ets ecosecurities latest development

8/13/2019 Ets Ecosecurities Latest Development

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Carbon Expo

sa s or

EcoSecurities GroupMay 2007

Carbon credits - origination to commercialisation 2006 EcoSecurit ies Group p lc


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> Who we are

> CDM and JI Development

Helicopter view on progress

Challenges and Opportunities> Looking Forward



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Local presence in over 20 countries, and CDM or JI projects in 36 countries

Oxford

New YorkKarachi, Pakistan*

Mumbai

Los Angeles

Mexico City

Rio de Janeiro

Santiago de Chile

Dublin

*

ang o

BeijingChengdu

Philippines

Kuala Lumpur

Jakarta

ar s

Madrid*

The Hague

Casablanca, Morocco

Johannesburg

Guatemala

Jordan

* No legal presence but EcoSecurities has entered into contracts with individuals



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CDM Development



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Over the last year, submission

continued to grow with volume

for the yearly period Aug 2006-

previous year.

1 900 million otential CERs in

Potential Volume

(million CERs)

pipeline0% 20% 40% 60% 80% 100%

Historic (before Aug 2005) Aug 2005-Aug 2006 Aug 2006-Apr 2007

Source: UNFCCC



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90

100

60

70

80

odologies

30

4050

mberofM

et

0

10

20N

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Submission Round


Source: UNEP-RISOE


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The CDM project cycle100% Registered, No

Of the 1743 projects,

174 have received CERs

Registered, No

issuance

requested, 367

Registered, No

issuance

requested, 216

80%

90%

issuance requested

Registered, Requested

CER Issuance

Request for

registration, 108

Request for

registration, 54

Registered, Issued

CERs, 174

,

CERs, 35

60%

70%

eg s ere , ssue

CERs

Rejected by EB

40%

50%Withdrawn

Under review

At validation, 1047At validation, 649

30%Correction requested

Request for review

10% Request for registration


April 07 August 06

va a on

Source: UNEP-RISOE


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CDM Geographical distribution311

195Rest of World

14

2

10

2

Argentina

Nigeria

44

32

69

19Malaysia

Chile

221

28

179

15

Brazil

South Korea

397

598

120

363

China

India

100,

00

200,

00

300,

00

400,

00

500,

00

600,

00

700,

00

800,

00

900,

00

1,

000,

00

Count A ril 07 Sum of 2012 ktCO2 A ril 07 Count Au ust 06 Sum of 2012 ktCO2 Au ust 06

Potential Kt

CO2e to 2012


Source: UNEP-RISOE


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-

China continues to show

significant growth in terms

46%

55%

8%South Korea

Mexico of number of projects and

volume

19%4%Brazil

progress

-1st mover advantage

70%

39%

60%China

n a-Less industrial

-Slow and problematic

approval process

-20% 0% 20% 40% 60% 80%

% Increase in no o f PDD's from Aug 06 to Apr 07 % increase of volume to 2012 ktCO2 Aug 06 to Apr 07



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CDM Technology diversification400

347

300

350

s

169

202 211215

169200

250

oo

109

32 31

11 19

66

218

19 24

110

38

2210

40

14

80

125

50

100

0

ric

ulture

B

iogas

se

nergy

Cement

me

thane

use

holds

industry

Service

pplyside

tribution

elswitch

Fugitive

oth

ermal

HFCs

Hydro

ndfillgas

N2O

PFCs

res

tation

Solar

Tidal

ransport

Wind

A

Bioma

alb

ed/mine

EEho E E

EEsu

Energydi

Fossilf G L

a

Ref


Source: UNEP-RISOE

C

Apr-07 Aug-06


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Technology by Volume1110EE Service

In terms of volume, high

dependency on few HFC11

1

4

7

1

1

2

4

Solar

Tidal

PFCs

Energy distributi on

EE households

an n us r a gas pro ec s

6

4

3

2

19

86Geothermal

EE supply side

Reforestation

Transport

32

109

169

21

38110

7

125Wind

Fugitive

Agricu lture

Biogas

Cement

31

66

202

378

7

40

127

215Biomass energy

EE industry

Fossil fuel switch

Coal bed/mine methane

347

130

24

19

80

6

14HFCs

N2O

Landfill gas

Hydro


Figures denote number of projectsSource: UNEP-RISOE

, , , , , ,

Count Apri l 07 2012 Volume Apri l 07 2012 Volume August 06


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Redefined Technology by Volume1110EE Service

However, renewable

projects beginning to make

4

2

4

1

11

2PFCs

Energy distributio n

EE households

a s gn can con r u on6

19

32

3

22Cement

EE supply side

Reforestation

169

21

31

110

7

7Coal bed/mine methane

Fugitive

Agriculture

66

202

130

40

127

80

Landfill gas

EE industry

Fossil fuel switch

24

1,061

19

561

14HFCs

Renewables

N2O


Figures denote number of projectsSource: UNEP-RISOE

, , , , , ,

Count April 07 2012 Volume April 07 2012 Volume August 06


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As of mid April

2007, a total40

45

Millions

volume of 44.7

million CERs have

been issued to30

35

CDM project

developers.20

25Others

HFC

10

15

0

5

05 -05

-05

-06

-06

-06

-06

-06

-06

-06

-06

-06 06 -0

6-06

-07

-07

-07

-07


Oc No De Ja Fe Ma Ap M

a Ju J Au Se Oc No De Ja Fe M

a Ap

Source: UNFCCC


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As of mid September

2006 Volume issued102

0

0

Fuel Switch

Geothermal

per technology:

HFCs 11 m CERs

362

297

128

112

Energy Efficiency

Waste Gas

.

