General CF and CDM Jan 2011

8/4/2019 General CF and CDM Jan 2011

1/25

TAPPING THE CARBON

MARKETS

January, 2011

Give your brand a green advantage


2/25

CONTENTS

INDUSTRY: GROWING REQUIREMENTS OVER TIME

INTERNATIONAL CARBON MARKET

EMERGING NEED

PROPOSED APPROACH

CARBON FOOTPRINT: AN IMPORTANT STEP IN GOING GREEN

CLEAN DEVOLOPMENT MECHANISM (CDM)

ECOLOGIKOL ROLE

ABOUT US


3/25

Industry: Growing Requirements over time

Over the years, stakeholders have required industry to implement variousCompliance initiatives such as:

Quality

Safety

Social Accountability

Ethical Standards

Environmental Standards

What Next?


4/25

The New Need is for Green: Are we Ready?

Market, Policy and Regulatory Forces are driving Organisations towards Green

initiatives Market Forces

International Carbon Market

Increasing cost of energy

Increasing consumer awareness and demand for greener products, servicesand supply chain

Major corporations are going Green creating peer pressure

Stakeholders expectations on organisations to act Environmentallyresponsible

Reducing cost of clean technologies and easier access

Customers prefer greener services/products and in many cases, are willing

to pay a premium for such services Globally, there is a shift towards Greener Lifestyles and Eco living

Policy Forces

National and International Action Plan on Climate Change

National and International incentives for Renewable energy and Clean Tech


5/25

The New Need is for Green: Are we Ready?

Market, Policy and Regulatory Forces are driving Organisations towards Green

initiatives

Regulatory Forces (existing and proposed)

Mandatory Energy Efficiency Standards

Mandatory Emission caps by Governments

Proposed Carbon tax for emission and fossil fuel intensive exports

Mandatory Renewable Energy Targets


6/25


Consumer

preference


7/25

The Emerging Need

A glance of the regulatory, policy and market forces as explained above

clearly indicates the following:

The impact of climate change related forces are becoming critical to

businesses

These forces are dynamic and growing at a fast pace

A Sustainability Strategy is the first step in consolidating all climate

change related matters of the Company and would help in informed and

objective decision making This shall start with a Carbon and Ecological Footprint Assessment of the

organisation


8/25

Proposed Approach


9/25

CARBON

FOOTPRINT


10/25

Carbon Footprint: An important step in GoingGreen

Carbon Footprint is a measure of the impact a product/service has on

the environment in terms of the amount of green house gases produced

It involves the assessment of emissions from energy consumption,

processing, transportation, waste management, raw material and supply

chain among others

The Carbon Footprint of a product or a service could be determined and

represented as tonnes of CO2 per unit service or product

A verified Carbon Footprint of a product/service can be published

The GHG emissions associated with a service/product can be measured

and reduced or offset by means of other emission reduction credits

A product/service with net zero GHG emissions can be labelled as

Carbon Zero (eg: xxxxxxxxxxxxxx)


11/25


12/25

THE PROCESSAssessment of Emissions are categorized under nine broadcategories:

Energy use

Chemical reactions

Combustion process Refrigerant loss

Operations

Service provision and delivery

Land use change

Livestock and other agricultural processes

Waste


13/25

CLEAN DEVELOPMENT

MECHANISM


14/25

Climate Change is the enhanced Greenhouse Gas effect

The greenhouse effect is a natural phenomenon that helps regulate theEarths temperature.

Greenhouse gases act like an insulating blanket, trapping solar energythat would otherwise escape into space.

Without the natural greenhouse effect, Earths temperature would beabout 30 C lower than what it is now.

Anthropogenic activities, primarily the burning of fossil fuels have

increased the natural green house effect.

As a result, the average atmospheric temperature increases resulting inClimate change

Climate Change


15/25

GHG and Climate Change

Green house gas

(GHG)

Carbon-di-oxide (CO2)

Methane (CH4)

Nitrous oxide (N2O)

Per fluoro carbons (PFCs)

Hydro fluoro carbons (HFCs)

Sulphur hexa fluoride (SF6)

Global Warming Potential(GWP)

1

21

310

Upto 9,500

Upto 11,700

23,900

Human activities are increasing the concentration of Green

House Gases (GHGs) in the atmosphere.

