is organizing a pavilion for key Japanese market players at CARBON EXPO 2007. JBIC sees CARBON EXPO as a leading global conference and exhibition, as well as a platform with great success and influence in the carbon market. Participation in CARBON EXPO is a perfect opportunity for JBIC to monitor global trends in the market, to meet business partners and develop actual projects. The following companies have already agreed to participate: Nippon Amorphous Metals Co., Ltd., Mitsubishi Heavy Industries, Ltd., Mitsubishi UFJ Securities Co., Ltd., E & E Solutions Inc., JGC Corporation, The Kansai Electric Power Co., Inc.
JBIC considers energy constraints and climate change as the major global challenges of the 21st century. To meet these challenges, Japan committed to reduce GHG emissions to 6% below the level stipulated in the Kyoto Protocol. Current emissions from Japan are far over the Kyoto target. The country has to reduce GHG emissions and use carbon credits for its compliance. Japan is one of the biggest and leading players in the world's carbon markets. Japanese technology for energy efficiency and renewable energy can be used to meet the challenges of avoiding the negative impacts of climate change and economic growth. JBIC sees deployment of advanced technology and the use of carbon credits globally as helping to solve the dilemma.
With the Japanese Pavilion at CARBON EXPO, JBIC would like to introduce key Japanese market players and the Japanese market as a promising global market. Participants will be able to meet with major actors and benefit from their vast experience and advanced technology, such as carbon capture and storage (CCS), turbines and boilers, hydro and biomass power, clean coal, refinery, gasification, amorphous transformers and HFC disposal.
"I am very happy to be participating at CARBON EXPO as the largest carbon exhibition with our Japanese partners. I hope that CARBON EXPO will have the same successful results as last year," says Takashi Hongo, Special Advisor and Director General, Environment Finance Engineering Department,Japan Bank for International Cooperation.
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CARBON EXPO 2007: The international "One-Stop-Shop" platform for Visitors, 28 March 2007
Cologne (Koelnmesse) - CARBON EXPO 2007 - the 4th edition of the leading global Trade Fair & Conference for emissions trading and carbon abatement solutions - is the international event in the greenhouse gas (GHG) market where participants can fulfill their interest and meet their needs all under one roof. From 2-4 May, 2007, the organizers - the World Bank, the International Emissions Trading Association (IETA), and Koelnmesse GmbH - will provide the Visitors with the opportunity to learn, to meet and network, exchange ideas and best practices, and also conduct business. Around 200 exhibitors from over 50 countries will present their projects, technologies and services. With over 170 speakers in 8 Plenary Sessions, 22 Workshops, divided into 3 streams - "Project", "Traders", "Global" - and over 40 Exhibitors Side Events, more than 2.300 Participants are expected at this CARBON EXPO. They will be presented with a comprehensive overview of the market and the latest developments in carbon trading. With over 30 non-Annex I Host Countries present, visitors will have the opportunity to network and do business with leading industrial and service enterprises, representatives of industries and governments of developing countries and economies in transition.
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Emissions trading: Commission approves France's national allocation plan II, 27 March 2007
BRUSSELS (EU-Commission) - The European Commission today approved France's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The Commission accepted the total number of emission allowances proposed by France - equivalent to 132.8 million tonnes of CO2. The approval is conditional on France making one technical change to its plan. France withdrew the first version of its NAP in November 2006, which had proposed allowances totalling 155.6 million tonnes of CO2, and resubmitted an amended NAP in late 2006. The Commission's decisions on NAPs aim to ensure that Member States meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "I welcome France's sound revision of its national allocation plan. The French government has clearly shown the need to ensure that the Emissions Trading Scheme remains a successful weapon for fighting climate change that other regions and countries can emulate. The Commission will continue to assess all national plans in a consistent way and to create the scarcity in allowances that is essential for the scheme's success and for meeting Europe's Kyoto targets."
Assessment of the NAPs
Following the Commission's decisions in November 2006, January 2007 and February 2007, today's decisions on France's national allocation plan, as well as on those of the Czech Republic and Poland bring to 17 the number of NAPs for the 2008-2012 period already assessed by the Commission.
NAPs determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive.
The Commission is responsible for assessing Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full. The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and Member States' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions.
Other assessment criteria relate to nondiscrimination, EU competition and state aid rules, and technical aspects.
In this regard, the Commission is requiring changes to France's plan on the grounds that more information needs to be provided on how it will treat new entrants to the emissions trading scheme.
The Commission's approval of the plan will become automatic once France has provided this information.
Summary information on the 17 plans assessed to date:
Approved allowances for 2005-2007, verified emissions in 2005, proposed caps for 2008-2012, approved caps for 2008-2012 and additional emissions covered in 2008 to 2012
|
Member State |
1st period cap |
2005 verified emissions |
Proposed cap 2008-2012 |
Cap allowed 2008-2012 |
Additional emissions in 2008-2012 |
|
Belgium |
62.08 |
55.58 |
63.33 |
58.5 |
5.0 |
|
Czech Rep. |
97.6 |
82.5 |
101.9 |
86.8 |
n.a. |
|
France |
156.5 |
131.3 |
132.8 |
132.8 |
5.1 |
|
Germany |
499 |
474 |
482 |
453.1 |
11.0 |
|
Greece |
74.4 |
71.3 |
75.5 |
69.1 |
n.a. |
|
Ireland |
22.3 |
22.4 |
22.6 |
21.15 |
n.a. |
|
Latvia |
4.6 |
2.9 |
7.7 |
3.3 |
n.a. |
|
Lithuania |
12.3 |
6.6 |
16.6 |
8.8 |
0.05 |
|
Luxembourg |
3.4 |
2.6 |
3.95 |
2.7 |
n.a. |
|
Malta |
2.9 |
1.98 |
2.96 |
2.1 |
n.a. |
|
Netherlands |
95.3 |
80.35 |
90.4 |
85.8 |
4.0 |
|
Poland |
239.1 |
203.1 |
284.6 |
208.5 |
6.3 |
|
Slovakia |
30.5 |
25.2 |
41.3 |
30.9 |
1.7 |
|
Slovenia |
8.8 |
8.7 |
8.3 |
8.3 |
n.a. |
|
Spain |
174.4 |
182.9 |
152.7 |
152.3 |
6.7 |
|
Sweden |
22.9 |
19.3 |
25.2 |
22.8 |
2.0 |
|
UK |
245.3 |
242.4 |
246.2 |
246.2 |
9.5 |
|
SUM |
1751.38 |
1613.11 |
1758.04 |
1593.15 |
51.35 |
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Emissions trading: Commission decides on Czech and Polish national allocation plans II, 27 March 2007
BRUSSELS (EU-Commission) - The European Commission today took decisions on the national plans of the Czech Republic and Poland for allocating CO2 emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). It accepted both national plans on condition that a number of changes are made, including a significant reduction in the total number of emission allowances proposed by each Member State. The cleared annual allocation of CO2 allowances is 86.8 million tonnes for the Czech Republic, 14.8% lower than proposed, and 208.5 million tonnes for Poland, 26.7% lower than proposed. The Emissions Trading Scheme ensures that greenhouse gas emissions from the energy and industry sectors covered are cut at least cost to the economy, thus helping the EU and its Member States to meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "The European Commission has assessed the Czech and Polish allocation plans in the same fair and consistent way as we are assessing all others. Our decisions are based on Member States' verified emissions in 2005, give credit for projected economic growth and take into account expected improvements in carbon intensity. Today's decisions are of vital importance to create the necessary scarcity in the European carbon market and make the Emissions Trading Scheme a successful weapon for fighting climate change."
Assessment of the NAPs
National allocation plans (NAPs) determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and set out how many CO2 emission allowances each plant will receive. Following the Commission's decisions in November 2006, January 2007 and February 2007, today's decisions on the Czech and Polish national allocation plans, as well as France's bring to 17 the number of NAPsfor the 2008-2012 period already assessed by the Commission.
The Commission's task is to scrutinise Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The criteria seek, among other things, to ensure that plans are consistent with meeting the EU's and Member States' Kyoto commitments, with actual verified emissions reported in the Commission's annual progress reports and with technological potential to reduce emissions. Other criteria relate to nondiscrimination, EU competition and state aid rules, and technical aspects. The Commission may accept a plan in part or in full.
In assessing NAPs, the Commission mainly requires changes where:
- the proposed total of allowances ('cap') is not consistent with meeting the Member State's Kyoto target,
- the proposed cap is not consistent with the Member State's expected emissions and its technological potential to reduce these. This assessment takes into account the Member State's independently verified emissions in 2005 and anticipated changes in both its economic growth and carbon intensity,
- the proposed limit on the use by companies of credits obtained from emissionreduction projects in third countries carried out under the Kyoto Protocol's flexible mechanisms is not consistent with the rule that the use of these mechanisms should be supplementary to domestic action to address emissions.
Where modifications are required, the Commission has indicated in each case the steps to be taken by each Member State to make the plan acceptable to the Commission. Approval of the plans will become automatic once these changes have been made.
Information about individual decisions
Czech Republic: Plan accepted with changes required.
1) The annual allocation may not exceed 86.8 million allowances.
2) The allocations to installations benefiting from bonuses for early action and cogeneration may not exceed expected needs.
3) If guarantees for allocations beyond 2012 foreseen in current Czech law are maintained, the Commission would need to examine them under EU state aid rules. The aid in such guarantees is likely to be found incompatible with the Treaty. Under the Directive the Commission would also disallow the implementation of allocation guarantees when the third allocation plan is assessed.4) More information needs to be provided on how new entrants will be treated.
5) The list of installations has to be completed.
Poland: Plan accepted with changes required.
1) The annual allocation may not exceed 208.5 million allowances.
2) The allocations to installations benefiting from bonuses for early action, biomass and co-generation may not exceed expected needs.
3) More information needs to be provided on how new entrants will be treated.
4) Intended expost adjustments must be eliminated.
5) The overall maximum amount of Kyoto project credits which may be used by operators for compliance purposes may not represent an addition to its annual allocation of more than 10 %.
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UNFCCC: Parties discuss approaches to reduce emissions from deforestation, 21 March 2007
BONN (UNFCCC) - Avoiding loss of forests and forest degradation, particularly in the tropics, is one of the largest challenges for developing countries around the world. Forests play an important role in the global climate system, while their conservation links to crucial issues for developing countries, such as poverty alleviation and sustainable development.
About 1 billion people living in extreme poverty depend in part on forests for their livelihood. Loss of forests can result in multiple impacts on humans, societies and ecosystems. Current deforestation rates impose increased threats to biodiversity since tropical forests are home to about 80% of the Earth's plants and animals.
Despite wide awareness of these impacts, deforestation and landuse change constitute large sources of greenhouse gases on a global scale. While some efforts have been made regarding conservation and sustainable use of the global forest resources, a lot more needs to be done.
Between 7 and 9 March 2007, 140 delegates from 58 UNFCCC Parties and international organizations met in Cairns, Australia, to discuss ways and means to reduce emissions from deforestation in developing countries. The workshop helped improve the understanding of reducing emissions from deforestation and allowed for an open and constructive discussion on policy approaches and positive incentives as well as technical and methodological requirements related to their implementation and assessment of their results and reliability. Participants identified areas of agreement while they recognized that there are divergent points of view and issues that need to be resolved in order to ensure that progress is made on this very important issue.
All agreed on the urgency to take meaningful action to reduce emissions from deforestation. Such action should ensure the integrity of the international climate change process and should be compatible with sustainable forest management, while it contributes to significant reductions of greenhouse gas emissions and to the promotion of cobenefits, such as poverty alleviation and conserving biodiversity.·
Proposals for approaches to reduce emissions from deforestation were presented at the workshop. Some of them were based on funding activities through the use of marketbased mechanisms (e.g. emissions trading of carbon credits, projectbased, programmatic and/or sectoral CDM, barter transaction, payment for ecosystem services, levies on carbon credits from emissions trading and joint implementation), while others were based on the availability of non-market-based financial resources (e.g. ODA, voluntary contributions from governments and NGOs, private sector sponsorship/ donations, taxes on carbon intensive commodities and services, existing funds under the UNFCCC and Kyoto Protocol).
The workshop was part of a two-year process launched at the UN Climate Change Conference in Montreal in December 2005. The results of the meeting will be reported to the twenty-sixth session on the SBSTA starting 7 May, in Bonn, Germany.
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Agreement on the construction of the Burgas-Alexandroupolis oil pipeline, 19 March 2007
BRUSSELS (EU-Commission) - Energy Commissioner Andris Piebalgs welcomed today the signature of an agreement between Russia, Greece and Bulgaria on the construction of the Burgas-Alexandroupolis pipeline. This new infrastructure will link the Bulgarian Black Sea port of Burgas with the Greek Mediterranean port of Alexandroupolis. The Construction of this pipeline will reduce the increasing pressure of maritime oil transport through the Bosphorus and the Dardanel straights.
"In the oil sector, increasing international concern is being expressed over the threat of maritime accidents and the ensuing significant environmental damage caused by the resulting oil spills. Given the increasing density of maritime traffic in the enclosed Black Sea and additional quantities of oil exported from the region, it is of utmost importance to give a higher priority to the alternative of transporting oil by pipelines ", said the Commissioner.
Burgas-Alexandroupolis oil pipeline was considered by the Commission as a Project of pan-European Interest in the INOGATE program which identifies strategic routes for hydrocarbons. The pipeline will have a length of 280 km and a yearly capacity of initially 35 and later 50 million tons of crude oil after its opening in 2009-2010.
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Transport - bottom of the Kyoto class again, 16 March 2007
Kopenhagen (EEA) - Greenhouse gas emissions from transport remain a key, but avoidable, obstacle to the EU reaching its Kyoto climate change targets, according to a new European Environment Agency (EEA) report.
The EEA report, 'Transport and environment: on the way to a new common transport policy' says that European transport policy must deal with spiralling demand for transport. Between 1990 and 2003, passenger transport volumes in the EEA countries grew by 20 %. Air transport grew the most, 96 %, during this period.
While emissions from most other sectors (energy supply, industry, agriculture, waste management) dropped between 1990 and 2004, emissions from transport increased substantially driven by this increase in demand.
Transport is responsible for 21 % of total greenhouse gas (GHG) emissions in the EU-15 (excluding international aviation and maritime transport). Road transport contributes 93 % of the total of all transport emissions. However, emissions from international aviation are growing fastest with an increase of 86 % between 1990 and 2004.
GHG emissions (excluding marine and aviation) from transport grew the most in Luxembourg and Ireland between 1990 and 2004 with respective increases of 156 and 140 %. The average increase in the 32 EEA member countries (see notes) was 25 %.
'By suggesting that we simply deal with the environmental impacts of transport, the midterm review of the 2001 White Paper on Transport could be interpreted as a softening of Europe's line on the need to deal with transport volumes. This cannot be the case,' said Professor Jacqueline McGlade, Executive Director of the EEA.
'We cannot deal with the increasing GHG emissions, noise pollution and landscape fragmentation caused by transport without dealing with the increasing traffic across the spectrum: on our roads and railways, in the air and by sea. Technical advances, such as cleaner, more fuelefficient engines are very important, but we cannot innovate our way out of the emissions problem from transport,' she said.
The report also highlights the significant role that transport subsidies play in terms of directing transport choices. Between 270 and 290 billion Euro is spent annually in Europe in transport subsidies. Almost half of these subsidies go to road transport, one of the least environmentally friendly modes. The EEA will release a detailed study of transport subsidies in March 2007.
Pollution from transport is also having a direct effect on our health. Almost 25 % of the EU-25 population live less than 500 metres from a road carrying more than three million vehicles per year. Consequently, almost four million lifeyears are lost each year due to high pollution levels, the report says.
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Emissions trading: Commission approves Spain's national allocation plan for 2008-2012, 16 February 2007
BRÜSSEL (EU-Kommission) - The European Commission today approved Spain's national plan for allocating carbon dioxide (CO2) emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The cleared annual allocation is 152.3 million tonnes of CO2, which compares with the cap proposed by Spain of 152.7 million tonnes. Spain's plan for 2008-2012 covers additional emissions in sectors which did not report emissions in 2005 of roughly 6.7 million tonnes of CO2. The approval is conditional on Spain making changes to three further aspects of its plan. The Commission decisions on national plans under ETS aim to ensure that Member States meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "I welcome the Spanish Government's ambitious determination to use the Emissions Trading Scheme as a central component of its effort to comply with its Kyoto target. Its very solid allocation plan helps create the scarcity in allowances that is essential for the scheme's success in the second trading period from 2008 to 2012. The Commission will continue to assess all national plans in a consistent way to ensure that there is scarcity in allowances and that the EU meets its Kyoto target."
Following the Commission's decisions in November 2006, January 2007 and February 2007, Spain's is the 14th national allocation plan (NAP) for the 2008-2012 period to be assessed by the Commission.
NAPs determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and specify how many CO2 emission allowances each plant will receive.
The Commission is responsible for assessing Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The Commission may accept a plan in part or in full. The assessment criteria seek, among other things, to ensure that plans are consistent (a) with meeting the EU's and Member States' Kyoto commitments, (b) with actual verified emissions reported in the Commission's annual progress reports, and (c) with technological potential for reducing emissions. In this context, the Commission is requiring Spain to reduce its proposed cap by 0.42 million tonnes of CO2 equivalent per year to 152.3 million tonnes.
Other assessment criteria relate to non-discrimination, EU competition and state aid rules, and technical aspects. In this regard, the Commission is requiring changes to Spain's plan on the grounds that:
- The proposed extent of companies' use of credits from emissionreduction projects carried out in third countries under the Kyoto Protocol's flexible mechanisms is not consistent with the rule that these mechanisms should be used to supplement domestic action on emissions. Consequently Spain is required to limit the use of these credits to some 20 % of the allowed allocation.
- More information needs to be provided on how it will treat new entrants to the emissions trading scheme.
- A complete list of all installations has to be provided with the quantities of allowances that it intends to allocate to each installation.
The Commission's approval of the plan will become automatic once Spain has made these changes.
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Kyoto's clean development mechanism can lead the way to low-carbon future, 27 February 2007
Bonn (UNFCCC) - The Kyoto Protocol's clean development mechanism (CDM) is a glimpse of the future when it comes to the global response to climate change, says Hans Jürgen Stehr, the newly elected chair of the Executive Board that oversees the mechanism.
"The mechanism's success in stimulating investment in development projects that reduce green-house gas emissions is a model for other financial and marketbased initiatives," Mr. Stehr said.
In just two years, the CDM has resulted in more than 500 registered projects in more than 40 countries in the developing world, stimulating North-South investment and considerable emission reductions in the process - the mechanism is expected to result in emission reductions equivalent to 1.8 billion tonnes of CO2 to the end of 2012.
"Our task now is to refine and improve the mechanism to see that it meets its full potential, as expected by governments," Mr. Stehr said.
At the Executive Board's twenty-ninth meeting, which just concluded in Bonn, decisions were adopted that enhance the oversight of project registration and implementation, to ensure that emission reductions from CDM projects are real, measurable and verifiable.
"The CDM was quick to generate strong interest in the developing world and result in projects on the ground. It's our challenge to spread CDM even farther afield, with more projects covering a wider range of activities, while maintaining the high quality standard demanded of the process," said Rajesh Kumar Sethi, who was elected vicechair of Executive Board.
CDM project implementers earn certified emission reduction units which are bought by countries with emissionreduction commitments under the Kyoto Protocol.
"Market-based mechanisms, like the clean development CDM, will be at the heart of any new agreement taken by the international community to address climate change, and negotiations on that agreement need to progress quickly," said Yvo de Boer, Executive Secretary of the United Nations Framework Convention on Climate Change, in welcoming the new chair and vicechair. The first commitment period of the Kyoto Protocol ends in 2012, which means time is short for negotiating a new agreement, given its global scope and the complexity of the task.
Mr. de Boer acknowledged the hard work and considerable contributions of outgoing Executive Board Chair, José Domingos Miguez; Christine Zumkeller, for her role as principal architect and builder of the CDM, who is retiring from the UNFCCC secretariat; and Janos Pasztor, acting coordinator of the Project Based Mechanisms programme at the secretariat for the past year, who is joining the United Nations Environment Programme in Geneva.
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Climate change and the EU's response, 16 February 2007
BRÜSSEL (EU-Kommission) - Climate change is happening. There is an overwhelming consensus among the world's leading climate scientists that global warming is being caused mainly by carbon dioxide and other 'greenhouse gases' emitted by human activities, chiefly the combustion of fossil fuels and deforestation. These gases remain in the atmosphere for many decades and trap heat from the sun in the same way as the glass of a greenhouse.
The latest science report from the UN Intergovernmental Panel on Climate Change (IPCC), published on 2 February 2007, represents the most authoritative and up-to-date global scientific consensus on climate change. It finds that the warming of the global climate system is "unequivocal" and accelerating. The global average temperature has risen by 0.76°C over the past 100 years, with Europe warming faster than the average, by around 1°C. The 15 hottest years on record have all occurred during the last 20 years, 11 of them since 1995. The second half of the 20th century was the warmest period in the northern hemisphere for at least 1,300 years. The rate of sea level rise has almost doubled from 18 cm per century between 1961 and 2003 to 31 cm per century in 1993-2003.
The report points to a greater than 90% probability that increases in man-made emissions of greenhouse gases have caused most of the temperature increase seen since the middle of the 20th century. The current atmospheric concentrations of carbon dioxide and methane, another greenhouse gas, are the highest for at least 650,000 years.
The IPCC working group projects that temperatures and sea levels will rise further this century. The global average temperature is projected to increase by between 1.1 and 6.4°C. Its best estimate, assuming no further action is taken to reduce emissions, is a temperature rise of between 1.8 and 4.0°C and a further rise in sea level of between 18 and 59 mm. However, the projections of sea level rise may be underestimated as they do not include the full effects of changes in ice flows.
What impacts is climate change expected to have?
The warming of the global climate system is already evident in the increases in average air and ocean temperatures, widespread melting of snow and ice and rising sea levels. The impacts of climate change are expected to become progressively severe as temperatures rise. There is strong scientific evidence that the risks of irreversible and possibly catastrophic changes would greatly increase if global warming exceeded 2°C above the preindustrial temperature. The EU's position is therefore that the objective of global action must be to keep the temperature rise within this 2°C limit.
The impacts of climate change are generally forecast to include the following:
- Extreme weather events - storms, floods, droughts and heat waves - will become more frequent, causing human suffering and economic damage. It is likely that tropical typhoons and hurricanes will become more intense, with larger peak wind speeds and more heavy rain.
- Changes in rainfall patterns will put pressure on water resources in many regions, which will in turn affect both drinking water supplies and irrigation. Increases in the amount of precipitation are very likely in high latitudes and the tropics whereas decreases are likely in most subtropical regions
- Warm seasons will become dryer in the interior of most midlatitude continents, increasing the frequency of droughts and land degradation. This will be particularly serious for areas where land degradation, desertification and droughts are already severe. Developing countries will suffer particularly, and tropical diseases will extend their geographical range
- In Europe agricultural yields are projected to start declining if the temperature rises beyond 2°C above the preindustrial level. With a global temperature increase to 2.5°C above preindustrial levels, 2.4 to 3.1 billion more people worldwide are likely to suffer from water scarcity
- Geographical shifts in the occurrence of different species and/or the extinction of species will occur. Cold weather mammals like polar bears could be especially threatened.
- Projections show that by 2080 cold winters could disappear almost entirely and hot summers, droughts and incidents of heavy rain or hail could become much more frequent.
What about impacts in Europe?
According to the new IPCC projections, the temperature in Europe may climb by a further 4 - 7 °C this century as emissions of greenhouse gases continue building up.
A 2004 report by the European Environment Agency identified a broad range of current and future impacts of climate change in Europe, including the following:
- Almost two out of every three catastrophic events since 1980 have been directly attributable to floods, storms, droughts or heat waves. The average number of such weather and climaterelated disasters per year doubled over the 1990s compared with the previous decade. Economic losses from such events have more than doubled over the past 20 years to around ¤8.5 billion annually. This is due to several reasons, including the greater frequency of such events but also socioeconomic factors such as increased household wealth, more urbanisation and more costly infrastructure in vulnerable areas.
- The annual number of floods in Europe and the numbers of people affected by them are rising. Climate change is likely to increase the frequency of flooding, particularly of flash floods, which pose the greatest danger to people.
- Glaciers in eight of Europe's nine glacial regions are in retreat, and are at their lowest levels for 5,000 years.
- Climate change over the past three decades has caused decreases in populations of plant species in various parts of Europe, including mountain regions. Some plants are likely to become extinct as other factors, such as fragmentation of habitats, limit the ability of plant species to adapt to climate change.
What are the expected costs of climate change, and of action to control it?
The economic costs of climate change and the economic advantages of taking strong and early further action to control it have been highlighted by the Stern Review of the economics of climate change, commissioned by the UK government and published in October 2006.
The Review has further underlined that the benefits of prompt action to reduce emissions far outweigh the costs, and that the earlier action is taken the less costly it will be. The report estimates that without further action to limit emissions, the damage caused by climate change would eventually reduce global GDP by between 5% and 20% a year.
Unabated climate change could create risks of major disruption to economic and social activity, later this century or early next, on a scale similar to the upheavals caused by the two world wars and the 1930s economic depression, it warns. By contrast, taking early action to stabilise greenhouse gas concentrations at a level that prevents climate change from reaching dangerous proportions would cost around 1% of GDP.
What international agreements are in place to fight climate change?
The United Nations Framework Convention on Climate Change (UNFCCC) and its Kyoto Protocol provide the international framework for combating climate change.
UNFCCC
The UNFCCC, the first international measure to address climate change, was adopted in May 1992 and came into force in March 1994. So far 189 governments - almost all the world's governments - have ratified it.
The Convention's goal is to stabilise greenhouse gas concentrations in the atmosphere at a level that prevents dangerous human interference with the climate system. It obliges Parties to establish national programmes for reducing greenhouse gas emissions and to submit regular reports.
It also encouraged industrialised countries to stabilise their greenhouse gas emissions at 1990 levels by the year 2000. The EU comfortably met this target.
The UNFCCC is based on the principle of 'common but differentiated responsibilities and respective capabilities'. This recognises that while all countries have in interest in controlling climate change, the developed world is responsible for most of the historical buildup of greenhouse gases in the atmosphere and should therefore lead in reducing emissions.
Parties to the UNFCCC meet annually to review progress and discuss further measures. A number of global monitoring and reporting mechanisms are in place to keep track of greenhouse gas emissions.
Kyoto Protocol
In December 1997, in the Japanese city of Kyoto, governments took a further step by adopting a protocol to the UNFCCC - the Kyoto Protocol.
Building on the UNFCCC framework, the Protocol sets legally binding limits on greenhouse gas emissions from originally 38 industrialised countries and the European Community (the EU-15). It also introduces innovative market-based implementation mechanisms - the socalled Kyoto flexible mechanisms - aimed at reducing the cost of curbing emissions.
Under the Protocol, industrialised countries are required to limit or reduce their emissions of six greenhouse gases: carbon dioxide (CO2), the most important and common gas, methane, nitrous oxide, and the industrial gases hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride. The overall reduction required amounts to a cut of around 5% below the level in the chosen base year (often 1990), and is to be achieved during the first Kyoto Protocol "commitment period" from 2008 to 2012. A five-year commitment period was chosen rather than a single target year to smooth out annual fluctuations in emissions due to uncontrollable factors such as weather. There are no emission targets for developing countries.
The EU-15 (the 15 countries that were Members of the EU at the time of ratification of the Protocol in 2002) took on a commitment to reduce their combined greenhouse gases emissions to 8% below base year levels (1990 in most cases). Under the EU Decision to ratify the Protocol, this collective target has been translated into differentiated, legally-binding national targets for each EU-15 Member State, ranging from a reduction of 28% by Luxembourg to an increase of 27% for Portugal. Of the 12 Member States that have acceded since 2004, 10 have individual reduction commitments of 6 or 8% under the Protocol. Only Cyprus and Malta do not have Kyoto targets.
The Kyoto Protocol entered into force on 16 February 2005. So far 168 countries and the European Community have ratified it. Two developed countries that originally signed the treaty have not ratified: the US has rejected the Protocol, whereas Australia has decided not to ratify it. This means the Kyoto emission targets now apply to 36 developed countries plus the European Community (EU-15).
What are the Kyoto flexible mechanisms?
The Kyoto Protocol creates three market-based mechanisms, known as the Kyoto flexible mechanisms: emissions trading between governments with Kyoto targets, the Clean Development Mechanism and Joint Implementation.
The aim of these mechanisms is to allow industrialised countries to meet their targets cost-effectively while stimulating investment in, and the transfer of clean technology to, emissions-saving projects in developing countries and economies in transition. The rationale is that emission reductions have the same impact on the atmosphere regardless of where they are made, so it is sensible to make them wherever it costs least. Detailed rules and supervisory structures have been set up to ensure that these mechanisms are not abused.
Emissions trading
Emissions trading can take place between countries with Kyoto targets, ie industrialised nations. Reflecting the emission targets agreed in Kyoto and under the EU 'burden sharing' agreement, each country will be assigned a fixed maximum amount of emissions that it may emit over the commitment period (2008-2012). Countries that emit less can sell the unused quota to others that emit more. This will allow reductions to take place where they are cheapest, reducing compliance costs.
Inspired by this model, the EU has developed and implemented its own company-level emissions trading scheme. This 'cap and trade' system, launched on 1 January 2005, covers all 27 EU Member States and is the first and biggest international emissions trading scheme in the world. It has developed rapidly and is now driving the fast-expanding global carbon market.
Under the EU Emissions Trading Scheme (EU ETS), Member States set a national 'cap' on CO2 emissions from over 10,000 energy-intensive plants (power plants, steel factories, oil refineries, paper mills, and glass and cement installations). Together these installations account for almost half of the EU's CO2 emissions. Within the limits of their national cap, governments issue allowances to each installation to emit a certain level of CO2 each year. These allowances are tradable.
Companies that emit less than the number of allowances they receive can sell the surplus to companies that have problems staying within their limits, or for which emissions reduction measures are more expensive than buying allowances on the market. Any company may also increase its emissions above the level of its allowances by acquiring more allowances from the market.
By putting a price on emissions and a value on emissions saved, the scheme has made climate change a boardroom issue for the companies involved and given them a permanent incentive to minimise CO2 emissions and fully integrate emission costs into their decision making. The system induces operators to make emission cuts where they are cheapest, thereby ensuring that reductions are made at the lowest possible cost to the economy. It also fosters innovation - companies have an incentive to improve their energy efficiency and invest in climate-friendly technologies.
The EU ETS is being closely watched by businesses and governments around the world and serving as an important reference point for others developing their own schemes, eg seven north-eastern US states, California, and states and territories in Australia. The EU has indicated its willingness to link the EU ETS to other cap-and- trade schemes to form a global emissions trading network.
Clean Development Mechanism and Joint Implementation
The Clean Development Mechanism (CDM) and Joint Implementation (JI) allow industrialised countries to achieve part of their emission reduction commitments by investing in emission-saving projects abroad and counting the reductions achieved toward their own commitments. JI covers projects in other industrialised countries with Kyoto targets, while CDM projects are carried out in developing countries. The two mechanisms lower compliance costs, promote the transfer of advanced technologies to developing countries and economies in transition, and foster cooperation between countries with Kyoto targets.
CDM credits can be generated retroactively, from 2000 onward, while JI credits must be generated during the 2008-2012 period. The CDM is thus already operational. A condition for the issue of credits is that the projects result in real, measurable and long-term emission savings that are additional to what would have happened without the projects. Several EU Member States intend to buy CDM and JI credits to help them meet their Kyoto targets. Collectively they have budgetted more than ¤3 billion to do so.
The EU Emissions Trading Scheme is linked to CDM and JI. Companies covered by the scheme can use emission credits from most types of CDM projects and from JI projects (from 1 January 2008) to offset their emissions in the same way as emission allowances. This link is driving investment in CDM and JI projects by European companies, in addition to the purchases planned by governments.
What will happen if a country misses its target?
The compliance regime for the Kyoto Protocol is among the most comprehensive and rigorous in the international arena. If a Party fails to meet its emissions target, the Protocol requires it to make up the difference in the second commitment period (after 2012), with an additional 30% penalty. It must also develop a compliance action plan, setting out the actions that it will take to meet the target and the timetable for doing so. In addition, its eligibility to "sell" under the Protocol's international emissions trading system will be suspended.
However, for the EU-15 Member States, the Kyoto Protocol compliance procedures will apply only if the EU-15 as a whole misses its 8% reduction target. Should this occur, each Member State will be held to the target set out in the Decision to ratify the Protocol and the Community will be held to be in non-compliance.
The remaining 10 Member States with Kyoto targets (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia) are bound to their individual targets as set out in the Protocol, both under the Protocol's non-compliance procedures and under EC law.
Member States are committed in EC law to meet their targets, which are enforceable through infringement procedures by the European Commission.
What action is the EU taking to combat climate change?
The fight against climate change is a priority for the European Commission, as it is for EU Member States. EU-level action is an essential complement to Member States' own efforts to reduce greenhouse gas emissions. Combating climate change is the first of the 6th Environmental Action Programme's four priority areas and one of the main commitments made under the EU Sustainable Development Strategy. The need to reduce emissions has been progressively integrated into key EU policy areas such as agriculture, energy, regional policy and research.
Central to the Commission's action to ensure the EU and Member States meet their Kyoto targets is the European Climate Change Programme (ECCP), launched in 2000. Under this umbrella, the Commission, Member States and stakeholders have identified and developed a range of cost-effective to reduce emissions. So far, some 35 such measures have been implemented. They include the EU Emissions Trading Scheme and legislative initiatives to promote renewable energy sources for electricity production, expand the use of biofuels in road transport and improve the energy performance of buildings.
A second ECCP was started in October 2005 to identify further cost-effective measures to reduce emissions up to and beyond 2012 and to develop strategies for adapting to the climate change that is already under way. This work has led to the Commission's recent proposals to include aviation in the EU Emissions Trading Scheme from 2011 and to strengthen the EU strategy for reducing CO2 emissions from new cars through legislation. Other areas of ECCP-2 work include reviewing the EU Emissions Trading Scheme with a view to its revision from 2013 and the development of a legislative framework for the environmentally safe use of carbon capture and geological storage technology.
In January 2007 the Commission put forward an integrated package of measures to establish a new energy policy for Europe aimed at stepping up the fight against climate change and boosting the EU's energy security and competitiveness. The proposals put the EU on course towards becoming a low-carbon economy.
The package sets a range of ambitious targets to be met by 2020. Energy efficiency would be improved by 20%, the market share of renewable energy sources increased to 20% and the share of biofuels in transport fuels raised to 10%. On greenhouse gas emissions the Commission proposes that, as part of a new global agreement to prevent climate change from reaching dangerous levels, developed countries should cut their emissions by an average of 30% from 1990 levels. As a concrete first step towards this reduction, the EU would make a firm independent commitment to cut its emissions by at least 20% even before a global agreement is reached and irrespective of what others do.
What progress is the EU making towards the Kyoto targets?
National and EU-level action to reduce greenhouse gas emissions has enabled the EU to 'decouple' emissions from economic growth. Between the base year (1990 in most cases) and 2004, the EU-15 reduced its collective emissions by 0.9% while the economy grew by 32%. EU-25 emissions were down by 7.3%. These reductions compare, for instance, with a 15.8% rise in US emissions between 1990 and 2004 as the US economy expanded by 52.6%.
Projections show that the EU-15's 8% reduction target can be achieved in 2010 provided that all actions planned by Member States are fully implemented and deliver the emission savings anticipated. However, seven EU-15 Member States have projected that they will exceed their emission limits: Austria, Belgium, Denmark, Ireland, Italy, Portugal and Spain (see Annex for details). All of the new EU-10 Member States were on track to achieve their individual targets. If all actions planned are taken, the total EU-25 emissions reduction would reach 10.8% in 2010.
What happens after the Kyoto Protocol's first commitment period?
The increasingly evident changes taking place in the global climate, together with major recent publications such as the Stern Review and the latest IPCC science report, have further underlined the urgent need for further action to control global emissions of greenhouse gases. The window of opportunity to keep global warming below 2°C is narrowing as temperatures rise, and the costs associated with climate change will keep increasing the longer further action is delayed.
The Commission and EU Member States therefore strongly support the development of a new global climate change agreement. This should succeed the Kyoto Protocol's first commitment period at the end of 2012 and provide the international framework for action that is ambitious and comprehensive enough to limit the temperature increase to 2°C.
Talks on post-2012 action were launched at the annual UNFCCC ministerial conference in Montreal in December 2005 at the initiative of the EU and other countries. The talks are taking place on two parallel tracks. On one track, the Parties to the Kyoto Protocol are discussing new emission targets for industrialised countries post-2012. A detailed work programme for these discussions, as well as a comprehensive review of the Protocol to take place in 2008, were agreed at the annual ministerial held in Nairobi in November 2006.
On the second track, the UNFCCC Parties, including those that are outside Kyoto such as the US and Australia, are conducting a dialogue on long-term cooperative action against climate change. This dialogue is scheduled to conclude at the next annual ministerial in December 2007. The EU's view is that it should be followed up by negotiations on a comprehensive global agreement on post-2012 action. Negotiations on this should be completed by the end of 2009 at the latest to ensure the agreement enters into force by the end of Kyoto's first commitment period.
What are the European Commission's proposals for further action to combat climate change?
The key elements of the EU position on further action were outlined in a Communication published by the Commission in February 2005. They include five elements:
- Broad participation by all major emitting countries
- inclusion of all emitting sectors, including aviation, maritime transport and forestry (to address deforestation)
- increased research and development and uptake of low-carbon technologies,
- continued use of market mechanisms to keep reduction costs low
- adaptation to the impacts of climate change since some effects are unavoidable
The EU Summit in Brussels in March 2005 affirmed these principles and initiated an intensive outreach effort, engaging the EU in dialogues with a range of countries on further action to combat climate change.
The Commission's January 2007 package of energy and climate change measures buildson this earlier work. It includes a Communication setting out concrete proposals for the content of a new global climate change agreement aimed at limiting the temperature rise to 2°C above the pre-industrial level. Remaining within this limit is both technically feasible and economically affordable if the international community acts swiftly.
As mentioned above, the Commission is proposing that developed countries commit to cutting their emissions by an average of 30% from 1990 levels by 2020. As a concrete first step towards the 30% reduction by developed countries, and to set an example to our partners, the EU would make a firm independent commitment to cut its emissions by at least 20% even before a global agreement is reached and irrespective of what others do. The energy-related measures proposed in the January 2007 package, together with measures already in place such as the EU Emissions Trading Scheme, would deliver this reduction.
It would be essential for developing countries - except for the least developed nations - to broaden their contribution as well since their emissions are projected to overtake those from developed countries by around 2020. Developing countries would need to start slowing their emissions growth as soon as possible and then reduce their emissions in absolute terms after 2020.
To control climate change effectively it will also be essential to halt tropical deforestation completely within the next two decades and then reverse it through afforestation or reforestation schemes. Deforestation currently contributes around 20% of global greenhouse emissions, more than transport.
The Commission's analysis shows that these actions by developing and developing countries are the essential next steps if the world is to have a fair chance of staying within the 2°C temperature limit. This will require global emissions to peak before 2025 and then fall by as much as 50% of 1990 levels by 2050. This implies reductions in developed countries' emissions of 60-80% from 1990 levels by mid-century.
How much would this all cost?
The Commission's impact assessment shows that taking action to limit climate change is fully compatible with sustaining global economic growth. Investment in a low-carbon economy will require around 0.5 % of total global GDP over the period 2013-2030. This would reduce global GDP growth by just 0.19 % per year up to 2030, a fraction of the expected annual GDP growth rate of 2.8%, and this is without taking into account associated health benefits, greater energy security and reduced damage from avoided climate change. This is a small insurance premium to pay for significantly reducing the risk of irreversible damage, particularly when compared with the Stern Review's estimate that uncontrolled climate change will cost between 5 and 20% of GDP in the longer term.
