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CARBON TRAINING 2009 PROGRAMME MODULES SUMMARIES M“DULE 1. Introduction to Climate Change 1. INTRODUCTION The current introductory module intends to provide a general view of the main aspects regarding climate change. It aims to give the students the basic tools to be able to understand what climate change is (how it is caused and its consequences), the measures that can be adopted to alleviate its effects and to adapt ourselves to the impacts that are already unavoidable. It also details the different responses that have risen internationally throughout history and it will analyse the possibility of reaching a Sustainable Development through a Global Approach. 2. INTERNATIONAL RESPONSE TO CLIMATE CHANGE The international community has recognised that climate is changing, and that it is due to greenhouse gas emissions originating from human activity. The United Nations Framework Convention on Climate Change, represented by almost all countries, of December 2007 acknowledged this. In said international reunion the results from the Fourth Assessment Report of the Intergovernmental Panel on Climate Change (IPCC) were recognised and adopted. The Kyoto Protocol came into force, after six years delay, on 16 February 2005, only after ratification of 55 nations representing 55% of greenhouse gases. This historic event, in which the industrialised countries took responsibility for the consequences of their activities towards the environment, is the result of numerous negotiations, meetings and studies. 3. WHAT IS CLIMATE CHANGE? CAUSES AND CONSEQUENCES In the strict sense of the term, climate change refers to any change in climate over time, whether it is due to natural climate variability or as a result of human activity. Informe Carbon Training Página 1 Evidence of Climate Change. The Scientific Foundations for Global Warming The most recent scientific studies conclude that anthropogenic influence (i.e. of human origin) has effected global warming and cooling. The results, considered to be highly accurate, 1, show that global warming has been the net effect of human activity since 1750, with a radiative forcing2 of +1.6 [from +0.6 to 2.4] Wm-2 However, the average global temperature increase is causing other changes on a global scale:  Melting of the polar ice caps  Retreating glaciers  Rising sea levels  Extreme weather Natural climate variability Climate has changed many times on a geologic level, and will do so again. There are planetary effects that demonstrate such, like changes in: the Earth's axial tilt, the amount of incoming solar energy, the Earth's orbital eccentricity, or the relative distribution of the oceans and continents. But these changes have occurred on a geologic scale (over hundreds of millions of years), and have induced large-scale extinctions. Climate changes are therefore a constantly occurring feature of Earth. But today, when we discuss climate change, we are not referring to the events that occur on a geologic time scale, we are referring to much shorter periods that may be caused by human activity. As mentioned previously, human activity induces a change in the existing natural balance in the Earth-atmosphere system. Burning fossil fuels at a faster rate than they can be created results in an 1 9 out of 10 are likely to be correct. 2 Radiative forcing is a measure of the influence a factor has in altering the balance of incoming and outgoing energy in the Earth-atmosphere system, and is an index of the importance of the factor as a potential climate change mechanism. It is expressed in Watts per square meter (Wm2). Informe Carbon Training Página 2 increase in CO2 concentrations in the atmosphere, which can not be taken up by the natural sinks and which consequently causes global warming. This man-made extra warming is called the “enhanced” greenhouse effect. Projections of Future Climate Changes on Earth In 1996, the IPCC began the development of a new set of emission scenarios3. Four different narrative storylines were developed to describe consistently the relationships between the forces driving emissions and their evolution to add context for the scenario quantification. Projections of future climate changes according to these scenarios are as follows:  By 2100, carbon cycle models project atmospheric CO2 concentrations of 540 and 970 ppm for the illustrative SRES models.  Climate sensitivity is likely to be in the range of 1.5 and 4.5°C.  Globally averaged water vapour, evaporation and precipitation are projected to increase.  More hot days and heat waves are very likely over all land areas.  