At present:1,370

647

469

86

46

Wind

Landfill Gas

emen

.

Others 19 m CERs

5,554

1,951

1,693

1,968

623

1,080

Biomass

Hydroelectricity

Anaerobic Digestion

21,498

6,122

10,938

0

HFC

N2O


Source: UNEP-RISOE

, , , ,

CERs Issued April 07 CERs Issued August 06


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What is P-CDM?> Identify incentives to a carbon reducing policy measure like:

Soft loan programs to promote energy proactive building rehabilitation

Grant programs to promote the use of renewable energy

> In programmatic CDM:

The program enacting agent (Government, NGO, financial intermediary, industrial

federation) is project participant

> Terminology

PoA - programme of activities

- program ac v y - a pro ec ac v y un er a programme o ac v es

Registered PoA - has provided the framework to the Board, in accordance with

the guidance and provisions, so that CDM programme activities under a



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Characteristics of P-CDM

> Implemented by one or more entities but only one enacting agent

> The enacting agent project participants (private or a public entity)> Voluntary or mandatory programme

> Across more than one country

> Small or large scale> Multitude of dispersed actions

> The GHG reducing actions do not necessarily occur at the same time

> The type, size and timing of the emission reducing actions may not be known - -

> The program is the project



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Opportunity for under performing sectors?1110EE Service

1

1

1

4

1

1

2

4

Tidal

PFCs

Energy distribution

EE households

6

4

7

3

2

19

86Geothermal

EE supply side

Reforestation

Transport

32

109

169

21

22

38

110

7Fugitive

Agr icul ture

Biogas

Cement

211

31

66

202

7

40

127

215

EE industr y

Fossil fuel switch

Coal bed/mine methane

Wind

347

130

24

19

169

80

6

14HFCs

N2O

Landfill gas

Hydro


0 100,000 200,000 300,000 400,000 500,000 600,000

Count April 07 2012 Volume April 07 2012 Volume August 06

Kt CO2e to 2012


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Outlook for Programmatic CDM> P-CDM can broaden the sco e of the CDM within the existin

regulatory framework :

Strengthening the CDM for under-represented sectors (e.g. EE, micro-renewa es, ue sw c

reduce transaction costs

,

Responding better to the needs of LDCs and poor communities

> Guidance is required (EB Guidance imminent):

Use of approved or new methodologies for programs

Additional guidance on how to complete the PDD form for programs


Crediting period (post 2012) as PoAs expand to over 30 years


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JI Geographical distribution161

19

3

13

3

13Slovakia

Ukraine

14

15

5

10

13

New Zealand

Poland

Romania

3

11

6

3

10

3

Germany

HungaryLithuania

22

21

11

17

21

9

Bulgaria

Czech Republic

Estonia

0

10,

000

20,

000

30,

000

40,

000

50,

000

60,

000

70,

000

80,

000

90,

000

100,

000

110,

000

120,

000

130,

000

140,

000

150,

000



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JI Technology diversification30 pp

ly

27

20

2424

20

25

ts ificationstoEE

l ificationstoEEs

assificationstoEE

side

13

9 9

1213 13

11

17

1515

NoofProje

2reclas

industria

2reclas

side2

recl

suppl

1

4

1

43

1

3

1 10

7 7

435

forestation

Biogas

assenergy

emethane

,buildings

E,

Industry

upplyside

dis

tribution

fuelswitch

Fugitive

eothermal

Hydro

an

dfillgas

N2O

Wind

A

Biom

oalbed/min E E

EE

Energy

Fossil L


Apr-07 Aug-06


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> Only 3 projects* proposed in April Less than one tenth of previous month

> Project development is skewed to large scale projects

> Russia and Ukraine show most potential however;

Russian draft JI rocedures have been sent to Cabinet of ministers but

there has been little further progress

Ukraine has only issued 1 LOA and around 30 projects have applied


*Ref Point Carbon


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-

> Decree ('Arrt') establishing procedures for approval of Kyotoro ects in France was co-si ned b the Finance and the

Environment ministry on 2nd March

> Potential to introduce domestic projects under JI

> Caisse Des Depots will launch a call for projects

> Other rivate com anies ma follow on a case b case basis



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Emission

reduction

potential ,

complexity

,

complexity

,

complexity

,

complexity


Methodological complexity


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> Methodologies will fall outside of EUETS Thermal energy under 20MWth: new renewable production, energy

efficiency or fuel switch. Includes also energy efficiency measures in

buildings

Anaerobic digestion of animal manure HFC emission reductions in supermarkets through fluid switch or

LFG capture on a landfill cell in operation (flaring is required only 1yr

after closure of the cell)

LFG collection improvement by changing the cover of the landfill

Use of tires with low rolling resistance in urban bus fleets (gives about



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> Significant progress has already been made> Likely to be able to assess potential size of the opportunity in the coming

months

> Will face a number of challen es

Need to prove additionality

Methodologies very specific

Need for mobilisation on the ground to fulfil true potential

> Could be a good test case for other countries to follow



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-

> CDM EB and secretariat to increase interaction with making CDM more efficient> To replicate the success in China to other countries and ensuring a breadth of

projects in terms of technological diversity

> As more ro ects come throu h the i eline likel to be an increased focus on

monitoring and verification> Completion of Phase 2 Naps and sector utilisation of CERs in Europe

> nsure success u y ro e ou

Essential to retain market integrity

> Encourage innovation - learning by doing



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