Company-level emissions trading schemes such as the EU Emissions Trading Scheme (EU ETS) will be a key tool to ensure that developed countries can reach their future targets cost-effectively. The international framework for combating climate change after 2012 should enable comparable trading schemes in different regions to be linked together. In this way the EU ETS would be the pillar of a global carbon trading network. The scope of the Kyoto Protocol's Clean Development Mechanism should be expanded after 2012, for instance to cover entire national sectors rather than individual projects.
Emission reductions by developing countries are also perfectly feasible without undermining their economic growth or poverty reduction policies. The Commission's impact assessment estimates that implementing policies to control emissions would reduce the overall GDP growth of developing countries in 2020 by a only a very small amount, and this is without taking account of co-benefits such as avoided impacts of climate change. Many policy options are available to developing countries where the benefits can outweigh the costs, for example by increasing energy efficiency, promoting renewable energy, improving local air quality or capturing methane from sources such as landfills as a cheap source of energy.
Annex:
Projected emissions limitations or reductions by EU-25 Member States up to 2010
|
Member State |
Emissions target |
With existing policies and measures |
With additional policies and measures |
With additional measures, Kyoto mechanisms and carbon sinks |
|
|
Commitment |
Projections for 2010 |
Projections for 2010 |
Use of Kyoto mechanisms |
Use of Carbon sinks |
Projections for 2010 |
|
|
(in % of base year) |
(in % of base year) |
(in % of base year) |
(in % of base year) |
(in % of base year) |
(in % of base year) |
|
|
Austria |
-13.0% |
+14.8 % |
+3.3 % |
-8.9 % |
-0.9 % |
-6.5 % |
|
Belgium |
-7.5% |
+1.2 % |
-0.7 % |
-5.8 % |
|
-6.6 % |
|
Czech Republik |
-8.0% |
-24.4 % |
-26.7 % |
|
-0.6 % |
-27.4 % |
|
Denmark |
-21.0% |
+4.2 % |
+4.2 % |
-6.5 % |
-0.7 % |
-3.0 % |
|
Estonia |
-8.0% |
-56.5 % |
-60.0 % |
|
|
-60.0 % |
|
Finland |
0.0% |
+9.9 % |
-1.9 % |
-3.4 % |
+1.3 % |
-4.0 % |
|
France |
0.0% |
+6.4 % |
+0.5 % |
|
-0.6 % |
-0.0 % |
|
Germany |
-21.0% |
-19.8 % |
-21.0 % |
|
|
-21.0 % |
|
Greece |
25.0% |
+34.7 % |
+24.9 % |
|
|
+24.9 % |
|
Hungary |
-6.0% |
-28.5 % |
-28.8 % |
|
|
-28.8 % |
|
Ireland |
13.0% |
+29.6 % |
+29.6 % |
-6.5 % |
-3.8 % |
+19.4 % |
|
Italy |
-6.5% |
+13.9 % |
+4.1 % |
-7.8 % |
-2.1 % |
-5.8 % |
|
Latvia |
-8.0% |
-46.1 % |
-48.6 % |
|
|
-48.6 % |
|
Lithuania |
-8.0% |
-50.5 % |
-50.5 % |
|
|
-50.5 % |
|
Luxembourg |
-28.0% |
-22.4 % |
-22.4 % |
-23.6 % |
|
-46.0 % |
|
The Netherlands |
-6.0% |
+3.6 % |
+0.7 % |
-9.3 % |
-0.1 % |
-8.6 % |
|
Poland |
-6.0% |
-12.1 % |
-12.1 % |
|
|
-12.1 % |
|
Portugal |
27.0% |
+46.7 % |
+42.7 % |
-3.1 % |
-7.8 % |
+31.9 % |
|
Slovakia |
-8.0% |
-22.4 % |
-24.8 % |
|
|
-24.8 % |
|
Slovenia |
-8.0% |
+4.7 % |
-1.7 % |
|
-8.3 % |
-10.0 % |
|
Spain |
15.0% |
+51.3 % |
+51.3 % |
-6.9 % |
-1.9 % |
+42.4 % |
|
Sweden |
4.0% |
-1.0 % |
-1.0 % |
|
-3.0 % |
-3.9 % |
|
United Kingdom |
-12.5% |
-18.8 % |
-23.2 % |
|
-0.5 % |
-23.7 % |
|
EU-15 |
-8.0% |
-0.6 % |
-4.6 % |
-2.6% |
-0.8% |
-8.0 % |
|
EU-10 |
- |
-21.4 % |
-22.4 % |
0.0% |
-0.3% |
-22.6% |
|
EU-25 |
- |
-4.6 % |
-8.1 % |
-2.1% |
-0.7% |
-10.8% |
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UNFCCC: Expert meeting on adaptation for small island developing States (SIDS), 07 February 2007
BEONN (UNFCCC) - The Ministry of Local Government and Environment will host the expert meeting on adaptation for SIDS of the Caribbean and Atlantic Ocean regions, which takes place from February 5 to 7, 2007, in Kingston, Jamaica. It is being organized by the UNFCCC in collaboration with the Regional Office for Latin America and the Caribbean of the United Nations Environment Programme. Participants will include experts from SIDS, developed countries, international organizations and nongovernmental organizations.
Past and recent evidence continue to indicate that SIDS are particularly vulnerable to weatherrelated climatic and environmental natural hazards. Hazards such as tsunamis, tropical cyclones and sea level rise can not only cause damage to already fragile economies and reverse years of development efforts, but also poses significant threats to human lives and livelihoods. For example, Hurricane Ivan caused damage to almost every household in Grenada, Hurricane Jeanne caused over 2,000 fatalities in Haiti alone, and over 100,000 people were made homeless across the Caribbean. There is therefore an urgent need to assess and plan for the expected impacts of climate change.
The meeting offers participating experts the opportunity to exchange information on assessing the impacts of climate change and on their countries' vulnerability to these changes. The experts will also identify possible areas where further action can be taken to address the adverse effects of climate change, including through planning and implementing concrete adaptation measures in the areas of water resources, agriculture, health, tourism, coastal zones and natural ecosystems. In addition, they will discuss opportunities for disaster risk management and reduction, for example through establishing insurance schemes.
Furthermore, available opportunities for collaboration within and outside SIDS will be discussed as well as the elaboration by representatives from the World Bank, the United Nations Development Programme and the United Nations Environment Programme on how adaptation measures can be supported in the SIDS' overall efforts to achieve sustainable development.
This expert meeting on adaptation is part of a series of regional adaptation events mandated by the annual Conference of the Parties to the UNFCCC. The first workshop was held in Peru in April 2006 for the Latin American region. The second workshop was held in Ghana in September 2006 for the African region. During the course of this year, another expert meeting for the Pacific and Indian Ocean SIDS and a workshop for the Asian region will be organized. The results of all these events will feed into negotiations at SB 26 and COP 13 on what future action is necessary to advance adaptation in developing countries.
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VATTENFALL AB, ALCAN INC., DUKE ENERGY CORPORATION, INTERNATIONAL EMISSIONS TRADING ASSOCIATION (IETA)
PROMOTING EVOLUTION OF GLOBAL CARBON TRADING, 01 February 2007
DAVOS (IETA) - Vattenfall AB, Alcan Inc., Duke Energy Corporation and the International Emissions Trading Association (IETA) will work with other leading industries and financial institutions to accelerate the evolution of carbon trading as one of the key components to addressing climate change. This cooperation was announced today at a press conference at the World Economic Forum's annual meeting, where the theme of climate change has been heavily discussed.
"Putting the right price on greenhouse gas (GHG) emissions is key to combating climate change," said Lars G. Josefsson, President and Chief Executive Officer of the Swedish power company Vattenfall AB. "This is best done by establishing a global emissions trading system which will safeguard that abatement measures will be carried out where they are least costly. As we create a scarcity of emission rights, market forces will unfold and accelerate the breakthrough of new lowemission technologies."
In January, Vattenfall AB presented its "Global Climate Impact Abatement Map", an international survey investigating the economics of curbing climate change (https://www.vattenfall.com/climatemap).
Recent developments in other jurisdictions, such as California and the recently announced USCAP initiative by business leaders calling for a cap-and-trade regime in the U.S.A, is a clear signal that business on both sides of the Atlantic is looking for increased regulatory clarity in their strategic decisions."Expanding the GHG market into a global market will ensure that climate change is being addressed effectively, efficiently and takes advantage of business innovation and entrepreneurship, as well as produce a more liquid and competitive market, with one global price for carbon," said Daniel Gagnier, Senior Vice President, Corporate and External Affairs, Alcan Inc.
"There is no 'silver bullet' for utilities to effectively address climate change," said Jim Rogers, Chairman, President and Chief Executive Officer, Duke Energy. "We need to drive advancements on all fronts - energy efficiency, renewable energy and advanced clean coal, natural gas and nuclear plants - as we plan to meet our customers' growing demand for electricity over the next ten years and beyond. We are the nation's third largest coal generator, fourth largest nuclear generator and second largest in hydroelectric capacity and are pleased to be active participants in USCAP. We look forward to working with the U.S. Congress and others on federal climate change legislation and convinced that the sooner we act the better it will be for our environment, customers and the economy," he added.
Through the European Union Emissions Trading Scheme (EU ETS) and the project mechanisms of the Kyoto Protocol, Clean Development Mechanism (CDM) and Joint Implementation (JI), there is currently a price for carbon, which allows companies that have regulatory obligations in Europe, to make everyday business decisions. At the same time, a price on the tonne of carbon reductions has catalyzed interest in developing countries, in projects that address long time issues, now being addressed for the first time, such as waste management.
"A global carbon price is what business needs to make informed decisions and we are moving rapidly in that direction. We will learn more as we try it, we will make corrections, but there is no going back," concluded Andrei Marcu, President and Chief Executive Officer, IETA.
Vattenfall AB, the largest generator of heat in Europe and the fourth biggest producer of electricity, generates, distributes, sells and trades electricity and heat. Vattenfall's mission is to enhance its customers' competitiveness, environment and quality of life through efficient energy solutions and worldclass service.
Alcan Inc. (NYSE, TSX: AL) is a leading global materials company, delivering high quality products and services worldwide. With worldclass technology and operations in bauxite mining, alumina processing, primary metal smelting, power generation, aluminum fabrication, engineered solutions as well as flexible and specialty packaging today's Alcan is well positioned to meet and exceed its customers' needs. Alcan is represented by 65,000 employees in 61 countries and regions, and posted revenues of US$20.3 billion in 2005. The Company has featured on the Dow Jones Sustainability World Index consecutively since 2003. For more information, please visit: www.alcan.com.
Duke Energy is a leading energy company focused on electric power and gas distribution operations in the Americas. Duke Energy's purpose is to create superior and sustainable value for its customers, employees, communities and investors through the production, delivery and sale of energy and energy services, and is committed to health, safety, the environment and its communities. Duke Energy works to achieve superior business results, stretch its capabilities and foster winwin relationships. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 500 company traded on the New York Stock Exchange under the symbol DUK.
The International Emissions Trading Association (IETA) is a non-profit organization created in June 1999 to establish a functional international framework for trading GHG emissions. Our members include leading international companies from across the carbon trading cycle. They seek to develop an emissions trading regime that results in real and verifiable GHG emission reductions, balancing economic efficiency with environmental integrity and social equity. As of January 2007, the IETA comprises 145 international companies from OECD and non-OECD countries. IETA has formed several partnerships such as with the World Bank and Eurelectric.
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Stricter fuel standards to combat climate change and reduce air pollution, 01 February 2007
BRUSSELS (EU-Commission) - The European Commission today proposed new standards for transport fuels that will reduce their contribution to climate change and air pollution, including through greater use of biofuels. The changes underscore the Commission's commitment to ensuring that the EU combats climate change and air pollution effectively. The proposed standards will not only make the fuels themselves 'cleaner' but will also allow the introduction of vehicles and machinery that pollute less. A key measure foreseen is that, to encourage the development of lower-carbon fuels and biofuels, suppliers will have to reduce the greenhouse gas emissions caused by the production, transport and use of their fuels by 10% between 2011 and 2020. This will cut emissions by 500 million tonnes of carbon dioxide by 2020 - equivalent to the total combined emissions of Spain and Sweden today. A new petrol blend will be established allowing higher content of the biofuel ethanol, and sulphur levels in diesel and gasoil will be cut to reduce emissions of dangerous dust particles.
Environment Commissioner Stavros Dimas said: "This is one of the most important measures in the series of new initiatives the Commission needs to take to step up the fight against global climate change. It is a concrete test of our political commitment to leadership on climate policy and our capacity to translate political priorities into concrete measures. It will further underpin Europe's shift towards the low-carbon economy that is essential if we are to prevent climate change from reaching dangerous proportions. These proposals will also help achieve a significant reduction in the noxious pollutants from transport that can harm our citizens' health, as well as opening the way for a major expansion in the use of biofuels, especially second generation biofuels."
What the new standards will achieve
- A reduction in EU greenhouse gas emissions of 500 million tonnes of carbon dioxide by 2020
- An improvement in the quality of transport fuels and promotion of "second generation" biofuels that will bring bigger emission savings
- Better public health through a reduction in noxious pollutants, in particular due to lower sulphur content of diesel.
Importance of fuel quality specifications
The 1998 fuel quality directive sets common EU specifications for petrol, diesel and gasoil used in road vehicles, inland waterway barges and non-road mobile machinery such as locomotives, earth moving machinery and tractors. Its aim is to protect human health and the environment and ensure a single market in these fuels. The Commission's proposal to revise the directive reflects developments in fuel and engine technology, the growing importance of biofuels and the need both to meet the air quality goals set out in the 2005 Thematic Strategy on Air Pollution and to further reduce the greenhouse gas emissions that are causing climate change.
Proposed changes
The revised directive will introduce an obligation for fuel suppliers to reduce the greenhouse gas emissions that their fuels cause over their lifecycle, ie when they are refined, transported and used. From 2011, suppliers will have to reduce emissions per unit of energy by 1% a year from 2010 levels. This will result in a 10% cut by 2020.
This obligation will promote the further development of low-carbon fuels and other measures to reduce emissions from the fuel production chain, and will help ensure that the fuel sector contributes to achieving the EU's greenhouse gas reduction goals.
To enable a higher volume of biofuels to be used in petrol, a separate petrol blend will be established with a higher permitted content of oxygencontaining additives (socalled oxygenates), including up to 10% ethanol. The different petrol blends will be clearly marked to avoid fuelling vehicles with incompatible fuel. To compensate for an increase in emissions of polluting vapours that will result from greater use of ethanol, the Commission will put forward a proposal for the mandatory introduction of vapour recovery equipment at filling stations later this year. These vapours, known as volatile organic compounds, contribute to the formation of groundlevel ozone pollution, which can cause premature death in people with breathing difficulties or heart problems.
From 1 January 2009 all diesel fuel marketed will have to have an ultralow sulphur content (no more than 10 parts per million). This will cut pollutant emissions, primarily of dust particles ('particulate matter'), the air pollutant most dangerous for human health. This sulphur reduction will in particular facilitate the introduction of new pollutioncontrol equipment such as particle filters on diesel vehicles. From the same date, the maximum permitted content of another dangerous substance in diesel, poly aromatic hydrocarbons (PAHs), will be reduced by onethird. This may reduce emissions not only of PAHs, some of which may cause cancer, but also of particulate matter.
The permitted sulphur content of gasoil for use by non-road machinery and inland waterway barges will also be substantially cut. This too will reduce emissions of particulate matter and allow the introduction of more advanced engines and emission control equipment.
The costs of the different elements have been assessed and, overall, the changes proposed are justified on a costbenefit analysis.
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Emissions trading: Commission decides on second set of national allocation plans for the 2008-2012 trading period, 01 February 2007
BRUSSELS (EU-Commission) - The European Commission today took decisions on two more national plans for allocating CO2 emission allowances for the 2008-2012 trading period of the EU Emissions Trading Scheme (EU ETS). The Commission's decisions on the national allocation plans for Belgium and the Netherlands reaffirm its strong commitment to ensuring that the EU and Member States achieve their greenhouse gas emission targets under the Kyoto Protocol. The Commission accepted both national plans on condition that certain changes are made, including a reduction in the total number of emission allowances proposed. The cleared annual allocation for Belgium is 58.5 million tonnes of CO2 allowances and for the Netherlands 85.8 million tonnes. The two plans and the 10 decided on in November 2006 together account for half of all allowances allocated in the first trading period from 2005 to 2007. The Emissions Trading Scheme ensures that greenhouse gas emissions from the energy and industry sectors covered are cut at least cost to the economy, thus helping the EU and its Member States to meet their emission commitments under the Kyoto Protocol.
Environment Commissioner Stavros Dimas said: "Today's decisions reinforce the strong signal we gave with the first set of decisions in November that Europe is fully committed to achieving its Kyoto targets and to making the Emissions Trading Scheme a successful weapon for fighting climate change that others can emulate. The Commission is assessing all national plans in a consistent way to ensure equal treatment of Member States and to create the necessary scarcity in the European carbon market. This is how we have assessed the plans decided today, and the same standards will be applied to all others. "
Assessment of the NAPs
National allocation plans (NAPs) determine for each Member State the 'cap,' or limit, on the total amount of CO2 that installations covered by the EU ETS can emit, and set out how many CO2 emission allowances each plant will receive.
The Commission's task is to scrutinise Member States' proposed NAPs against 12 allocation criteria listed in the Emissions Trading Directive. The criteria seek, among other things, to ensure that plans are consistent with meeting the EU's and Member States' Kyoto commitments, with actual verified emissions reported in the Commission's annual progress reports and with technological potential to reduce emissions. Other criteria relate to nondiscrimination, EU competition and state aid rules, and technical aspects. The Commission may accept a plan in part or in full.
As with the first assessments, the Commission is requiring changes to the two plans where:
- the proposed total of allowances ('cap') for the 2008-2012 trading period is not consistent with meeting the Member State's Kyoto target,
- the proposed total of allowances is not consistent with expected emissions and the technological potential to reduce emissions, taking into account independently verified emissions in 2005, and anticipated changes in both economic growth and carbon intensity,
- the proposed limit on the use by companies of credits from emissionreduction projects in third countries carried out under the Kyoto Protocol's flexible mechanisms is not consistent with the rule that the use of these mechanisms should be supplementary to domestic action to address emissions.
Where modifications are required, the Commission has indicated in each case the steps to be taken by each Member State to make the plan acceptable to the Commission. Approval of the plan will become automatic once these changes have been made.
The Commission is proceeding with infringement procedures against Denmark and Hungary for not submitting their NAPs yet. The deadline was 30 June 2006.
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Third UNFCCC Workshop on Joint Implementation, 22. January 2007
BONN (UNFCCC) - The third JI workshop organised by the UNFCCC secretariat will be held in Bonn (Germany) on 13-14 February 2007.
The technical workshop will provide an opportunity for interaction between the Joint Implementation Supervisory Committee (JISC) and designated focal points, as well as independent entities and other stakeholders.
Participants will exchange their experiences with a view to improving their understanding of each others' roles, the environment in which projects are developed and the overall potential for JI projects. The workshop will allow the JISC to take into account the various concerns and suggestions in its further development and operation of the verification procedure under the JISC.
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UNFCCC official proposes global summit on climate change to plan next steps, 19. January 2007
BONN (UNFCCC) - The head of the United Nations Framework Convention on Climate Change (UNFCCC) today proposed the convening of a global summit backed by the UN to plan a future course of action for tackling the crosscutting problem.
Since climate change "affects energy, energy security, economic issues [and] development issues, it really needs to be taken to the level of heads of State and heads of government," UNFCCC Executive Secretary Yvo De Boer told a press briefing in New York.
The official, who met yesterday with Secretary-General Ban Kimoon, said the UN leader would be an ideal advocate on the issue. "I feel that the Secretary-General of the United Nations is in an excellent position to mobilize that kind of leadership and to help to move the process forward."
A spokesman for Mr. Ban said today the Secretary-General is well aware of the urgent nature of reversing or stopping climate change and believes that it is "an important issue that has serious consequences for humanity, including social and economic impacts."
Mr. Ban himself has said, "We must do far better in the mission to halt climate change." At a news conference earlier this month, he added, "This, too, will be one of my priorities."
Despite some progress towards positive change made by some of the world's major emitters, Mr. De Boer pointed out that the issue has reached a major turning point given that developing countries are already burdened by effects of climate change such as prolonged drought and loss of infrastructure.
The current Kyoto Protocol, a 1997 UN treaty mandating targets for reducing greenhouse gases, expires in 2012. Mr. De Boer said that the interests of developing nations must be considered when creating a replacement mechanism after the treaty's cessation.
"I feel it's so important to bring the question of climate change back to the UN process, back to the UN Framework Convention on Climate Change where basically all of the interests can be addressed and you can find a solution for after 2012 that really does `represent the diversity of views," he said.
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PRESS CONFERENCE on climate change, 19. January 2007
BONN (UNFCCC) - The process of taking longterm action on climate change was basically getting stuck, with very diverse interests on the topic motivated, not only by environmental concerns, but by issues of energy and energy security, the Executive Secretary of the United Nations Framework Convention on Climate Change said today.
Given the divergence of views, there had been relatively little progress towards shaping climate change policy after the Kyoto Protocol had reached the end of its first phase in 2012, Yvo de Boer said at headquarters today, following his meeting yesterday with Secretary-General Ban Kimoon just ahead of Mr. Ban's meeting in Washington, D.C. today with United States President George W. Bush.
The Kyoto Protocol was adopted on 11 December 1997 at the third session of the parties to the Convention, and it entered force on 16 February 2005. Aimed at reducing greenhouse gas emissions worldwide, the Protocol is an internationally and legally binding addition to the nearly universal 1994 Convention, which enjoys a 189 States parties. Based on the view that the climate system is a shared resource whose stability can be affected by industrial and other emissions of carbon dioxide and other greenhouse gases, the treaty sets an overall framework for intergovernmental efforts to tackle the challenge posed by climate change.
Under its terms, Governments share information on greenhouse gas emissions, national policies and best practices; launch national strategies for addressing the emissions and adapting to expected impacts; and cooperate in preparing for adaptation to climate change impacts. According to the Convention's website, 168 countries and one regional economic integration organization, the European Economic Community, have ratified the Kyoto Protocol.
Providing information today on the tone and substance of his meeting with Mr. Ban, Mr. de Boer said the Secretary-General had emphasized that science was clearly showing the consequences of climate change. Mr. Ban had stressed that climate change had very serious consequences for humanity, including in the social and economic domains, saying that the consequences would be particularly severe for developing countries. Mr. Ban had also said it was very clear to him that the cost of action now was much lower than the potent cost of inaction later on.
In addition, the Secretary-General had confirmed that climate change was a priority for him, and he had confirmed his intention to continue to take leadership on the issue and to help to generate political will, Mr. de Boer further noted. Mr. Ban had also assured the treaty's Executive Secretary of the complete support of his Office and asked for further input on how to take the process forward. He had emphasized that he was having several important meetings over the coming days and weeks, where he would address the question, including with President Bush today, during which the issue could well be on agenda.
Responding to questions, Mr. de Boer said that countries in the developing world were confronting a host of problems. They were already feeling the impacts of climate change, confronting sea level rise, increasing numbers of storms, sea water intrusion, less snow fall in mountain areas and consequently less rainwater in spring, droughts and fewer crops. Newspapers all over the world were talking about climate change, and he had been struck to hear a representative from Uganda addressing the Economic and Social Council (ECOSOC) not too long ago about a problem in the Great Lakes region of Africa where problems of climate change could potentially lead to the displacement of tens of millions of people.
Also confronting problems associated with climate change, especially sea level rise, were small island States, mainly in the Pacific, and even oil producing countries, which were very concerned that a major source of revenue for them would be harmed by future climate change action, he added.
Replying to another question, he said that the United States and Australia had "basically backed away" from the Kyoto Protocol because they thought it was a "bad instrument". Large developing countries, such as China, India and Brazil, whose overriding concern was economic growth and poverty eradication, were afraid they would be called on to undertake gas emissions reduction targets in future. That would hurt their economic growth and block them in eradicating poverty.
On the other hand, the European Union was very keen to move ahead, he noted. Just last week, the European Commission had announced that it would be willing unilaterally to reduce its emissions by 20 per cent against 1990 levels and that it would do more if other countries followed. However, certain countries, including in the European Union, were not on track "at all" to meeting their targets under the Kyoto Protocol. The Union as a whole was on track, but individual countries were having problems.
Despite that, he said he did not see countries backing away, and the debate was enjoying a high profile. For example, the issue had recently been debated in Canada and Australia. The opposition leader in Canada had said he was very committed to climate change measures should he win the election.
He reviewed several recent climate change initiatives, including by the Group of 8 industrialized countries, in the framework of the Gleneagles Plan of Action. While those had been very encouraging, they had not included the "major emitters", nor were the interests of developing countries, especially the poorest, addressed. That was why he felt it was so important to bring the question back to the United Nations process and back to the United Nations Framework Convention, where the interests of all parties could be addressed and a solution found for post-2012, which represented the diversity of views. He sincerely believed it was possible to design a regime that took into account all of those interests.
In terms of what the United Nations could do to help, he said that through the United Nations Development Programme (UNDP), the United Nations Environment Programme (UNEP) and the World Meteorological Organization, it could help countries predict the consequences of climate change and adapt to them by protecting against sealevel rise, more effectively gathering rain water, changing their agricultural practices to ensure that they could produce more food with less rain, and so forth. A climate change regime could get resources in place to deliver on such efforts, he added.
He said, replying to another question, that taking a position and fighting for it was important, but so was bridgebuilding. Noting the International Energy Agency's calculation that it would take $20 trillion to meet the energy demands of a growing world over the next 20 to 25 years, either that would be invested in a "dirty way" with a lot of consequences to climate change, or it would be invested in a "clean way" with fewer consequences. It could be invested in a clean way with an international agreement that had carbon financing at its core.
While the United States had "turned its back on the Kyoto Protocol", it was acting on climate change, he said in response to a further query. It was investing much in technology transfers, and President Bush had indicated in his meeting with Germany's Prime Minister that the "stale debates of the past" should be left behind, and everyone should move forward on the question of climate change.
Thus, he thought the United States was acting on the question of climate change and was willing to talk about how to act further on the issue. It was just not interested in participating in Kyoto. It was very important not to confuse Kyoto with a lack of interest in the question of climate change, he stressed.
There was no question about abandoning Kyoto, which had put in place a multimillion dollar carbon market and was delivering real resource transfers from the North to the South, so "it would be silly to let that go", he continued. At same time, given how long it had taken to negotiate and ratify that instrument, it was time now to begin by launching a mandate for the period to follow.
He said that his perfect system for that complicated topic would be a staged approach, involving the following principles: identifying the boundaries for negotiations in a way that made everyone feel that their issues were safeguarded; finding a global solution to that global problem; involving the major developing countries like China, India and Brazil and putting in place incentives since their overriding concern was economic growth and poverty eradication; ensuring that industrialized countries continued to take the lead by adopting ambitious targets since they had caused the bulk of the problem; letting the carbon market dominate the approach, in order to make the cost in the North of implementing the targets as inexpensive as possible; and ensuring technology transfers to and investments in developing countries.
Concurring that a fundamental concern for oil producing countries was an ambitious climate change regime that would impinge on their oil exports, he said those countries should be versed in the benefits of economic diversification and the possibility of producing oil with less green-house gas emissions, as well as how to embark on carbon capture and storage as part of oil refinery. They could also be encouraged to produce hydrogen as an alternative fuel. Those steps, among others, could offer oil producers a perspective that made the demand for less oil less threatening, he said.
He did not see an energy future without nuclear energy, he said to another question. The challenge for nuclear energy was to move forward with a fourth generation of nuclear reactors, which did not have the kinds of problems in terms of safety and waste of the current generation of reactors.
Of the 100 most powerful economies, 52 were companies and not countries, he said to a question about the importance of partnership with business, adding that Governments could not expect to design solutions to climate change on their own.
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Climate change: Commission proposes bringing air transport into EU Emissions Trading Scheme, 20 December 2006
BRUSSELS (European - Commission)- The European Commission today underscored its firm commitment to combating climate change by proposing legislation to bring greenhouse gas emissions from civil aviation into the EU Emissions Trading Scheme (EU ETS). EU emissions from international air transport are increasing faster than from any other sector. This growth threatens to undermine the EU's progress in cutting overall greenhouse gas emissions. Including civil aviation in the EU ETS is a costeffective way for the sector to control its emissions and implements an approach endorsed by the International Civil Aviation Organization (ICAO). The proposed directive will cover emissions from flights within the EU from 2011 and all flights to and from EU airports from 2012. Both EU and foreign aircraft operators would be covered. Like the industrial companies already covered by the EU ETS, airlines will be able to sell surplus allowances if they reduce their emissions and will need to buy additional allowances if their emissions grow. Any increase in ticket costs resulting from the scheme is expected to be limited, and significantly lower than rises due to oil price changes in recent years.
Environment Commissioner Stavros Dimas said: "Aviation too should make a fair contribution to our efforts to cut greenhouse gas emissions. The Commission will continue to work with our international partners to promote the objectives of a global agreement on aviation. Bringing aviation emissions into the EU Emissions Trading Scheme is a costeffective solution that is good for the environment and treats all airlines equally."
Growth in aviation emissions
While emissions from domestic flights are covered by the Kyoto Protocol targets, international aviation is not. Moreover, jet fuel for international flights has historically been exempted from taxation. Bilateral air agreements between EU Member States and third countries are being changed to allow this possibility, but this will take time to implement.
Emissions from aviation currently account for about 3% of total EU greenhouse gas emissions, but they are increasing fast - by 87% since 1990 - as air travel becomes cheaper without its environmental costs being addressed. For example, someone flying from London to New York and back generates roughly the same level of emissions as the average person in the EU does by heating their home for a whole year.
The rapid growth in aviation emissions contrasts with the success of many other sectors of the economy in reducing emissions.
Without action, the growth in emissions from flights from EU airports will by 2012 cancel out more than a quarter of the 8% emission reduction the EU-15 must achieve to reach its Kyoto Protocol target. By 2020, aviation emissions are likely to more than double from present levels.
The proposed directive
The proposal for a directive follows up on a September 2005 Communication[1] which concluded that bringing aviation into the EU ETS was the best approach, from an economic and environmental point of view, to tackling the sector's emissions. This was subsequently supported by the Council and European Parliament.
The directive will treat all airlines equally, whether EU-based or foreign. From 2011 all domestic and international flights between EU airports will be covered, and from 2012 the scope will be extended to all international flights arriving at or departing from EU airports. It is estimated that by 2020 CO2 savings of as much as 46%,or 183 million tonnes, could be achieved each year- equivalent for example to twice Austria's annual greenhouse gas emissions from all sources - compared with business as usual.
To limit the rapid growth in aviation emissions, the total number of emission allowances available will be capped at the average emissions level in 2004-2006. Some allowances will be auctioned by Member States but the overwhelming majority will be issued for free on the basis of a harmonised efficiency benchmark reflecting each operator's historical share of traffic.
To reduce administrative costs, very light aircraft will not be covered, and each operator will be administered by only one Member State.
The directive is part of a comprehensive approach to addressing aviation emissions which also includes more research into greener technologies and improvements in air traffic management.
Impact on ticket prices
Assuming airlines fully pass on any extra costs to customers, by 2020 the price of a typical return flight within the EU could rise by between ¤1.8 and ¤9. Longhaul trips could increase by somewhat more depending on the exact journey length, due to their higher environmental impact. Nevertheless, ticket price increases are in any case expected to be significantly lower than the extra costs passed on to consumers due to world oil price increases in recent years.
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Climate change: Commission takes legal action over missing national allocation plans, incomplete emission reports, 12 December 2006
BRUSSELS (European - Commission) - The European Commission has decided to send four Member States final written warnings that they will face Court action unless they rapidly submit national allocation plans for the second trading period of the EU Emissions Trading Scheme from 2008 to 2012. The Commission is also taking infringement action against seven Member States for failing to provide complete reports on their progress in limiting or cutting greenhouse gas emissions.
Environment Commissioner Stavros Dimas said: "The European Emissions Trading Scheme (ETS) plays an important role in fighting climate change and for meeting the EU Kyoto targets. Under the scheme, Member States were obliged to send their national allocation plans by June 30th. Four Member States have not yet submitted theirs and France has recently withdrawn its NAP. For the good functioning of the Emissions Trading Scheme we will have no choice but to take them to court if they do not send their allocation plans soon. It is also important that Member States meet their obligations to provide complete information to the Commission on their emissions progress as soon as possible."
National allocation plans
The Commission is sending final written warnings to Austria, Denmark, Hungary and Italy for failing to submit national allocation plans (NAPs) for the second trading period of the EU Emissions Trading Scheme (EU ETS). This is despite a first written warning sent in. The deadline for submitting the plans was 30 June 2006 and is laid down in the Emissions Trading Directive. If a Member State does not respond to a final written warning, or if the Commission is not satisfied with its response, the Commission can take it to the European Court of Justice.
NAPs fix the total number of emission allowances issued by a Member State and determine how many allowances each individual installation covered by the ETS will receive. This cap makes the NAPs for 2008-2012 an important element in Member States' strategies for achieving their emission targets under the Kyoto Protocol, which have to be met during the same period.
Once Member States submit complete NAPs the Commission has three months to assess them. The Commission attaches a high priority to taking its decisions on all NAPs by early 2007 so that conditions for trading in 2008-2012 are established and known by market operators in good time before the next trading period starts on 1 January 2008. This requires those Member States that have not yet done so to submit their NAPs as soon as possible.
On 29 November the Commission conditionally approved NAPs for 2008-2012 for a first group of 10 Member States: Germany, Greece, Ireland, Latvia, Lithuania, Luxembourg, Malta, Slovakia, Sweden and the UK.
Reporting on emissions progress
The Commission is also taking action against seven Member States for failing to provide complete reports on their progress in limiting or cutting greenhouse gas emissions. These reports are required by a 2004 EU Decision on monitoring emissions and implementing the Kyoto Protocol. They are needed by the Commission to prepare annual reports on Community emissions under the UN Framework Convention on Climate Change and the Kyoto Protocol. The deadline for Member States to submit the reports was 15 January 2006. The seven Member States have provided some but not all of the information needed.
France, Germany, Poland and Slovenia are to receive first written warnings. Estonia, Luxembourg and Spain are being sent final written warnings since they have failed to provide complete reports despite first written warnings earlier this year.
Legal Process
Article 226 of the Treaty gives the Commission powers to take legal action against a Member State that is not respecting its obligations.
If the Commission considers that there may be an infringement of EU law that warrants the opening of an infringement procedure, it addresses a "Letter of Formal Notice" (first written warning) to the Member State concerned, requesting it to submit its observations by a specified date, usually two months.
In the light of the reply or absence of a reply from the Member State concerned, the Commission may decide to address a "Reasoned Opinion" (final written warning) to the Member State. This clearly and definitively sets out the reasons why it considers there to have been an infringement of EU law, and calls upon the Member State to comply within a specified period, usually two months.
If the Member State fails to comply with the Reasoned Opinion, the Commission may decide to bring the case before the Court of Justice. Where the Court of Justice finds that the Treaty has been infringed, the offending Member State is required to take the measures necessary to conform.
Article 228 of the Treaty gives the Commission power to act against a Member State that does not comply with a previous judgement of the European Court of Justice. The article also allows the Commission to ask the Court to impose a financial penalty on the Member State concerned.
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UNFCCC reports on CDM, 11 December 2006
BONN (UNFCCC) - The below list of documents is now available on the UNFCCC CDM website:
(a) The report of the twenty-fourth meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website.
(b) The report of the eleventh meeting of the CDM Afforestation and Reforestation Working Group (AR WG) is now available in the AR WG section of UNFCCC CDM website.
(c) The report of the eighth meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website.
The following proposed new methodologies were sent from the Meth Panel through the DOE to the project participants to invite clarifications to the preliminary recommendations:
NM0185: Khon Kaen fuel ethanol project
NM0188: East Coast Power Plant (S) Sdn. Bhd. 13MW biomass power generation project
NM0187: Permata Hijau Group Cogeneration Biomass Project
NM0191: Vitale SA Biomass Co-Generation Project
Tthe final recommendation of NM0185: "Khon Kaen fuel ethanol project" by the Meth Panel was made available on the CDM website as no clarifications have been received as a response to the preliminary recommendation of the Meth Panel. This recommendation will be under consideration at the next meeting of the CDM Executive Board.
Regarding the cases NM0187, NM0188 and NM0191, the secretariat was provided with official letters from the project participants in which they inform that they wish to withdraw these proposed new methdologies.
In addition, requests for revision of approved methodologies have been received. Further information on these submissions is available on the UNFCCC CDM web site.
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New methodologies submitted, 14 November 2006
BONN (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 13 November - 01 December 2006:
NM0193: SF6 Switch at Dead Sea Magnesium
NM0194: Green House Gas (GHG) emission reduction by 'Manufacturing of natural surfactant Alpha Olefin Sulphonate (AOS)
NM0195: Rama Newsprint and Papers Limited energy efficiency project, India
NM0196: The 220 MW Egiin Gol Hydroelectric power generation project in Mongolia
NM0197: India - Accelerated Chiller Replacement Program
NM0198: Inoculant distribution in Brazil
NM0199: Green House Gas Emission Reduction by the introduction of Hot Direct reduction Iron in the Electric Arc Furnaces
NM0200: Fuel switch project for generation of cleaner power
NM0201: Cosipar Transport Modal Shift Project
NM0202: AzDRES Power Plant Energy Efficiency and Change in fuel mix
The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Meth Panel at its next meeting and are available in the UNFCCC CDM website:
NM0144-rev: Energy efficiency improvements carried out by an Energy Service Company (ESCO) in Ulaanbaatar, Mongolia to replace old boilers with new ones (the Project)
NM0155-rev: Waste gas utilisation for steam and power generation at RIL Jamnagar refinery
NM0157-rev: Green Lighting CDM project in Shijiazhuang city, China
NM0159-rev: Implementation of an Efficiency Testing, Consumer Labelling and Quality-Assurance Program for Air Conditioners in Ghana
NM0165-rev: Feed switchover from Naphtha to Natural Gas (NG) at Phulpur plant of IFFCO
Technical clarifications to the following proposed new methodologies have been provided:
NM0189: Shanghai Bailonggang Sludge Treatment Project
In addition, requests for revision of approved methodologies and requests for clarification of approved methodologies have been received.
Afforestation and Reforestation methodologies:
The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Working Group on Afforestation and Reforestation (AR WG) at its next meeting and are available in the UNFCCC CDM web site:
ARNM0015-rev: Reforestation as Renewable Source of Wood Supplies for Industrial Use in Brazil
ARNM0020-rev: Afforestation for Combating Desertification in Aohan County, Northern China
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UNFCCC conference opens with warning that climate change may be most serious threat ever to face humankind, 6 November 2006
NAIROBI (UNFCCC) - The United Nations Climate Change Conference - Nairobi 2006 got underway today with calls for action and a stark warning that climate change is fast proving to be one of the greatest challenges in the history of humankind. "Climate change is rapidly emerging as one of the most serious threats that humanity may ever face," said the President of the conference, Kenyan Environment Minister Kivutha Kibwana.
The two-week conference, the twelfth Conference of the 189 Parties to the United Nations Framework Convention on Climate Change (UNFCCC) and the second meeting of the 166 Parties to the Kyoto Protocol, is the first UN climate summit in sub-Saharan Africa and is expected to draw around five thousand participants.
Warning that global warming threatened the development goals for billions of the world's poorest people, conference President Kibwana said: "We face a genuine danger that recent gains in poverty reduction will be thrown into reverse in coming decades, particularly for the poorest communities on the continent of Africa."
The conference President went on to say that for these communities, scarce resources that would otherwise be channelled into essential projects to further economic development would instead be used for other emergencies, such as health care crises, water shortages or food stock failures. President Kibwana called on Parties meeting in Nairobi to work together to ensure that real action is achieved on the issue of adaptation to climate change. "Past and current greenhouse gas emission levels have already committed us to at least some level of temperature increase, and therefore a certain level of adaptation measures will be needed as a result," he said. The UNFCCC's Executive Secretary Yvo de Boer called for specific activities to be agreed within the five-year work plan on impacts, vulnerability and adaptation.