Projections of global average sea levels rise from 1990 and 2100 lie in the range 0.11 and 0.77 m. Furthermore, the following results have been obtained from the projections from scenarios describing a future that has stabilised GHG concentrations, Ice sheets will continue to react to climate change during the next several thousand years, even if the climate is stabilised and local annual average warming of larger than 3°C. The Kyoto Protocol The Kyoto Protocol sets legally binding limits on greenhouse gas emissions from industrialised countries. It also introduces innovative market-based mechanisms – the so-called Kyoto flexible mechanisms – to keep the cost of curbing emissions as low as possible. Under the protocol, industrialised countries as a whole are required to reduce their emissions of six greenhouse gases (CO2, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulphur hexafluoride) by around 5% below 1990 levels during the first “commitment period” from 2008 to 2012. A five-year period was chosen rather than a single target year to smooth out annual fluctuations in emissions due to uncontrollable factors such as the weather. There are no emission targets for developing countries. The Kyoto Protocol entered into force in February 2005. In early 2009, 183 states and the European Union had ratified the protocol. 3 The approved new set of emission scenarios is described in the IPCC’s Special Report on Emissions Scenarios (SRES) Informe Carbon Training Página 3 4. GREENHOUSE GASES Water vapour (H2O), carbon dioxide (CO2), nitrous oxide (N2O), methane (CH4), and ozone (O3) are the main greenhouse gases in the atmosphere. There are also a number of entirely human-made greenhouse gases, as previously mentioned, such as the halocarbons and other chlorine and bromine-based substances, dealt with under the Montreal Protocol. Below is a summary of the greenhouse gas sources: Landfills Emissions from anaerobic digestion of organic CH4 emissions matter generated from Coal mines Emissions from mine ventilation energy and waste Gas pipelines Emissions from gas production, processing, transmission and distribution. NO emissions from Combustion Combustion of moving and stationary sources combustion and Industrial sources Nitric acid is the greatest industrial source of N0 industrial sources emissions. Crops CH4 and NO Cattle and poultry Emissions coming from natural organic processes emissions Animal digestion associated with crops and cattle. They can not be from farming avoided but can be reduced (plant genetics, fertilizers, etc.) Semiconductors Magnesium Industry Synthetic gas emissions with high global warming Aluminium Industry power come from applications which are crucial in Gases which have a Electric sector complicated production processes and which high impact on the require security and reliability greenhouse effect Refrigeration Emissions coming from leaks in refrigeration (HFCs, PFCs SF) systems Tropospheric ozone Transport Tropospheric ozone and particles influence global precursor emissions Biomass combustion radiation. The particles have an effect on global and particles warming, but are always associated with CO emissions which have an impact on cooling. Its influence is still not determined. Greenhouse gases emissions by sector 5. MITIGATION OPPORTUNITIES Studies conducted by experts in climate change mitigation strongly agree that there is a substantial economic potential for the mitigation of global GHG emissions over the coming decades that could offset the projected growth of global emissions or reduce emissions below current levels (high agreement, much evidence). Key mitigation technologies and practices by sector. Sectors and technologies are listed in no particular order. Non-technological practices, such as lifestyle changes, which are cross-cutting, are not included in this table. Informe Carbon Training Página 4 Sector Key mitigation technologies and Key mitigation technologies and practices currently commercially practices projected to be available commercialised before 2030 Energy supply Improved supply and distribution efficiency; Carbon Capture and Storage (CCS) fuel switching from coal to gas; nuclear for gas, biomass and coal-fired power; renewable heat and power electricity generating facilities; (hydropower, solar, wind, geothermal and advanced nuclear power; advanced bioenergy); combined heat and power; renewable energy, including tidal early applications of Carbon Capture and and waves energy, concentrating Storage, CCS ( e.g. storage of removed solar, and solar PV. CO2 from natural gas). Transport More fuel efficient vehicles; hybrid Second generation biofuels; higher vehicles; cleaner diesel vehicles; modal efficiency aircraft; advanced electric shifts from road transport to rail and public and hybrid vehicles and more transport systems; non-motorised transport powerful and reliable batteries. (cycling, walking): land-use and transport planning. Buildings Efficient lighting and day lighting; Integrated design of commercial more efficient electrical appliances and buildings including technologies such heating and cooling devices, improved as intelligent meters that provide cook stoves, improved insulation; passive feedback and control; solar PV and active solar design for heating and energy integrated in buildings. cooling; alternative refrigeration fluids, recovery and recycle of