This enhances the green house effect, commonly known as

Climate Change


16/25


Consumer

preference

Carbon credits are generally traded in tonnes of CO2

equivalent.

1 tonne of CO2 reduction = 1 carbon credit


17/25

INTERNATIONAL CARBON MARKETS

KYOTO CARBON MARKET

Kyoto Protocol was formed by the UN to reduce global GHG emissions

It provides GHG reduction targets for Annex-1 (developed) countries (5.2%

below 1990 level for the period 2008-2012)

Negotiations are underway for the subsequent periods

VOLUNTARY MARKETS

Several socially responsible Companies, Individuals, Events etc are reducing

their carbon footprints by purchasing carbon credit offsets

REGIONAL MARKETS

National and State Governments have developed their own carbon reduction

programs with cap and trade schemes


18/25

Clean Development Mechanism

Kyoto Protocol requires developed countries to reduce their emissions by specific

amounts

The Clean Development Mechanism (CDM) is an arrangement under the Kyoto Protocol

allowing developed countries with GHG reduction commitment to invest in emission

reduction projects in developing countries.

CDM is an alternative to more expensive emission reductions in their own countries.

CDM intends to provide incentives to cleaner technology projects and make them viable,

which would otherwise not be implemented due to various barriers

A crucial feature of a CDM project is that it has established that the planned reductions

would not occur without the additional incentive provided by emission reductions credits,

a concept known as "additionality.''

2700 projects have been registered worldwide till date as CDM


19/25

Basic CDM Eligibility

The construction of the project should have started after01 Jan 2000.

Project should start the CDM process parallel to theconstruction activity. Should intimate UNFCCC

Start Date

Project should result in reduction of any of the six GHGgases under the Kyoto ProtocolGHG Reduction

Project should not be implemented as a result of a policy

or legal mandate (e.g.,: To meet pollution norms)Voluntary


20/25

Basic CDM Eligibility

In the normal scenario, the project would not be

implemented due to technological risk or poor financial

viability or other such barriers

Additionality

The consideration of CDM revenue should make theproject viable

Proof of knowledge of CDM and the consideration of

CDM revenue during decision making is important

CDM Consideration

Sustainable

development

Project should contribute to the socio-economic,

technological and environmental well being of the regioneither directly or indirectly


21/25

Availing Carbon Credits


22/25

Carbon Credits General Thumb rules

1 MWh of electricity saved = 0.75 carbon credits approx.

1 MWh of renewable electricity generated = 0.75 carbon credits approx.

1 Tonne of fuel oil saved = 3 carbon credits approx.

1000 M3 of gas saved = 2.2 carbon credits approx.

Minimum number of credits per project to cover CDM cost = 5000 carbon credits

per year


23/25

Ecologikol's Role

Ecologikol helps organisations to go green with the following solutions :

Climate Change Impact Assessment and Strategy Identifying opportunities and

risks for businesses

Estimation of Carbon Footprint and Facilitation for Carbon Certifications

Green Factory Advisory Services

Corporate Sustainability Reporting (As per GRI Standard)

Carbon Credit Advisory Services

Renewable Energy Services


24/25

ABOUT US

ECOLOGIKOL is the brain child of a group of energy and environmental experts

with extensive and pioneering experience in the field of Climate Change,

Energy and Sustainability.

Our Professional team, gathered from leading Multi National Consulting

organizations, have been associated with some of the first Climate Change

and Green Factory projects in India and have many registrations

subsequently to their credit.

Our Professionals are experienced in successfully managing and executing

more than 50 climate change projects across various sectors such as

textiles, sugar, cement, paper, iron and steel, oil and gas, renewable energy,

automobiles etc

Our professionals have worked with projects for major Corporates in South India

such as TNPL, Shri Renuga Textiles, Sree Santhosh Garments, EID Parry,

Bannari Amman Sugars, Auro Mira, MSPL, Nippo, Aditya Birla etc.


25/25

Contact

ECOLOGIKOL Advisors India Pvt. Ltd.

No.26/7, Abhirampuram First Street,

Chennai - 600 018, India.

Phone 1: +91-44 45534101|

Email: [email protected]
mailto:[email protected]:[email protected]

Documents

General CF and CDM Jan 2011