"We expect countries to take decisions in Nairobi that will enhance action on adaptation on the ground," he said.
Another key outcome expected of the conference is agreement on how to manage the UNFCCC's Adaptation Fund. The Fund is financed by a share of proceeds generated by the Kyoto Protocol's clean development mechanism (CDM).
The CDM permits industrialized countries which are members of the Protocol to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits. "Ministers meeting in Nairobi have an opportunity to reach agreement on critical elements of the governance and management of the Adaptation Fund," the United Nations' top climate change official said.
Conference President Kivutha Kibwana called on the meeting to address the key obstacles faced by the least developed countries, in particular those in Africa, in participating successfully in the CDM.
He added that after a successful start in May 2006 in Bonn, discussion on future action to mitigate climate change will continue in Nairobi. One track is for negotiating commitments beyond 2012 for countries under the Kyoto Protocol, the other deals with talks under the UNFCCC on the future of the climate change process, with a focus on how to advance development in a sustainable way and on how to realize the full potential of market-based opportunities.
Kivutha Kibwana called for the burden of mitigation to be borne according to each country's responsibility. Said Minister Kibwana, "We need an equitable and effective future climate change regime that enables us to stabilize atmospheric concentrations of greenhouse gases while at the same time allowing economic development to proceed in a sustainable manner," he said.
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Africa's Acute Vulnerability to Climate Change Underlined in New Report , 5 November 2006
NAIROBI (UNFCCC) - Assisting developing countries to adapt to the impacts of global warming, especially those in Africa must be a key focus of the latest round of climate change talks which open tomorrow in Nairobi.
A new report on impacts, vulnerability and adaptation in Africa, released by the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) and based on data from bodies including the UN Environment Programme (UNEP) and the World Meteorological Organization (WMO) indicates that the continent's vulnerability to climate change is even more acute than had previously been supposed.
It is estimated, for example, that 30 per cent of Africa's coastal infrastructure could be inundated including coastal settlements in the Gulf of Guinea, Senegal, the Gambia and Egypt. Between 25 per cent and over 40 per cent of species' habitats in Africa could be lost by 2085. Cereal crop yields will decline by up to five per cent by the 2080s with subsistence crops-like sorghum in Sudan, Ethiopia, Eritrea and Zambia; maize in Ghana, millet in Sudan and groundnuts in the Gambia-also suffering climate-linked falls. Meanwhile part of Africa's current and future adaptation needs must include improvements in climate and weather monitoring capabilities and better links between climate research and policy-making. Other needs include mainstreaming climate change considerations into development and sectoral plans and programmes, education and awareness-raising for governments, institutions and individuals as well as better forecasting and early warning systems, says the report.
Achim Steiner, United Nations Under-Secretary General and Executive Director of the UN Environment Programme (UNEP), said: "Climate change is underway and the international community must respond by offering well targeted assistance to those countries in the front-line which are facing increasing impacts such as extreme droughts and floods and threats to infrastructure from phenomena like rising sea levels."
"Part of the action, part of the adaptation response and part of this responsibility to Africa, must include significant improvements in Africa's climate and weather monitoring capabilities. Then countries on the Continent can better tailor their response in areas from agriculture to heath care and international donors can better understand Africa's needs now, and in the future," said Mr Steiner. Michel Jarraud, Secretary-General of the World Meteorological Organisation (WMO) said: "Africa is the largest of all tropical landmasses and, at 30 million square km, is about a fifth of the world's total land area. Yet the climate observing system in Africa is in a far worse and deteriorating state than that of any other Continent". Latest estimates indicate that about 25 per cent out of the Global Climate Observing System surface stations in east and southern Africa are not working and most of the remaining stations are functioning in a less than desirable manner. Around a fifth of the 10 upper air network stations are in a similar state.
"Meanwhile there are also major impacts in highly elevated areas like Mount Kenya and Mount Kilimanjaro whose glaciers, ice caps and run off are important for water supplies. Overall it is estimated that Africa needs 200 automatic weather stations, a major effort to rescue historical data and improved training and capacity building on climate and weather reporting," he said. With a view to the climate change conference in Nairobi, Yvo de Boer, Executive Secretary of the UNFCCC, said: "Activating the adaptation agenda is critical. It is time to move from establishing the principles to real action on the ground. It will also be important to do further work to better understand how adaptation relates to efforts aimed at poverty eradication, particularly in the context of the achievement of the Millennium Development Goals."
Fighting climate change must be a two-tier attack. Adaptation is important-- but it is also critical that greenhouse gas emissions are cut by an eventual 80 per cent in order to stabilize the atmosphere for current and future generations.
The new report has been prepared with the help of a team led by Dr. Baglis Osman Elasha, Senior Researcher in the Climate Change Unit of the Higher Council for Environment and Natural Resources in the Sudanese Ministry of the Environment. "We are already seeing climate related changes in my country. The Gum Arabic belt, an economically important crop, has shifted southwards below latitude 14 degrees north and the rains which used to occur from mid June to the end of August now start in mid July until the end of September with important ramifications for agriculture and livelihoods," she said. The report was designed to inform participants at the African regional workshop on adaptation, which was held from September 21 to 23, 2006 in Accra, Ghana.
At the workshop, 33 African country parties exchanged information on observing climatic changes and assessing their impacts and countries' vulnerability to these changes. Countries also shared their experiences in planning and implementing concrete adaptation measures in the areas of agriculture and food security, water resources, health and coastal zones. The Ghana workshop followed a first workshop in the series of regional workshops in Peru in April this year, which was held for the Latin American region. Workshops for Small Island Developing States and Asian countries will be organized next year. The results of these workshops will feed into the negotiations at COP 13 on what future action is necessary to advance adaptation in developing countries.
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Report of EB 27 available, 2 November 2006
BONN (UNFCCC) - The report of the twenty-seventh meeting of the CDM Executive Board (29 October- 1 November 2006), including its annexes, is now available on the UNFCCC CDM website
Annexes to the report:
Accreditation
Annex 1 - Revised procedures for accreditation (due to editorial reasons the annex will be available in due course)
Methodologies
Annex 2 - Approved baseline and monitoring methodology AM0041 (based on the case NM0110-rev)
Annex 3 - Approved baseline and monitoring methodology AM0042 (based on the case NM0133-rev)
Annex 4 - Approved baseline and monitoring methodology AM0043 (based on the case NM0151-rev)
Annex 5 - Revision of the approved methodology AM0034
Annex 6 - Revision of the approved methodology ACM0006
Annex 7 - Revision of the approved methodology AM0025
Annex 8 - Revision of the approved methodology AM0028
Annex 9 - Combined tool to identify the baseline scenario and demonstrate additionality
Annex 10 - Guidance on criteria for consolidations and revisions of methodologies
Matters relating to the registration of CDM project activities
Annex 11 - Scope of review related to project 454 (registration)
Annex 12 - Scope of review related to project 499 (registration)
Annex 13 - Scope of review related to project 522 (registration)
Annex 14 - Scope of review related to project 530 (registration)
Annex 15 - Clarifications on procedures for review under paragraph 41 of the CDM modalities and procedures (version 5)
Matters relating to the issuance of CERs and the CDM Registry
Annex 16 - Clarifications on procedures for review under paragraph 65 of the CDM modalities and procedures (version 2)
Resources
Annex 17 - Revised management plan (MAP)(due to editorial reasons the annex will be available in due course)
Annex 18 - Status of pledges to support 2006 CDM activities
Other business
Annex 19 - Regional distribution of clean development mechanism project activities
Annex 20 - Provisional agenda for EB28
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JI: Opening of call for experts, 2 November 2006
BONN (UNFCCC) - At its fourth meeting, the Joint Implementation Supervisory Committee (JISC) requested the secretariat to launch a public call for experts to establish rosters of experts for assessment team members under the JI accreditation procedure. The JISC encourages experts having an experience as assessment team members under the CDM accreditation procedure to apply. The call for experts is available through the main page of the UNFCCC JI website.
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2006 UNFCCC greenhouse gas data report points to rising emission trends, 30 October 2006
BONN (UNFCCC) - The secretariat of the United Nations Framework Convention on Climate Change (UNFCCC) today released new data showing an upward trend in emissions of industrialized countries in the period 2000-2004.
The UNFCCC report 'Greenhouse Gas Data, 2006' constitutes the first complete set of data submitted by all 41 industrialized Parties of the Convention to the Bonn-based secretariat.
According to the secretariat, in the period 1990-2004, the overall emissions of industrialized countries decreased by 3.3 per cent. However, this was mostly due to a 36.8 per cent decrease in emissions on the part of economies in transition of eastern and central Europe (EITs). Within the same time-period, the greenhouse gas emissions of the other industrialized Parties of the Convention grew by 11.0 per cent. "The worrying fact is that EITs, which were mostly responsible for the overall emissions reductions of industrialized countries so far, as a group have experienced an emission increase of 4.1 per cent in the period 2000-2004," said UNFCCC Executive Secretary Yvo de Boer.
"This means that industrialized countries will need to intensify their efforts to implement strong policies which reduce greenhouse gas emissions," he added. In particular, transport remains a sector where emission reductions are urgently required but seem to be especially difficult to achieve. Emissions from transportation grew by 23.9 per cent from 1990 to 2004. According to the released data, the joint emissions of industrialized countries that are Parties to the Kyoto Protocol were 15.3 per cent below the 1990 level in 2004, while the individual performance of countries varied.
The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012.
The UN's chief climate change official pointed out that despite the emission growth in some countries in the period 2000-2004, Parties of the Kyoto Protocol stand a good chance of meeting their individual emissions reduction commitments if they speedily apply the additional domestic mitigation measures they are planning and use the Kyoto Protocol's market-based flexibility mechanisms.
"The challenge is well understood. After its entry into force in 2005, the Kyoto Protocol is now firmly in place and is guiding industrialized countries in identifying and implementing policy options, including the Protocol's flexibility mechanisms, to meet their targets under the treaty," underlined de Boer. One promising option for meeting the Kyoto Protocol targets is the use of the clean development mechanism (CDM). The CDM permits industrialized countries to invest in sustainable development projects that reduce emissions in developing countries and thereby generate tradable emission credits. To date, around 375 CDM projects have been registered, with a total estimated emission reduction potential of more than 600 million tones. More than 900 more projects are in the pipeline. The total estimated emission reduction potential of all projects currently in the CDM pipeline in the period up to 2012 stands at around 1.4 billion tonnes, which amounts to about 12% of what industrialized Kyoto Protocol Parties emitted in 1990.
Last week, the UNFCCC launched the second project-based mechanism under the Kyoto Protocol: joint implementation (JI), which allows developed countries to acquire carbon credits from greenhouse gas emission reducing projects undertaken in other industrialized countries. "In the countries that are members of the European Union, the use of the EU emissions trading scheme is growing in importance," UNFCCC Executive Secretary Yvo de Boer said.
"We are looking forward to emissions trading between all countries with emission targets under the Kyoto Protocol when the first commitment period starts in 2008. The United Nations Climate Change Secretariat is presently putting in place the required support infrastructure to make this possible." "At the same time, it is clear that further global action on climate change is urgently needed to generate significant investment flows into clean technology, making use of existing and new market mechanisms," he added. At the United Nations Climate Change Conference - Nairobi 2006 (6 to 17 November), negotiations on the second commitment period of the Kyoto Protocol will continue, along with a dialogue on the future of the climate change process under the UNFCCC.
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Kyoto Protocol set to help green economies of eastern and central Europe, 26 October 2006
BONN (UNFCCC) - The United Nations Framework Convention on Climate Change (UNFCCC) today launched a new mechanism of the Kyoto Protocol expected to generate significant reductions in greenhouse gas emissions which cause global warming.
With the launch of the Kyoto Protocol's joint implementation (JI) mechanism, developed countries will be able to acquire carbon credits from greenhouse gas emission reducing projects undertaken in other industrialized countries, in particular central and eastern European transition economies.
These tradable carbon credits can then be used to meet emission reduction or limitation commitments under the Kyoto Protocol. "JI will generate real projects which will help green the economies of central and eastern Europe. With its launch, we can expect emission reductions in the order of several hundred million tonnes of CO2 by the end of the first commitment period of the Kyoto Protocol," said UNFCCC Executive Secretary Yvo de Boer. The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012. Yvo de Boer drew a parallel to the Kyoto Protocol's clean development mechanism (CDM), which permits industrialized countries to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits. "The CDM got off to a great start last year. We expect JI to be similarly successful. While smaller in terms of its emissions reduction potential, it is an equivalent to the CDM with regard to cooperation among countries that have targets under the Kyoto Protocol and a credible alternative to the much-feared 'hot air'." 'Hot air' refers to the concern that some countries will have excess emission allowances under the Kyoto Protocol without undertaking specific efforts to reduce emissions and that they could then flood the carbon market by selling them at lower price, reducing the incentive for other countries to cut emissions. The chair of the UNFCCC's JI Supervisory Committee (JISC), Daniela Stoycheva, said that her Committee would ensure the environmental integrity of the projects.
"We will ensure that only those projects are verified that would not have come about without the Kyoto mechanism being in place," she said. The first JI projects, ranging from wind farms to forestry projects, are expected to begin undergoing the UNFCCC approval process in the run-up to and during the upcoming United Nations Climate Change Conference in Nairobi (6 to 17 November).
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CDM Meth Panel report, 23 October 2006
BONN (UNFCCC) - The report of the twenty-third meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website
Technical clarifications to the following proposed new methodologies have been provided:
- NM0142-rev: Palm Methyl Ester - Biodiesel Fuel (PME-BDF) production and use for transportation in Thailand
- NM0152-rev: Celpa, Celtins and Cemat grid connection of isolated systems CDM Project
- NM0170: Installation of Carbon Dioxide Recovery (CDR) plant at Indian Farmers Fertiliser Cooperative Ltd (IFFCO), Phulpur Plant
- NM0171: Use of Hydro Heavy Fuel Oil Technology (HHFOT) to improve energy efficiency at a power plant in Pakistan
- NM0172: Methane Leak Reduction From Natural Gas Pipelines
- NM0174: MSW Incineration Project in Guanzhuang, Tianjin City, China
- NM0176: Soluciones Nitrous Oxide Abatement Project
- NM0178: Aerobic thermal treatment of municipal solid waste (MSW) without incineration in Parobé
- NM0179: Waste Heat Recovery based Steam and Power Generation
- NM0180: BIOLUX Benji Biodiesel Beijing Project
- NM0181: Introduction of a new primary district heating system - Houma District Heating project, Shanxi Province, P.R.C
Technical clarifications to the following proposed new A/R methodologies have been provided:
ARNM0013-rev: The Mountain Pine Ridge Reforestation Project
ARNM0026: Carbon Sequestration in Small and Medium Farms in the Brunca Region, Costa Rica (COOPEAGRI- Project)
ARNM0028: Reforestation on degraded land for sustainable wood production of woodchips in the eastern coast of the Democratic Republic of Madagascar
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Saving 20% by 2020: European Commission unveils its Action Plan on Energy Efficiency, 19 October 2006
BRUSSELS (European - Commission)- As a major step toward meeting the unprecedented energy challenges facing the EU, the European Commission today presented its Energy Efficiency Action Plan. The Plan contains a package of priority measures covering a wide range of costeffective energy efficiency initiatives. These include actions to make energy appliances, buildings, transport and energy generation more efficient. Stringent new energy efficiency standards, promotion of energy services, specific financing mechanisms to support more energy efficient products are proposed. The Commission will furthermore set a Covenant of Mayors of the 20-30 most pioneering cities in Europe and will propose an international agreement on energy efficiency. Altogether, over 75 measures are set forth.
"Europeans need to save energy. Europe wastes at least 20% of the energy it uses. By saving energy, Europe will help address climate change, as well as its rising consumption, and its dependence on fossil fuels imported from outside the Union's borders." said Energy Commissioner Piebalgs. "Energy efficiency is crucial for Europe: If we take action now, the direct cost of our energy consumption could be reduced by more than ¤100 billion annually by 2020; around 780 millions tonnes of CO2 will also be avoided yearly" he pointed out.
The Action Plan, which will be implemented over the next six years, is in response to the urgent call from Heads of State and Government at the Spring European Council this year for a realistic Energy Efficiency strategy. The Plan underlines the importance of minimum energy performance standards for a wide range of appliances and equipment (from household goods such as fridges and air conditioners to industrial pumps and fans), and for buildings and energy services. In combination with performance ratings and labelling schemes minimum performance standards represent a powerful tool for removing inefficient products from the market, informing consumers of the most efficient products and transforming the market to make it more energy efficient. Minimum performance requirements for new and renovated buildings will be developed. Very low energy consumption buildings (or passive houses) will also be promoted.
The Plan emphasises the considerable potential for reducing losses in the generation, transmission and distribution of electricity. The Action Plan proposes targeted instruments to improve the efficiency of both new and existing generation capacity and to reduce transmission and distribution losses.
A comprehensive set of measures for improving energy efficiency in the area of transport is put forward. The Plan recognises that energy savings can be achieved, in particular, by ensuring fuel efficiency of cars, developing markets for cleaner vehicles, ensuring proper tyre pressure and by improving the efficiency of urban, rail, maritime and aviation transport systems. The Plan recognises the importance of changing transportation behaviour.
The Action Plan also calls for appropriate and predictable price signals, essential for improving energy efficiency and overall economic performance.
The Plan also contains a number of additional proposals to raise energy efficiency awareness, such as education and training. Finally, the Plan emphasises the urgent need for energy efficiency issues to be addressed on a global level through international partnerships.
The Action Plan on Energy Efficiency, when fully implemented, can thus improve the Union's competitiveness, improve the living standards of its citizens, boost employment and increase exports of new, energyefficient technology. On an individual level, small changes in our energy consumption patterns will mean saving money, improving the environment and doing our share for our common European goals.
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UNFCCC Executive Secretary calls for new climate compact to combat global warming, 17 October 2006
AMSTERDAM (UNFCCC) - According to UNFCCC Executive Secretary Yvo de Boer, the world urgently needs a long-term legal framework to provide security for carbon markets and investments necessary to combat climate change.
Speaking at the international conference "Make Markets Work for Climate" in Amsterdam, the Netherlands, Mr. de Boer said that whilst it was clear that globally there was strong commitment to address energy security and to green energy, it was also clear that poverty eradication and economic growth were the overriding concerns for developing countries.
"At present, the financial resources provided to developing countries do not suffice to meet the needs for mitigation and adaptation as required under the United Nations Climate Change Convention and its Kyoto Protocol," the UN's top climate official said.
Last month, Mr. de Boer pointed out that a 100 billion dollars per year green investment flow to developing countries could be created if industrialized countries agreed to a 60 to 80% emission reduction by mid-century and used market-based mechanisms to help meet these commitments. Referring to this, he added:
"To date, none of the sources of finance available to developing countries have a potential of this scale."
Citing the need for a new global initiative to combat climate change, Mr. de Boer said that a self-financing climate compact would be the solution to generate financial flows between the North and South required to effectively tackle climate change. "This would ensure sustainable development for the future," he said. "But it requires a long-term legal framework to be in place."
The Kyoto Protocol's clean development mechanism (CDM) for example permits industrialized countries to invest in sustainable development projects in developing countries, and thereby generate tradable emission credits. The CDM already has over 1,200 projects in the pipeline and an overall emission reduction potential of about 1.4 billion tonnes by 2012, amounting to the combined annual emissions of Spain and the United Kingdom. "Whilst the CDM has been gaining speed very rapidly, there would be a significant risk for the value of carbon beyond 2012 without a long term provision for the carbon market. To guarantee continuity for investments, a post 2012 agreement is urgently needed," said Mr. de Boer.At this year's United Nations Climate Change Conference in Nairobi (6 to 17 November), governments will continue discussion of the future action on climate change, including commitments for industrialized countries under the Kyoto Protocol beyond 2012. The Parties will also look at measures to expand the CDM by building capacity in developing countries and to make it more accessible to the least developed countries, in particular in Africa.
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Commission proposes ¤100 million global risk capital fund for developing countries to boost energy efficiency and renewables, 6 October 2006
BRUSSELS (European - Commission) - The European Commission today proposed creating a global risk capital fund to mobilise private investment in energy efficiency and renewable energy projects in developing countries and economies in transition. The Global Energy Efficiency and Renewable Energy Fund (GEEREF) will accelerate the transfer, development and deployment of environmentally sound technologies and thereby help to bring secure energy supplies to people in poorer regions of the world. These projects will also combat climate change and air pollution. The Commission intends to kickstart the fund with a contribution of up to ¤80 million over the next four years, and expects that financing from other public and private sources will take funding to at least ¤100 million. This means that it will contribute to the financing of investment projects of a value up to 1 billion euro.
Environment Commissioner Stavros Dimas said: "This is an innovative mechanism. It underlines the Commission's commitment to help developing countries invest in renewable energy and energy efficiency. It will contribute to bringing clean, secure and affordable energy supplies to the 1.6 billion people around the world who have no access to electricity." Development Commissioner Louis Michel emphasized that "the lack of access to energy is a major obstacle for regions that already experience problems in accessing to capitals. This Fund can mobilize private investments and become a real source of development, especially in Africa".
Need for action
One of the the EU's goals is to ensure that the global temperature rises no more than 2ºC above preindustrial levels, since beyond this level the impacts of climate change are forecast to be far more severe. Businessas usual energy scenarios for the coming decades predict high growth in both energy use and greenhouse gas emissions. 'Accelerated technology' scenarios demonstrate that it is possible to reduce global electricity demand by one third simply by improving overall energy efficiency. In addition, the growth of oil demand could be halved by raising the share of renewable energy for global electricity generation from today's 13 per cent to 34 per cent in 2050. This will decrease the impacts on the environment and will in particular bring future carbon dioxide (CO2) emission levels back down to current levels the International Energy Agency says.
While the main responsibility for triggering these changes lies with industrialised countries, scaling up energy efficiency and renewable energy initiatives will greatly benefit developing countries by providing clean and secure energy supplies to people who currently have no access to reliable energy sources.
Overcoming investment barriers
Despite improving prospects, energy efficiency and renewable energy projects face significant difficulties in raising commercial funding. The problems are complex but mainly concern a lack of risk capital, which provides important collateral for lenders. The need for risk capital in developing countries and transition economies is estimated at over ¤9 billion, far above current levels. Mobilising private sector finance is therefore essential.
How GEEREF will work
GEEREF aims to help overcome these barriers by providing new risksharing and cofinancing options to mobilise international and domestic commercial investments. It will invest in a broad mix of energy efficiency and renewable energy technologies. Priority will be given to deploying environmentally sound technologies with a proven technical track record.
GEEREF will stimulate the creation of regional subfunds tailored to regional needs and conditions, rather than investing in projects directly. Subfunds are envisaged for the African, Caribbean and Pacific (ACP) region, North Africa, non EU Eastern Europe, Latin America and Asia. The focus will be on investments below ¤10 million as these are mostly ignored by commercial investors and international finance institutions. Corporate finance will be offered to support small and mediumsized enterprises as well as project finance
The Commission intends to put ¤80 million into GEEREF in 2007-2010, with a first contribution of ¤15 million next year to kickstart the initiative. Total initial funding from public and commercial sources of ¤100 million is anticipated, and this is expected to mobilise additional risk capital of at least ¤300 million and possibly up to ¤1 billion in the longer term.
Investment amounts at the top end of this range could bring almost 1 Gigawatt of environmentally sound energy capacity to third country markets, serving 1-3 million people with sustainable energy services and saving 1-2 million tonnes of CO2 emissions per year. It would also bring substantial benefits in terms of improved indoor and outdoor air quality and creation of local enterprises, jobs and income.
Next steps
The Commission has appointed Triodos International Fund Management b.v. in conjunction with E+Co, to facilitate the implemention of the GEEREF in close cooperation with the European Investment Bank, the European Bank for Reconstruction and Development, and other interested parties.
The Council, European Parliament and other stakeholders are invited to comment on the GEE-REF initiative and to endorse the Commission's aim of reaching the initial funding target by mid-2007.
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Report of EB 26 available, 4 October 2006
BONN (UNFCCC) - The report of the twenty-sixth meeting of the CDM Executive Board (26 - 29 September 2006), including its annexes, is now available on the UNFCCC CDM website.
Annexes to the report:
Accreditation
Annex 1 - Revised procedures for accreditation
Methodologies
Annex 2 - Approved baseline and monitoring methodology AM0035 (based on the case NM0135)
Annex 3 - Approved baseline and monitoring methodology AM0036 (based on the case NM0140-rev)
Annex 4 - Approved baseline and monitoring methodology AM0037 (based on the case NM0145)
Annex 5 - Approved baseline and monitoring methodology AM0038 (based on the case NM0146)
Annex 6 - Approved baseline and monitoring methodology AM0039 (based on the case NM0147)
Annex 7 - Approved baseline and monitoring methodology AM0040 (based on the case NM0163)
Annex 8 - Revision of the approved methodology AM0028
Annex 9 - Revision of the approved methodology AM0025
Annex 10 - Revision of the approved methodology AM0027
Annex 11 - Approved consolidated baseline and monitoring methodology ACM0010 (based on the approved methodology AM0006 and AM0016)
Annex 12 - Guidance on double counting in project activities using blended biofuel for energy use
Annex 13 - Recommendation of the Board, to the COP/MOP, on Carbon Capture and Storage projects as CDM projects
Annex 14 - Approved Tool to determine methane emissions avoided from dumping waste at a solid waste disposal site
Issues relating to procedures for afforestation and reforestation project activities
Annex 15 - Approved baseline and monitoring methodology AR-AM0004 (based on ARNM0019).
Annex 16 - Revision to approved afforestation and reforestation baseline and monitoring methodology AR-AM0003.
Annex 17 - Revision to simplified baseline and monitoring methodologies for selected small-scale afforestation and reforestation project activities under the clean development mechanism AR-AMS0001 .
Annex 18 - Proposed procedures to demonstrate the eligibility of lands for afforestation and reforestation project activities.
Annex 19 - Revised Project Design Document Form for Afforestation and Reforestation Project Activities (CDM AR-PDD) - Version 03.
Annex 20 - Revised form: Proposed New Baseline and Monitoring Methodologies for A/R (CDM-AR-NM) - Version 02.
Annex 21 - Revised guidelines for completing the project design document for A/R (CDM AR PDD), the proposed new methodology for A/R: baseline and monitoring (CDM-AR-NM) - Version 05.
Annex 22 - Form for submission of requests for revisions of approved methodologies to the Afforestation and Reforestation Working Group (F-CDM-AR-AM-Rev) - Version 01
Annex 23 - Form for submission of queries from DOEs to the Afforestation and Reforestation Working Group regarding the application of approved A/R methodologies (F-CDM-AR-AM-Subm) - Version 01
Annex 24 - Form for Submission on Small Scale Afforestation / Reforestation Methodologies and Procedures (F-CDM-SSC-AR-Subm) - Version 01
Annex 25 - Guidelines for completing the simplified project design document for small scale A/R (CDM SSC-AR PDD) and the form for submissions on methodologies for small scale A/R CDM project activities (F-CDM-SSC-AR-Subm) - Version -02
Issue relating to procedures for small-scale project activities
Annex 26 - AMS III.J. Avoidance of fossil fuel combustion for carbon dioxide production to be used as raw material for industrial processes
Annex 27 - Conversion factor for solar collectors to calculate output capacity from the area.
Matters relating to the registration of CDM project activities
Annex 28 - Scope of review (registration) - Project 410
Annex 29 - Scope of review (registration) - Project 443
Annex 30 - Scope of review (registration) - Project 474
Matters relating to the issuance of CERs and the CDM Registry
Annex 31 - Scope of review (issuance) - Project 085
Annex 32 - Scope of review (issuance) - Project 150
Annex 33 - Scope of review (issuance) - Project 163
Annex 34 - Procedures for revising monitoring plans in accordance with paragraph 57 of the modalities and procedures for the CDM
Resources
Annex 35 - Status of pledges to support 2006 CDM activities
Other business
Annex 36 - Tentative calendar of meetings for 2007
Annex 37 - Provisional agenda for EB27
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UNFCCC: Opening of call for input on a new operational entity, 27 September 2006
BONN (UNFCCC) - As of tomorrow (28 September 2006), an opportunity to submit comments and information regarding the applicant entity is provided for: "Korean Standards Association, KSA" Background: In accordance with the "Procedure for accrediting operational entities by the Executive Board of the CDM", the UNFCCC CDM web site provides for each applicant entity, over a period of 15 days, the opportunity for Parties, NGOs accredited with UNFCCC or stakeholders to provide comments or information on the applicant entity. The working day prior to the opening of the 15 days period, the secretariat informs the public using the UNFCCC CDM News facility.
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Annual green investment flow of some 100 billion dollars possible as part of fight against global warming, 19 September 2006
RIYADH (UNFCCC) - According to the United Nations Climate Change Secretariat, market-based mechanisms such as the Kyoto Protocol's clean development mechanism (CDM) have the potential to generate massive investment in developing countries.
Speaking at the first international conference on the CDM in Riyadh, Saudi Arabia, UNFCCC Executive Secretary Yvo de Boer said that industrialized countries could with this or similar mechanisms achieve swingeing cuts in greenhouse gas emissions and at the same time help enhance sustainable development. "Via international carbon finance, there is a potential to generate up to 100 billion dollars per year in green investment flow to developing countries," Mr. de Boer said. "None of the other types of financial resources available to these countries have a potential of this scale."
The clean development mechanism (CDM) permits industrialized countries to invest in sustainable development projects and thereby generate tradable emission credits. The Kyoto Protocol presently requires 35 industrialized countries and the European Community to reduce greenhouse gas emissions by an average of 5% below 1990 levels in its first commitment period between 2008 and 2012. Recent scientific findings and growing evidence of impacts of climate change suggest that deep emission cuts by industrialized countries are needed to stabilize the world's climate, with European leaders referring to reductions on the order of 60 to 80% by the middle of the century.
"The 100 billion dollars a year investment flow would come about if half of the 60 to 80% reduction in emissions is met by industrialized countries through investment in developing countries," said Mr. de Boer. Looking ahead to the upcoming United Nations Climate Change Conference in Nairobi (6 to 17 November), during which negotiations on the second commitment period of the Kyoto Protocol will continue, Mr. de Boer said that keeping a price on carbon beyond 2012 was critical for mobilizing investment flows to developing countries. The current CDM pipeline is expected to generate some 12 billion dollars in carbon credits by 2012, presuming that the price of a tonne of carbon is in the order of around 10 dollars. If the post-2012 value of credits can be ensured and there is continuing growth of the CDM, the actual income is likely to be much higher," he said. With the unavoidable effects of climate change becoming ever more apparent, the UN's top climate official also said it was important to agree on activities which will enable governments to adapt. "For example, it is critical to reach a political agreement in Nairobi on the Adaptation Fund, which will use some of the income generated by the CDM to finance adaptation in developing countries," he said.
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UNFCCC reports on CDM and requests for revision and for clarification of approved methodologies, 15 September 2006
BONN (UNFCCC) - The below list of documents is now available on the UNFCCC CDM website:
(a) The report of the twenty-second meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website
(b)The report of the tenth meeting of the CDM Afforestation and Reforestation Working Group (AR WG) is now available in the AR WG section of UNFCCC CDM website
(c) The report of the seventh meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website.
In addition, requests for revisions and requests for clarification of approved methodologies have been received.
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New methodologies submitted, 18 August 2006
Bonn (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 17 August - 06 September 2006:
NM0184: Improved heat rates and capacity enhancement of Gas Turbines at RIL Jamnagar, through retrofit for Inlet Air Cooling
NM0185: Khon Kaen fuel ethanol project
NM0186: Increased electricity generation from existing hydropower stations
through Decision Support System optimization in Azerbaijan
NM0187: Permata Hijau Group Cogeneration Biomass Project
NM0188: East Coast Power Plant (S) Sdn. Bhd. 13MW biomass power generation project
NM0189: Shanghai Bailonggang Sludge Treatment Project
NM0190: Caracol Knits Trigeneration Project
NM0191: Vitale SA Biomass Co-Generation Project
NM0192: Recovery and utilization of flare waste gases at the Industrial Complex of La Plata Project
The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Meth Panel at its next meetings and are available in the UNFCCC CDM website:
NM0141-rev: Displacing grid/off-grid steam and electricity generation with less carbon intensive fuels in Aba, Nigeria
NM0150-rev: Ghana efficient lighting retrofit project
NM0152-rev: Celpa, Celtins and Cemat grid connection of isolated systems CDM Project
Technical clarifications to the following proposed new methodologies have been provided:
NM0108-rev: Biodiesel production and switching fossil fuels from petro-diesel to biodiesel in transport sector - 30 TPD Biodiesel CDM Project in Andhra Pradesh, India
NM0134-rev: Paramonga CDM Bagasse Boiler Project
NM0138-rev: American Israel Paper Mill (AIPM) Natural Gas Cogeneration
NM0159: Implementation of an Efficiency Testing, Consumer Labelling and Quality-Assurance Program for Air Conditioners in Ghana
NM0160: Shell Cogeneration Project
NM0161: Mondi Gas Turbine Co-generation in Richards Bay, South Africa
NM0163: Use of calcined ashes and fluorite for clinker production in the Cement Plant of Huichapan, Mexico
NM0165: Feed switchover from Naphtha to Natural Gas (NG) at Phulpur plant of IFFCO
NM0166: The final recommendation of NM0166: "JISL biomethanation of biodegradable waste for thermal applications" by the Meth Panel is also available on the CDM website as no clarifications have been received as a response to the preliminary recommendation of the Panel. This recommendation will be under consideration at the next meeting of the CDM Executive Board.
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JI - Reminder: Open calls regarding Joint Implementation, 3 August 2006
Bonn (UNFCCC) - In future JI News will be sent through the JI News facility only. To be subscribed to this news facility please visit the JI UNFCCC CDM website
Two calls regarding the work of the Joint Implementation Supervisory Committee are still open for inputs/applications:
1) Call for experts (appraisals/reviews)
2) Call for public input on guidance on criteria for baseline setting and monitoring
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Small Scale CDM Call for Public Inputs on Barriers to Developing Energy Efficiency Projects, 2 August 2006
BONN (UNFCC) - The Board at its twenty-fifth meeting noted that the share of registered SSC type II energy efficiency project activities in the CDM project pipeline is small. The Board agreed therefore to launch a call for inputs from the public on the following questions:
(a) Does the current definition (eligibility limits) of type II small-scale CDM project activities pose barriers to developing projects under this type?
(b) Are there other barriers in this regard that relate to methodological issues?
Public comments can be sent to the UNFCCC secretariat before 14 August 2006 (17:00 GMT)
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Methodologies Submitted - Calls for public inputs, 11 July 2006
BONN (UNFCC) - The following proposed new baseline and monitoring methodologies have been re-submitted (B cases) for consideration by the Meth Panel at its next meeting and are available in the UNFCCC CDM web site (please note these are not all submissions recently received, only the B cases, as these do not require pre-assessment, public input etc.):
NM0129-rev: Sunflower Methyl-Ester Biodiesel Project in Thailand
NM0142-rev: Palm Methyl Ester - Biodiesel Fuel (PME-BDF) production and use for transportation in Thailand
The following proposals on new afforestation/reforestation baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 10 July - 28 July 2006 (these are new submissions):
ARNM0026: Carbon Sequestration in Small and Medium Farms in the Brunca Region, Costa Rica (COOPEAGRI- Project)
ARNM0027: 'Treinta y Tres' afforestation on grassland
ARNM0028: Reforestation on degraded land for sustainable wood production of woodchips in the eastern coast of the Democratic Republic of Madagascar.>
In addition, the following proposed new baseline and monitoring methodologies have been re-submitted (B) for consideration by the Working Group on Afforestation and Reforestation (AR WG) at its next meeting and are available in the UNFCCC CDM web site:
ARNM0012-rev: Afforestation or reforestation project activity implemented on unmanaged grassland
ARNM0013-rev: The Mountain Pine Ridge Reforestation Project
The Board, at its twenty-fourth meeting, agreed to launch the following four calls for input:
- AM0016
- AM0006
- Definition of policy and programme of activities
- Revised procedure for accrediting operational entities by the Executive Board of the CDM
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JI: Opening of call for experts, 10 July 2006
BONN (UNFCCC) - At its third meeting, the JISC requested the secretariat to launch a public call for experts to appraise determinations or participate in review teams.
The call for experts is available through the main page of the UNFCCC JI website
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UNFCCC reports on CDM, 23 June 2006
BONN (UNFCCC) - The below list of documents is now available on the UNFCCC CDM website:
(a) The report of the twenty-first meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website.
(b) The report of the ninth meeting of the CDM Afforestation and Reforestation Working Group (A/R WG) is now available in the AR WG section of UNFCCC CDM website.
(c) The report of the sixth meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website
The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 22 June - 12 July 2006:
NM0169: Reducing GHG emission in PTA-3 of RIL-Hazira by efficient utilization of energy in the form of fuel, power and steam
NM0170: Installation of Carbon Dioxide Recovery (CDR) plant at Indian Farmers Fertiliser Cooperative Ltd (IFFCO), Phulpur Plant
NM0171: Use of Hydro Heavy Fuel Oil Technology (HHFOT) to improve energy efficiency at a power plant in Pakistan
NM0172: Methane Leak Reduction From Natural Gas Pipelines
NM0173: Switching of fuel from naphtha to natural gas at Essar Power Limited's 515 MW power plant in Hazira, Gujarat, India, for generation and supply of electricity to Gujarat Electricity Board Grid and to Essar Steel
Limited
NM0174: MSW Incineration Project in Guanzhuang, Tianjin City, China
NM0175: Green House Gas (GHG) emissions reduction by use of 'Nimin- a natural nitrification inhibitor ' with Urea in agriculture soils
NM0176: Soluciones Nitrous Oxide Abatement Project
NM0177: Utilization of Coke Oven Gas for Cogeneration
NM0178: Aerobic thermal treatment of municipal solid waste (MSW) without incineration in Pa-robé - RS
NM0179: Waste Heat Recovery based Steam and Power Generation
NM0180: BIOLUX Benji Biodiesel Beijing Project
NM0181: Introduction of a new primary district heating system - Houma District Heating project, Shanxi Province, P.R.C
NM0182: Improved Efficiency in Power System Generation through Advanced SCADA Control Systems and Related Energy Management Protocol in Azerbaijan
NM0183: Essar Oil Limited (EOL) - Avoidance of Green House Gas emissions by application of residuum oil supercritical extraction (ROSE) technology as solvent deasphalting process in petroleum refinery
Requests for revision of approved methodologies and requests for clarification of approved methodologies have been received. Further information on these submissions is available on the UNFCCC CDM web site
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CDM - the mark of 1 billion expected CERs is passed, 9 June 2006
BONN (UNFCCC) - According to the United Nations Climate Change Secretariat, the Kyoto Proto-col's clean development mechanism (CDM) is as of today estimated to generate around one billion tonnes of emission reductions by the end of 2012. "We have crossed an important threshold with these emission reductions", said Richard Kinley, acting head of the United Nations Climate Change Secretariat. "It is now evident that the Kyoto Protocol is making a significant contribution towards sustainable development in developing countries".
"Whilst the mechanism is seeing very strong growth, the growth is still too unevenly distributed amongst regions", said Janos Pasztor, acting coordinator for Project Based Mechanisms with the UN Climate Change Secretariat. "Governments are expected to address this issue with inputs from the CDM Executive Board at the upcoming United Nations Climate Change Conference in Nairobi in November", he said.
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Energy Council takes steps forward in developing a European Energy Policy, 8 June 2006
BRUSSELS (European - Commission) - Energy Commissioner Piebalgs stated: "Today's Energy Council took important steps towards formulating an integrated European Energy Policy, as requested by Hampton Court European Council and builds on the Commission's Green Paper for a Sustainable, Competitive and Secure European Energy Policy. In particular, the discussions on international energy policy, the internal electricity and gas market and sustainable energy policy showed clear determination to reach concrete conclusions providing for real progress by the end of this year."
The Council discussed in detail three main topics: (i) international relations and energy, (ii) the Internal Energy Market and (iii) the development of a sustainable energy policy for Europe that properly balances the objectives of sustainable development and competitiveness.