fluorinated gases. Industry More efficient end-use electrical Advanced energy efficiency; CCS for equipment; heat and power recovery; cement, ammonia, and iron material recycling and substitution; control manufacture; inert electrodes for of non-CO2 gas emissions; and a wide aluminium manufacture. array of process-specific technologies. Agriculture Improved crop and grazing land Improvements of crops yields. management to increase soil carbon storage; restoration of cultivated peaty soils and degraded lands; improved rice cultivation techniques and livestock and manure management to reduce CH4 emissions; improved nitrogen fertilizer application techniques to reduce N0 emissions; dedicated energy crops to replace fossil fuel use; improved energy efficiency. Forestry/forests Afforestation; reforestation; forest Tree species improvement to management; reduced deforestation; increase biomass productivity and harvested wood products management; carbon sequestration; improved use of forestry products for bioenergy to remote sensing technologies for replace fossil fuel use. analysis of vegetation/soil carbon sequestration potential and mapping land use. Waste Landfill methane recovery; waste Biocovers and biofilters to optimise Informe Carbon Training Página 5 management incineration with energy recovery; CH4 oxidation. composting of organic waste; controlled waste water treatment; recycling and waste minimization. Source: IPCC, 2007. Contribution of Working Group III to the Fourth Assessment Report of the IPCC on Climate Change. Summary for Policymakers. Policies, measures and instruments to mitigate climate change The governments have a wide range of national policies and instruments to mitigate climate change in their reach, some of which through practice, have proven to be effective from an environmental and economic viewpoint and are viable. Among the existing instruments and policies the results of the following stand out:  Integration of climate policies into wider development policies  Specific mitigation regulations and norms  Taxes that do not guarantee a specific emission level, but may regulate the carbon price.  Negotiable permits that establish a carbon price.  Financial incentives aimed at strengthening the use of new technologies  Voluntary agreements between industry and governments that have been achieved in some countries to accelerate the use of the best available techniques and emissions control.  Diffusion of information (public awareness campaigns as an example) that promotes informed choices and possible changes in public and company behaviour, etc.  RD&D, to encourage technological advances, reduce costs and make it possible to progress towards stabilisation. 6. ADAPTING TO THE UNAVOIDABLE IMPACTS OF CLIMATE CHANGE According to the United Nations, “adaptation is a process through which societies make themselves better able to cope with an uncertain future. Adapting to climate changes entails taking the right measures to reduce the negative effects of climate change (or exploit the positive ones). There are different types of adaptation, for example: preventive and reactive, private and public, and autonomous and planned. Natural and social systems more or less adapt to the climate conditions that surround them. Climate change presents new pressures on these systems. There will be changes that will influence the relative survival probability of many species in natural systems. Social systems will be submitted to selective pressures, although it is likely that there will be innovation and change as individuals and organisations are capable of adapting to new climate conditions. Undoubtedly, the ability to adapt and lessen the effects of climate change depends on the socioeconomic and environmental circumstances and the availability of information and technology. Informe Carbon Training Página 6 Costs of inactivity and early adaptation to climate change A considerable number of climate scientists and economists agree that the threat to the ecosystems, human health, business and real estate sectors and remaining infrastructures will be minimised by anticipating the possible climate change consequences, subsequently avoiding that they reach a disastrous extent. These conclusions come from several studies, including the Stern report and those conducted on the economic impacts of climate change, by the European Union (Green Paper “Adaption to Climate Change in Europe”: Options for EU Action). According to the data collected in this Green Paper, the damage caused by sea level rises in the scenario where adaptation measures were not taken, could incur costs four times greater than if additional flood defences were created. 