Regarding international relations and energy, the Council discussions focussed the joint paper recently presented by the Commission and High Representative Solana on "An external policy to serve Europe's energy interests", on relations with Russia and on the EU-OPEC Dialogue.
On Russia, the Council recognised the importance of intensifying the existing dialogue, developing a real Energy Partnership with Russia based on mutual selfinterest; the EU with transparent and predictable markets open to Russian supplies and Russia ensuring that the investment is made to meet demand on a fair and transparent basis.
In relation to the Internal Electricity and Gas Markets, the Council discussed inter alia the move towards regional markets as a stepping stone towards a fully integrated European market. The importance of this was widely recognised, as was the need to rapidly complete the internal market, to ensure that every EU business and citizen has the real and effective right to chose his or her supplier.
Finally, the Council discussed progress towards an Energy Efficiency Action Plan and the follow-up of the biomass Action Plan. It also noted the agreement [in principle] for a new Energy Star agreement on energy efficiency.
The Council therefore provided an important occasion to consolidate progress on the emerging European Energy Policy. The next important step will be the Commission's EU Strategic Energy Review, as requested by the European Council. It is envisaged by the Commission that this Strategic Review, to be presented at the end of this year, will include concrete conclusions on new actions in all of the areas mentioned above.
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European countries are joining a Europeanwide Campaign against Climate Change, 5 June 2006
Over the last few days, countries across Europe have been joining in the European Commission's campaign against climate change. The campaign entitled "You Control Climate Change" reaches out to people to convince them that small changes in their daily routine can help significantly in the fight against climate change. The EU, which has been leading the fight against climate change, has been urging the US and other major polluting countries to make commitments to reduce the level of greenhouse gases.
"Climate change is the biggest environmental challenge that the planet faces. We cannot afford losing the battle against climate change. We need to engage all actors: we need global commitment, strong EU legislation targeting all major polluters, and we need citizens to do their bit by changing habits - turn down, recycle, walk...", said European Commissioner Stavros Dimas on the occasion.
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CARBON EXPO 2006 closes after posting outstanding results, 15 May 2006
COLOGNE (Koelnmesse) - The third CARBON EXPO - Global Carbon Market Fair & Conference - closed this Friday after three days of meetings, panel discussions, technology forums, business to business exchanges and public events. Organizers characterized Carbon EXPO 2006 as "a remarkable success both in terms of participants, exhibits and outcomes". More than 200 emission reductions projects from developing countries were presented - according to reports from participants - and a series of contracts for the purchase of emissions rights were concluded or initiated. High level govern-ment representatives from 25 developing countries, invited by the World Bank, attended the Conference.
2,050 participants from 94 countries (2005: 1,500 / 87 countries) attended the event, which was held from 10th to 12th May 2006, with the objective of generating new business opportunities for greenhouse gas emission reductions for private operators and governments from industriali-zed and developing countries. With 187 exhibitors from 50 countries, the trade fair once again proved its value as a multilateral knowledge learning and experiences. The exhibition space inc-reased by 50 percent.
The event's organizers - the World Bank, The International Emissions Trading Association (IE-TA) and Koelnmesse - report that the third CARBON EXPO exceeded their expectations. In a joint statement they said: "For the third year in a row, CARBON EXPO has succeeded in provi-ding an outstanding central platform for this market - a platform that brings together all projects, services, initiatives and developments under one roof. All of the market's important participants attended the event and used the opportunity to gain a comprehensive understanding of this sector and to meet their colleagues for face to face discussions. CARBON EXPO generated fresh mo-mentum for the entire emissions trade and for the CO2 market," concluded James Warren Evans, Environment Director of the World Bank; Andrei Marcu, President and CEO of the IETA; and Wolfgang Kranz, Executive Vice President of Koelnmesse. They expressed full confidence that the market will continue its positive development. "The 'engines' that are driving the market include the EU Emissions Trading Scheme (EU ETS), and the Clean Development Mechanism of the Kyoto Protocol with transactions by energy-intensive companies that are initiating projects in developing and emerging countries."
The success of Carbon EXPO is now expanding regionally. The three organizers announced that CARBON EXPO ASIA will take place in Beijing/China, in October 2006 .
The sixth annual World Bank carbon market intelligence study, released at CARBON EXPO, 2006, shows a dramatic growth in the global carbon market, led by strong activity in the Europe-an Union's pilot Emissions Trading Scheme (EU ETS). The report which covers the period from January 1, 2005 to March 31, 2006 records a booming global market worth over US $10 billion in 2005, ten times the value of the previous year.
The 2006 Report shows explosive growth in allowance markets, making them for the second year the main driver of growth of the market. European Union trades dominated the carbon mar-ket in terms of value-75 percent in 2005, but almost half of the total volume of greenhouse gas (GHG) emission reductions came from the developing world, making developing countries mea-ningful participants in the drive to reduce climate altering greenhouse gases on the earth.
According to the report "price signals in the carbon market have stimulated innovation especially in developing countries." The market analysis shows that transactions from projects in develo-ping countries and economies in transition totalled 364 million tons of greenhouse gas emission reductions and in the EU ETS, some 322 million tons of allowances were transacted.
The carbon market encompasses both project-based transactions (CDM and JI) where a buyer purchases certified emission reductions from a project that reduces greenhouse gas emissions compared with what would have happened otherwise, and trading of greenhouse gas emissions allowances allocated under existing cap-and-trade regimes such as the EU ETS, as well as the voluntary carbon market, for example in the United States and Australia. The report documents growth on those voluntary markets as well. For example: the U.S.-based Chicago Climate Ex-change has already seen some 1.25 million tons of carbon dioxide equivalent exchanged in the first three months of 2006, compared with 1.45 million over the whole of 2005.
Looking at future trends, the report emphasizes that "the prospects for the project-based market are quite solid, provided the EU does not erect any barriers limiting entry for CDM and JI im-ports for phase II (2008-2012)." Markets now price carbon and this has created the opportunity for the private sector to efficiently support investments to reduce emissions. The long term suc-cess of the carbon market, however, will be judged by its ability to achieve its environmental goals and preventing climate change.
The conference program featured market developments and latest activities initialized by the Eu-ropean Union Trading Sheme (EU ETS) and the Kyoto Mechanism. 22 sessions (workshops and plenaries) provided comprehensive knowledge and a deep insight into the market and its mecha-nism. The subdivision of the conference in line with specific target groups was well accepted and met with the needs of the participants. The high-powered opening plenary was attended by about 600 participants.
A total of 187 companies from 50 countries, 83 percent of which came from abroad, participated in CARBON EXPO 2006, occupying a gross exhibition space of 5,800 m². Including estimates for the last day of the fair, CARBON EXPO 2006 attracted 2,050 trade visitors from some 94 countries, approximately 80 percent of whom came from abroad.
Following three years of great success in Cologne, the partners of CARBON EXPO - The World Bank, IETA and Koelnmesse - have put together CARBON EXPO ASIA in Beijing in China. It will take place from 26th to 27th of October 2006. The new event will - as in Cologne - combine trade fair and conference. Participants will benefit from a conference program with high-level speakers, who will present up-to-date information with the latest developments. Companies are invited to present their projects to a fast moving market.
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Carbon Expo 2006: CO2 Market is maturing, 15 May 2006
COLOGNE (Koelnmesse) - In spite of the downward trend in prices of carbon commodities in the European market in recent weeks, government officials, private sector brokers, traders and market specialist concluded that the global market is maturing and is here to stay and grow.
According to James Warren Evans , Environment Director, World Bank " we have now a global market of US $10 billion dollars" and added "the strong price signals in the European Union market in 2005 raised expectations in the project -based markets as well. The Carbon Market has created an important flow of private and public capital to climate friendly technologies in deve-loping countries which contributes to sustainable development"
With regards to the Clean Development Mechanism (CDM) of the Kyoto Protocol, which allows industrial nations to buy carbon emissions reductions in developing countries to comply with their targets at home, Roberto Urquiza, Deputy Minister of Environment from Ecuador said "It is necessary to remove barriers for a more equitable distribution of CDM resources". He demanded a broader participation of small developing countries in CDM projects "by integrating carbon finance in new sectors, including energy efficiency and the forest sector".
According to the South American official, the trend in the allocation of resources is following the same trend of Foreign Direct Investments (FDI) which has emerging markets such as China, India and Brazil as its preferred destination.
Andrei Marcu, President & CEO, International Emissions Trading Association (IETA), is confident about market prospects, "We will see the market mature, including the European market. The CDM is maturing; it is beginning to deliver results". However he warned that "soon we will be seeing the uncertainty of not having a clear direction after 2012" (the date the Kyoto Protocol is set to expire)
In reference to the record low prices in European markets in recent weeks, Jack Cogen, Presi-dent, of the brokerage firm Natsource, explained that "the market was overheated", and emphasi-zed "The market is a success; the future markets are working well but sometimes markets crash, and that has happened in the past, especially with environmental commodity markets. All these markets had a dramatic price change during the first year of operations"
Looking at the reality of Africa, Kivutha Kibwama, head of the UN Climate Change Conference to take place in Nairobi in November said "With only two percent of the market we are at a very early stage. For Africa to be engaged we need assistance in awareness raising on available opportunities this market is bringing. We need to find backers to provide finance in order to make the initial preparation of projects a reality.
The 2006 version of Carbon EXPO, organized by The World Bank, IETA and Koelnmesse, en-ded today, after three days of intense business and knowledge sharing activities. According to Koelmnesse a record number of 2050 participants from 94 countries were present at this unique event.
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EU emissions trading scheme delivers first verified emissions data for installations, 15 May 2006
Brussels (EU Commission) - The European Commission today released the 2005 carbon dioxide (CO2) emissions data and compliance status of more than 9,400 installations covered by the EU Emissions Trading Scheme. For four Member States - Cyprus, Luxembourg, Malta and Poland - no information has been received as their emission allowance registries are not yet operational. The Emissions Trading Scheme enables greenhouse gas emissions from the power sector and energy-intensive industrial plants to be cut at least cost to the economy.
The 21 Member States with active registries have allocated an annual average of 1,829.5 million allowances to installations in the scheme's first trading period, covering 2005 to 2007. In addition they have put aside an annual average of some 73.4 million allowances for new installations or for auctioning purposes. Independently verified emissions data for installations operating in these 21 Member States (with a small number still to report) amounted by 30 April to approximately 1,785.3 million tonnes for 2005.
By the compliance deadline of 30 April 2006 some 8.980 installations had fulfilled their obligations with regard to reporting 2005 emissions. These installations account for more than 99 % of allowances allocated.
By the compliance deadline of 30 April 2006 a total of 849 installations were identified as not having surrendered a sufficient number of emission allowances. Many of these have subsequently fulfilled their surrender obligation over the last two weeks. Some of the remaining installations that have yet to fulfil their obligations have reportedly encountered technical difficulties in national registries. The Commission will contact Member States responsible for these installations to identify the reasons and to ensure appropriate enforcement action is taken in cases of non-compliance.
Preparation for the scheme's second trading period, from 2008 to 2012, is already well under way. As required by the Emissions Trading Directive, Member States are drawing up national allocation plans for the 2008 to 2012 period for notification to the Commission by 30 June. These plans are important climate policy tools since collectively they will determine the total permitted level of CO2 emissions from installations across the EU as well as how many allowances each installation receives individually. The new 2005 emissions data gives independently assessed installation-level figures for the first time and so provides Member States with an excellent factual basis for deciding upon the caps in their forthcoming national allocation plans for the second trading period, when the Kyoto targets have to be met. The plans are subject to approval by the Commission, which will also be making extensive use of the 2005 emissions data.
Separately, later this year the Commission will launch a review of the scheme and the Directive to see whether adjustments to the scheme's design should be introduced after 2012. Experience gained from the first compliance cycle is a valuable input to this process. The main purpose of the review is to ensure that the scheme, seen across the world as being the nucleus of a future international carbon market, delivers emission reductions in the most cost-effective way possible into the medium and long-term.
Under the scheme, launched on 1 January 2005, installations are allocated a certain number of CO2 emission allowances by their governments per year (one allowance gives the right to emit one tonne of CO2). Installations that keep their emissions below their total of allowances - for instance by investing in more energy-efficient equipment - can sell their surplus allowances to those that emit more than their allocated allowances. This 'cap and trade' approach ensures that emissions are cut wherever it is cheapest to do so.
After the end of each calendar year each installation has to report its actual emissions from that year, assure independent verification of this report and submit it to the competent national authority by 31 March. By 30 April the company has to surrender a number of emission allowances equivalent to its verified emissions in the previous year. Companies that surrender an insufficient number of allowances to cover their emissions have to pay a financial penalty of ¤40 to the Member State concerned for each missing allowance. The annual compliance cycle is closed by the publication of emissions data and surrendered allowances information per installation on 15 May and the cancellation of surrendered allowances by 30 June.
The Community Independent Transaction Log (CITL) records the issuance, transfer, surrender and cancellation of allowances that take place in national registries. Some Member States have informed the European Commission that certain oversights and errors by companies have taken place, such as cancelling rather than surrendering allowances. These could lead to slight discrepancies in the figures in the CITL and the summary tables available for download. Explanatory notes have been added accordingly.
Due to technical problems occurring in the national registries of the Czech Republic, France, the Slovak Republic and Spain, the number of surrendered allowances and therefore the compliance status per installation as submitted by these national registries to the CITL may be incorrect. The Commission is collaborating with these Member States to correct these compliance figures as soon as possible. For this reason, no installation-level tables are available for the Czech Republic, France, the Slovak Republic and Spain for download at this stage.
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Commissioner Piebalgs Enhances Bilateral Energy Cooperation with Kazakhstan, 9 May 2006
Brussels (EU Commission) - The Commissioner started his official visit to Kazakhstan, a major oil and gas producer in Central Asia, today, in order to discuss the possibilities for enhancing energy cooperation between Kazakhstan and the EU. He is joined by representatives of the European oil and gas industry and will meet with numerous high level officials during his stay. The event marks the very first visit to Kazakhstan of any European Energy Commissioner."Strengthening discussions with Kazakhstan in the energy sector is of great importance for improving the security of energy supplies to the EU" underlined the Commissioner. Discussions with senior Kazakh representatives will involve the modalities of enhancing energy cooperation and new export routes from the Caspian region to the EU. The Commissioner will hold bilateral meetings with the President of the Republic of Kazakhstan, the Minister of Foreign Affairs and the Minister of Energy and Mineral Resources, as well as visit the Kashagan oil field, considered to be the largest oil discovery in the North Caspian Sea. The Commissioner is accompanied by senior representatives of the European oil and gas industry to discuss further investment opportunities in the energy sector in Kazakhstan with the national administration and the local energy industry.As well as being an important gas producer, Kazakhstan boasts the largest recoverable oil reserves in the Caspian region - at least 95 billion barrels of oil - and is an important partner for the EU in Central Asia. It is also one of the participants in the regional cooperation initiative that brings together Black Sea and Caspian Sea countries and the EU that was initiated on the occasion of the Ministerial Conference on Energy cooperation in 2004. On the occasion of the Commissioner's visit, Kazakhstan has confirmed its support for this initiative by agreeing to host the second Ministerial Conference to be held in November this year.
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Commissioner Piebalgs and Minister Bartenstein statement on the recent announcement of Bolivia regarding its gas industry, 9 May 2006
Brussels (EU Commission) - Energy Commissioner Andris Piebalgs and Austrian Federal Minister for Energy, Martin Bartenstein, on behalf of the EU Presidency, have taken careful note of the recent unexpected announcement of the Bolivian Government regarding its gas industry. They trust that Bolivia, in seeking to develop its energy industry, will proceed in a manner that maintains investor confidence, in order to ensure sustained collaboration with the companies concerned, through active and effective dialogue.They note however their concern at the announcement of the intention to use armed forces to occupy energy installations. They will remain attentive to issue during the coming months.
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Commissioner Piebalgs and Minister Bartenstein clarify key points of the EU-Russia gas trade relationship in a letter to the Russian Government, 9 May 2006
Brussels (EU Commission) - Today, Energy Commissioner Andris Piebalgs and Austrian Federal Minister for Economics and Labour, Martin Bartenstein, on behalf of the Presidency, have written to Russian Energy Minister Victor Khristenko, responding to recent comments that have been made in Russia regarding the EU energy market.
Commissioner Piebalgs and Minister Bartenstein acknowledge that Russia, and Gazprom in particular, have been, and remain, a reliable supplier of natural gas to the European Union. They consider it important that this relationship is maintained, given that the EU looks to Russia for increased deliveries of gas in the future. In addition, they note their agreement that long term gas supply contracts can facilitate the very significant investments in Russia that will need to be undertaken to meet future demand. Under the EU competition rules, contracts that promote new investment and other benefits are, in principle, viewed favourably.
The letter points out that the EU and Russia are, and must remain, in a position of mutually beneficial inter-dependence. Russia, on the one hand, needs the predictability and certainty that the EU market will, in the medium to long term, take the gas that will result from huge new investments and the EU, on the other hand, needs the transparency and certainty that those deliveries will be made in a timely fashion. In this light the Commissioner and Minister welcome recent statements on Gazprom's ability to meet future EU demand and suggest that an EU-Russia energy partnership should be further developed and that relations should be deepened further to the mutual benefit of both sides.
Finally, they comment on Gazprom's perceived concerns on possible limitations imposed by the EU on its aspirations to become a global energy company. Their letter recalls that many energy companies are active in the EU's oil, electricity and gas markets, both upstream and downstream. "The rules applied to Gazprom will be no different to those applied to these and other companies, notably under the competition rules of the EU Treaty, and that they will be applied in exactly the same manner", the letter says. The fact that Gazprom is the exclusive exporter of gas from Russia to the EU, when other Russian companies and foreign joint ventures with gas reserves would otherwise be in a position to supply the EU market, will be a significant fact that will necessarily be taken into account in any such objective analysis. But there is clearly no question of any discrimination.
Finally, Commissioner Piebalgs and Minister Bartenstein stress the importance that the EU places on ratification of the Energy Charter Treaty and the Transit Protocol, a valuable mechanism that can provide the basis for the long term management of the wider European energy market, including such issues as the right of transit and third party access, which remain of great interest to the EU.
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Sustainable development: Commissioner Dimas at UN to discuss sustainable energy future, 9 May 2006
Brussels (European Commission) - Environment Commissioner Stavros Dimas will represent the European Commission at the ministerial part of the 14th session of the UN Commission on Sustainable Development (CSD) in New York from 10 to 12 May 2006. The meeting will examine progress in sustainable energy, climate change, air pollution and industrial development issues. Commissioner Dimas will advocate energy policies that improve access to energy services for the world's poor while maximising energy efficiency and the use of renewable energy globally, thus increasing the protection of the environment. Commissioner Dimas will also announce the launch of the EU Energy Facility, which will make available ¤ 220 million to projects improving access to energy, in particular renewable energy, mainly in Sub-Saharan Africa.
The CSD process provides us with a unique opportunity to put the world on a sustainable energy path. What we need is an integrated approach with a view to improve energy efficiency, promote technological innovation, expand markets for renewable energy sources and foster cleaner fossil fuels for transportation. All this will increase the access to energy in developing countries while protecting the environment.
Access to energy and energy services is crucial for achieving the Millennium Development Goals, especially on eradicating poverty. Today, over two billion people in developing countries live without access to energy and to modern energy services, and they are relying mainly on traditional biomass. This year, ¤ 220 million from the new EU Energy Facility in support of the EU Energy Initiative will be made available to projects improving access to energy in African, Caribbean and Pacific (ACP) countries.
At the same time, there is an urgent need to reduce energy-related environmental and health problems, in particular those stemming from climate change and air pollution. Renewable energy sources will therefore be high on the EU's agenda at CSD14. They play an important role in the fight against climate change, and they harbour potential for economic growth, especially for developing countries and regions. To make the most of their potential, a stable, long-term policy framework is needed. CSD offers us the chance to build a strong international framework for renewables to help achieve a real global breakthrough, and we should not miss this chance.
The Johannesburg Renewable Energy Coalition (JREC), chaired by the Commission and Morocco, has since its launch in 2002 successfully fostered international co-operation on renewables. The Commission is currently preparing an innovative public/private funding mechanism to bridge financing gaps for renewable energy business developers and SMEs, especially in developing countries. CSD14 is also looking at the sustainability of industrial development. As a large energy-consuming sector, industry is a significant source of greenhouse gas emissions and air pollution. Promoting sustainable consumption and production patterns will be crucial. At the same time, industrial development is key to attaining economic and social objectives.
One of the issues is how to increase investment in sustainable industrial development that creates jobs and generates income, including through small- and medium-sized enterprises. The UN Commission on Sustainable Development (CSD) has a mandate to review progress in implementing the outcomes of the 2002 World Summit on Sustainable Development in Johannesburg. The CSD works in two-year policy cycles, with a review session followed by a policy session. The 1 - 12 May 2006 meeting, CSD14, constitutes a global review of implementation of the Johannesburg commitments in the field of energy, air pollution, climate change and industrial development, aiming at showcasing best practises as well as identifying the most pressing challenges that the global community needs to tackle. In 2007, the policy session, CSD15, will decide upon concrete actions to overcome these obstacles. CSD14 is chaired by Aleksi Aleksishvili, Minister of Finance of Georgia. The meeting will be attended by ministers from around 100 countries as well as representatives of international financial institutions, business and NGOs.
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'On-the-Job' Training Carbon expo: What is Carbon Finance? Where is the market going? 8 May 2006
COLOGNE (Koelnmesse) - Journalists covering CARBON EXPO are invited to participate in a Carbon Finance'On-the-job' Training hosted by COM+: Alliance of Communicators for Sustainable Development and the International Emissions Trading Association (IETA). The training will be conducted by Duncan Shiels, Senior Trainer from the Reuters Foundation, a member of the COM+ Alliance, on May 10th from 9:00 am to 10:45 am at CARBON EXPO, Koelnmesse, Cologne, Germany. Journalists will have access to industry experts, as well as representatives from IETA and the World Bank, in topics ranging from current events in the European Union Emissions Trading Scheme to what lies beyond 2012.
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Record number of exhibitors for Carbon Expo, 8 May 2006
COLOGNE (Koelnmesse) - Organisers expect to attract around 1,700 trade visitors. From the 10th to 12th May 2006, representatives of the growing greenhouse gas emission reductions market will be meeting in Cologne for CARBON EXPO 2006, the world's pre-eminent trade fair and conference for the sector. 187 companies, host countries and institutions will participate. This is an increase of about 40 per cent compared to last year. The event's organisers - the World Bank, the International Emissions Trading Association (IETA) and Koelnmesse - are expecting around 1,700 trade visitors to attend the event. The World Bank is supporting the participation of 25 developing countries and countries with economies in transition at CARBON EXPO 2006, including Bulgaria, Peru, Uganda, Chile, China, Russia, Ukraine, Uganda, Nicaragua, Costa Rica, El Salvador, Guatemala, Ecuador and South Africa. These countries will be presenting current CDM/JI projects and their respective national investment conditions. The trade fair and conference provide a unique venue for buyers and sellers of greenhouse gas emission reductions to discuss available projects and potentially make a deal. The success of such an approach was born out at Carbon Expo 2005 when at least 100 deals for the purchase of greenhouse gas emission reductions from poor and middle income countries from the developing world and countries in transition were reached and/or advanced.
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International Emissions Trading Market is Steadily Growing, 5 May 2006
COLOGNE (Koelnmesse) - World's only trade fair and conference for emissions trading and the carbon market highlights market growth, development and opportunities.
Ever since EU-wide emissions trading began on 1st January 2005, the market for EU Allowances (EUA) has developed positively and became firmly established. After a low initial level of transaction activity and a small number of actors, there are now increasing volumes of EUAs in bilateral trades and on the different European Carbon Exchanges. CARBON EXPO 2006, jointly organized by the World Bank, the International Emissions Trading Association (IETA) and Koelnmesse, is the global carbon market fair and conference for emissions trading and the carbon market. It will be held for the third time from 10th to 12th May 2006 in Cologne, Germany. It offers both the energy-intensive industries and the participating service companies the ideal platform for business and communication. Today the industrialised countries are relying on the three flexible mechanisms of the Kyoto Protocol in order to fulfil their commitment to reduce emissions. The first of these is emissions trading between the industrialised countries on Kyoto Level and between companies in line with the EU emissions trading system. The other two are the emission reduction projects carried out jointly by industrialised countries or by industrialised countries in cooperation with developing countries as a contribution to global climate protection. "CARBON EXPO 2006 presents these flexible mechanisms and demonstrates very clearly to the energy-intensive industries the potential and opportunities offered by the EU emissions trading scheme and emission reduction projects (Clean Development Mechanism/Joint Implementation, or CDM/JI)," said Robert Dornau, conference director CARBON EXPO. "As in the previous years the World Bank will once again be promoting the participation of project developers and government representatives from developing countries and countries with economies in transition," Dornau added. At CARBON EXPO 2006 these countries will be presenting CDM/JI projects that are seeking technology suppliers or are already offering emission reductions for sale. At the last CARBON EXPO in May 2005, emissions reductions of more than 100 such projects were sold or advanced negotiations.
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Invitation to the opening of CARBON EXPO 2006, 5 May 2006
COLOGNE (Koelnmesse) - From 10th to 12th May 2006, the third CARBON EXPO - Global Carbon Market Fair & Conference - will be held in Cologne. CARBON EXPO is the world's most important trade fair and conference for emissions trading and the CO2 market. The number of exhibitors who are taking part this year - the highest since the event's premiere three years ago - clearly reflects the dynamism of this market. There will be 187 suppliers from 50 countries at CARBON EXPO 2006, a 40 per cent increase. The event is being organised by the World Bank (Washington, D.C.), the International Emissions Trading Association (IETA, Geneva) and Koelnmesse. About 1,700 trade visitors and congress participants from all over the world are expected to attend.
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EU-Russia gas trade relationship: letter to the Russian Government, 3 May 2006
BRUSSELS (European Commission) - Today, Energy Commissioner Andris Piebalgs and Austrian Federal Minister for Economics and Labour, Martin Bartenstein, on behalf of the Presidency, have written to Russian Energy Minister Victor Khristenko, responding to recent comments that have been made in Russia regarding the EU energy market.
Commissioner Piebalgs and Minister Bartenstein acknowledge that Russia, and Gazprom in particular, have been, and remain, a reliable supplier of natural gas to the European Union. They consider it important that this relationship is maintained, given that the EU looks to Russia for increased deliveries of gas in the future. In addition, they note their agreement that long term gas supply contracts can facilitate the very significant investments in Russia that will need to be undertaken to meet future demand. Under the EU competition rules, contracts that promote new investment and other benefits are, in principle, viewed favourably.
The letter points out that the EU and Russia are, and must remain, in a position of mutually beneficial inter-dependence. Russia, on the one hand, needs the predictability and certainty that the EU market will, in the medium to long term, take the gas that will result from huge new investments and the EU, on the other hand, needs the transparency and certainty that those deliveries will be made in a timely fashion. In this light the Commissioner and Minister welcome recent statements on Gazprom's ability to meet future EU demand and suggest that an EU-Russia energy partnership should be further developed and that relations should be deepened further to the mutual benefit of both sides.
Finally, they comment on Gazprom's perceived concerns on possible limitations imposed by the EU on its aspirations to become a global energy company. Their letter recalls that many energy companies are active in the EU's oil, electricity and gas markets, both upstream and downstream. "The rules applied to Gazprom will be no different to those applied to these and other companies, notably under the competition rules of the EU Treaty, and that they will be applied in exactly the same manner", the letter says. The fact that Gazprom is the exclusive exporter of gas from Russia to the EU, when other Russian companies and foreign joint ventures with gas reserves would otherwise be in a position to supply the EU market, will be a significant fact that will necessarily be taken into account in any such objective analysis. But there is clearly no question of any discrimination.
Finally, Commissioner Piebalgs and Minister Bartenstein stress the importance that the EU places on ratification of the Energy Charter Treaty and the Transit Protocol, a valuable mechanism that can provide the basis for the long term management of the wider European energy market, including such issues as the right of transit and third party access, which remain of great interest to the EU.
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EU emergency oil stocks at comfortable levels, 3 May 2006
BRUssels (European Commission) - Last Tuesday's (25 April) meeting of the Member States Oil Supply Group confirmed the current levels of emergency oil stocks in Europe at 117 days of consumption, a figure well above the mandatory 90 days. The meeting reviewed the level of oil stocks in Member States and their replenishments following late 2005 releases in the context of the IEA concerted action after Hurricanes Katrina and Rita.
In view of the latest infringement procedures, the Commission reminded Member States of the importance of respecting the reporting deadlines and other obligations stemming from the European legislation on oil stocks. The Commission intends to continue enforcing the reporting discipline previewed in the applicable legislation in order to ensure a constant clear picture on the current stock levels.
The Commission also took advantage of the meeting for a further exchange of views with Member States on the demand-restraint measures envisaged by individual Member States for cases of emergency situations. Coordination of such measures at a European level could be useful in order to avoid potential incompatibilities or distortions. European legislation[1] allows the Commission to set a target for reducing the consumption of petroleum products (by up to 10% of normal consumption). Participants also discussed the Commission's recent Green Paper on a European Strategy for Sustainable, Competitive and Secure Energy and the expected follow-up, in particular the possible initiatives concerning oil. The Commission estimates that although the elevated oil prices of the past two years do not seem to have affected the economic prospects of the European or global economy so far, the current level of oil prices could impinge on economic growth in the coming months if they are sustained and if coupled with adverse monetary developments or speculative investments.
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EB 24 proposed agenda and annotations, 27 Apr 2006
BONN (UNFCCC) - The proposed agenda and annotations as well as relevant reports and inputs from panels and working groups for the twenty-fourth meeting of the CDM Executive Board (10 - 12 May 2006) are available on the UNFCCC CDM web site
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CDM Meth Panel report / CDM AR WG report / CDM SSC WG report, 13 April 2006
BONN (UNFCCC) - The below listed documents are now available on the UNFCCC CDM website:
(1) The report of the twentieth meeting of the Panel on baseline and monitoring methodologies (Meth Panel) is now available in the Meth Panel page of the UNFCCC CDM website.
(2) The report of the eighth meeting of the CDM Afforestation and Reforestation Working Group (A/R WG) is now available in the AR WG section of UNFCCC CDM website.(3) The report of the fifth meeting of the Small Scale Working Group (SSC WG) is now available in the SSC WG page of UNFCCC CDM website.
Other methodological issues:
(4) Non-forestry methodologies
Request for revision of approved methodologies and requests for clarification of approved methodologies have been received.
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New submissions of methodologies / Other methodological issues, 21 Mar 2006
BONN (UNFCCC) - The CDM Executive Board, at its twenty-third meeting (EB23), agreed to launch the follo-wing four different calls for public inputs:
- Draft "baseline scenario selection tool" (21March);
- Proposals to demonstrate additionality and to improve the "additionality tool";
- Procedures to address leakage from small-scale CDM biomass project activities;
- Regional distribution of CDM project activities.
Proposed new methodologies:
The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 20 March - 07 April 2006:
NM0156: Shanghai Putuo District Municipal Solid Waste Transfer and Comprehensive Treatment Plant
NM0157: Open-DSM type CDM for Green Lighting in Shijiazhuang city, China
NM0158: Mexico, Insurgentes Avenue Bus Rapid Transit Pilot Project
NM0159: Implementation of an Efficiency Testing, Consumer Labelling and Quality-Assurance Program for Air Conditioners in Ghana
NM0160: Shell Cogeneration Project
NM0161: Mondi Gas Turbine Co-generation in Richards Bay, South Africa
NM0162: Reduction in GHGs emission from primary aluminium smelter at Hindalco, Hira-kud India
NM0163: Use of calcined ashes and fluorite for clinker production in the Cement Plant of Huichapan, Mexico
NM0164: Sasol Nitrous Oxide Abatement Project
NM0165: Feed switchover from Naphtha to Natural Gas (NG) at Phulpur plant of IFFCO
NM0166: JISL biomethanation of biodegradable waste for thermal applications
NM0167: The White Tiger Oil Field Carbon Capture and Storage (CCS) project in Vietnam
NM0168: The capture of the CO2 from the Liquefied Natural Gas (LNG) complex and its ge-ological storage in the aquifer located in Malaysia
The following proposed new baseline and monitoring methodologies have been re-submitted for consideration of the Meth Panel at its next meeting and are available in the UNFCCC CDM web site:
NM0108-rev: Biodiesel production and switching fossil fuels from petro-diesel to biodiesel in transport sector - 30 TPD Biodiesel CDM Project in Andhra Pradesh, India
In addition, technical clarifications to the following proposed new methodologies have been provided:
NM0133: Grid-connected power generation project using biomass fuel from newly developed dedicated plantations, in Nakhon Ratchasima Province, Thailand
NM0134: Paramonga CDM Bagasse Boiler Project
NM0136: Reduction of Transmission and Distribution Losses in Nigeria
NM0140: Mondi Richards Bay Biomass Project
NM0141: Displacing grid/off-grid steam and electricity generation with less carbon intensive fuels in Aba, Nigeria
NM0142: Palm Methyl Ester - Biodiesel Fuel (PME-BDF) production and use for transporta-tion in Thailand
NM0143: Catalytic reduction of N2O inside the ammonia burner of nitric acid plants
NM0105-rev: Bus Rapid Transit System for Bogotá, Colombia: TransMilenio Phase II to IV
NM0107-rev: Waste Gas-based Cogeneration Project at Alexandria Carbon Black Co., Egypt
NM0112-rev: Increased electricity generation from existing hydropower stations through De-cision Support System optimization in Azerbaijan
NM0117-rev: Nanjing Chemical Industries Co Ltd (NCIC) Nitrous Oxide Abatement Project
NM0123-rev: Substitution of raw material in cement processing
The final recommendation of NM0138: American Israel Paper Mill (AIPM) Natural Gas Co-generation by the Meth Panel is also available on the CDM website as no clarifications have been received as a response to the preliminary recommendation of the Panel. This recommen-dation will be under consideration at the next meeting of the CDM Executive Board.
Requests for revision of approved methodologies and requests for clarification of approved methodologies have been received.
Proposed new A/R methodologies:
Technical clarifications to the following proposed new A/R methodologies have been provi-ded:
ARNM0015: Reforestation as Renewable Source of Wood Supplies for Industrial Use in Bra-zil
ARNM0017: Mexico Seawater Forestry Project
ARNM0018: Assisted Natural Regeneration of Degraded Lands in Albania
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CDM Registry - CERs forwarded to project participants for the first time 10 Mar 2006
BONN (UNFCCC) - The UNFCCC CDM Registry Administrator has the pleasure of announcing another first in the implementation of the Kyoto Protocol's Clean Development Mechanism (CDM). Following the recent issuance of certified emission reducitons (CER) and the opening of holding accounts for project participants, the Administrator has, for the first time, forwarded CERs to the holding account of a project participant.
This action represents a significant milestone in the implementation of the CDM and provides project participants with the end product of their efforts to reduce emissions of greenhouse gases in developing countries with a view to meeting their committments under the Kyoto Protocol.
The 139 CDM project activities currently registered are expected to produce in excess of 270 million CERs before the end the Kyoto Protocol's first commitment period in 2012. The official CDM "CER" pipeline of more than 630 activities, including the 139 registered activities, is expected to deliver more than 800 million tonnes by the end of 2012.
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UN Environment Head Welcomes Climate Change Compliance Committee, 9 Mar 2006
NAIROBI (UNEP) - Kyoto Protocol Now Comes with Carrots and Sticks
The launch of the compliance system for the Kyoto Protocol, the international treaty to reduce greenhouse gas emissions, was welcomed by Klaus Toepfer, Executive Director of the United Nations Environment Programme (UNEP).
The United Nations Framework Convention on Climate Change (UNFCCC) today announced that the Protocol's Compliance Committee, complete with an enforcement branch and facilitative branch, was operational.
The enforcement wing has the power to decide on the consequences for countries encountering difficulties in meeting their commitments by 2012.
The other branch is designed to promote compliance by offering countries advice and assistance.
Mr Toepfer said: "Climate change is the most serious challenge facing the world and the Kyoto Protocol is the internationally agreed mechanism for averting it".
"Kyoto has many carrots including the chance for developed nations to offset some of their emissions in developing countries through tree planting and renewable energy schemes, up to participating in the emerging carbon trading markets," he said.
"With today's announcement, the Protocol also has teeth, as befits a legally binding treaty. This in turn adds to the integrity of Kyoto and its provisions, in particular the credibility of the emissions trading markets," added Mr Toepfer.
He wished Ambassador Raúl Estrada Oyuela of Argentina, chair of the Committee's enforcement branch, and Hironori Hamanaka of Japan every success and a "not too busy time".
"The signs of climate change are all around us, from the melting of the Arctic and the glaciers up to extreme weather events and the migration of species. I sincerely believe that the world is no longer in any doubt that climate change is real and that the targets set under Kyoto are modest and doable-that few if any will be bothering Ambassador Estrada or Mr Hamanaka over the next six years".
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Proposed new methodologies submitted, 6 Mar 2006
BONN (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available on the UNFCCC website:
NM0144: Energy efficiency improvements carried out by an Energy Service Company (ESCO) in Ulaanbaatar, Mongolia to replace old boilers with new ones
NM0145: Reduction of Flaring and Use of Recovered Gas for Methanol Production
NM0146: Transalloys Manganese Alloy Smelter Energy Efficiency Project in South Africa
NM0147: Methane abatement through composting
NM0148: Fuel switch project for generation of cleaner power
NM0149: Coal to natural gas feedstock conversion for the large-scale manufacture of Pure gas at Sasol facilities, South Africa
NM0150: Ghana efficient lighting retrofit project
NM0151: CEG Gas Distribution Pipeline Replacement Project in Rio de Janeiro
NM0152: Celpa, Celtins and Cemat grid connection of isolated systems CDM Project
NM0153: Grid connected electricity generation plant of 220 MW capacity using Natural Gas (NG) as fuel and based on combined cycle technology of Reliance Energy Limited -Samalkot, Andhra Pradesh
NM0154: Vikram Cement (VC): Energy efficiency improvement by up-gradation of preheater in cement manufacturing
NM0155: Waste gas utilisation for steam and power generation at RIL Jamnagar refinery
Proposed new AR methodologies:
The following proposals on new Afforestation/Reforestation baseline and monitoring methodologies have been submitted to the CDM Executive:
ARNM0019: Reforestation around Pico Bonito National Park, Honduras
ARNM0020: Afforestation for Combating Desertification in Aohan County, Northern China
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CDM Registry - Opening of first Holding Accounts, 6 Mar 2006
BONN (UNFCCC) - The CDM Registry Administrator has the pleasure of announcing the opening of the first five temporary holding accounts in the CDM registry. These holding accounts will be able to receive CERs issued into the pending account for projects in which the account holders are registered participants.
To date a total of 3,616,773 certified emission reductions (CERs) have been issued into the pending account of the CDM registry. These CERs have accrued from 6 separate projects, more details can be found on the CDM website at http://cdm.unfccc.int/Issuance. Of this amount 72,337 have already been forwarded to the holding account for the share of proceeds to assist in meeting costs of adaptation.
The secretariat has advised the participants of these 6 projects that they may open holding accounts in the CDM registry, and instructed them on how they may do so. Following the opening of such accounts the secretariat will be able to accept requests for forwarding of CERs from the pending account to these accounts. Project Participants have also been instructed on how they may make such requests.
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Groundbreaking Kyoto Protocol Compliance system launched, 3 Mar 2006
BONN (UNFCCC) - The Kyoto Protocol's Compliance Committee has taken up its operations as the last of the bodies established under the 1997 landmark environmental treaty to do so, and elected the Chairs of its Enforcement and Facilitative Branches at a meeting in Bonn, Germany.
Ambassador Raúl Estrada Oyuela (Argentina), elected Chair of the Enforcement Branch, called the Kyoto Protocol compliance system "groundbreaking" and pointed out that the organ was "designed to ensure the environmental integrity of the agreement and to contribute to the credibility of the carbon market created by the Protocol."
Hironori Hamanaka of Japan was elected Chair of the committee's Facilitative Branch.
Under the Kyoto Protocol, 35 industrialized countries and the EEC are required to reduce greenhouse gas emissions below levels specified for each of them in the Protocol. Overall, this should amount to reductions of at least 5% below 1990 levels between 2008 and 2012. The 20-member Compliance Committee is tasked with dealing with cases of non-compliance with these and other obligations of the Protocol.
Whilst the Enforcement Branch of the Committee has the power to determine consequences for Parties that encounter problems with meeting their commitments, the Facilitative Branch of the Committee is designed to provide advice and assistance to Parties in order to promote compliance.
"A strong and effective compliance mechanism is key to the success of the implementation of the treaty," said Richard Kinley, acting head of the United Nations Climate Change Secretariat in Bonn.
Parties to the Protocol provide the UNFCCC secretariat in Bonn with annual reports of their greenhouse gas emissions, which then undergo a rigorous review process. The secretariat also monitors the international carbon emission trading market and receives annual accounting reports from parties on carbon allowances they have acquired or transferred to another Party or result from project-level emission reductions. Compliance is then determined by comparing emissions to allowances.
The Committee will consider individual cases as they arise and is empowered to make final decisions on such cases. It reports annually to the meeting of the Parties to the Protocol.
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CDM Executive Board report (EB23), 3 Mar 2006
BONN (UNFCCC) - The report of the twenty-third meeting of the CDM Executive Board (22 - 24 February 2006), including its annexes, is now available on the UNFCCC CDM web site.
Annexes to the report:
Accreditation
Annex 1: Revised terms of reference for the Accreditation Panel (version 2)
Methodologies for baselines and monitoring plans
Annex 2: Revised procedures for submission and consideration of a proposed new methodology (version 10)
Annex 3: Revised procedures for revision of approved methodologies (version 03)
Annex 4: Revised terms of reference for the Methodologies Panel (version 03)
Annex 5: Definition of thresholds in terms of power density
Annex 6: Revised approved baseline and monitoring methodology AM0025 ver 3 ("Avoided emissions from organic waste composting at landfill sites")
Annex 7: Revised approved baseline and monitoring methodology ACM0003 ver 2 ("Emissions reduction through partial substitution of fossil fuels with alternative fuels in cement manufacture")
Annex 8: Revised approved baseline and monitoring methodology ACM0004 ver 2 ("Consolidated baseline methodology for waste gas and/or heat and/or pressure for power generation")
Annex 9: Revised approved baseline and monitoring methodology ACM0002 ver 5 ("Consolidated baseline methodology for grid-connected electricity generation from renewable sources")
Annex 10: Revised approved baseline and monitoring methodology AM0016 ver 3 ("Greenhouse gas mitigation from improved Animal Waste Management Systems in confined animal feeding operations")
Annex 11: Revised approved baseline and monitoring methodology ACM0006 ver 2 ("Consolidated methodology for grid-connected electricity generation from biomass residues")
Annex 12: ACM0009 "Consolidated methodology for industrial fuel switching from coal or petroleum fuels to natural gas"
Annex 13: AM0028 "Catalytic N2O destruction in the tail gas of Nitric Acid Plants" (based on NM0111)
Issues relating to procedures for afforestation and reforestation project activities
Annex 14: Revised terms of reference for the Afforestation and reforestation working group (A/R WG) (version 02)
Annex 15(a): Revised CDM-AR-PDD and CDM-AR-NM and its (b) Guidelines
Annex 16(a): Small-scale afforestation and reforestation project design document (CDM-AR-SSC-PDD) and (b) Guidelines
Annex 17: Revised methodology assessment form (CDM-AR-NMas ver.2)
Annex 18: Definition of renewable biomass
Annex 19: Guidance of national and/or sectoral policies and circumstances particular to A/R project activities
Issues relating to small-scale CDM project activities
Annex 20: Revised terms of reference for the small-scale working group (SSC WG) (version 20)
Annex 21: Approved small-scale methodology "Landfill methane recovery" (AMS III.G.)
Annex 22: Approved small-scale methodology "avoidance of methane production from biomass decay through composting " (AMS III.F.)
Annex 23: Approved small-scale methodology "Methane recovery in wastewater treatment" (AMS III.H.)
Annex 24: Approved small-scale methodology "Avoidance of methane production in wastewater treatment through replacement of anaerobic lagoons by aerobic systems" (AMS III.I.)
Annex 25: Revision to category III. D. "Methane Recovery" (AMS III.D.)
Annex 26: Revision of the simplified Project Design Document for small-scale CDM project activities 'CDM-SSC-PDD'
Annex 27: Revised guidelines for completing the simplified Project Design Document 'CDM-SSC-PDD'
Annex 28: Revision to category III.E. Avoidance of methane production from biomass decay through controlled combustion
Annex 29: Revision to category I. A.
Annex 30: Revision to category I. B.
Annex 31: Revision to category I. C.
Annex 32: Revision to category I. D.
Annex 33: Additional guidelines for monitoring
Matters relating to the registration of CDM project activities
Annex 34: Revised terms of reference and procedures for a Registration and Issuance Team (EB-RIT) (version 2)
Annex 35: Revised registration fee
Other business
Annex 36: Provisional agenda for EB24
Annex 37: Tentative schedule of meeting for 2006
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Energy, enironment, competitiveness: Results of first meeting of new High Level group, 28 Feb 2006
BRUSSELS (EU Commission) - The High Level Group on Competitiveness, Energy and the Environment (HLG), which was setup by the Commission on the basis of its Communication on Industrial Policy of 5 October 2005, met today in Brussels for its kick-off meeting. The Group, which has a mandate for two years, reached agreement on the working methods and on the subsequent subjects to be prepared for the next meeting:
- The functioning of the energy markets in order to assess its short and long term impact on the competitiveness of industry, on the environment and on incentives for investment.
- The EU emissions trading scheme in order to give input to the review of the scheme, notably by investigating the impact on electricity prices, the issue of a level playing field for industry and methods of allocation.
- The competitiveness of European energy intensive industries, and in particular how access to energy inputs affect their competitiveness.
- Finally the energy efficiency in order to assess its impacts on competitiveness, analyse market barriers, and investigate financing mechanisms and means to increase awareness.
All these priorities are linked to the current policy agenda, in particular the sector inquiry on electricity and gas markets, the review of the EU emissions trading scheme, the Lisbon strategy, Hampton Court and the preparation of the Energy Efficiency Action Plan.
The meetings of the HLG, whose members are taking part on a personal basis, will be prepared by a group consisting of sherpas nominated by each member of the HLG. It will receive input from ad-hoc working groups which will cover the abovementioned four subjects.
In its meeting today the Group had an extensive exchange of views on the basis of an oral report by Commissioner Andris Piebalgs on the main issues likely to be addressed in the forthcoming Green Paper on Energy which the Commission will table in March as follow-up to the European Council Hampton Court. Furthermore, Commissioner Neelie Kroes presented the preliminary results of the sector inquiry on electricity and gas markets in Europe.
The next meeting of the HLG is foreseen for 2 June 2006.
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Stavros Dimas: Giving Kyoto a Future, 20 Feb 2006
BRUSSELS (European Commission) - In a statement to mark the first anniversary of the Kyoto Protocol, EU Environment Commissioner Stavros Dimas said: "Climate change poses a vital threat to the future stability and prosperity of our societies. The Kyoto Protocol's first year in force has seen important progress towards addressing this major challenge. In particular, the Montreal world climate change conference in December finalised and strengthened the rulebook for implementing Kyoto and, even more importantly, backed the EU's view that the time has come to start discussing future global action. The battle against climate change is winnable but with the Earth's temperature continuing to warm rapidly - NASA says 2005 was the hottest year on record - farther-reaching measures will be needed after the Kyoto targets expire in 2012.. Building on Kyoto, the international community must seize the opportunity of the talks starting this spring to create a global architecture that will deliver the deep reductions in greenhouse gas emissions necessary to keep climate change within tolerable limits. The post-2012 arrangements need the participation of all major emitters while taking full account of the development needs of less developed countries. The EU is showing the way forward in addressing climate change with practical measures such as our emissions trading scheme and contributions such as the Commission's February 2005 paper on the principles that should underpin the future climate regime, which proved to be so influential in Montreal and other fora. We are determined to continue exercising this leadership to secure a successful outcome to the forthcoming talks".
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Kyoto Anniversary: Speech of Environmental Commissionner Stavros Dimas, 15 Feb 2006
BRUSSELS (European Commission) - Good morning ladies and gentlemen.
Tomorrow is the first anniversary of the Kyoto Protocol's entry into force. I want to mark this occasion by looking briefly at the achievements of the past year and our climate change agenda for this year.
But first of all, let's be clear about why we need to fight climate change. Climate change is one of the gravest challenges we face. It poses a vital threat to the future stability and prosperity of our societies. If there is one global challenge, it is climate change.
The greenhouse gases caused by our activities are rapidly warming the Earth. NASA tells us that 2005 was the hottest year since records began. The five hottest years have all been since 1998.
Climate change is not an academic question anymore; its impact is already felt around the globe. Here in Europe we experienced devastating floods, droughts and forest fires in some areas last year. Hurricane Katrina has brought home to us all the terrible human suffering and the huge economic cost that climate-related disasters can cause. These are the kind of events that the scientists expect to happen increasingly frequently with global warming.
This warming is changing the face of our world. The polar ice caps and mountain glaciers are literally melting threatening not only the lives and habitats of penguins (projected background picture). The melting ice will raise sea levels further, threatening floods in low-lying and coastal areas around the world where hundreds of millions of people live. The ice cover in the Arctic reached the lowest level ever recorded last year.
Climate change will aggravate water scarcity in some regions, intensifying the hardship already faced by over one billion people who lack access to fresh water supplies. It will increase the numbers suffering from hunger. It will cause and aggravate the spread of tropical diseases like malaria. In the long term, as vital resources become scarcer, climate change could trigger famines, large movements of refugees and even regional conflicts.
These are the reasons why we have to win the battle against climate change. The Kyoto Protocol is an essential first step towards doing so, and its first year in force has brought important progress.
In the EU we have seen our ground-breaking greenhouse gas emissions trading scheme take off, with allowances equivalent to 260 million tons of CO2 traded in 2005 - worth around 5 billion euros. Other initiatives have included the Commission's renewed drive to improve Europe's energy efficiency and our action plan to promote greater use of biomass for energy. And we have begun a new phase of the highly successful European Climate Change Programme to develop further cost-effective measures to reduce our emissions in the future.
At the international level, the highlight of the past year was undoubtedly the world climate change conference in December in Montreal. There we succeeded in finalising and strengthening the rulebook for implementing Kyoto. Even more importantly, we succeeded in convincing our partners that the time has come to start discussing the further global action that needs to be taken once the Kyoto targets have expired in 2012.
These important talks will begin this spring (and may take several years). The international community must seize this opportunity. It is literally the last one before we run out of time to contain climate change. Last year, the EU already provided a global architecture that builds on Kyoto's structures with its paper on winning the battle against climate change.
We believe that such architecture could deliver the deep reductions in greenhouse gas emissions that will be necessary to keep climate change within tolerable limits. For this we need the full participation of all major emitting countries - such as the United States - the world's leading economy, but also the world's leading polluter. But we must also use a differentiated approach that takes full account of the development needs of less developed nations.
The EU will continue to lead the efforts to secure a successful outcome of the future talks on climate change.
Besides participating actively in the talks, this year we will be building further on the climate change partnerships we set up last year with China and India and expanding our bilateral cooperation on climate change with other key energy consuming countries. Within the next few months we will be presenting an initiative on creating a new mechanism to support renewable energy projects in developing countries.
This will be another busy year for strengthening our internal action too. Climate change concerns will be at the heart of the Commission's activities on energy security and energy efficiency. We will be reviewing the functioning of the emissions trading scheme and proposing any necessary changes. We will also propose legislation to include aircraft emissions in the scheme.
A major task will be to check and approve Member States' national allocation plans for emission allowances for the trading period covering 2008-2012. The Commission will also issue a Green Paper on adapting to climate change. The new phase of the European Climate Change Programme will start yielding results that are likely to lead to specific measures at some time in the future.
Ladies and gentlemen, let me conclude by emphasising that it is not only governments and industry that need to take measures to fight climate change. While we need new technologies to reduce our emissions, each of us also has the power to make a difference. Even small changes in our behaviour can help to prevent emissions without affecting our quality of life. In June, the Commission will launch an EU-wide awareness-raising campaign focusing on how all of us can contribute to fighting climate change through our daily actions.
The campaign will use billboards, newspaper ads, radio and TV spots, email chains and many other communication devices to encourage citizens to make small changes that add up to big savings. These range from turning down the home thermostat by 1 degree, which reduces heating emissions by 5-7%, to using energy-saving light bulbs and leaving the car at home whenever possible.
But it is also important that citizens express their environmental concerns to their representatives in local, regional and national government.
Winning the battle against climate change is a major political priority that Europe's citizens strongly support. We hope to show them that they can also contribute directly to its success.
Let me underline once again: Future generations will judge us on the basis of our efforts to combat climate change. The Kyoto protocol should not be seen as the end of our efforts. On the contrary, it is just the beginning
And now I'd be happy to take any questions you have.
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Commissioner Dimas at Dubai environmental meetings to advance global sustainability agenda, 6 Feb 2006
BRUSSELS (European Commission) - Environment Commissioner Stavros Dimas will represent the Commission in a set of environmental conferences under the auspices of the United Nations, to begin tomorrow in Dubai, United Arab Emirates. The meetings, gathering environment ministers and senior officials from more than 180 countries. seek to advance the global sustainability agenda, with a focus on chemicals management, energy, ecotourism and global environmental governance.
"The meetings in Dubai will bring together all the relevant players and are a real chance to make progress on key issues," said Commissioner Dimas. "We must find common language on future energy policies, so they respond to development needs and to the climate change threat. We also have to work to improve international environmental governance."
The centre-piece of the Dubai events is the 7-9 February Global Ministerial Environmental Forum, which also serves as a special session of the Governing Council of the United Nations Environment Programme (UNEP). Special sessions are held every second year. They give environment ministers from around the world, UN agencies and other international and regional organisations working on environmental issues the chance to debate key challenges and identify common responses.
Future energy policies are high on the agenda of the special session. Commissioner Dimas will advocate energy policies that improve access to energy services for the world's poor (one of the Millennium Development Goals) while maximising energy efficiency and fostering increased use of renewable energy to reduce greenhouse emissions and increase security of supply. A further focus will be clean and innovative technologies.
In this context, ministers from the 88 member governments of the Johannesburg Renewable Energy Coalition (JREC) will hold a separate meeting on 7 February to formalise their views on future action required to accelerate renewable energy policies and markets. JREC was launched with the support of the EU in 2002 and is chaired by the Commission and Morocco. Its members are committed to national and regional targets and timetables for developing markets and guiding investments in renewables.
Another important point on the agenda is how to ensure continuing improvement in international environmental governance. The meeting will discuss both practical programmes of action and potential long-term institutional developments designed to ensure co-ordinated and effective responses to global environmental challenges.
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Climate change: Commission welcomes conciliation agreement on fluorinated greenhouse gases, 6 Feb 2006
BRUSSELS (European Commission) - Environment Commissioner Stavros Dimas will represent the Commission in a set of environmental conferences under the auspices of the United Nations, to begin tomorrow in Dubai, United Arab Emirates. The meetings, gathering environment ministers and senior officials from more than 180 countries. seek to advance the global sustainability agenda, with a focus on chemicals management, energy, ecotourism and global environmental governance.
"The meetings in Dubai will bring together all the relevant players and are a real chance to make progress on key issues," said Commissioner Dimas. "We must find common language on future energy policies, so they respond to development needs and to the climate change threat. We also have to work to improve international environmental governance."
The centre-piece of the Dubai events is the 7-9 February Global Ministerial Environmental Forum, which also serves as a special session of the Governing Council of the United Nations Environment Programme (UNEP). Special sessions are held every second year. They give environment ministers from around the world, UN agencies and other international and regional organisations working on environmental issues the chance to debate key challenges and identify common responses.
Future energy policies are high on the agenda of the special session. Commissioner Dimas will advocate energy policies that improve access to energy services for the world's poor (one of the Millennium Development Goals) while maximising energy efficiency and fostering increased use of renewable energy to reduce greenhouse emissi-ons and increase security of supply. A further focus will be clean and innovative technologies.
In this context, ministers from the 88 member governments of the Johannesburg Renewable Energy Coalition (JREC) will hold a separate meeting on 7 February to formalise their views on future action required to accelerate renewable energy policies and markets. JREC was launched with the support of the EU in 2002 and is chaired by the Commission and Morocco. Its members are committed to national and regional targets and timetables for developing markets and guiding investments in renewables.
Another important point on the agenda is how to ensure continuing improvement in in-ternational environmental governance. The meeting will discuss both practical programmes of action and potential long-term institutional developments designed to ensure coordinated and effective responses to global environmental challenges.
The Commission welcomes the agreement reached by the European Parliament and the Council last night in Conciliation to reduce emissions of fluorinated greenhouse gases. Fluorinated gases are extremely powerful and long-lived greenhouse gases used in refrigeration, air conditioning, fire-fighting, electrical transmission systems and various industry processes. Reducing their emissions is a requirement under the Kyoto Protocol and will help the EU and its Member States meet their emission targets under the Protocol. Based on a proposal made by the Commission in August 2003, the legislation agreed today includes a Regulation tackling emissions from stationary applications using these gases as well as banning some products and equipment containing them, and a Directive providing for the phase out of the fluorinated gases currently used in vehicle air conditioning systems.
"The legislation agreed today will make a significant contribution to the EU's efforts to reduce emissions of greenhouse gases and to meet its Kyoto commitments" said Environment Commissioner Stavros Dimas. "It is an important first step because most F-gases have a global warming effect thousands of times greater than carbon dioxide. By agreeing on this legislation, the EU has once again demonstrated its commitment to the fight against climate change."
The fluorinated greenhouse gases covered are hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6). These gases currently account for 2% of total EU greenhouse gas emissions. However, their warming impact on the atmosphere their 'global warming potential' - is high and many of them have long atmospheric lifetimes. For example, sulphur hexafluoride has a global warming potential 23,900 times that of carbon dioxide (CO2), which is the most common greenhouse gas. If no measures were taken, the Commission estimates that emissions of fluorinated gases would be 50% above 1995 levels in 2010. With the measures agreed today, they will be reduced by more than 20% from 1995 levels by 2012 and by even more subsequently.
The Regulation will reduce emissions by focusing on the containment of these gases, notably by setting leakage inspection standards for refrigeration, air conditioning and fire fighting equipment as well as provisions for the recovery of the gases from such equipment when it reaches the end of its life. The Regulation will strengthen monitoring of the emissions of the gases, introduce labelling of certain products and equipment so that key information on these gases is made available, and set up EU-wide minimum standards for training and certification for personnel concerned.
Furthermore, where containment is not feasible or the use of certain fluorinated gases is inappropriate, marketing and use will be banned. Examples include their use in magnesium die-casting and the marketing of vehicle tyres, non-refillable containers, windows, footwear, one-component foams, self-chilling drinks cans, novelty aerosols, new fire protection systems and fire extinguishers containing these gases.
The Directive will phase out HFC 134a, the refrigerant currently used in car air conditioning system, from 1 January 2011 onward for new vehicle models and from 1 January 2017 for all new vehicles. In addition, vehicle air conditioners should not leak more than 40 grams of HFC-134a per year. If the vehicle has two evaporators, as can be the case in some minivans for instance, the maximum leakage rate should not be higher that 60 grams per year.
Under both pieces of legislation, Member States are invited to promote the use of more environmentally friendly technologies and alternatives.
Following today's conciliation agreement, the final adoption of these legislative acts by Parliament and Council is expected by mid-2006. Member States will then have 18 months to transpose the Directive, while the Regulation will enter into force unchanged 20 days after its publication in the Official Journal and will apply 12 months from the date of entry into force.
The legislation is only a first step. Once in force there will need to be a period of monitoring and evaluation, after which the Commission will consider the need for additional measures on the basis of a thorough review.
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MEPs demand speedy legislation on renewable energy for heating and cooling, 31 Jan 2006
Strassburg (European Parliament) - The Industry Committee called on the European Commission on Thursday to propose legislation by July to at least double by 2020 the share of renewable energies used in Europe for heating and cooling. Benefits would include more secure energy supplies, reduced demand for conventional energy, a cleaner environment and the creation of jobs in new industries.
Around 50% of primary energy consumption goes on heating. Demand for energy for cooling is also growing. Legislation is urgently needed if the share of renewable energy - mainly geother-mal, solar thermal and biomass - in these sectors is to be doubled from its present level of 10% by 2020 and also to reach the target of 12% of renewable energies in total energy consumption by 2010 as laid down in the 1997 EU white paper on renewable energy.
In their report, MEPs make detailed recommendations to the Commission on the content of such legislation. It would provide a framework for national instruments and would fill a legislative gap, as EU strategies already exist to promote electricity from renewable sources and to promote biofuels or other renewable fuels for transport.
The legislation would need to provide long-term investment and planning security, which is cru-cial for energy investors. Financial incentives would be provided by the Member States, although national support schemes should in the end be phased out. For example, Member States might use tax breaks or direct investment aid or make renewable energy plants mandatory for new buildings. The EU, for its part, could encourage the use of the structural and cohesion funds to support research into the use of renewable energy for heating and cooling.
These proposals were made under a little-used procedure, which enables Parliament to request the Commission to submit draft legislation (Rule 39 of the EP Rules of Procedure - see link be-low). The Industry Committee's draft resolution still needs to be approved by a majority of the Members of Parliament (i.e. at least 367 out of 732). The committee's text, drafted by Mechthild Rothe (PES, DE), was adopted with 39 votes in favour and only 3 abstentions and so stands eve-ry chance of being adopted in plenary.
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Opening of call for input on a new operational entity, 31 Jan 2006
BONN (UNFCCC) - An opportunity to submit comments and information regarding the applicant entity is provided for: "ECA CERT, Certificacion,S.A. (ECA CERT)"
Background:
In accordance with the "Procedure for accrediting operational entities by the Executive Board of the CDM", the UNFCCC CDM web site provides for each applicant entity, over a period of 15 days, the opportunity for Parties, NGOs accredited with UNFCCC or stakeholders to provide comments or information on the applicant entity. The working day prior to the opening of the 15 days period, the secretariat informs the public using the UNFCCC CDM News facility.
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Climate Change: Montréal and beyond - Speech of Stavros Dimas at the European Parliament, 26 Jan 2006
BRUSSELS (European Commission) - Thank you for the opportunity to discuss with you the outcome of the Montreal Climate Change Conference that was held in December as the 11th Conference of the Parties to the UN Framework Convention on Climate Change and the 1st UN Climate Conference after the Kyoto Protocol entered into force.
I was very pleased with the presence of 10 Members of the European Parliament at COP-11. It underlines the importance that both of our institutions attach to addressing the challenge of climate change and the role of the multilateral process in doing so. Our frequent contacts and cooperation in Montreal proved fruitful - it is important that we continue this at future meetings.
The outcome of Montreal Conference is a significant step forward for the multilateral climate negotiations. The Kyoto Protocol is now fully functional and the agreement on the "Montreal Action Plan" opens a gateway for discussing the future international cooperation on climate change. This will provide more certainty for the European carbon market and for the private sector.
Indeed, the list of political achievements from Montreal is impressive:
Firstly, we have agreed to launch two tracks of official dialogue on the future scheme to tackle climate change.
- The Convention Track including all Parties: A thorough forward-looking dialogue under the Convention will be conducted in up to four Workshops to be held over the next two years. The results of this dialogue will be reported back to the Conference of Parties in 2007. This Convention track includes also United States and Australia, that have not ratified Kyoto and of course all the major developing countries.
- The Kyoto Track: This "track" will discuss further emission reductions for developed countries under the Kyoto Protocol for the period after 2012. An UN ad-hoc working group under the Kyoto Protocol was set up. It will complete its work as early as possible and in time to ensure that there is no gap between the first and the second Kyoto commitment period.
Secondly, Montreal took all the necessary decision to make Kyoto fully operation. This covers:
- The rulebook for the Kyoto Protocol, the so-called Marrakech Accords, was adopted in full.
- The Compliance Decision makes the Kyoto Protocol binding for all Kyoto Parties, and sets up the Compliance Committee with its facilitative and enforcement branch.
- The five-year adaptation work programme contains a full set of activities, including work to further enhance our knowledge on the impacts of and vulnerabilities to climate change. It also contains concrete measures to plan for adaptation and take adaptation measures.
- The adaptation fund will finance adaptation activities. It will be sourced through a levy on the Clean Development Mechanism, most likely as of 2008.
Thirdly, Montreal went further and made the Kyoto Protocol a stronger and more efficient instrument.
- The Clean Development Mechanism was strengthened. The CDM Executive Board's executive and supervisory role was clarified and re-inforced. The Secretariat will hire more staff in order to improve its services to the EB and its panels. Parties also pledged US$ 8,188,050 to the operation of the CDM, this includes US$ 5 million from the EU, and US$ 890,000 from the Community.
- The institutions for the operation of the Joint Implementation (JI) were set up. Preparatory work done for the CDM can also be used for the approval of JI projects. This means that JI projects that have already been prepared can be fast-tracked for approval. The EU also pledged over US$ 700,000 (incl. US$ 250,000 from the Commission) to the JI Supervisory Committee.
Lastly, the European Union has also used COP-11 to demonstrate the significant progress it has made in implementing the Kyoto Protocol. The many positive reactions I received strengthen my belief that the EU's response to the climate challenge can be cost-effective and even give European companies a competitive edge. The strong interest in our trading scheme made it clear that we are setting an example for the world to follow.
The EU has asserted international leadership in the fight against climate change. It maintained its support for the Kyoto Protocol in times when the latter's entry into force was cast under considerable doubt. However, we have to stay aware that, domestically, more needs to be done: most Member States need to implement additional measures to reach the Kyoto target. Also further common measures at the EU level will be needed. The ongoing 2nd phase of the European Climate Change Programme will help to identify the best of these.
Let me also address the internal EU debate on climate change. I believe the agreement to open an international dialogue in Montreal is also an important stimulus for the EU. The EU strategy to complement the UN process with bilateral engagement and to focus on confidence building and listening to other Parties has paid off. The Montreal Conference validates this approach. The EU should now work with all parties, in particular major emitters such as the US and emerging economies, to engage constructively in a debate on broadening participation in the future international climate change regime.
I believe Montreal marks a new stage in international climate change co-operation. We have left the pioneering years behind us. We now have an international system, with all the necessary mechanisms. Our focus therefore turns to consolidating this system and making sure that it functions.
But equally, we cannot rest on our laurels. Climate change requires urgent action and concerns us all. Deep emission cuts will be necessary if we are to stabilise the concentration of greenhouse gases in our atmosphere.
This year, the 2nd phase of the European Climate Change Programme will discuss new initiatives to strengthen our climate policy. This ECCP II will include a comprehensive review of the first phase ECCP policies including EU emission trading, action on carbon sequestration aviation and other forms of transport - I am looking forward to the recommendations and will put forward new initiatives to strengthen our climate policy based on the results of this stakeholder based process. I know that I am able to count on Parliament's support for this work
The "Montreal Action Plan" agreed at the UN climate Conference delivered a big step forward in relation to the discussions on the future international climate change regime.
Under the framework of the UN Convention on Climate Change, the Montreal Conference agreed on a thorough forward-looking dialogue on long-term actions to tackle climate change. All parties to the UN Convention, including the US, will take part in this dialogue.
While this dialogue yet falls short of formal negotiations, it can provide valuable input on future action and the views of all relevant parties which can then serve as a basis for negotiations on the future international climate change regime. The international debate on future targets and contributions has to evolve over the coming months.
The EU's first priority however, must remain to build broad international support for further action. Russia has ratified the Kyoto Protocol that allowed its entry into force. The G8 has concluded its Plan of Action. The Commission has launched new cooperation initiatives on climate change with Russia, Ukraine, India and China. These initiatives have built confidence and trust and this has been paying off in Montreal.
I welcome also the Asia Pacific Partnership on Clean Development and Climate which held its inaugural meeting in Sydney on 11 and 12 January 2006. The Partnership will complement other technology initiatives seeking to help address the problem of climate change. Over the last year alone we have seen the Gleneagles Plan of Action, the EU-China Partnership on Climate Change and the EU-India Initiative on Clean Development and Climate Change.
The Commission is determined to help ensure that the EU maintains its leadership position in these new discussions on the future climate change regime and I count on your support for this. Each individual is important for this. Therefore we will for instance invest 4.7 million Euro in a mass-media awareness raising campaign in the EU, highlighting the role that each citizen can play in fighting climate change.
The EU is also the major contributor to the 2001 Bonn Political Declaration, which pledges 410 million USD per year in climate change funding for developing countries, starting this year. The EU is also the main contributor to the Least Developed Countries Fund, which will provide funding for the implementation of specific adaptation activities. We are only at the start of the debate on post-2012 climate change policies. The EU's leadership on climate change will be crucial in ensuring that this debate continues and comes to a fruitful end.
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Questions & Answers on national allocation plans for 2008-2012, 9 Jan 2006
BRUSSELS (European Commission) - What are national allocation plans and what is their purpose?
National allocation plans (NAPs) are plans that set out each Member State's allocation of CO2 emission allowances under the EU emissions trading scheme (ETS). NAPs fix both the total of emission allocations available in each member state and the allocation made to each installation covered by the scheme. By placing a cap on the total number of emission allowances, NAPs create the scarcity needed for a functioning market in allowances to develop. This in turn enables companies to limit or reduce their emissions at least cost.
When must the next NAPs be ready?
Member States are required to draw up their NAP well in advance of each ETS trading period and to have it approved by the European Commission. NAPs for the second ETS trading period, running from 2008 to 2012, must be submitted to the Commission by 30 June 2006. This deadline needs to be respected so that the Commission can take decisions on all 25 NAPs and member states can take their final allocation decisions by the end of 2006, well before the second trading period starts.
The second trading period under the ETS coincides with the five-year period - known as the 'first commitment period' - in which the EU and member states must meet their targets for limiting or reducing emissions of greenhouse gases under the Kyoto Protocol on climate change. For many Member States the NAPs for 2008-2012 are likely to play an important part in ensuring their targets are achieved.
How will the Commission assess the NAPs?
The Commission will check NAPs for their conformity with a set of 12 criteria laid down in the directive that establishes the ETS. For the first ETS trading period (2005-2007), only 11 of the criteria were relevant. The application of the criteria and lessons learnt from the first trading period are further explained in two guidance communications from the Commission. The first of these was issued in January 2004 and the second, focusing on NAPs for the second trading period, in late December 2005.
Under the first of the 12 criteria, it will be necessary to assess whether a Member State's NAP, together with other policies and measures, will guarantee the achievement of its Kyoto target. Member States relying on government purchases of emission credits obtained through the Protocol's mechanisms to promote emission-savings projects in third countries - known as Joint Implementation (JI) and the Clean Development Mechanism (CDM) - will need to substantiate their intentions more thoroughly than for the first trading period and demonstrate progress in making these purchases.
Similarly, Member States relying on additional policies and measures will need to substantiate the effects better and demonstrate progress in implementing or adopting them.
There are also criteria that seek to ensure non-discrimination between companies and between the different sectors as well as compliance with the EU's competition and state aid rules. Other criteria relate to provisions in the plan for new entrants, the accommodation of early reduction efforts and clean technology.
The final criterion, which was not in place for the 2005-2007 trading period, requires NAPs to specify the maximum amount of JI and CDM credits that may be used for compliance purposes by installations under the ETS.
What are the Commission's powers concerning NAPs?
The Commission must take a decision on each NAP within three months of the NAP having been notified to it.
If the Commission does not reject any aspect of a NAP, the Member State can take a final decision on the allocation to individual installations.
If the Commission finds that a NAP is not in line with the agreed criteria or with the EU Treaty it can reject it partially or in full. A rejection of a national allocation plan means that the Member State may not proceed to implement the plan as it stands, i.e. may not allocate the number of allowances proposed. The Commission must give its reasons for rejecting a NAP, and these reasons give guidance on how the Member State can make the plan compatible with the allocation criteria.
If Member States whose plans are partially rejected implement the proposed changes they do not have to submit their plans to the Commission a second time but can proceed to take their final allocation decision.
Can a Member State make changes to the plan after Commission approval?
Once the Commission has approved a plan, or the amendments requested have been undertaken, the allocation process is completed with a final allocation decision at national level and the allocation of allowances in the Member State's electronic registry. For the second trading period the deadline for the final allocation decision is 31 December 2006.
Until the final allocation decision is taken, the Member State can make certain changes, for instance to the number of allowances for individual installations if improved data have become available, eg on historic emissions. Each NAP decision by the Commission specifies which types of amendments need to be accepted by the Commission before they can be implemented. The Commission will not accept NAP amendments notified after 31 December 2006, other than those required by the Commission's decision on a given NAP.
Once the final allocation decision has been taken at national level and the final NAP is published, no more changes to the number of allowances in total or per installation can be made. The final allocation decision concludes the allocation process and formally opens the market for allowances in the respective Member State.
Do Member States have a say in each other's NAPs?
While the Commission has sole responsibility for assessing NAPs, the ETS directive provides that the Climate Change Committee, consisting of Member State representatives, considers each plan. This Committee provides a forum to debate each NAP. The Commission, as the Committee's chair, takes the Committee's conclusions into account in its assessments.
Can a member state issue as many emission allowances as it wants?
No. The directive does not explicitly prescribe a given number of emission allowances but the quantity member states may issue is governed by various criteria. If a member state were over-generous in issuing allowances, its NAP would fail to comply with these criteria.
The Commission's December 2005 guidance sets out a methodology for calculating a benchmark for the caps by Member State for the 2008-2012 trading period. It is based on analysis of the combined effect of annual economic growth and carbon intensity (i.e. the quantity of greenhouse gases needed to produce one unit of output) over time. According to this methodology, caps should not increase in any Member State from the first to the second trading period. Member States that are well on track to meeting their Kyoto targets may maintain their first phase cap. Member States which are not sufficiently on track must reduce the cap from the first to the second trading period. Overall this methodology would lower the annual EU-wide ETS cap in the second phase by some 6% compared with the first phase cap. This reduction would ensure that the EU and all Member States achieve their agreed Kyoto targets.
Is there a limit on the use of JI and CDM credits by companies in the second trading period?
An amendment to the ETS directive, known as the Linking Directive, allows companies in the second trading period to use credits from JI and the CDM, up to a certain proportion of their allocation of emission allowances, to cover their emissions. The degree of use must be supplemental to reductions achieved through domestic policy action, and needs to be fixed by each Member State in its NAP by specifying the maximum amount of such credits. Member States are free to choose whether to apply the limit individually in respect of each installation, or collectively to all installations. For greater flexibility, the Commission is recommending that Member States apply the limit for the entire trading period and collectively to all installations.
The limit on the use of credits does not imply that a company cannot generate and sell more of them. In fact, even if the limit should be reached in a Member State, the credits could be used by other companies in other Member States. And even if the limit were reached in all Member States, a company could sell credits to governments (both in Europe and beyond) or to other companies (both in Europe and beyond), or could keep them for the next ETS trading period.
What lessons have been learned from the first allocation exercise that can be applied to the second one?
The first allocation process, for the 2005-2007 period, yielded many important lessons which have been reflected in the Commission's December 2005 guidance for the second trading period.
Chief among these is that the process is very time-consuming. Timely notification of NAPs to the Commission as well as timely final allocation decisions are therefore important for giving companies certainty well before a trading period starts.
Another important lesson is that the NAPs for the first trading period were too complex and not sufficiently transparent. Complexity makes it hard for companies and other market actors to understand a NAP and thereby creates uncertainty. Also, a lack of transparency makes it very difficult for stakeholders to understand and form a view on plans.
The Commission's guidance thus emphasises the need to make the second period NAPs simpler and more transparent. To ensure greater transparency, the Commission has drawn up a number of standardised tables to summarise key information contained in NAPs. To move to simpler NAPs the Commission encourages Member States to review critically the administrative rules created in the first NAP round.
Which installations are covered by the ETS?
Annex I of the directive defines the installations covered by the ETS. Included are those installations performing specified activities (energy, ferrous metals, mineral industry, as well as pulp, paper and board) above certain capacity thresholds, which generally cause high CO2 emissions. Combustion processes involving crackers, carbon black, flaring, furnaces and integrated steelworks, which are typically carried out in larger installations causing considerable emissions, also fall under Annex I. They therefore need to be included by all Member States in the second trading period in order to ensure a uniform coverage of combustion installations by the ETS.
What can be done with regard to installations emitting small amounts of carbon dioxide?
The Commission is aware that some installations emitting relatively low amounts of CO2 per year are covered by the ETS, and that concerns have been raised regarding the cost-effectiveness of including these 'small installations' in the scheme.
For the purposes of drawing up the second NAPs, the legislative framework for small installations is unchanged. However, the Commission invites Member States to explore the flexibility already offered by the current framework. It is also considering looking at measures to make the situation easier for small installations in its forthcoming review of the ETS. In this context it will consider proposing an amendment to the directive to enable the removal of some small installations in the course of the second trading period.
In addition, the Commission is paying particular attention to realising the potential for cost savings for the smallest installations in its ongoing review of the ETS monitoring and reporting guidelines. The Commission aims to have these in force by the start of the second trading period on 1 January 2008.
What are the next steps in the review of the EU ETS?
The Commission closely monitors the functioning of the ETS. By 30 June 2006 it is required to present a review of the scheme to the Council and the European Parliament which will look at a range of issues, including whether further sectors and greenhouse gases should be included. The results of a survey of stakeholders launched in June 2005 will feed into the review and can also inform NAPs for the second trading period.
The Commission's report may be accompanied by proposals for amending the scheme, but the resulting changes would most likely not take effect until the third trading period beginning in 2013. There are three main reasons for this. First, any amendments have to be adopted by the Parliament and Council in co-decision, a procedure which can take two to three years. Second, operators need regulatory stability, which means they should be given time to adapt before the amendments enter into force. Third, any amendments cannot be reflected in the NAPs for the second trading period since these have to be submitted by 30 June 2006 as well.
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Emissions trading: Commission sets out guidance on national allocations for 2008-2012, 9 Jan 2006
BRUSSELS (European Commission) - The European Commission has published a Communication setting out guidance to help member states when they draw up national plans for allocating carbon dioxide emission allowances for 2008-2012 under the EU Emissions Trading Scheme (EU ETS). This second trading period is significant because it coincides with the five-year period in which the EU and member states must meet their targets for limiting or reducing emissions of greenhouse gases under the Kyoto Protocol on climate change. Member states need to ensure that their emissions strategies, in which allocations under the ETS are an important element, achieve their targets.
Standardised information
Experience with the first round of National Allocation Plans (NAPs), covering the 2005-2007 trading period, has shown that such plans need to be more transparent and easier to implement. Therefore, the Commission's new guidance document proposes a set of standardised tables for presenting important information, such as projected emissions, assumptions regarding fuel prices and the reductions expected from other policies and measures.
Guidance on setting caps
Given that the 2008-2012 trading period under the European Trading Scheme coincides with the 'commitment period' for meeting emission targets under the Kyoto Protocol, the guidance document signals the Commission's intention to look very closely at the overall policy mix - including use of the ETS - which member states propose in order to achieve their targets. It also offers a consistent methodology for Member States to set caps for their emissions.
Scope and definitions
Finally, the Commission addresses the types of combustion installations that should be covered including the situation of 'small' installations, i.e. those emitting relatively low amounts of CO2 per year.
In addition, an ongoing revision of the rules for monitoring and reporting of emissions will ease the administrative burden for small installations. The Commission envisages further help in its forthcoming review of the ETS.
Background
National allocation plans
Under the Emissions Trading Directive which established the ETS, governments are required to draw up national allocation plans (NAPs) for each trading period. NAPs fix the total amount of CO2 that can be emitted by all the installations in their country covered by the scheme as well as the number of emission allowances allocated to each individual installation.
An installation that emits more CO2 than it has allowances for would need to buy additional allowances in the market, while one that emits less has the possibility to sell its surplus allowances.
The ETS, the world's first and biggest international emissions trading scheme, began operating on 1 January 2005. Member states are required to notify their NAPs for 2008-2012 to the Commission by 30 June 2006. The Commission needs to approve the plans and has the power to require changes if it finds a plan incompatible with the agreed criteria. The new Communication responds to a Council request from December 2005 asking the Commission to do its utmost to provide early guidance on preparation of the NAPs
The new Communication builds on guidance provided by the Commission for the first round of NAPs. This was published as COM (2003) 830 final.
http://europa.eu.int/eur-lex/en/com/cnc/2003/com2003_0830en01.pdf
30 June 2006 is the deadline not only for member states to notify their NAPs for 2008-2012 to the Commission but also for the Commission to report to the Council and Parliament on experience to date with the ETS as a whole and to make proposals as appropriate. Preparations for the review are ongoing.
The guidance document can be found at:
http://www.europa.eu.int/comm/environment/climat/pdf/nap_2_guidance_en.pdf
Further information on Emissions Trading and climate change policy is available at:
http://www.europa.eu.int/comm/environment/climat/emission.htm
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Opening of call for inputs on double-counting / Other methodological issues, 6 Jan 2006
BONN (UNFCCC) - (1) Opening of public call for inputs on double-counting
The Board, at its twenty-second meeting, agreed to open a public call for inputs on possible situations where certified emission reductions (CERs) might be claimed from the same project (double-counting) at different stages of the product chain. The call for inputs is for possible options to avoid the double-counting in such situations. The Board further agreed that a technical analysis of the issue of double-counting, based on public inputs, is required in particular with regard to:
- outlining possible situations where double-counting is likely to occur,
- analysing possible options for avoiding the double-counting of emission reductions.
Public comments should be send to the UNFCCC secretariat before 17 February 2006.
(2) AR methodologies
A reply on technical queries from the Afforestation and Reforestation Working Group (AR WG) was provided on case
ARNM0018 : Assisted Natural Regeneration of Degraded Lands in Albania
(3) Methodologies
Three (3) requests for clarification of an approved methodology have been received:
- Applicability for biomass cultivated from a farm owned by project participants
- Parameters to be fixed ex-ante for the entire crediting period
- Inclusion of the Top Surplus Pressure (TRT) technology
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CDM: Request for issuance under review, 5 Jan 2006
BONN (UNFCCC) - The request for issuance for the CDM project activity "Granja Becker GHG Mitigation Project" (Ref no. 0108), is under consideration for review because three requests for review have been received from members of the Board. The consideration of a review will be included in the proposed agenda of the 23rd meeting of the Executive Board which is to be held in Bonn, Germany, 22 - 24 February 2006.
The request for issuance is listed on the UNFCCC CDM web site in the section "Request for review".
Please note that the Executive Board, upon having considered the requests for review, will either decide to undertake a review of the request for issuance or to proceed with the issuance of CERs.
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Revised AR Forms - Scope of ACM0008 - Resubmissions, 30 Dec 2005
BONN (UNFCCC) - (1) In accordance with the revised guidelines for completing CDM-AR-PDD and CDM-AR-NM, agreed by the CDM Executive Board at its last meeting, the respective forms CDM-AR-PDD and CDM-AR-NM, have been modified and posted on the UNFCCC CDM web site.
(2) The scope of the approved consolidated methodology ACM0008 "Consolidated methodology for coal bed methane and coal mine methane capture and use for power (electrical or motive) and heat and/or destruction by flaring" has been extended to scope 8. The approved methodology is therefore now linked to scope 8 and 10. For more information please see the 'methodologies section' of the UNFCCC CDM web site.
(3) The following proposed new baseline and monitoring methodologies have been re-submitted for consideration of the Meth Panel at its next meeting and are available in the UNFCCC CDM web site:
NM0105-rev: Bus Rapid Transit System for Bogotá, Colombia: TransMilenio Phase II to IV
NM0117-rev: Nanjing Chemical Industries Co Ltd (NCIC) Nitrous Oxide Abatement Project
NM0123-rev: Substitution of raw material in cement processing
NM0124-rev: PFC emission reductions at ALUAR Aluminio Argentino
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Questions and Answers on the Thematic Strategy on the Sustainable Use of Natural Resources, 21 Dec 2005
BRUSSELS (European Commission) - 1) What is the issue?
Economic activities are a key driver of resource use. As economies grow, so does the use of natural resources. For instance, we use land to build housing and infrastructure and to dump our rubbish, soil for agricultural activities, forests to provide us with wood and fossil fuels to produce energy. These and other economic activities cause environmental impacts which have begun to threaten the resource base on which our livelihoods, and our future economic growth, depend.
The challenge for policymakers is to ensure more sustainable use of resources in an economy that is globalised and continues to grow. These are mutually reinforcing goals. Efficient use of resources contributes to growth, while inefficient use undermines the resource base on which the economy depends. Resource use must be managed in a way that it does not affect the capacity of ecosystems to produce the goods and services we need.
EU environmental policies on climate change or conservation of biodiversity, already tackle many individual aspects of resource use, but this progress is being considerably slowed down by ever-growing production and consumption volumes. We are causing less environmental stress per unit produced, but we produce so much more so that the overall environmental impact is increasing.
2) What is the objective of the Resource Strategy?
The Thematic Strategy on Sustainable Use of Natural Resources is the first initiative at EU level tackling environmental aspects of resource use in an overarching fashion.
Its objective is to reduce the overall environmental impacts associated with resource use and to do so in a growing economy. In other words: it seeks to de-couple environmental impacts from economic growth. In this context, de-coupling means that environmental impacts must first increase more slowly and then be reduced while the economy continues to grow.
Key to achieving a stable decoupling trend are three factors, which can be termed "More value - less impact - better alternatives."
More value - creating more value while using fewer resources (increasing 'resource productivity');
Less impact - reducing the overall environmental impact per unit of resources used (increasing 'eco-efficiency');
Better alternatives - if cleaner use cannot be achieved, substituting currently used resources with better alternatives.
3) Which approach and actions does the strategy propose?
The strategy uses life-cycle thinking. This means examining environmental impacts at each stage in the life cycle of a resource - during extraction/harvesting, transport, processing/refining, the use phase of the products made from it, and when a product or resource becomes waste at the end of its useful life. By looking at the whole life cycle, the advantages and disadvantages of focusing on specific stages of the life cycle can be identified and compared, so that the best overall solution is found. With life-cycle thinking, it is possible to avoid the shifting of impacts from one stage in the life cycle to another, and to other countries.
The strategy takes a time horizon of 25 years and focuses on:
- improving our understanding of resource use, its environmental impacts and its links to economic growth, both in the EU and globally;
- developing tools to monitor and report progress;
- initiating actions at different levels of governance that will help us achieve the overall goal and which build on existing policies and legislation.
It therefore identifies a number of specific measures for immediate implementation, based on which the strategy will be developed further. These measures include:
Establishing a European Data Centre on natural resources. This will bring together all the available information in order to monitor and analyse it and to provide policy-relevant information to decision-makers.The Statistical Office of the EU (Eurostat) will coordinate the work of other information providers (in particular the Joint Research Centre and the European Environment Agency) to set up the Data Centre, which should be operational within 12 months of the strategy's adoption.
Developing indicators to measure progress towards achieving the strategy's goals, building on the work already undertaken. Needed are indicators to measure progress in resource productivity; resource-specific indicators to evaluate whether and to what extent environmental impacts are de-coupled from the use of a particular resource; and eco-efficiency indicators to measure resource productivity and environmental impact at the same time (measuring de-coupling). The Commission will take the lead in developing these indicators by 2008.
Developing national measures and programmes by Member States to achieve a stable de-coupling trend for the next 25 years, reducing the environmental impacts of those resource uses that produce the most significant impacts in each country. A High-Level Forum composed of senior national officials, representatives of the Commission and, as appropriate, other stakeholders will support and guide the development of the national measures and programmes. The High-Level Forum will be set up soon after the strategy's adoption.
Considering the environmental impacts of resource use in economic sector initiatives that the Commission intends to develop in the context of the EU Strategy for Growth and Jobs. The application of life-cycle thinking within these initiatives would mean that they should contain a comprehensive overview of the sector's most significant negative environmental impacts and concrete actions to reduce them, while ensuring the sector's competitiveness. Pursuing greater eco-efficiency can act as a driver for innovation, improved productivity and hence competitiveness and growth.
Establishing an International Panel on the sustainable use of natural resources. This panel will be set up in cooperation with the United Nations Environment Programme (UNEP). It will provide independent scientific advice about the key environmental impacts of resource use. Important elements of the work will include contributing to strategies to reduce environmental impacts in rapidly expanding economies, in particular through changing unsustainable patterns of consumption and production, and to building knowledge and capacity in developing countries.
In addition, the Commission will pursue existing policies that reduce the environmental impacts of resource use, such as policies on climate change and biodiversity and the continued integration of environmental concerns into other policy areas.
4) Why does the Resource Strategy not work with resource-specific targets?
There are several reasons why resource-specific targets would not be appropriate at this stage:
- It is premature to set targets as there is not yet a generally accepted indicator to measure the environmental impacts of resource use. The strategy aims to develop such an indicator by 2008.
- The situation in the Member States is too diverse to set uniform targets. The resource use situation differs from country to country, and there are also significant differences in impacts of resource use. For example, for the time being energy-efficiency in the EU-15 Member States is much higher than in the EU-10.
- Since resource use is influenced by many policy areas (e.g. economics, energy, transport, agriculture, fisheries, etc.), targets cannot be dictated by environmental policies alone. Environmental concerns must be taken into account in all relevant policy areas, and appropriate targets could be set in the context of these policies.
The application of the three specific targets to be developed (resource productivity, resource-specific impacts and eco-efficiency) will be instrumental in reducing the negative environmental impacts of resource use. They can then serve as a basis to set specific objectives.
5) What should be the content and focus of the national measures and programmes?
The aim of the national measures and programmes is to support the achievement of the overarching objective of the strategy, namely to reduce the environmental impacts associated with resource use and to do so in a growing economy. As the resource use situation in each Member State is different (e.g. some have large forest resources, others none at all), each Member State should focus on the resource use that has the most significant environmental impacts in its area and tackle those specifically.
An annex to the strategy suggests a number of measures that Member States could take. They include mapping current resource use and projecting it for the future; introducing incentives to encourage the development of 'clean' products based on the life-cycle approach and to change production and consumption patterns; developing measures related to the import of resources to reduce the associated environmental impacts in the exporting countries; monitoring progress based on the indicators to be developed by the Commission; and developing a timetable for progress towards de-coupling in its economy.
6) How can industry contribute to better resource use?
Companies can substitute impact-intensive raw materials with low-impact resources. They can change production processes and/or invest in environmental technologies to make sure that the sector-related environmental impacts are reduced over time.
The strategy does not seek to restrict the use of materials or energy as such. Instead, it challenges EU business to further develop its leadership in the eco-efficient use of natural resources. EU industry is already a major player in the world market for eco-innovative products and services, which was worth an estimated ¤ 500 billion in 2003 (comparable to the aerospace industry or the pharmaceutical industry) and which has been growing at around 5% annually.
The strategy identifies the scope for the application of life-cycle thinking to resource use in the economic and industrial sectoral initiatives that the Commission intends to develop in the context of the EU Strategy for Growth and Jobs and new policies to strengthen the policy framework for the manufacturing industry.
7) What negative impacts does resource use cause?
The following are just a few examples:
Globally, the burning of fossil fuels for electricity, heating and transport adds some 25 billion tonnes of carbon dioxide (CO2) to the atmosphere each year. The emissions of CO2 and other greenhouse gases have caused a rise in average temperature of almost 1° Celsius in Europe over the last 100 years.
In Europe, ecologically damaging land use is accelerating. Built-up areas have expanded by 20% during the last two decades, while the population has grown by only 6%. Land fragmentation is one of the main causes of biodiversity decline. Land development also 'seals' soil, preventing and reducing its ability to perform normal functions in the future, such as food and fibre production, carbon storage and providing habitats for animals and plants.
Globally, some 5-25% of freshwater use exceeds the long-term availability of supplies and is now met through engineered water transfers or overexploitation of groundwater supplies, which is no sustainable solution. Water scarcity represents a threat to human health, disrupts ecosystems and hampers food production.
Some 0.5-1% of tropical forest area is cut down each year for timber and to create farmland. Deforestation deprives animals and plants of their habitats, which can in turn cause the loss of biological diversity. Deforestation often leads to erosion, land slides and desertification, it changes the carbon balance (since trees and plants absorb CO2) and it alters the regional climate.
8) How are resource use and the associated environmental impacts measured?
Use of materials (not to be confused with the associated environmental impacts) is measured through Material Flow Accounting, a methodology that takes all materials into account except water.
In the EU, overall material consumption is currently around 16 tonnes per capita and year. The shares of the various resources are:
- Construction materials (natural stone, sand, gravel, limestone): 40%
- Fossil fuels (oil, gas, coal, lignite): 25%
- Biomass (forestry products, agricultural products): 25%
- Industrial minerals (salt, sand, potash, clay) and metals (iron, zinc, aluminium): 9%
Material consumption in the EU has remained virtually unchanged for the last 20 years. Over the same period, the EU economy has grown by 50%. This is a positive trend that shows that our resource productivity has increased. This is partly due to higher resource efficiency and partly due to the move towards a service-based economy.
However, despite stable material consumption, the environmental impacts of resource use have been increasing. Out of the 16 tonnes per capita resource input every year, 10 tonnes stay in the economy as physical stock, e.g. roads, houses and durable goods. The remaining 6 tonnes leave the economy as waste, CO2 and emissions of other pollutants. This accumulation of material in the economy (physical stock) and in the environment (landfills, CO2, other pollutant emissions) causes environmental impacts to grow.
9) Which activities contribute most to environmental impacts associated with resource use?
Many studies conclude that 1) food production, 2) transport and 3) housing contribute, in this order, the lion's share to total environmental impacts of resource use.
The environmental impacts of food production are mainly due to land use, use of fertilisers and pesticides, and energy use. The transport sector comes second due to the impacts of fossil fuel use (21% of EU greenhouse gas emissions), air pollution and landscape fragmentation, which puts pressure on biodiversity. Housing is concerned as a result of heating and cooling with energy derived from fossil fuels, which is responsible for 40% of the EU's greenhouse gas emissions, as well as land use.
10) To what extent does the EU import resources, and do they cause impacts in the countries of origin?
Europe is highly dependent on imported natural resources. For example, the EU imports more than 95% of the metals, 76.8% of the oil and 51.3% of the gas it uses (2002 figures). This could rise to 90% for oil and 80% for gas by 2030. The European livestock industry is partially dependent on imported cattle feed, and much of our seafood is imported.
While increased global trade has benefits for both importing and exporting countries, the extraction and processing practices often have environmental impacts, particularly in some parts of the developing world. For example, mining activities have led to severe water pollution and direct risks to human health; the overexploitation of tropical forests is accelerating the loss of biodiversity and leading to desertification; intensive farming, such as cotton production, has caused water shortages and droughts.
At present, global trade rules do not include provisions for protecting natural resources from overexploitation and environmental pressures.
11) Does the Resource Strategy cover the use of all natural resources including oil, which might become scarce?
The strategy covers all natural resources. It establishes a framework that will allow us, based on life-cycle thinking, to move towards using natural resources in an environmentally sustainable way. The focus will be on those resources whose uses cause the most significant impacts.
This means that possible bottlenecks of supply in the markets are not immediate environmental problem in themselves. Strictly speaking, less use of oil could even be regarded as beneficial for the environment if it reduces greenhouse gas emissions. The strategy will tackle environmentally damaging use rather than supply questions.
12) Does the strategy propose the replacement of non-renewable resources with renewable ones?
The strategy is aimed at reducing the environmental impacts associated with the use of resources, irrespective of whether they are renewable or non-renewable.
At first sight, using renewable resources seems attractive because they replenish themselves. But if they are overexploited - such as certain commercial fish stocks and freshwater - their use represents an environmental problem since it disrupts the functioning of ecosystems.
Similarly, the limited availability of non-renewable resources is not necessarily environmentally problematic. In the case of fossil fuels, it is actually their use that causes negative environmental impacts. Yet again in other instances, for example when it comes to renewable energy sources, the situation is reverse. It is much better for the environment to use wind, solar, biomass and other renewable energy sources than fossil fuels.
Based on life-cycle thinking, the strategy will examine the environmental impacts of the use of all resources and then focus on reducing the most severe impacts.
13) How is the Thematic Strategy on resources linked to the Thematic Strategy on Waste Prevention and Recycling?
The Resource Strategy provides the scientific and conceptual foundation upon which the waste strategy rests. The Resource Strategy advocates life-cycle thinking to minimise the environmental impacts of resource use. Waste is the last stage in the life cycle of resources. In order to minimise the environmental impacts of resources at this stage, waste policies must examine which waste management options cause the least environmental impact in view of the whole life cycle of a resource.
14) How much will implementation of the Resource Strategy cost and will it impact on competitiveness?
According to the Impact Assessment of the strategy carried out by the Commission, at this stage the costs will be limited to the operational costs of establishing and running the Data Centre and the International Panel and the costs of developing indicators and discuss national measures. These are estimated as follows:
Costs to the EU budget: ¤ 500,000 a year for setting up and running the International Panel; ¤ 1.5 million a year for three years to set up the Data Centre and then ¤ 1 million a year to run it; ¤ 300,000 a year for studies and expert meetings; ¤ 800,000 a year in administrative costs to the Commission for staff working on the follow-up to the strategy.
Costs to Member States: between ¤300,000 and 550,000 per year in administrative costs (staff needed for analysing existing data, gathering extra information, attending EU meetings devoted to the strategy etc.).
Follow-up costs, i.e. costs that may arise from the implementation of national measures, cannot be evaluated at this stage.
15) Do countries in other parts of the world have similar strategies?
The Organisation for Economic Cooperation and Development (OECD) has done substantial work on resource use. The OECD's Environmental Strategy for the First Decade of the 21st Century sets the goal of de-coupling environmental pressures from economic growth and advocates the use of market-based instruments to achieve this goal.
The Resource Strategy will build on this work, as well as relevant work by others. For instance, China is working on the concept of a circular economy, which is defined by the Chinese Government as "a growth mode which operates in the way of "resource extraction => production => consumption => regenerated resources".
16) How has the Resource Strategy been developed?
Work on the strategy began in 2000, when preparing the 6th Environment Action Programme (2002-2012). This programme asked the Commission to present a Thematic Strategy on Resources. In October 2003, the Commission issued a Communication ("Towards a Thematic Strategy on the Sustainable Use of Natural Resources") outlining the issues identified and solutions envisaged, based on several studies carried out for the Commission.
It then established an Advisory Forum with representatives of industry, governments, NGOs and academia and set up two Working Groups, on supply and use of resources, each of which prepared a report. The two reports contain 186 recommendations for a final strategy. These recommendations fed into an Internet-based stakeholder consultation from 1 December 2004 to 30 January 2005, the results of which have been taken into account in the development of the strategy.
17) Will the strategy contribute to the Better Regulation initiative?
Like the other thematic strategies which are being adopted by the Commission, the waste strategy represents the next generation of environment policy, taking a global and medium-term perspective, setting clear environmental objectives and seeking to identify the most appropriate instruments to achieve these objectives. It is based on extensive research and consultation with stakeholders and addresses the issue in a holistic way, taking into account links with other problems and policy areas.
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Commission proposes European strategy for the sustainable use of natural resources, 21 Dec 2005
BRUSSELS (European Commission) - The European Commission today proposed a new approach aiming at more sustainable use of natural resources. The objective is to reduce environmental impacts associated with resource use in Europe and globally in a growing economy. The impacts of unsustainable resource use include e.g. climate change as a result of fossil fuel use and overexploitation of clean water, soil and certain fish stocks. The strategy is focusing on improving knowledge, developing monitoring tools and fostering strategic approaches in specific economic sectors, Member States and internationally. The strategy is one of the seven 'thematic' strategies required under the 6th Environment Action Programme (2002-2012) and closely linked to the waste thematic strategy, which was also adopted today.
Environment Commissioner Stavros Dimas said: "Europe's economy uses large amounts of natural resources. This is often done in a way that harms the environment, threatening the resource base on which we depend and thus future economic growth. It also contributes to growing waste mountains. We need an overarching approach that measures impacts of resource use and informs policymaking so we can take appropriate action. This can bring us a decisive step closer to sustainable development."
Environmental impacts of resource use
Economic activities have always been a key driver of resource use. As the global economy grows, so does the use of natural resources such as land, forests, wildlife, soil, air, water, fossil fuels and raw materials. However, many current use patterns and technologies produce environmental impacts that jeopardise the future availability of resources. The recent Millennium Assessment Report,[1] conducted under the auspices of the United Nations, shows that 15 out of 24 ecosystem services that provide raw materials and support life on Earth are being degraded or used unsustainably, threatening the planet.
"More value - less impact - better alternatives"
The "Thematic Strategy on the Sustainable Use of Natural Resources" develops a policy framework to reduce the environmental impacts of resource use in a growing economy. It is aimed at "more value - less impact - better alternatives":
- More value - creating more value while using less resources (increasing resource productivity);
- Less impact - reducing the overall environmental impact of resources used (increasing eco-efficiency);
- Better alternatives - if cleaner use cannot be achieved, substituting currently used resources with better alternatives.
This is to be achieved over the whole life cycle of resource use, avoiding that environmental impacts are shifted from one phase to another or to other countries. Since waste represents the last phase in the life cycle of a resource, the resources strategy will generate important information for the thematic strategy on the prevention and recycling of waste, supporting it in reducing waste.
Measures proposed by the strategy
Taking a time horizon of 25 years, the strategy proposes a number of specific measures. They include:
- A Data Centre run by the European Commission to bring together all available knowledge on natural resources and inform decision-makers;
- An International Panel to be set up in cooperation with the United Nations Environment Programme (UNEP) to provide independent scientific advice on global aspects of resource use;
- The development of national measures and programmes by Member States under the guidance of a High Level Forum with representatives from the Commission, Member States and other stakeholders;
- The consideration of environmental impacts of resource use in economic sector action plans that the Commission intends to develop in the context of its strategy for growth and jobs;
- Finally, by 2008 the development of indicators to monitor and regularly review progress towards the strategy's goal.
Thematic Strategies
The other five thematic strategies the Commission is developing cover air pollution (presented on 21 Sept. 2005) and marine environment (24 Oct. 2005) as well as soils, pesticides and the urban environment.
Thematic Strategies represent a modern way of decision-making. They are based on extensive research and consultation with stakeholders, address the issues in a holistic way that takes into account links with other problems and policy areas, and promote Better Regulation.
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Registration of the 50th CDM project activity, 16 Dec 2005
BONN (UNFCCC) - NUMBER OF REGISTERED CDM PROJECT ACTIVITIES: 51
50th activity -> "Las Vacas Hydroelectric project" , Guatemala
NEW REQUEST(S) FOR REGISTRATION
32 activies will be registered as a CDM project activity, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board.
PUBLIC INPUT AT VALIDATION STAGE
DOEs are seeking input at validation stage for about 32 activities, in accordance with CDM rules.
EXPECTED DELIVERY OF CERs BY 2012: 125 million (from all currently registered CDM project activities if issuance occurs as foreseen in CDM-PDD and no renewal of a crediting period is requested)
EXPECTED ADDITIONAL DELIVERY OF CERS BY 2012 of : 575 million (from all proposed project activities if validated and registered by DOEs, issuance occurs as foreseen in the proposed CDM-PDD and no renewal of a crediting period is requested)
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European Commission to pay additional 853,000 EUR to support Kyoto's flexible mechanisms and technology transfer, 12 Dec 2005
BRUSSELS (European Commission) - The European Commission has signed agreements with the Secretariat of UN Framework Convention on Climate Change (UNFCCC) to contribute an additional 853,000 EUR in support of the operation of the Clean Development Mechanism (CDM) and the establishment of the International Registry System, which will keep track of transfers of Kyoto emissions credits. This amount also includes 100,000 to support information exchange on clean technology transfer. The contracted sums come on top of 1.2 million EUR already paid by the Commission over the last two years. EU Member States have committed 3.67 million EUR to support a streamlined and strengthened CDM, which is one of the outcomes of the Montreal Conference. The total amount pledged, including pledges from non-EU countries, is close to 7 million EUR (US$ 8,188,050).
"The European Commission is fully committed to Kyoto's innovative market-based mechanisms since they bring clean technology to developing countries and will help EU the EU meet its Kyoto target," said European Commissioner for the Environment Stavros Dimas. "During the Montreal Conference, Parties agreed to streamline and strengthen the operation of CDM. This is our contribution to achieving this objective."
"We are deeply grateful to the Commission," said Richard Kinley, acting head of the United Nations Climate Change Secretariat based in Bonn, Germany. "With the help of this contribution, we will be able to ensure that the work on the Kyoto mechanisms moves ahead as planned."
The amount contracted today includes 453,000 EUR for CDM, 300,000 EUR for the International Registry System and 100,000 EUR for the technology transfer clearing house. It is additional to 1.2 million EUR that the European Commission, the EU's executive body, has already paid to the Secretariat to support CDM and the International Registry System as well as the participation of developing countries in the UNFCCC process. In 2006, the European Commission is planning to provide new funding of around 850,000 EUR.
CDM allows countries with Kyoto emission targets to invest in emission-reducing projects in developing countries and count the achieved reductions towards their targets. Under the EU Emissions Trading Scheme, EU-based companies covered by the scheme can do the same. CDM transfers advanced technologies to developing countries and supports their sustainable development. The electronic International Registry System will act like a bank and keep track of transactions of credits.
EU Member States are expected to purchase more than 540 million credits, each equivalent to 1 tonne of carbon dioxide equivalent, through the Kyoto Protocol's flexible mechanisms. They have already set aside more than 2.7 billion EUR for purchasing such credits.
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Climate change: successful conclusion of UN Conference in Montreal, 12 Dec 2005
MONTREAL/BRUSSELS (European Commission) - I am proud of the outcome of the Montreal Conference. Montreal is a watershed in the fight against climate change. More than 180 countries accepted sometimes difficult compromises to launch a stronger and forward-looking global effort to fight climate change. This inspiring collaboration and readiness to accommodate each other's concerns is in line with the gravity of the threat and the need for all nations to close ranks and tackle climate change together.
Many developed countries, including the European Union, will take on new commitments when the current emission targets under the Kyoto Protocol expire in 2012. This is giving the Protocol a future. It reassures developing countries that the transfer of clean technologies will continue. It also reassures business that investment in clean technologies will remain worthwhile, and it gives researchers a sense that the demand for new low-carbon technologies will continue to rise.
Developing countries will actively participate in the search for means to combat climate change. The EU will support them, never forgetting that the fight against climate change must also address poverty and development. Building these bridges is key to the EU's efforts.
We have agreed on the details of a five-year programme on adaptation which will identify vulnerabilities while developing and implementing measures to adapt to the inevitable effects of climate change. We have adopted the Marrakech Accords including the compliance mechanism, which will make the Protocol fully operational. And finally, we have also agreed to strengthen and streamline the Clean Development Mechanism, which allows for the transfer of advanced technologies to the developing world. More than 8 million US$ have been immediately pledged to this end. All this amounts to an enormous achievement we can be proud of, though it should not render us complacent. There is still a hard road in front of us and the harsh realities of coping with climate change.
Europe has led, and will continue to lead, the endeavour to reduce greenhouse gas emissions. Its cohesion and collective force is remarkable. We are set to meet our reduction target for 2008-2012. The EU will continue to take the initiative in drawing more countries into the process launched in Montreal. This is just the end of the beginning.
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Climate change: successful conclusion of UN Conference in Montreal - statement by Environment Commissioner Stavros Dimas, 10 Dec 2005
MONTREAL/BRUSSELS (European Commission) - I am proud of the outcome of the Montreal Conference. Montreal is a watershed in the fight against climate change. More than 180 countries accepted sometimes difficult compromises to launch a stronger and forward-looking global effort to fight climate change. This inspiring collaboration and readiness to accommodate each other's concerns is in line with the gravity of the threat and the need for all nations to close ranks and tackle climate change together.
Many developed countries, including the European Union, will take on new commitments when the current emission targets under the Kyoto Protocol expire in 2012. This is giving the Protocol a future. It reassures developing countries that the transfer of clean technologies will continue. It also reassures business that investment in clean technologies will remain worthwhile, and it gives researchers a sense that the demand for new low-carbon technologies will continue to rise.
Developing countries will actively participate in the search for means to combat climate change. The EU will support them, never forgetting that the fight against climate change must also address poverty and development. Building these bridges is key to the EU's efforts.
We have agreed on the details of a five-year programme on adaptation which will identify vulnerabilities while developing and implementing measures to adapt to the inevitable effects of climate change. We have adopted the Marrakech Accords including the compliance mechanism, which will make the Protocol fully operational. And finally, we have also agreed to strengthen and streamline the Clean Development Mechanism, which allows for the transfer of advanced technologies to the developing world. More than 8 million US$ have been immediately pledged to this end. All this amounts to an enormous achievement we can be proud of, though it should not render us complacent. There is still a hard road in front of us and the harsh realities of coping with climate change.
Europe has led, and will continue to lead, the endeavour to reduce greenhouse gas emissions. Its cohesion and collective force is remarkable. We are set to meet our reduction target for 2008-2012. The EU will continue to take the initiative in drawing more countries into the process launched in Montreal. This is just the end of the beginning.
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New request for issuance / Newly registered CDM projects and more, 9 Dec 2005
BONN (UNFCCC) - EW REQUEST FOR ISSUANCE OF CERs
-> Issuance for 48,230 CERs is requested by SGS for: "Salvador da Bahia Landfill Gas Management Project ", Brazil
NEWLY REGISTERED PROJECT ACTIVITY(IES)
-> "Rang Dong Oil Field Associated Gas Recovery and Utilization Project", Viet Nam,
-> "Granja Becker GHG Mitigation Project", Brazil
If verified and certified by a DOE the registered CDM project activities are expected to deliver at least 122million CERs by 2012.
NEW REQUEST(S) FOR REGISTRATION
32 activies will be registered as a CDM project activity, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board.
PUBLIC INPUT AT VALIDATION STAGE
DOEs are seeking input at validation stage for about 59 activities, in accordance with CDM rules.
STIMATE OF CERS TO BE DELIVERED BY CDM
Presently the CDM pipeline: Project activities which are at validation stage, being registered or registered are expected to deliver more than 570 million CERs
NB: Assumptions: all activities are getting registered and the expected annual reductions are becoming real and verified by DOE, no renewal of creditng periods (conservative assumption)).
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Methodologies - new submissions, 6 Dec 2005
BONN (UNFCCC) - (1) Afforestation and Reforestation methodologies
Proposals on new afforestation and reforestation baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 05 December 2005 - 23 December 2005:
- ARNM0018: Assisted Natural Regeneration of Degraded Lands in Albania
In addition, technical clarifications to the following proposed new baseline methodologies have been provided:
- ARNM0012: Afforestation or reforestation project activity implemented on unmanaged grassland
- ARNM0013: The Mountain Pine Ridge Reforestation Project (MPR Project)
(2) Non-forestry methodologies
One request for revision of an approved methodology related to AM0012; and the three (3) requests for clarification of an approved methodology have been received:
- Applicability of AM0014 for projects that supply small amounts of excess electricity to the grid;
- Applicability of AM0014 to combined cycle natural gas power plants;
- Build Margin - Approach to determine recent 20% if 20% falls on part capacity (ACM0002 ver. 3)
Further information on these submissions is available on the UNFCCC CDM web site.
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REGISTRATIONS of CDM project activities, 2 Dec 2005
BONN (UNFCCC) - REGISTRATIONS
-> "Cosmito landfill gas project (Improvement of Gas Extraction System in Old Cosmito Dump) ", 3 Dec 2005, Chile
-> "Copiulemu landfill gas project (Center for the Storage and Transfer, Recovery and Control of Waste, Treatment and Disposal of Industrial and Household Waste) ", 3 Dec 2005, Chile
-> "Nubarashen Landfill Gas Capture and Power Generation Project in Yerevan ", 28 November 2005, Armenia
-> "N2O Emission Reduction in Onsan", 27 November 2005, Republic of Korea
The total of registered CDM activities is 41.
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Climate change: EU on track to reach Kyoto targets, latest projections show, 1 Dec 2005
BRUSSELS (European Commission) - The EU is well on its way to achieve its Kyoto Protocol targets for reducing emissions of greenhouse gases on the basis of the policies, measures and third-country projects already implemented or planned. This is the conclusion of a Commission report demonstrating EU progress under the Kyoto Protocol that is to be submitted to the UN climate convention. The latest projections from member states indicate that a combination of existing policies and measures, additional initiatives which are already in an advanced state of planning, and credits gained through the protocol's mechanisms for promoting emission-saving projects in third countries will reduce combined EU-15 emissions to 9.3% below 1990 levels by 2010. This clearly fulfils the 8% reduction target from 1990 levels that the protocol requires the EU-15 to achieve during 2008-2012. The projections show that EU-25 emissions would be cut by more than 11%. Seventeen member states with emission targets are currently projected to meet them, while the others are in the process of identifying further actions.
Environment Commissioner Stavros Dimas said: "The latest projections show that the EU has successfully transformed its commitment under Kyoto into policies and measures by which it will attain the emissions' reduction targets under the Kyoto Protocol. And we have already reduced our emissions despite healthy economic growth. But that does not mean we can be complacent. We will need to fully implement the various emission reduction measures that we have signed up to under our climate change programme and make use of the Kyoto flexible mechanisms CDM and JI." These mechanisms allow for emission-reducing projects in other countries which generate emission credits.
As announced in June (IP/05/767), by 2003 - the latest year for which complete data are available - greenhouse gas emissions had been reduced by 1.7% in the EU-15 compared with base year levels (in most cases, 1990), while the economy had grown by 27%.
For the EU-25 the reduction was 8.0% from base year levels. There is no collective Kyoto Protocol target for EU-25 emissions. Six of the EU-10 have individual commitments to reduce emissions by 8% from base years of their choice, while Hungary and Poland have 6% reduction targets. Cyprus and Malta have no target.
The report
The projections contained in the Report on "Demonstrable Progress under the Kyoto Protocol" indicate that 17 of the 23 member states which have emission targets are on track to meet them. The projections do not take account of member states' possible use of carbon "sinks," such as forests, to offset their emissions.
In the EU-15, existing policies and measures - those already implemented - are projected to reduce combined emissions by 1.6% below 1990 levels by 2010. Additional domestic policies and measures being planned would take the reduction to 6.8%. Plans by 11 of the EU-15 to obtain emission credits through Kyoto's project-based mechanisms would further increase the total emission savings to 9.3% in 2010.
The report indicates that, of the EU-15, Austria, Belgium, Finland, France, Germany, Greece, Luxembourg, the Netherlands, Sweden and the UK are projected to be on track in 2010.
For the EU-25, the projections indicate that emissions would be 5% below base year levels in 2010 as a result of measures already implemented. With the implementation of additional measures being planned the reduction would be 9.3% and with the use of Kyoto mechanisms, 11.3%. Of the EU-10, so far only Slovenia plans to use the mechanisms.
European Climate Change Programme
More than 30 policies and measures to reduce greenhouse gas emissions have been implemented at EU level as a result of the European Climate Change Programme (ECCP), set up by the Commission in 2000. Measures developed from the ECCP's work include the EU's innovative emissions trading scheme, the directive on energy efficiency standards for buildings and legislation on fluorinated industrial gases.
The second phase of the ECCP was launched in October. It will give particular attention to reviewing the state of implementation of ECCP I, to capture and storage of carbon emissions and to emissions from road vehicles and aviation. The role of the EU in reducing society's vulnerability to climate change and promoting adaptation to it will also be explored. Further policy initiatives in the field of energy efficiency and renewable energy are also foreseen.
Montreal conference
The 11th conference of parties to the UN Framework Convention on Climate Change is taking place in Montreal from 28 November to 9 December. The conference also serves as the first meeting of parties to the Kyoto Protocol. The Protocol requires parties with emission targets to show 'demonstrable progress' by 31 December 2005 towards meeting these and to report on it. Commissioner Dimas will participate in the ministerial segment of the conference on 7-9 December.
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UN climate change conference: a first opportunity to advance global efforts against climate change, 30 Nov 2005
BRUSSELS (European Commission) - Environment Commissioner Stavros Dimas will attend the annual UN climate change conference, in Montreal, Canada, next week. The conference with its 189 participating nations is the main international forum to discuss climate change, whose effects are becoming increasingly pronounced around the globe. A key aim is to launch a process of negotiations on an international climate change regime after 2012 when the Kyoto emission reduction targets expire. Other important agenda items are decisions strengthening the implementation of the Kyoto Protocol, streamlining the operation of key Kyoto mechanisms, such as investment in clean technology for developing countries, and providing the details of a five-year programme to help countries adapt to the effects of climate change.
"Time is running out", said Commissioner Dimas. "Montreal gives us the opportunity to start a debate on future climate policies, which must involve all major emitters in order to be effective. The European Union will continue to make a strong case for global action against climate change. I call on all our partners to join us in these efforts."
The challenges at the Montreal conference
More than 7,000 participants are attending the conference, which is taking place under the presidency of Canada from 28 November to 9 December. During the high-level segment from 6 to 9 December, the EU will be represented by the EU Troika: UK Secretary of State for Environment Margaret Beckett, Austrian Environment Minister Josef Pröll and Commissioner Stavros Dimas.
Two meetings are held simultaneously: the 11th Conference of the 189 Parties to the 1992 UN Framework Convention on Climate Change, and the 1st meeting of the 156 Parties to the Convention's 1997 Kyoto Protocol. The Protocol entered into force last February and commits developed nations to reach specific emission targets during the Protocol's 2008-2012 'commitment period'.
In Montreal, the Kyoto Parties need to adopt a set of decisions to make the Protocol work when it becomes fully operational in 2008. The EU considers implementation of the Protocol represents a crucial first step in the global fight against climate change.
The EU also hopes to reach agreement to streamline procedures related to the Protocol's Clean Development Mechanism (CDM). This mechanism allows countries with Kyoto targets to carry out emission-saving projects in developing countries and count the achieved reductions towards their targets. EU-companies falling under the scope of the EU Emissions Trading Scheme may do the same. The CDM contributes to transferring climate-friendly technology to developing countries.
The EU will present measures and policies at EU-level to combat climate change, such as the Emissions Trading Scheme, increased research and technology development, and the recently agreed partnerships on climate change with China and India. In the EU-15, which has a collective 8% reduction target, emissions were down by 1.7% in 2003, compared to base year levels (mostly 1990), while the EU economy grew by 27%. Projections based on policies and measures in the pipeline and the use of the CDM and other Kyoto mechanisms show that the EU-15 will meet its target.
The issue of the future international co-operation on climate change post-2012 is probably the most important issue on the agenda. In 2012, the Kyoto targets expire. It is therefore necessary to launch discussions that will lead to official negotiations on how this future climate change regime should look. In February, the Commission outlined a number of elements that the future regime should be based. This includes the involvement of all major emitters, the broadening of climate policy to all sectors, including aviation and maritime transport and all gases, the use of market based mechanisms such as EU emission trading, investment in new technology and adaptation or the need to prepare for the inevitable consequences of climate change.
The UNFCCC Parties also need to work out the details of a five-year programme on impacts, vulnerability and adaptation to climate change agreed last year, particularly to help developing countries adapt to the effects of climate change. There are also various funding issues to be resolved. The EU is committed to honouring its pledge, starting in 2005 to provide the lion's share of annually $410 million promised by developed nations in support of developing countries.
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CDM Executive Board report (EB22), 29 Nov 2005
BONN (UNFCCC) - The report of the twenty-second meeting of the CDM Executive Board (23 - 25 November 2005), including its annexes, is now available on the UNFCCC CDM web site.
Annexes to the report:
Methodologies for baselines and monitoring plans
Annex 1: Revised procedures for submission and consideration of a proposed new methodology (version 9)
Annex 2: Guidance related to methodological issues (LCAs, operational margin and build margin weighting treatment of the lifetime of plants and equipment, sampling, emission sources)
Annex 3: Additional clarifications regarding the treatment of national/sectoral policies and circumstances
Annex 4: Revised approved baseline and monitoring methodology AM0025 ver 2 ("Avoided emissions from organic waste composting at landfill sites")
Annex 5: Revised approved baseline and monitoring methodology AM0002 ver 2 ("Greenhouse gas emission reductions through landfill gas capture and flaring where the baseline is established by a public concession contract"),
Annex 6: Revised approved consolidated baseline and monitoring methodology ACM0002 ver 4 ("Consolidated methodology for grid-connected electricity generation from renewable sources")
Annex 7: Revised approved consolidated baseline and monitoring methodology ACM0005 ver 2 ("Consolidated Methodology for Increasing the Blend in Cement Production")
Annex 8: Revised tool for the demonstration and assessment of additionality (version 02)
Annex 9: Approved consolidated baseline and monitoring methodology ACM0007 "Conversion from simple cycle to combined cycle power generation"
Annex 10: Approved consolidated baseline and monitoring methodology ACM0008 ("Coal bed methane and coal mine methane capture and use for power (electrical or motive) and heat and/or destruction by flaring")
Annex 11: Approved baseline and monitoring methodology AM0026 (based on NM0076-rev)
Annex 12: Approved baseline and monitoring methodology AM0027 (based on NM0115)
Issues relating to procedures for afforestation and reforestation project activities
Annex 13: (a) Revised forms for the recommendation by working group
Annex 13: (b) Revised forms for the recommendations by desk reviewer (lead)
Annex 13: (c) Revised forms for the recommendations by desk reviewers (second)
Annex 14: Revised guidelines and form CDM-AR-NM (version 2)
Annex 15: Clarifications to afforestation and reforestation issues (accounting non-pre-project emissions, pre-project GHG emissions, accounting of decreases of carbon pools outside the project boundary, equations for the calculation of net anthropogenic GHG emissions by sinks)
Annex 16: Procedures to define the eligibility of lands for afforestation and reforestation project activities
Annex 17: Approved afforestation and reforestation methodology AR-AM0001 (based on ARNM0010)
Matters relating to the registration of CDM project activities
Annex 18: Clarifications to facilitate the implementation of the procedures for review as referred to in paragraph 41 of the CDM modalities and procedures, version 02
Annex 19: Terms of reference and related procedures of the registration team
Annex 20: Procedures for requests for deviation
Other business
Annex 21: Provisional agenda for EB23
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Emissions trading: Companies want longer-term certainty and predictability, 28 Nov 2005
BRUSSELS (European Commission) - The European Commission has released first highlights of a recent stakeholder consultation on the EU emissions trading scheme, which attracted over 300 responses. One of the main findings is that companies across sectors demand longer-term certainty and predictability about the scheme and in particular the allocation of emission allowances. The more certainty and lead-time they have, the easier it will be for them to invest in the right technologies for the future. The results of the consultation are feeding into an ongoing review of the emissions trading scheme. The scheme aims to cost-effectively reduce greenhouse gas emissions from industrial and power plants.
Environment Commissioner Stavros Dimas said: "Let me express my thanks to all the stakeholders that have participated so actively in the consultation. The fact that the emissions trading scheme is up and running is a tremendous success, but we are already looking at how to improve it. For that we need the co-operation of the stakeholders who have hands-on experience. The better the design of our scheme, the easier it will be for other countries to adopt similar policies."
Impact on corporate behaviour
The results show that the scheme is already influencing companies' investment decisions. For half of the companies that responded, the scheme is one of the key issues when taking long-term decisions. Moreover, about half of the companies claim that the scheme has a strong or medium impact on decisions to develop innovative technology.
Long-term design topics important but no clear-cut recommendations
Companies, industry associations, governments and NGOs all rank long-term topics as the most important. These are for example emission reduction targets, allocation rules and rules for new entrants in the market and for installations that close. Longer-term certainty on these issues would ensure a better investment climate for companies.
However, on a number of issues views of stakeholders differ considerably and, therefore, the survey does not point to a single clear-cut recommendation, e.g on allocation methods. It therefore appears from the survey that there is a range of advantages and disadvantages to be considered. One thing stakeholders unanimously do agree about is that any decisions about changes should be taken with enough lead-time and not on an ad-hoc basis.
The survey
In order to collect the views of stakeholders on a range of aspects of the EU emissions trading scheme, a web survey was available on the internet from June to September 2005. Invitations to participate in the survey were sent out to 517 companies, government bodies, industry associations, market intermediaries and NGOs (Non-Governmental Organisations). 302 responses were received, so the response rate was around 60%.
Background:
The legal basis is Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC.
Article 30(2) of the Directive foresees that the Commission reviews the application of the EU emissions trading scheme and reports to the European Parliament and to the Council by 30 June 2006. The purpose of the review is to provide a fact base in order
- to analyse the functioning and design of the system with respect to a number of specific issues,
- to evaluate the impact of expanding the EU ETS to other sectors and gases, and
- to understand the actual impact of the EU ETS on competitiveness.
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New submissions (Methodologies / A/R Methodologies), 21 Nov 2005
BONN (UNFCCC) - The following proposals on new baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 18 November - 08 December 2005:
NM0133: Grid-connected power generation project using biomass fuel from newly developed dedicated plantations, in Nakhon Ratchasima Province, Thailand
NM0134: Paramonga CDM Bagasse Boiler Project
NM0135: Reducing SF6 Emissions in High-Voltage Transmission/Distribution Systems in Nigeria
NM0136: Reduction of Transmission and Distribution Losses in Nigeria
NM0137: Energy Efficiency Improvement in Cement Plants
NM0138: American Israel Paper Mill (AIPM) Natural Gas Cogeneration
NM0139: Methane Leak Reduction From Natural Gas Pipeline in Georgia
NM0140: Mondi Richards Bay Biomass Project
NM0141: Displacing grid/off-grid steam and electricity generation with less carbon intensive fuels in Aba, Nigeria
NM0142: Palm Methyl Ester - Biodiesel Fuel (PME-BDF) production and use for transportation in Thailand
NM0143 : Catalytic reduction of N2O inside the ammonia burner of the nitric acid plant at Fertilizers & Chemicals Ltd., Israel
The following proposed new baseline and monitoring methodologies have been re-submitted for consideration of the Meth Panel at its next meeting and are available in the UNFCCC CDM web
site:
NM0038-rev: Methane Gas Capture and Electricity Production at Chisinau Wastewater Treatment Plant, Moldova
NM0080-rev: Natural gas based grid connected 1050 MW combined cycle power generation project for Torrent Power Generation Limited at Akhakhol Gujarat
NM0107-rev: Waste Gas-based Cogeneration Project at Alexandria Carbon Black Co., Egypt
NM0112-rev: Increased electricity generation from existing hydropower stations through Decision Support System optimization in Azerbaijan
In addition, technical clarifications to the following proposed new baseline methodologies have been provided:
NM0082-rev: Khon Kaen fuel ethanol project
NM0126: National Fertilizers Limited (NFL) Nitrous Oxide Abatement Project
NM0127: PT Navigat Organic Energy Indonesia Integrated Solid Waste Management (GALFAD) Project in Bali, Indonesia
NM0128: Modal shifting in industry for transport of product/feedstocks
The following proposals on new Afforestation/Reforestation baseline and monitoring methodologies have been submitted to the CDM Executive Board for its review and are available for public input from 18 November 2005 - 08 December 2005:
ARNM0014:'Treinta y Tres' afforestation combined with livestock intensification
ARNM0015: Reforestation as Renewable Source of Wood Supplies for Industrial Use in Brazil
ARNM0016: Los Eucaliptus Afforestation Project
ARNM0017: Mexico Seawater Forestry Project
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EB annual report to COP/MOP / Small-scale interface / Annexes Meth 18 report, 4 Nov 2005
BONN (UNFCCC) - (1) Annual Report of the EB to the COP/MOP
The "Annual Report of the EB to the COP/MOP" is available as advance copy on the UNFCCC and the UNFCCC CDM web site.
(2) New interface for SSC methodologies submissions and responses by the SSC WG
As requested by the Executive Board, at its twenty-first meeting, submissions of queries and/or proposals for amendments or new categories to the small-scale methodologies, along with the responses provided by the Small-Scale Working Group (SSC-WG) have been made available on the UNFCCC CDM web site.
(3) Report of Meth 18 - Annex 2 and Annex 4 to the report available
That the following annexes of the eighteenth meeting of the Meth Panel are now available on the UNFCCC CDM web site:
Annex 2 - Draft re-formatted methodology "Substitution of CO2 from fossil or mineral origin by CO2 from renewable sources in the production
of inorganic compounds" (based on proposed new methodology NM0115)
Annex 4 - Draft consolidated methodology for coal bed methane and coal mine methane capture
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Renewable energy: Commissioner Dimas to participate in major international conference in China, 3 Nov 2005
BRUSSELS (European Commission) - Making the use of energy sources such as sun, wind and water more attractive will be the focus of an international renewable energy conference hosted by the Chinese government on 7-8 November in Beijing. Environment Commissioner Stavros Dimas intends to contribute to strengthening international cooperation in this sector, which is key for achieving a sustainable energy future. While in China, Commissioner Dimas will also discuss international climate change policy and EU-China environmental cooperation with the Chinese government.
Commissioner Dimas said: "I very much welcome the Chinese government's initiative in organising this conference. It sends a clear message that emerging economies want to play a leading role in creating the conditions for renewables to thrive. The EU stands ready to contribute its know-how to developing innovative policies, instruments and public-private partnerships for accelerating renewable energy markets worldwide."
Energy Commissioner Andris Piebalgs added: "To achieve a Sustainable Energy Future, promoting renewable energy sources is essential in order to respond to world wide challenges like security of energy supply and reduction of CO2 emissions."
Background
At the 2002 World Summit on Sustainable Development (WSSD) in Johannesburg, heads of state agreed to urgently and significantly increase the global share of renewable energy. This agreement acknowledged the important contribution that renewable energy can make to tackling the challenges of climate change and poverty eradication.
The conference
The Beijing conference aims to build on the momentum started at the international renewable energy conference held in June 2004 in Bonn as a follow-up to the Johannesburg agreements. It also forms part of preparations for a UN conference next April that will review progress on the implementation of energy-related commitments made at the WSSD.
The Chinese government has invited ministers and high-level experts to discuss options for significantly increasing renewables' share of the market worldwide.
These include enhancing international frameworks for developing and transferring renewable technologies and creating more efficient market-based delivery mechanisms that can provide affordable and reliable energy services. Senior EU delegates to the conference include the environment ministers of the United Kingdom, current president of the Council of Ministers, and Germany.
The European Commission is an active partner in several international initiatives to promote renewable energy. Commissioner Dimas will speak during the opening session of the conference. In the margins he will hold a number of bilateral meetings to discuss preparations for the next annual climate change conference, taking place in Montreal at the end of this month, and wider EU-Chinese environmental cooperation.
He will also sign implementation agreements for the EU-China Biodiversity Programme, including a ¤30 million contribution from the European Commission. The programme aims to enable China's national biodiversity programme to manage its ecosystems sustainably and to contribute to the implementation of related international conventions.
EU renewable energy policy
EU Member States have agreed on indicative targets that are intended to raise renewable energy's share of EU primary energy production to 12%, and its share of the electricity market to 21%, by 2010. The EU also aims to achieve a 5.75% share of the petrol and diesel market for crop-derived biofuels by 2010. The European Commission will soon adopt an ambitious Biomass Action Plan to help ensure these targets are met.
An analysis is being carried out to enable the EU to set renewable energy targets for 2020. The results of the study are due in early 2006.
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Registration(s) / Request(s) for registration / activities at valdiation stage, 28 Oct 2005
BONN (UNFCCC) - RECENT REGSITRATIONS
-> "DSL Biomass based Power Project at Pagara", India
-> "Santa Rosa", Peru
-> "APCL proposed 7.5 MW Mustard Crop Residue based Power Project" - India
The total of registered CDM activities is 29.
NEW REQUEST(S) FOR REGISTRATION
-> "JCT Phagwara Small Scale Biomass Project", India - 21 Nov 05(*)
->"Cuyamel Hydroelectric Project", Honduras - 26 Nov 05.
"18 MW Biomass Power Project in Tamilnadu", India - 24 Dec 05 (*)
-> "GHG emission reduction by thermal oxidation of HFC 23 at refrigerant (HCFC-22) manufacturing facility of SRF Ltd", India - 24 Dec 05(*)
-> "20 MW Kabini Hydro Electric Power Project, SKPCL, India", India - 25 Dec 05(*)
-> "N2O Emission Reduction in Paulínia, SP, Brazil", Brazil - 25 Dec 05(*)
-> "BII NEE STIPA", Mexico - 25 Dec 05(*)
Project participants of more than 350 activities have contracted a DOE to undertake validation which so far resulted in a total of 55 requests for registration submitted by DOEs since the end of 2004. 23 cases, including above, are in the period of 4/8 weeks which leads to automatic registration unless a review is requested.
(*) That the activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
PUBLIC INPUT AT VALIDATION STAGE
DOEs are seeking input for nearly 90 activities at validation stage in accordance with CDM rules.
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New issuance - 48230 CERs / Newly registered activities / requests for registration / validation, 21 Oct 2005
BONN (UNFCCC) - CERs ISSUED
-> 48230 CERs issued for : "Biomass in Rajasthan - Electricity generation from mustard crop residues", India
Detailed information is available as of today on the UNFCCC CDM web site
NEWLY REGISTERED PROJECT ACTIVITY(IES)
-> "Rio Azul landfill gas and utilization project", Costa Rica
NEW REQUEST(S) FOR REGISTRATION
-> "4.5 MW Maujhi Grid-connected SHP in Himachal Pradesh, India", India - 06 Nov 05(*)
-> "AWMS GHG Mitigation Project, MX05-B-02, Sonora, México", Mexico - 05 Dec 05(*)
-> "Granja Becker GHG Mitigation Project", Brazil - 09 Dec 05(*)
-> "AWMS GHG Mitigation Project, MX05-B-01, México", Mexico - 10 Dec 05(*)
-> "Las Vacas" Hydroelectric project", Guatemala - 17 Dec 05(*)
-> "24 MW Biomass Based Renewable Electricity Generation & Consumption in Ropar, Punjab", India - 17 Dec 05(*)
-> "Nanjing Tianjingwa Landfill Gas to Electricity Project ", China - 18 Dec 05 (*)
(*) That the activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
PUBLIC INPUT AT VALIDATION STAGE
DOEs are seeking input at validation stage for about 62 activities, in accordance with CDM rules.
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Climate change: start of the second European Climate Change Programme, 21 Oct 2005
BRUSSELS (European Commission) - On Monday, 24 October, Environment Commissioner Stavros Dimas will launch the second European Climate Change Programme (ECCP II) at a stakeholder conference in Brussels. In view of the magnitude of the climate change threat, ECCP II will focus on new cost-effective measures and technologies that will allow the EU to reduce its greenhouse gas emissions in the coming years and to adapt to the climate change effects that are inevitable. The ECCP, which was initiated in 2000, is the umbrella under which the European Commission and stakeholders discuss and prepare measures to fight climate change.
"The recent extreme weather events around the world are consistent with scientific findings about the effects of our changing climate," said Commissioner Dimas. "It is high time that we start preparing new measures to limit climate change. Such measures will create the momentum necessary for reducing our emissions below the Kyoto targets. They will ensure a longer-term perspective, provide for business opportunities and ease the way to the carbon-constrained society of the future. I look forward to the ideas of stakeholders - climate change is a threat to us all."
"The conference allows the EU to take stock of the current situation and it offers us the opportunity to demonstrate to others that it is taking the problem of climate change very seriously. I'm pleased to be here today to help kick-start the review of the EU climate change programme," said Elliot Morley, UK Minister for Climate Change and Environment.
At the stakeholder conference, which will welcome around 450 participants, Commissioner Dimas will outline the Commission's views on the further development of EU climate change policy. Apart from advocating a meaningful global climate change regime post 2012 - after the expiry of the reductions targets under the Kyoto Protocol - the Commission is convinced of the need of a strong push for innovation in the EU, the inclusion of all emitting sectors, such as aviation, shipping and road transport, and the use of market-based instruments to keep the costs of reducing emissions low.
ECCP II will analyse what has been achieved under the first European Climate Change Programme and look for new options to reduce emissions, particularly in the fields of geological carbon capture and storage, passenger road transport, aviation, and adaptation to those effects of climate change that are unavoidable. With regard to aviation, it will build on the Commission strategy to curb greenhouse gas emissions from air travel that was presented in September 2005.
Several working groups on specific issues will be set up at the conference. Their task will be to produce policy recommendations by next year, which will support the Commission in developing and proposing new policies and measures.
Apart from Commissioner Dimas, speakers at the conference include Elliot Morley, UK Minister of State for Climate Change and the Environment, and representatives of the European Parliament, business and NGOs. The conference is open to all interested parties, including EU-accredited journalists. It will take place from 9.00 to 17.30, 24 October 2005, in the Commission's Charlemagne building, Rue de la Loi 170, Brussels.
Background
The European Climate Change Programme was launched in 2000 to identify policies and measures to help the EU reach its target under the 1997 Kyoto Protocol. This target, which relates to the EU-15, demands a reduction in greenhouse gas emissions of 8% compared to 1990 levels by 2012.
So far, around 30 cost-effective measures have been identified and largely implemented. One key measure is the EU Emissions Trading Scheme, which has been operational since 1 January 2005. Other measures are aimed at improving energy efficiency, including the energy performance of buildings, expanding renewable energy sources, advancing combined heat and power generation, regulating the powerful fluorinated greenhouse gases, reducing CO2 emissions from passenger cars and methane emissions from landfills, strengthening R&D and the deployment of new environmentally sound technologies, helping public authorities make climate-friendly public procurement decisions, and raising citizen's awareness.
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Report of the Meth Panel, 28 Oct 2005
BONN (UNFCCC) - The report of the eighteenth meeting of the Meth Panel is now available in the Meth Panel page of UNFCCC CDM web site: http://cdm.unfccc.int/Panels/meth.
Please note that annexes 2 and 4 (Draft reformatted methodology NM0115 and Draft consolidated methodology for coal bed methane and coal mine methane capture) will be made available next week.
Final recommendations regarding proposed new methodologies for proposals NM0076-rev, NM0078-rev, NM0105, NM0111, NM0115, NM0117, NM0118, NM0123, NM0124 and NM0128 are available in the UNFCCC CDM web site.
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First emission credits issued under the Kyoto Protocol, 20 Oct 2005
BONN (UNFCCC) - The Executive Board of the Clean Development Mechanism (CDM) today issued the first ever certified emission reductions (CERs) under the Kyoto Protocol. These credits were issued for two hydroelectric projects in Honduras. 'La Esperanza Hydroelectric Project' is expected to initially generate annually 37,000 CERs and is registered in partnership with Italy, while the 'Rio Blanco Small Hydroelectric Project', in which Finland has a stake, produces 17,800 CERs per year.
CERs are generated by climate-friendly, sustainable development projects in developing countries. They can be used by developed country Governments and companies to meet their reduction commitments under the Kyoto Protocol. Under the emissions trading scheme set up by the 1997 landmark agreement, CERs can be traded and thus help to combat climate change in the most cost-effective way. A CER amounts to one tonne of CO2 equivalent.
Ms. Sushma Gera, Chair of the CDM Executive Board said: "The CDM is for real. It is delivering sustainable development to communities and at the same time real emission reductions." Both projects in Honduras supply renewable energy to the national grid. The country would otherwise have to rely on carbon-emitting fossil fuels to generate the equivalent electrical power.
The CERs issued today for the initial phase requested by the project participants amount to 2,210 and 7,304 tonnes of CO2 equivalent, respectively. The project participants include governments, the World Bank Community Development Carbon Fund (CDCF) and private companies operating in Honduras: Consorcio de Inversiones S.A.(CISA), Asociación de Pequeños Productores de Energía Renovablei (AHPPER) and Sociedad Hidroeléctrica Río Blanco S.A. de C.V. (SHRB).
The projects were validated by the London-based company DNV Certification, one of the 'designated operational entities' (DOEs) that play an important role in the CDM as they check whether projects conform with the rules. Such DOEs also verify and certify the emission reductions achieved by a registered CDM project before the CDM Executive Board clears any CERs for issuance.
Since the Kyoto Protocol entered into force in early 2005, the number of registered CDM projects has doubled every quarter. It now stands at 26 and is growing: around 300 projects are currently awaiting validation. "This shows that project developers around the world now know of the opportunities offered by the CDM and are confident that their projects can comply with the rules", Ms. Christine Zumkeller, acting Coordinator of UNFCCC's Cooperative Mechanisms Programme, pointed out.
Looking ahead to the upcoming United Nations Climate Change Conference in Montreal (28 November to 9 December 2005) the acting head of the UN Climate Change Secretariat, Richard Kinley said: "Governments and project developers now need a signal that the CDM has a future beyond 2012". He added that "once this signal is sent, project developers around the world will know that it makes sense for them to continue to engage in ever larger numbers."
For further information, please go to the CDM section of the UNFCCC web site.
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CDM Executive Board report (EB21) / Clarifications received, 12 Oct 2005
BONN (UNFCCC) - The report of the twenty-first meeting of the CDM Executive Board (28 - 30 September 2005), including its annexes, is now available on the UNFCCC CDM web site.
Annexes to the report:
Accreditation of operational entities
Annex 1: Phasing of accreditation
Methodologies for baselines and monitoring plans
Annex 2: Revised procedures for submission and consideration of a proposed new methodology (version 8)
Annex 3: Revised pre-assessment form ("F-CDM-NMas")
Annex 4: New methodologies expert form (lead reviewer)
Annex 5: New methodologies expert form (second reviewer)
Annex 6: Revised "Procedures for the revision of an approved baseline or monitoring methodology by the Executive Board" (version 2)
Annex 7: Recommendations on multiple regression analysis to estimate baseline emissions or project emissions
Annex 8: Revision to the approved baseline and monitoring methodology ACM0002 ("Consolidated methodology for grid-connected electricity generation from renewable sources")
Annex 9: Revision to the approved baseline and monitoring methodology ACM0001 ("Consolidated methodology for landfill gas project activities"),
Annex 10: Revision to the approved baseline and monitoring methodology AM0003 ("Simplified financial analysis for landfill gas capture projects")
Annex 11: Revision to the approved baseline and monitoring methodology AM0011 ("Landfill gas recovery with electricity generation and no capture or destruction of methane in the baseline scenario")
Annex 12: ACM0005 "Consolidated methodology for increasing the blend in cement production"
Annex 13: ACM0006 "Consolidated methodology for grid-connected electricity generation from biomass residues"
Annex 14: Approved baseline and monitoring methodology AM0024 (based on NM0079-rev)
Annex 15: Approved baseline and monitoring methodology AM0025 (based on NM0090)
Issues relating to procedures for afforestation and reforestation project activities
Annex 16: Tool for demonstrating the additionality of afforestation and reforestation
Annex 17: Summary recommendation form "F-CDM-AR-NMSUMarwg"
Annex 18: Procedures for submission and consideration for a proposed new baseline and monitoring methodology for afforestation and reforestation project activities
Annex 19: Guidelines for completing CDM-AR-PDD, CDM-AR-NMB and CDM-AR-NMM
Annex 20: Clarifications regarding ex-ante estimations of actual net GHG removals by sinks and identification and justification of most likely baseline scenario
Issues relating to small-scale CDM project activities
Annex 21: Principles for bundling
Annex 22: Amendments to the simplified methodologies for small-scale CDM project activities (Appendix B)
Matters relating to the registration of CDM project activities
Annex 23: Draft on possible streamlining of registration procedures
Annex 24: Scope of review Nubarashen Landfill Gas Capture and Power Generation Project in Yerevan (069)
CDM management plan and resources for the work on the CDM
Annex 25: CDM management Plan (available in due course)
Annex 26: Recommendation on share of proceeds
Relationship with stakeholders, intergovernmental and non-governmental organizations
Annex 27: Procedures for external communication
Other business
Annex 28: Provisional agenda for EB22
(2) CLARIFICATIONS BY CDM PROJECT PARTICIPANTS TO PRELIMINARY RECOMMENDATIONS
In accordance with the procedures for submission and consideration of proposed new methodologies, clarifications to preliminary recommendations by the Methodologies Panel have been provided by project participants for the following proposals:
NM0078-rev: Conversion of single-cycle to combined cycle power generation in Ghana
NM0105: Bus Rapid Transit System for Bogotá, Colombia: TransMilenio Phase II to IV
NM0111: Baseline Methodology for catalytic N2O destruction in the tail gas of Nitric Acid Plants
NM0117: Nanjing Chemical Industries Co Ltd (NCIC) Nitrous Oxide Abatement Project
NM0118: The model project for renovation to increase the efficient use of energy in brewery
NM0123: Substitution of raw material in cement processing
NM0124: PFC emission reductions at ALUAR Aluminio Argentino
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Newly registered CDM projects / REQUESTS FOR ISSUANCE and registration / input at validation stage, 5 Oct 2005
BONN (UNFCCC) - NEWLY REGISTERED PROJECT ACTIVITY(IES)
-> "Vaturu and Wainikasou Hydro Projects", Fiji
-> "LOS ALGARROBOS HYDROELECTRIC PROJECT, Panama
NEW REQUEST(S) FOR ISSUANCE
-> "RIO BLANCO Small Hydroelectric Project", {7304} - 20 Oct 05
-> "La Esperanza Hydroelectric Project", {2210} - 20 Oct 05
(*) That the Number of CERs indicated in {} will be issued on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
NEW REQUEST(S) FOR REGISTRATION
-> "APCL proposed 7.5 MW Mustard Crop Residue based Power Project", India - 24 Oct 05(*)
-> "Small Hydropower Projects at Alupola and Badulu Oya" - 30 Oct 05(*)
-> "Magal Ganga Small Hydropower Project" - 30 Oct 05(*)
-> "Hapugastenne and Hulu Ganga Small Hydropower Projects" - 30 Oct 05(*)
-> "Onyx Landfill Gas Recovery Project - Trémembé" - 24 Nov 05(*)
-> "N2O Emission Reduction in Onsan" - 27 Nov 05(*)
(*) That the activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
PUBLIC INPUT AT VALIDATION STAGE
DOEs are seeking input at validation stage in accordance with CDM rules. Since the last message the below list has been added.
-> Lepanto Landfill Gas Management Project , Chile
-> El Molle - Landfill gas (LFG) capture project , Chile
-> Repowering Small Hydro Plants (SHP) in the State of São Paulo, Brazil , Brazil
-> Switching of fuel from naphtha to natural gas at Essar Power Limited's 515 MW power plant in Hazira, Gujarat, India, for generation and supply of electricity to Gujarat Electricity Board Grid and to Essar Steel Limited , India
-> Electricity generation from mustard crop residues: Tonk, India , India
-> Matanzas Hydroelectric Plant , Guatemala
-> 6.6 MW Municipal Solid Waste (MSW) to Electricity Generation Project in Hyderabad, India , India
-> NorthWind Bangui Bay Project , Philippines
-> San Isidro Hydroelectric Plant , Guatemala
-> Youngduk Wind Park Project , Republic of Korea
-> Optimization of steam consumption at the evaporator , India
-> Waste heat based 12MW Captive Power Project in non-recovery coke making in India , India
-> 8 MW Waste Heat Recovery based Captive Power Project at OCL , India
-> Vinasse Anaerobic Treatment Project - Compañía Licorera de Nicaragua, S. A. (CLNSA) , Nicaragua
-> Nagda Hills Wind Energy Project (India) , India
-> Usina Itamarati cogeneration project , Brazil
-> Olavarría Landfill Gas Recovery Project , Argentina
-> Aleo Manali 3 MW Small Hydroelectric Project , India
-> Manal, Chandni and Timbi Small Hydroelectric Projects of HCPL , India
-> BIOMASS ENERGY PLANT-LUMUT , Malaysia
-> 15 Mw Biomass Co-Generation in Andhra Pradesh , India
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Newly registered CDM projects / request for registration / input at validation stage, 23 Sep 2005
BONN (UNFCCC) - NEWLY REGISTERED PROJECT ACTIVITY(IES)
-> "SRS Bagasse Cogeneration Project", India
-> "Tétouan Wind Farm Project for Lafarge Cement Plant", Morocco
<http://cdm.unfccc.int/Projects/registered.html>
NEW REQUEST(S) FOR REGISTRATION
-> "Santa Rosa" - 23 Sep 05(*)
-> "DSL Biomass based Power Project at Pagara" - 23 Sep 05(*)
The activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
PUBLIC INPUT AT VALIDATION STAGE
The following 14 activities have been proposed as CDM project activities since the last announcement on 19 September 2005 (3 days ago). DOEs are seeking input for about 60 activiites at validation stage in accordance with CDM rules. In total input on about 280 avtivities, including the 60 activities, has been sought. For detail and access to DOE input pages please refer to <http://cdm.unfccc.int/Projects/Validation>
-> Energy efficiency projects - Steam system upgradation at the manufacturing unit of Birla Tyres, India
-> Ugar Sugar Project, India
-> 125 MW wind power project in Karnataka, India, India
-> Aços Villares Natural gas fuel switch project, Brazil
-> Greenhouse gas (GHG) reduction by implementing energy efficient plough share mixer (PSM) technology in soap manufacturing at Hindustan Lever Limited (HLL), India, India
-> 12MW Captive Power Project based on Waste Heat, India
-> Shift to low greenhouse gas emitting vehicles for materials transport to and from Doom Dooma plant of HLL, India
-> Fuel oil to natural gas switch at Solvay Indupa do Brasil S.A., Brazil
-> Kalyani Steels Limited Project, India
-> Southeast Caeté Mills Bagasse Cogeneration Project (SECMBCP), Brazil
-> Moldova Energy conservation and greenhouse gases emissions reduction, Republic of Moldova
-> Emission reduction through partial substitution of fossil fuel with alternative fuels like agricultural by-products, tyres and municipal solid waste (MSW) in the manufacturing of portland cement at Grasim South Cement, Tamilnadu, India., India
-> Moldova Biomass Heating in Rural Communities Project, Republic of Moldova
-> 4.5 MW Biomass (low density Crop Residues) based Power Generation unit of Malavalli Power Plant Pvt Ltd., India
-> 6.5 MW biomass based (rice husk) power generation by M/s Indian Acrylics Ltd. and replacement of electrical power being imported from state electricity grid/ surplus power supply to grid, India
-> Nardini Bagasse Cogeneration Project (NBCP), Brazil
-> Biogas Sector Partnership Nepal (BSP-Nepal) Activity-1, Nepal
-> Waste Heat Based 7MW Captive Power Project, India
-> Central Izalco Cogeneration Project, El Salvador
-> JSBL Waste Heat Recovery Based Captive Power Project, India
-> 10 MW Biomass (Rice Husk) Based Power Generation Unit of M/s Rukmani Power and Steel Ltd., India
-> Bethlehem Hydroelectric Project South Africa, South Africa
-> Electric Power Co-Generation by LDG Recovery - CST - Brasil, Brazil
-> Tres Valles Cogeneration Project, Honduras
-> Biogas Sector Partnership Nepal (BSP-Nepal) Activity-2, Nepal
-> Rio Taquesi Hydroelectric Power Project, Bolivia
-> Use of waste gas use for electricity generation at Jindal Thermal Power Company Limited (JTPCL), India
-> OSIL - Waste Heat Recovery Based Captive Power Project, India
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EU-Commission funds environment projects in third countries with more than ¤6 million, 19 Sep 2005
BRUSSELS (European Commission) - The European Commission has approved funding for 15 new environment projects situated in the Mediterranean and Baltic regions, under the LIFE Third Countries programme 2005. These projects focus on capacity building. They represent a total investment of ¤ 9.223.000, of which the EU will cover ¤ 6,348,240. "Sustainable development can be achieved only if it is recognised as a common objective : whatever is undertaken in one country or area will impact on the wider environment, said Stavros Dimas, Commissioner responsible for the environment. On the basis of mutual support and co-operation we can contribute to the development and implementation of the environment policy in neighbouring countries that responds to the needs of citizens, now and in the future".The European Commission has selected 15 projects situated in Algeria, Bosnia-Herzegovina, Croatia, Israel, Jordan, Lebanon, Morocco, Russia, Tunisia, Turkey, the West Bank and Gaza, for funding through the LIFE Third Countries programme. These projects aim at improving the environment and achieving sustainable development by contributing to the creation or strengthening of the relevant institutions, policies, monitoring tools, training facilities, networks and data bases. They cover a wide range of issues, from waste management and industrial pollution prevention and control to soil monitoring and climate change. Some projects promote a movement towards EU environmental regulations or co-operation at regional or transnational level. The total cost of the projects amounts to ¤ 9.223.000. EU financing represents approximately 69 % of this amount. LIFE Third Countries is part of the LIFE programme. LIFE is the EU's financial instrument supporting environmental and nature conservation projects throughout the EU, as well as in some candidate, acceding and neighbouring countries. Its objective is to contribute to the development and implementation of EU environmental policy by financing specific actions. Since 1992, LIFE has co-financed some 2 500 projects, contributing ¤ 1 500 million to the protection of the environment. LIFE Third Countries specifically contributes to establishing capacity and administrative structures, and assisting in the development of environmental policies and action programmes in third countries bordering on the Mediterranean and the Baltic Sea. The two other components of LIFE, LIFE Nature and LIFE Environment, focus on nature conservation and innovation in environmental protection measures. The current LIFE programme ("LIFE III") finishes at the end of 2006. The Commission has proposed a new programme called "LIFE +", which would run from 2007-2013 with a budget of ¤ 2,190 million. Its final adoption and budget is currently pending between the Council of Ministers and the European Parliament.
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EU Commission supports 89 innovation projects in 17 countries with ¤ 71 million, 19 Sep 2005
BRUSSELS (European Commission) - The European Commission has approved funding for 89 environmental innovation projects in 17 countries under the LIFE-Environment programme 2005. These projects will demonstrate new methods and techniques for dealing with a wide diversity of environmental problems, thus contributing to improving Europe's environment. The projects are led by 'beneficiaries', or project promoters, based in Belgium, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Luxembourg, Netherlands, Portugal, Romania, Spain, Sweden and the United Kingdom. They represent a total investment of ¤220 million, of which the EU will provide ¤ 71 million
Environment Commissioner Stavros Dimas said: "LIFE-Environment supports the development of ever more efficient and innovative technologies to tackle environmental issues. These innovations also contribute to achieving the EU's competitiveness and growth goals." This year, the Commission received 534 proposals for funding through the LIFE-Environment programme from a wide range of public and private organisations. The Commission selected 89 of these projects, all of which will apply ground-breaking technology to solve environmental problems. Waste management takes the lead this year in terms of the number of projects selected (31) and of the EU funding allocated (¤27 million, representing 39% of the total). Minimising the environmental impact of economic activities is the second most popular theme with 22 projects (¤17 million). Almost one fifth of the EU funding (¤14 million) will be allocated to 17 projects dealing with the sustainable management of groundwater and surface water. Twelve projects deal with sustainable land-use development and planning and will share around ¤ 9 million (i.e. 10 %) of the EU funding available. Finally, seven projects address the reduction of the environmental impacts of products and services (¤ 5 million).
The LIFE programme
LIFE is the EU's financial instrument supporting environmental and nature conservation projects throughout the EU, as well as in some acceding, candidate, and neighbouring countries. Its objective is to contribute to the development and implementation of EU environmental policy by financing specific actions. Since 1992, LIFE has co-financed some 2 500 projects, contributing ¤ 1 500 million to the protection of the environment. LIFE-Environment, which finances innovative pilot and demonstration projects, is one of three thematic components under the LIFE programme. The other two components are LIFE Nature and LIFE Third Countries. LIFE Nature focuses on contributing to the implementation of the EU directives on the conservation of wild birds and on wildlife habitats, in particular the Natura 2000 network of conservation areas established by the latter directive. LIFE Third Countries helps countries bordering the Mediterranean and the Baltic Sea build up their capacity for environmental protection. The current LIFE programme ("LIFE III") finishes at the end of 2006. The Commission has proposed a new programme called "LIFE +", which would run from 2007-2013 with a budget of ¤ 2190 million. The proposal is currently under discussion in the Council of Ministers and the European Parliament.
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Newly registered CDM projects / request for registration / input at validation stage, 19 Sep 2005
BONN (UNFCCC)
=NEWLY REGISTERED PROJECT ACTIVITY(IES)=
-> "Landfill Gas Extraction and Utilization at the Matuail landfill site, Dhaka", Bangladesh
-> "Landfill gas extraction on the landfill Villa Dominico, Buenos Aires", Argentina
<http://cdm.unfccc.int/Projects/registered.html>
=NEW REQUEST(S) FOR REGISTRATION=
-> "Poechos I Project", Peru - 14 Nov 05 (*)
The activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
=PUBLIC INPUT AT VALIDATION STAGE=
The following activities have been proposed as CDM project activities since the last announcement. DOEs are seeking input at validation stage in accordance with CDM rules. For detail and access to DOE input pages please refer to <http://cdm.unfccc.int/Projects/Validation>
-> 6.5 MW biomass based (rice husk) power generation by M/s Indian Acrylics Ltd. and replacement of electrical power being imported from state electricity grid/ surplus power supply to grid, India
-> Cogeneration system based on biomass (rice-husk) replacing oil fired boiler for process steam and generating power for partly replacement of grid power supply to the plant at M/s Indian Acrylics Ltd., District Sangarur, Punjab, India
-> Moldova Biomass Heating in Rural Communities Project no.2, Republic of Moldova
-> Power generation from proposed 11.2 MW waste heat recovery boiler at the ISA smelt furnace, of the copper smelter, Sterlite Industries India Limited (SIIL), Tuticorin, Version 01, dated August 19, 2005 , India
-> Sri Balaji 6 MW Non-Conventional Renewable Sources Biomass Power Project, India
-> Khorat Waste To Energy Project (KWTE), Thailand
-> Northeast Caeté Mills Bagasse Cogeneration Project (NECMBCP), Brazil
-> RSCL cogeneration expansion project, India
-> Maguan Daliangzi Hydro Power Project, China
-> Demand-side energy efficiency programme in the 'Humidification Towers' of Jaya Shree Textiles , India
-> LaGeo, S. A. de C. V., Berlin Geothermal Project, Phase Two, El Salvador
-> La Higuera Hydroelectric Project, Chile
-> Puente Gallego Landfill gas recovery project, Gallego, Rosario, Argentina
-> Chambal Power Ltd (CPL) proposed 7.5 MW biomass based power project at Rangpur, Kota District, Rajasthan, India
-> Durban Landfill-gas-to-electricity project - Mariannhill and La Mercy Landfills, South Africa
-> Dolowal, Salar and Bhanubhura Mini Hydroelectric Project, India
-> AWMS GHG Mitigation Project, MX05-B-09, Nuevo León, México
-> Babanpur, Killa and Sahoke Mini Hydroelectric Projects, India
-> 4.5 MW Biomass (Agricultural Residue) Based Power Generation Unit of M/s Matrix Power Pvt. Ltd. (MPPL), India
-> Photovoltaic kits to light up rural households in Morocco, Morocco
-> Ajbapur Sugar Complex Cogeneration Project , India
-> Lohgarh, Chakbhai and Sidhana Mini Hydroelectric Projects , India
-> Chumporn applied biogas technology for advanced waste water management, Thailand
-> João Lyra Bagasse cogeneration project, Brazil
-> 20 MW Natural Gas based combined cycle package cogeneration power plant at Mayiladuthurai Taluk, Nagapattinam District, Tamil Nadu, India
-> Sihwa Tidal Power Plant CDM project , Republic of Korea
-> Solar steam for cooking and other applications , India
-> AWMS GHG Mitigation Project BR05-B-08, Paraná, Santa Catrina, and Rio Grande do Sul, Brazil
-> AWMS GHG Mitigation Project, MX05-B-14, Jalisco, México
-> AWMS GHG Mitigation Project, MX05-B-04, Jalisco, México
-> TSIL - Waste Heat Recovery Based Power Project , India
-> Emission reduction through partial substitution of fossil fuel with alternative fuels like agricultural by-products and Municipal Solid Waste (MSW) in the manufacturing of portland cement at Vikram Cement (VC), Neemuch (MP), India
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Aftermath of Katrina hurricane: state of play of EU assistance to the US, 8 Sep 2005
BRUSSELS (European Commission) - For the first time in the history of the EU's Civil protection mechanism, all thirty countries participating in the mechanism have offered assistance after a request was made by the United States following the devastation caused by the hurricane Katrina. The thirty countries have communicated their offers to the Commission's Monitoring and Information Centre (MIC), who is coordinating the assistance in close cooperation with the UK Presidency. Environment Commissioner Stavros Dimas said: "I am very happy that all participating countries in the Mechanism are now on board. We are pleased to be able to send assistance to the US and support them in this time of crisis. We are working closely with our American counterparts so that aid can be delivered efficiently where it is needed most. And by channelling their requests through the Mechanism our member states are able to deliver a united, well co-ordinated EU response." The Commission's MIC has drawn up a detailed list of what each country offers. The assistance consists of intervention teams of experts in various fields (medical, logistics, communication, search and rescue), equipment (tents/blankets, water purification equipment, water pumps, meals, generators etc), and transport. The details of the offers are being discussed with the US by the UK Presidency. The Presidency and the US authorities will continue the process of matching offers with needs to ensure a targeted and well-designed aid package of the EU. The latest list of offers is attached. This list is being updated continuously. With more than 90 states queuing up to provide assistance, the US authorities need time to respond to the offers and organize the logistical details for their delivery. The appropriate structures are being set up by the U.S. administration. Several EU Member States have already provided assistance. Some of them are present on site with expert teams.
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Commission discusses five-point plan to react to the surge in oil prices, 6 Sep 2005
BRUSSELS (European Commission) - The Commission today discussed a five-point plan presented by Energy Commissioner Andris Piebalgs to bring an even greater focus on dealing with current very high oil prices. The present very high oil prices are without doubt of concern to the European Union, not only in terms of their impact on the welfare of EU citizens but also regarding their effect on economic growth and thus the attainment of its EU's Lisbon objectives. Andris Piebalgs said: "The Commission's energy policy has for some time now focused on a series of measures to react to the high oil prices. Europe leads the world in providing an intelligent, coherent and environmentally sound response to this challenge. However, given current prices and the negative effect that this is having on EU citizens, we need to redouble our efforts".
The five-point plan discussed (please see MEMO/05/302) today focuses on reducing demand for energy. The EU is already at the forefront of endeavours to introduce effective energy savings programmes. It has adopted the Buildings and eco-design Directives and in June 2005 it put forward a Green Paper on Energy Efficiency to be followed in 2006 by a concrete Action Plan identifying exactly how there energy savings should be harnessed.
The second main response to oil prices in the medium to long term is to switch to using alternative energy sources and to increase reliance on other forms of energy. As lack of transparency is adding to price speculation, transparency and predictability of oil markets have to be increased. Although the priority must be to reduce demand and to shift towards alternative and cleaner sources of energy, it seems clear that in both the short and medium term the world will need an increase the supply of oil and gas and more refining capacity.
Finally, there must be a more effective reaction to emergency situations with respect to oil stocks. Under EU law all Member States must retain emergency oil stocks equivalent to 90 days normal consumption. This is the European equivalent to, and is in fact significantly larger than, the US Strategic Oil Reserve. The recent decision of the IEA to release stocks in a coordinated way to respond to the effects of Hurricane Katrina is welcomed by the Commission. However, not all EU Member States are members of the IEA, and the Commissioner considers that some form of coordination of oil stocks at Community level is necessary, in line with the subsidiarity principle.
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The High Oil Price - Background Information, 6 Sep 2005
BRUSSELS (European Commission) - Oil prices have increased from 25 $ per barrel in January 2002 to 45 $ per barrel in January 2005. They now stand at around 70 $ per barrel. The EU has been partially shielded from the effects of a significant proportion of these price increases, due to a significant appreciation of the euro against the dollar between 2003 and 2004. This has not been the case, however, during the recent very rapid price increases.
The underlying causes of the recent price rises result from a series of factors, some long-term and structural in nature, others more short-term:
Structural factors result from the very considerable increase in demand for oil in recent years, which has outstripped increases in supply. The world demand for primary energy increased by 4.3% in 2004, the strongest incremental growth ever. In other words, it meant an increase in demand for oil of 2.4 million barrels per day (mbd) in a context of reduced spare capacities. Much of this additional demand came from China, where energy consumption over the past three years there increased by 65 %.
At present it is generally estimated that the available reserves of oil that could be brought on stream in a short term are in the area of 2 mbd. Part of the increase in prices since 2004 therefore results from this tightening supply situation and uncertainty whether demand will continue to rise at current levels.
Furthermore, the lack of investment in exploration and refining capacity is among the factors which have contributed to the current shortage of oil products.
Because of the very tight demand/supply balance, short term factors have a major impact on prices. The tight demand/supply balance is best illustrated by the recent IEA recommendation to release emergency oil stocks to cover the temporary shortfall resulting from Hurricane Katrina. In addition to a series of recent adverse weather incidents, other short-term factors include, in particular, political instability in the Middle East. It is such short term factors and the speculation as to forward prices that results, that is widely attributed to be the cause of the very recent extreme price rises.
In this context, it is very difficult, if not impossible, to predict future price levels.
The increase in oil prices has also had a significant effect on energy prices and in particular on those of gas and electricity. Gas prices, whilst not directly linked to oil, largely follow the same movements. Furthermore as some 30% of EU electricity generated by fossil fuels comes from natural gas, this has a significant effect on electricity prices.
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Three newly registered CDM project activities / Public input opportunities at validation, 2 Sep 2005
BONN (UNFCCC)
=NEWLY REGISTERED PROJECT ACTIVITY(IES)=
-> "Methane capture and combustion from swine manure treatment for Corneche and Los Guindos"
-> "Methane capture and combustion from swine manure treatment for Peralillo", Chile
-> "Methane capture and combustion from swine manure treatment for Pocillas and La Estrella", Chile
<http://cdm.unfccc.int/Projects/registered.html>
=PUBLIC INPUT AT VALIDATION STAGE=
The following activities have been proposed as CDM project activities since the last announcement. DOEs are seeking input at validation stage in accordance with CDM rules. For detail and access to DOE input pages please refer to <http://cdm.unfccc.int/Projects/Validation>
-> "Southeast Caeté Mills Bagasse Cogeneration Project (SECMBCP)", Brazil
-> "Moldova Energy conservation and greenhouse gases emissions reduction", Republic of Moldova
-> Emission reduction through partial substitution of fossil fuel with alternative fuels like agricultural by-products, tyres and municipal solid waste (MSW) in the manufacturing of portland cement at Grasim South Cement, Tamilnadu, India", India
-> "Moldova Biomass Heating in Rural Communities Project", Republic of Moldova
-> "4.5 MW Biomass (low density Crop Residues) based Power Generation unit of Malavalli Power Plant Pvt Ltd.", India
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New CDM project registered / Requests for registration / input at validation stage, 1 Sep 2005
BONN (UNFCCC)
=NEWLY REGISTERED PROJECT ACTIVITY(IES)=
-> "Kuyasa low-cost urban housing energy upgrade project, Khayelitsha&", South Africa
=NEW REQUEST(S) FOR REGISTRATION=
-> "Essaouira wind power project", Morocco - 29 Oct. 05(*)
-> "LOS ALGARROBOS HYDROELECTRIC PROJECT (PANAMA)", Panama - 01 Oct 05(*)
-> "Vaturu and Wainikasou Hydro Projects", Fiji - 01 Oct 05(*)
The activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
=PUBLIC INPUT AT VALIDATION STAGE=
The following activities have been proposed as CDM project activities. DOEs are seeking input at validation stage in accordance with CDM rules. For detail and access to DOE input pages please refer to <http://cdm.unfccc.int/Projects/Validation>
Deadline for submission of input before 10 September:
-> AWMS GHG Mitigation Project BR05-B-10, Minas Gerais, Goias, Mato Grosso, and Mato Grosso do Sul - Brazil
-> AWMS GHG Mitigation Project BR05-B-09, Goias and Minas Gerais, Brazil
-> AWMS GHG Mitigation Project BR05-B-06, Bahía, Brazil
-> AWMS GHG Mitigation Project BR05-B-07, Mato Grosso, Minas Gerais, and Goiás, Brazil
-> AWMS GHG Mitigation Project MX05-B-08, Sonora, México
-> AWMS GHG Mitigation Project MX05-B-06, Jalisco, México
-> Replacement of Fossil Fuel by Palm Kernel Shell Biomass in the production of Portland Cement, Malaysia
-> Indur 7.5 MW Non-Conventional Renewable Sources Biomass Power Project , India
-> Rosslyn Brewery Fuel-Switching Project, South Africa
-> Landfill gas recovery at the Norte III Landfill, Buenos Aires, Argentina, Argentina
-> Satyamaharshi 6MW Biomass Power Project, India
-> KMS Power 6MW Renewable Sources Biomass Power Project, India
-> Optimization of steam consumption by applying retrofit measures in blow heat recovery system, India
-> Perpetual 7.5 MW Non-Conventional Renewable Sources Biomass Power Project, India
Deadline for submission of input after 10 September 2005:
-> Fuel oil to natural gas switching at Klabin Piracicaba boilers, Brazil
-> Demand side energy efficiency programmes for specific technologies at ITC Bhadrachalam pulp and paper making facility in India, India
-> Huaycoloro landfill gas capture and combustion, Peru
-> Jilin Taonan Wind Power Project, China
-> Alto Alegre Bagasse Cogeneration Project (AABCP)., Brazil
-> Incomex Hydroelectric Project, Brazil
-> Salto Natal Small Hydroelectric Power Plant - Brascan Energética S.A. Project Activity, Brazil
-> Changling Wind Power Project, China
-> Palestina Small Hydroelectric Power Plant - Brascan Energética Minas Gerais S.A. (BEMG) Project Activity, Brazil
-> Nova Sinceridade Small Hydroelectric Power Plant - Brascan Energética Minas Gerais S.A. (BEMG) Project Activity, Brazil
-> Coruripe Bagasse Cogeneration Project (CBCP), Brazil
-> La Grecia Cogeneration Project, Honduras
-> Guangdong Nan'ao Huaneng 45.05 MW Wind Power Project, China
-> AWMS GHG MITIGATION PROJECT MX05-S-11, BAJA CALIFORNIA, MÉXICO, Mexico
-> Jilin Taobei Huaneng 49.3MW Wind Power Project, China
-> Advanced swine manure treatment in Maitenlahue and La Manga, Chile
-> Advanced swine manure treatment in Ramirana, Chile
-> Lawley Fuel Switch Project, South Africa
-> Advanced swine manure treatment in Las Palmas and Santa Rosa, Chile
-> Canabrava Landfill Gas Project, Brazil
-> Jilin Tongyu Huaneng 100.05 MW Wind Power Project, China
-> 8.5 MW Biomass based Power Plant, India
-> Serra Bagasse Cogeneration Project (SBCP) , Brazil
-> Lihir Geothermal Power Project, Papua New Guinea
-> Efficiency improvement of Turbine Generator to reduce fossil fuel consumption in the Coal fired boiler system, India
-> Demand side energy conservation and reduction measures at ITC Tribeni Unit, India
-> Energy efficiency projects - Steam system upgradation at the manufacturing unit of Birla Tyres, India
-> Ugar Sugar Project, India
-> 125 MW wind power project in Karnataka, India, India
-> Aços Villares Natural gas fuel switch project, Brazil
-> Greenhouse gas (GHG) reduction by implementing energy efficient plough share mixer (PSM) technology in soap manufacturing at Hindustan Lever Limited (HLL), India
-> 12MW Captive Power Project based on Waste Heat, India
-> Shift to low greenhouse gas emitting vehicles for materials transport to and from Doom Dooma plant of HLL, India
-> Fuel oil to natural gas switch at Solvay Indupa do Brasil S.A., Brazil
-> Kalyani Steels Limited Project, India
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NEWLY REGISTERED PROJECT ACTIVITY(IES), 1 Sep 2005
BONN (UNFCCC) - "Kuyasa low-cost urban housing energy upgrade project, Khayelitsha&", South Africa
NEW REQUEST(S) FOR REGISTRATION
"Essaouira wind power project", Morocco - 29 Oct. 05(*)
"LOS ALGARROBOS HYDROELECTRIC PROJECT (PANAMA)", Panama - 01 Oct 05(*)
"Vaturu and Wainikasou Hydro Projects", Fiji - 01 Oct 05(*)
(*) That the activity will be registered as a CDM project activity on this date, unless a request for review is being submitted by one of the Parties involved or three members of the CDM Executive Board at 17:00 GMT the day before this date.
PUBLIC INPUT AT VALIDATION STAGE
That the following activities have been proposed as CDM project activities. DOEs are seeking input at validation stage in accordance with CDM rules.
Deadline for submission of input before 10 September:
AWMS GHG Mitigation Project BR05-B-10, Minas Gerais, Goias, Mato Grosso, and Mato Grosso do Sul - Brazil
AWMS GHG Mitigation Project BR05-B-09, Goias and Minas Gerais, Brazil
AWMS GHG Mitigation Project BR05-B-06, Bahía, Brazil
AWMS GHG Mitigation Project BR05-B-07, Mato Grosso, Minas Gerais, and Goiás, Brazil
AWMS GHG Mitigation Project MX05-B-08, Sonora, México
AWMS GHG Mitigation Project MX05-B-06, Jalisco, México
Replacement of Fossil Fuel by Palm Kernel Shell Biomass in the production of Portland Cement, Malaysia
Indur 7.5 MW Non-Conventional Renewable Sources Biomass Power Project , India
Rosslyn Brewery Fuel-Switching Project, South Africa
Landfill gas recovery at the Norte III Landfill, Buenos Aires, Argentina, Argentina
Satyamaharshi 6MW Biomass Power Project, India
KMS Power 6MW Renewable Sources Biomass Power Project, India
Optimization of steam consumption by applying retrofit measures in blow heat recovery system, India
Perpetual 7.5 MW Non-Conventional Renewable Sources Biomass Power Project, India
Deadline for submission of input after 10 September 2005:
Fuel oil to natural gas switching at Klabin Piracicaba boilers, Brazil
Demand side energy efficiency programmes for specific technologies at ITC Bhadrachalam pulp and paper making facility in India, India
Huaycoloro landfill gas capture and combustion, Peru
Jilin Taonan Wind Power Project, China
Alto Alegre Bagasse Cogeneration Project (AABCP)., Brazil
Incomex Hydroelectric Project, Brazil
Salto Natal Small Hydroelectric Power Plant - Brascan Energética S.A. Project Activity, Brazil
Changling Wind Power Project, China
Palestina Small Hydroelectric Power Plant - Brascan Energética Minas Gerais S.A. (BEMG) Project Activity, Brazil
Nova Sinceridade Small Hydroelectric Power Plant - Brascan Energética Minas Gerais S.A. (BEMG) Project Activity, Brazil
Coruripe Bagasse Cogeneration Project (CBCP), Brazil
La Grecia Cogeneration Project, Honduras
Guangdong Nan'ao Huaneng 45.05 MW Wind Power Project, China
AWMS GHG MITIGATION PROJECT MX05-S-11, BAJA CALIFORNIA, MÉXICO, Mexico
Jilin Taobei Huaneng 49.3MW Wind Power Project, China
Advanced swine manure treatment in Maitenlahue and La Manga, Chile
Advanced swine manure treatment in Ramirana, Chile
Lawley Fuel Switch Project, South Africa
Advanced swine manure treatment in Las Palmas and Santa Rosa, Chile
Canabrava Landfill Gas Project, Brazil
Jilin Tongyu Huaneng 100.05 MW Wind Power Project, China
8.5 MW Biomass based Power Plant, India
Serra Bagasse Cogeneration Project (SBCP) , Brazil
Lihir Geothermal Power Project, Papua New Guinea
Efficiency improvement of Turbine Generator to reduce fossil fuel consumption in the Coal fired boiler system, India
Demand side energy conservation and reduction measures at ITC Tribeni Unit, India
Energy efficiency projects - Steam system upgradation at the manufacturing unit of Birla Tyres, India
Ugar Sugar Project, India
125 MW wind power project in Karnataka, India, India
Aços Villares Natural gas fuel switch project, Brazil
Greenhouse gas (GHG) reduction by implementing energy efficient plough share mixer (PSM) technology in soap manufacturing at Hindustan Lever Limited (HLL), India
12MW Captive Power Project based on Waste Heat, India
Shift to low greenhouse gas emitting vehicles for materials transport to and from Doom Dooma plant of HLL, India
Fuel oil to natural gas switch at Solvay Indupa do Brasil S.A., Brazil
Kalyani Steels Limited Project, India
Proposed new A/R methodologies submitted, 25 Aug 2005
BONN (UNFCCC)
- The following proposed new A/R baseline and monitoring methodologies
- "ARNM0012: Afforestation or reforestation project activity implemented on unmanaged grassland"
- "ARNM0013: The Mountain Pine Ridge Reforestation Project (MPR Project)"
have been submitted for consideration of the CDM Executive Board for its review and are available for public input on the UNFCCC CDM web site.
The submitted documentation is available under the following link: http://cdm.unfccc.int/methodologies/ARmethodologies/process
In accordance with the "procedures for submission and consideration of a proposed new A/R methodology", the secretariat, having checked that the "CDM proposed new A/R methodology forms" have been duly filled by the DOEs and documentation provided by the DOEs is complete, forwarded the documentation to members of the A/R working group for quality assessments of the submissions. As the before mentioned cases were graded 1, the documentation shall be considered as received by the Board and be forwarded by the secretariat for consideration of the Board and the A/R WG. The date of transmission to the Executive Board is to be considered as the date of receipt of a proposed new A/R methodology by the Board.
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New search tool for CDM approved methodologies available, 12 Aug 2005
BONN (UNFCCC)
A search tool has been developed for CDM approved baseline and monitoring methodologies on the UNFCCC CDM web site.
This tool facilitates searching through all CDM approved methodologies, including CDM small scale methodologies, as it allows to perform a full-text search and advanced search by reference number, methodology title and sectoral scope.
The link to the search engine is available at the top of the following page: <http://cdm.unfccc.int/methodologies>.
For help and information on how to use the search facility, click on the "help link" available on the search interface.
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Public comments received on AR issues, 11 Aug 2005
BONN (UNFCCC)
The comments received as response to the public call of the below-mentioned A/R documents are now available on the UNFCCC CDM web site.
- Draft simplified baseline and monitoring methodologies for selected A/R small-scale CDM project activity categories;
- Draft tool for the demonstration and assessment of additionality for CDM A/R project activities.
The comments can be found at http://cdm.unfccc.int/
Background:
In accordance with the request of the CDM Executive Board, at its twentieth meeting, these two documents were open for public comments from 12 July to 8 August 2005.
Comments received shall be considered by the A/R WG with a view to make recommendations to the Executive Board for consideration at its twenty-first meeting.
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Public consultation underlines support for tackling aviation's contribution, 29 Jul 2005
BRUSSELS (European Commission) - A public internet consultation conducted by the European Commission has shown broad support among the aviation industry, NGOs and citizens for taking action to limit the aviation sector's growing impact on climate change. The results of the two-month consultation are published today. The Commission is also publishing a new study which shows that it would be feasible to include airlines in the EU greenhouse gas emissions trading scheme. This is one of the options that the Commission is considering as it prepares to put forward an EU strategy for tackling aviation's contribution to climate change. This strategy is scheduled for after the summer break.
Environment Commissioner Stavros Dimas said: "The message from the many citizens and organisations who expressed their views is very clear: it is time for the air transport sector to start contributing to the fight against climate change. And there is an understanding and acceptance that this must happen even if it may lead to a modest rise in ticket prices."
The issue
Aircrafts contribute to climate change in many ways, of which the emission of the greenhouse gas carbon dioxide (CO2) is the best understood and quantified. Aviation's share of overall EU greenhouse gas emissions is rapidly increasing. From 1990 to 2003, EU greenhouse gas emissions from international aviation rose by 73%, corresponding to annual growth of 4.3%. While new technologies may bring significant improvements in the decades to come, these will need to be developed and introduced much faster than at present if they are to match the expected growth in air traffic. With the world passenger aircraft fleet likely to double by 2020, the growth in emissions could continue if no further action is taken.
Public consultation
Almost 5,600 individuals and 200 organisations submitted responses to the internet consultation carried out during the spring. A large majority of those citizens responding (82%) fully agreed with the policy objective of including the air transport sector in efforts to mitigate climate change. Nine out of ten fully or rather agreed with the objective of strengthening economic incentives for air transport operators to reduce their impact on the climate. Only 13% did not agree that increasing the price of air transport would be acceptable if it is necessary to reduce its impact. Organisations such as airports, airlines and NGOs also believe that action is required: 99.5% of respondents fully or rather agreed that the air transport sector should be included in efforts to mitigate climate change, although opinions differ on how this should be done.
Study on emissions trading
The Commission is currently looking at the options available and in particular those which can strengthen airlines' economic incentive to reduce emissions. To complement previous studies on fuel taxation and emissions charges, the Commission had a study carried out into the possibility of including aviation in the EU greenhouse gas emissions trading scheme (ETS).
The study, whose final report is published today, shows that including aviation in the ETS would be feasible. It analyses different possibilities for doing so and gives indications of the possible impacts. It shows that flights from the EU to non-EU countries are responsible for more than 60% of all emissions from aircraft taking off from EU airports. The study concludes that it would be legally possible for the EU to include these emissions in the scheme provided that all aircraft operators are treated in the same way, regardless of nationality.
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European Commission launches a four-year Campaign to raise public awareness on sustainable energy, 18 July 2005
BRUSSELS (European Commission) - "Intelligent energy production and consumption will change the European energy landscape forever". This is the core message of the Sustainable Energy Europe campaign that the European Commission launched today, and which will last until 2008. This action is set to contribute to meeting EU energy policy aims: an increase in the share of renewable energy up to 12% by 2010, together with substantial savings in energy consumption that have been estimated in the recently adopted Green Paper on Energy Efficiency at 20% by 2020. Energy Commissioner Andris Piebalgs on launching the campaign said: "This campaign will promote better living standards, stimulate economic growth, create jobs and enhance the competitive position of European industry on world markets."
The objectives of the campaign are to raise the awareness of decision-makers at local, regional, national and European level, spread best-practice, ensure a strong level of public awareness, understanding and support, and stimulate the necessary trends towards an increase in private investment in sustainable energy technologies.
The Sustainable Energy Europe 2005-2008 Campaign specifically supports and promotes actions in the following nine main campaigning areas: Regions, Cities, Islands and Rural Areas, Communities aiming at 100% RES Supply, Transport, Buildings, Lighting Systems and Appliances, Co-operation with Developing Countries and Promotion and Communication.
Annual key events are scheduled in the framework of the Campaign such as the Conference and the Sustainable Energy Awards. A Campaign website will bring information to the decisions-makers, the media and the public and a Media Desk is at your disposal.
The Sustainable Energy Partnerships are the main instruments of the Campaign made up of organizations that are currently implementing, or planning to implement, a project or programme intended to have a significant impact upon the related energy environment in the European Union. The partnerships represent a European network, specially designed to actively involve and promote a wide range of projects and programmes in the context of the Campaign.
Within the Campaign, achievable benchmarks for 2008 are also provided, in order to measure the progress of sustainable energy actions and serve as goals for decision-makers and planners.
In the area of renewable energy sources, these benchmarks are in line with the EU 2010 targets and/or the estimates (i.e. during the period 2005-2008 the installation of 15000 MW new capacities of wind turbines and the construction of 450 new combined biomass heat and power plants). A fivefold increase is expected in the production capacity of bioethanol, and a threefold increase in biodiesel. Amongst benchmarks relative to energy performance in buildings, around 5 million inspections and assessments of heating systems will take place, 2 million Energy Performance Certifications on smaller buildings will be assured and the construction of 50 000 'very low' energy houses is expected.
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China gets involved in renewable energies - "Renewables" follow-up conference 7 to 8 November 2005 in Beijing, 13 Jul 2005
BERLIN (Federal Ministry for the Environment, Nature Conservation and Nuclear Safety) - The German Environment Minister, Jürgen Trittin, and the German Development Minister, Heidemarie Wieczorek-Zeul, have welcomed the official announcement by the Chinese government to hold an international conference on promoting renewable energies from 7 to 8 November 2005. The "2005 Beijing International Renewables Conference" will become one of the most important international events this year for enhancing renewable energies.
The German Environment Minister, Jürgen Trittin: "With the implementation of its programme of action announced at the 2004 conference in Bonn and the organisation of this conference, China underlines its active role in promoting renewable energies."
The German Development Minister, Heidemarie Wieczorek-Zeul: "The announcement is evidence of the importance which renewable energies have acquired not only for industrial but also for developing and transformation countries."
Both German ministers wish to support China in organising the conference in Beijing. The conference is designed as a follow-up conference to 'renewables 2004' which had been organised by Germany last year in Bonn. In June 2005 already, the Renewable Energy Policy Network for the 21st Century, REN21, was officially established. The conference will address in particular the current stage of the global expansion of renewable energies, the options regarding a control mechanism and reporting system for the International Programme of Action, and also the transfer of technology. The range of participants should comprise all UN member states, with international organisations, non-governmental organisations and the private sector also attending.
The conference is an important landmark in further developing international cooperation to enhance renewable energies and serves to prepare the UN negotiations of the Commission for Sustainable Development which will be forthcoming in 2006.
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European Commission sends Reasoned Opinions to 9 Member States for failure to implement European legislation on biofuels, 6 Jul 2005
BRUSSELS (European Commission) - Today, the Commission sent Reasoned Opinions and letters of formal notice to Member States that have not fulfilled their responsibilities under the biofuels Directive. "This is particularly unfortunate since biofuels have an important role to play in European transport and energy policy as one of the few options available for replacing oil-based transport fuels", said Commissioner Piebalgs in charge of energy. "They tackle climate change by avoiding emissions of greenhouse gases; they diversify Europe's sources of energy and reduce dependence on oil imports; and they offer new markets for European agriculture".
Under the Directive, Member States had to accomplish three tasks during 2004: transpose the Directive; send the Commission a national report with an indicative target for the share of the petrol and diesel market that will be taken by biofuels at the end of 2005; and explain any difference between this target and the 2% "reference value" in the Directive.
Despite letters of formal notice sent in February, Estonia, Finland, Greece, Italy, Luxembourg, the Netherlands, Portugal and Slovenia have still not informed the Commission of the measures they have taken to transpose the Directive.
Despite letters of formal notice sent in March, Italy, Luxembourg and Slovenia have still not submitted their national reports, while Estonia's national report does not contain a target and the target in France's report is only a provisional one.
Reasoned Opinions have therefore been sent to these two groups of Member States.
In their national reports, several Member States deviated from the reference value of 2%. Having examined the reasons given, the Commission considers that the targets adopted by seven of them are not in compliance with the Directive's requirements. These are Denmark (target of 0.0%), Ireland (0.06%), Finland (0.1%), the United Kingdom (0.3%), Hungary (0.4-0.6%), Poland (0.5%) and Greece (0.7%). The Commission's negative assessments rest on the fact that the reasons given lack relevance, seem incorrect, put the desirability of the Directive itself into question, or would - if correct - apply to all Member States; or that the proposed target would not promote the use of biofuels. Letters of formal notice have been sent to these seven states, explaining the Commission's assessment and asking them for their observations.
Biofuels include biodiesel made from oil seeds (especially rape) and used cooking oil; bioethanol made from grain and sugar crops; and biogas made from landfill gas and farm waste.
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EU and India launch new co-operation on energy, 29 Jun 2005
BRUSSELS (European Commission) - The 1st meeting of the India - EU Energy Panel took place in Brussels today. The Panel was opened by François Lamoureux, Director General for Energy and Transport of the European Commission, and India Foreign Secretary Shyam Saran. The high level Indian delegation and the representatives of the European Commission had fruitful discussions on energy topics of common interest, including the use of clean coal technologies, renewable energies and energy efficiency. The two sides agreed on future co-operation in the areas of integrated energy markets, gas and oil and on energy forecasts in general.
The 1st India-EU Energy Panel is a further step in the intensification of the partnership between the European Union and India. The main objective of this first meeting was to identify the priority areas of common interest for the future work of the panel. Main areas covered in the discussions included the security of energy supply, environmental/climate change considerations, energy efficiency, nuclear energy and renewable energy, as well as energy market reforms.
The meeting confirmed the mutual interest in strengthening co-operation in this important sector. India and the EU face similar challenges in the energy sector, in particular as regards the security of energy supply for the next decades and sustainable energy development. The development of environmentally friendly technologies in the coal sector is therefore an important issue, which both sides decided to commonly tackle in the future. The EU side also declared its preparedness to share with the Indian partners its considerable experience in the area of the functioning of the internal gas and electricity markets, energy efficiency and the use of renewable energy sources.
It was agreed to have the next meeting of the Panel in India by the end of the year and to seek to develop joint actions on the above mentioned areas.
The Decision to set-up the Panel was taken at the 5th EU India Summit held in The Hague on 8 November 2004.
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CO2 emissions from new cars in the EU-15 down by almost 12% since 1995, 23 Jun 2005
BRUSSELS (European Commission) - CO2 emissions from new passenger cars sold in the EU-15 decreased by 11.8% between 1995 and 2003, a 1.2% progress compared to 2002. The annual report on CO2 emissions from new cars, adopted by the European Commission today, shows that the car industry has made progress in fulfilling its obligations under the voluntary agreements to market cars that emit less CO2. However, the report also underlines that major additional efforts will be required in the coming years in order to deliver the target to which the industry has committed itself.
Commission Vice-President and Commissioner for Enterprise and Industry Günter Verheugen said: "I am encouraged by the good results achieved particularly by the European and Japanese Associations since 1995. Industry is pointing out that the targets remain ambitious but the results so far show that they are taking the commitments very seriously. On the Korean side, we have received assurances that they will increase their efforts and catch up soon with the other two associations."
Commenting on the reduction, Environment Commissioner Stavros Dimas said: "I appreciate the efforts of car manufacturers to deliver cars that emit less CO2. I hope that the car industry will continue its efforts to meet the 140 g of CO2//km target under the voluntary agreement. This will be crucial to achieve the ultimate EU goal of 120 g of CO2/km. To respect the Kyoto commitments and reduce our oil dependence, we must reduce CO2 emissions from transport, the sector whose emissions keep growing."
The commitments of the European, Japanese and Korean car manufacturers' associations to reduce CO2 emissions to 140 g/km by 2008/2009 are the first pillar of the EU's Strategy to reduce CO2 Emissions from New Passenger Cars. The other two pillars are consumer information (fuel efficiency labelling), and fiscal incentives.
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Europe could save 20% of its energy by 2020, 22 Jun 2006
BRUSSELN (European Commission) - The European Commission adopted today a Green Paper on Energy Efficiency that seeks to put energy savings higher on the agenda. Faced with increasing oil prices and the prospects of having 70% of its energy needs covered by imports by 2030, the European Union needs to start a discussion on how to save energy .. The Green Paper lists a number of options to save 20% of energy consumption by 2020 in a cost effective way through changes in consumer behaviour and energy efficient technologies. These savings would allow the EU to save an estimated ¤60 billion on its energy bill. This will in turn represent investments in the EU economy where European industry can strengthen its lead. "This energy efficiency initiative will help Europe achieve two fundamental goals of the Lisbon Strategy: creating more growth and better jobs. It will also help Europe meet its Kyoto commitments", said Commissioner Andris Piebalgs in charge of energy. "The European Union needs to explore all the possible avenues to reach the goal of 20% savings"
Using energy saving lamps, replacing an old boiler, getting rid of the old fridge, checking the pressure of car tyres, insulating the roof: these are just some of the things that many consumers can do to save energy. Industry can also improve its production processes. Both citizens and industry need to be stimulated by public authorities to do these energy savings.
Current trends point indeed in the direction of ever increasing energy use with a level of consumption in the EU that could increase by 10% in the coming 15 years if nothing is done. With this Green Paper, the Commission is proposing to reverse the trend and explains how it is feasible to reach 20% energy savings by 2020 in a cost-effective way. The text emphasises that half of the savings could be reached through a full implementation by Member States of already adopted legislation (or about to be adopted) on buildings, domestic appliances or energy services. To save the other 10%, Europe now needs to be imaginative and proactive.
The options listed by the Green Paper embrace all sectors - production and end-use, industry and services, households and buildings, transport and international relations. They concern all stakeholders, from national, regional and local decision-makers, to banks, international institutions and individual consumers. The Commission suggests a wide range of policy tools, including financial incentives, regulations, setting of objectives, information and training and international dialogue.
Examples of actions include: establishing Annual Energy Efficiency Action Plans at national level; improving energy pricing and taxation to ensure that the polluter really pays;; using public procurement to kick-start new technologies; extending the scope of the European Directive on buildings and finding new and improved way of financing.
The Green Paper is the point of departure for a broad debate involving all stakeholders. In 2006, at the end of the consultation process, the Commission will come forward with a comprehensive Action Plan which will identify measures which should be put forward. In order to prioritise the options mentioned, thorough cost-benefit analysis will be carried out.
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European Commission approves "coal package" authorising restructuring plans for the Polish, German and Hungarian coal industry until 2010, 22 Jun 2005
BRUSSELS (European Comission) - The European Commission decided today to authorise the restructuring plans for the Polish, German and Hungarian coal industry, considering that the plans presented by the three governments are in line with European rules on state aid for the coal industry and are compatible with the proper functioning of the common market. Andris Piebalgs Commissioner for energy declared: "The domestic coal production in the European Union contributes to our security of energy supply. Today's approval of three restructuring plans covering the period until 2010 allows mining companies and Member States governments to put their medium term energy strategy on stable ground."
Poland's coal industry on the way to economic viability after important debt reduction
Poland has launched an ambitious restructuring program for its coal mines, which foresees the cancellation of an important part of the inherited liabilities, the close-down of unprofitable mines, a reduction of the work force through early retirement and retraining, and the privatisation of the still state-owned mines.
For the years 2004 to 2006, Poland intends to spend 6.2 billion Polish Zloty (¤1.4 billion) in restructing its coal industry. Out of this, the Commission considers that 18 million Polish Zloty do not constitute state aid, as they are paid out to a public entity in charge of administrating the close-down of mines, which does not perform an economic activity. The remainder of the aid is compatible with the common market, as it serves for financing inherited liabilities.
For the years 2007 to 2010, the Polish state plans to reduce its support to the coal industry to 160 million Polish Zloty per year, supporting mainly so-called initial investments.
Poland counts currently 40 coal mines, with an annual production of around 100 million tons of coal per year.
German coal industry continues restructuring process
The Commission having already approved the state aid to the German coal industry for the years 2004 and 2005, Germany has notified a restructuring plan covering the years 2006 to 2010. Overall, it intends to grant ¤12 billion to its currently 10 coal mines, out of which four are scheduled for closure by 2010. The plan foresees ¤22 million aid for the reduction of activity, ¤8.6 billion aid for financing current coal production, and ¤3.5 billion aid for financing inherited liabilities.
Germany produced 27 million tons of coal in 2004; until 2010, the production will be reduced to 18.5 million tons.
Hungary: limited use of coal for electricity production
Hungary has closed down most of its coal mines since 1989; today, there remain one big open-cast mine serving the Matra power plant, one important underground mine serving the Vertes power plant, and six minor open cast mines serving local markets. Open cast production in Hungary is economically viable; the underground mine serving the Vertes power plant, on the contrary, is in need of state aid for current production. Hungary intends to grant a total aid for the years 2004 to 2010 of HUF 64.3 billion (¤255 million). The yearly aid amounts are digressive, falling from HUF 12 billion (¤47 million) in 2004 to HUF 6.9 billion (¤27.4 billion) in 2010. The Commission considers that the proposed aid is compatible with the common market.
Coal production and State aid in the European Union
Currently, eight of the 25 Member states of the European Union produce coal: besides Poland, Germany and Hungary, the list includes Great Britain, Spain, Czech Republic, Slovakia and Greece (lignite). France closed its last mine in 2004. Only countries intending to grant aid under Article 5 of the Coal Regulation need to notify restructuring plans to the European Commission. These restructuring plans contain a detailed planning for the period 2003 to 2010, and serve the Commission as a basis for approving the annual aid payments of the Member states.
Besides Poland, Germany and Hungary, Spain is the only other country granting aid under Article 5 of the Coal Regulation. The Commission is currently investigating Spain's restructuring plan for the years 2003 to 2005.
The Czech Republic and Slovakia only grant aid to their coal industry for financing inherited liabilities under Article 7; Great Britain is giving initial investment aid, which has been approved by the Commission in 2003.
The Coal Regulation expires on 31 December 2010; the Commission will present a mid-term review of the Regulation and its application the latest on 31 December 2006.
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Climate change: More coal use pushes up EU greenhouse gas emissions in 2003, 21 Jun 2005
BRUSSELS (European Commission) - Emissions of carbon dioxide (CO2) and other greenhouse gases rose by 1.5% in the EU-25 in 2003 compared with 2002. EU-15 emissions went up by 1.3%. These are the findings of the latest national estimates collated by the European Environment Agency (EEA), Averaged over the latest five years, EU-15 emissions stood 2.9% below their 1990 level. Under the Kyoto Protocol on climate change, the EU-15 have to cut their combined greenhouse gas emissions, averaged over the 2008-2012 period, to 8% below the 1990 level. A rise in coal use for electricity generation pushed up EU emissions of greenhouse gases in 2003.
Stavros Dimas, Commissioner for Environment, said: "These figures are disappointing and further reinforce the need for Member States to fully implement all the emission-reduction actions agreed at EU level as well as their own national measures." He continued by recalling that several major initiatives, including the EU Emissions Trading Scheme, were not yet in place in 2003. He remains confident that the EU will achieve its Kyoto targets once these kick in fully. He added that member states will shortly be submitting new projections that take account of these policies and measures. These will be analysed by the Commission over the coming months.
Key factors
The 1.3% increase in EU-15 greenhouse gas emissions in 2003 equates to an extra 53 million tonnes. Almost half of this rise - 24 million tonnes - was due to a 2.1% increase in emissions from energy industries, which in turn was caused mainly by growth of 5% in electricity and heat production and in coal consumption by power stations. Coal produces higher emissions of carbon dioxide (CO2), the main greenhouse gas, than other fossil fuels. The biggest emission rises from electricity and heat production were in those countries which substantially increased their coal use.
Emissions from households and the services sector in the EU-15 rose considerably by 18 million tonnes, or 2.8%, partly due to colder than usual weather in the first quarter of the year in the same countries which increased their heating needs. Industry saw its emissions rise by 17 million tonnes, or 2.1%, while transport emissions increased by 6 million tonnes, or 0.7%.
Measures to reduce emissions
The Commission's European Climate Change Programme, which brings together key stakeholders, has identified 42 EU-level measures to help the EU reach its Kyoto targets in cost-effective ways. Most of these measures are now in place, but this was not yet the case in 2003 for several important initiatives.
For instance, the EU Emissions Trading Scheme was launched only on 1 January this year. Directives on the taxation of energy products and the promotion of biofuels in transport also become effective only this year. Some proposals, for example for controlling emissions of fluorinated greenhouse gases used in air conditioning, are still awaiting adoption by Council and the European Parliament.
Projections
The latest projections of future emissions, published last December, indicated that the EU-15 could achieve emissions reduction of just over 8% by 2010 by fully implementing existing and planned measures and by obtaining emission credits through the Kyoto Protocol's project-based mechanisms.
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Emissions trading: Commission approves last allocation plan ending NAP marathon, 20 Jun 2005
BRUSSELS (European Commission) - The European Commission today accepted the Greek plan allocating CO2 emission allowances to Greek companies for the 2005-2007 trading period. With today's Decision, the Commission has completed its assessment of allocation plans for the first 2005-2007 phase of the EU Emissions Trading Scheme. The scheme allows for greenhouse gas emissions from the power sector and from energy-intensive plants to be cut at least cost to the economy.
Environment Commissioner Stavros Dimas said: "I am very glad that the Greek national allocation plan has been approved. With this approval, the emissions trading system is complete and we are looking forward to active spot market trading involving all Member States, which can begin once all national registries have been put into place. "
The Greek allocati |
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