7. GLOBAL CLIMATE CHANGE MANAGEMENT: TOWARDS SUSTAINABLE DEVELOPMENT There is growing understanding of the possibilities to choose and implement climate response options (both in the area of adaptation and global climate mitigation) in several sectors to realise synergies and avoid conflicts with other dimensions of sustainable development. Climate change policies related to energy efficiency and renewable energies are often economically beneficial, improve energy security and reduce pollutant emissions. Reducing both loss of natural habitat and deforestation can have significant soil and water biodiversity conservation benefits, and can be implemented in a socially and economically sustainable manner. Similarly, forestation and bioenergy plantations can restore degraded land, manage water run-off, retain soil carbon and benefit rural economies. Also, certain decisions about macro-economic policy, agricultural policy, multilateral development bank lending, insurance practices, electricity market reform, energy security and forest conservation, for example, which often treated as being apart from climate policy, can significantly reduce emissions (see Table 1). At the same time, non-climate policies can affect adaptive capacity and vulnerability. Informe Carbon Training Página 7 Module 2. Project Management for reducing emissions (clean development mechanisms) 1. INTRODUCTION TO CDM PROJECTS In this first topic of the module on Project Management for Reducing Emissions, and in particular Clean Development Mechanisms (CDM), we are going to attempt to provide an overview of these types of projects. The student will be able to understand the concept of the Clean Development Mechanism as well as its current status in order to get an idea of its importance in the fight against climate change. Furthermore, the student will be introduced to the different stages of the CDM project as well as to sections 2 and 3 which will be developed in this module. The Clean Development Mechanism (CDM) is an agreement under the Kyoto Protocol, established in article 12, which allows the governments of industrialised countries (also called developed countries or Annex 1 countries in the Kyoto Protocol) and companies (natural or legal persons, public or private entities) to underwrite agreements for achieving targets of reducing greenhouse gases (GHGs) in the first commitment period undertaken between 2008 – 2012. This allows them to invest in projects for reducing emissions in developing countries (also called non Annex 1 countries in the Kyoto Protocol) as an alternative to acquiring Certified Emission Reductions (CERs) at lower prices than in their markets. CDM: a tool to combat climate change The Clean Development Mechanism (CDM) constitutes an alternative tool that compensates for the emissions of a country or company (whose government has imposed emission restrictions). In this way, a country or company can use the flexible mechanisms to fulfil their quota of emissions at a lower cost than in the emissions trading scheme. This mechanism allows certified emission reductions to be obtained to compensate for the excess of emissions that the company or the country has made up to a limited percentage (for example, 15% of the emissions that are undertaken to be reduced). CER: unit of pollution Certified Emission Reductions (CERs) have been created for projects that reduce emissions in developing countries (non Annex 1 countries). These projects are certified once they have prevented greenhouse gases from entering the atmosphere. A CER is equivalent to not emitting into the atmosphere 1 tonne of carbon dioxide equivalent (1 tCO2e). The company or country with imposed emission restrictions that purchases these CERs is investing directly in a project that reduces emissions in a developing country, since the project developer in the developing country receives an additional income for their project activity of reducing greenhouse gas emissions. The purpose of CDM The Clean Development Mechanism contributes to the final objective of creating a market which, as well as achieving a real and measurable reduction of emissions, also creates a series of investments into underdeveloped countries, thus contributing to creating sustainable economic development in these countries. Informe Carbon Training Página 8 The number of registered projects is growing every year, and each one of the projects will issue certified emission reductions during a period (crediting period) that could last for 21 years. The CDM therefore fulfils a triple objective:  It allows the investor country to use CERs to meet their own targets of reducing or limiting emissions.  The developing country receives investments into projects based on clean technologies.  The atmospheric integrity of the model is maintained as, if the projects are additional (see below for the definition of additionality), they contribute to achieving the final objective of the Framework Convention: stabilising the concentration of GHGs in the atmosphere. 2. DEVELOPMENT OF THE CDM PROJECT A project that claims to be registered under the Clean Development Mechanism scheme must follow a process in which several stages are distinguished. Actors in the CDM project Several actors with well-defined functions intervene in each stage. To summarise, these actors are:  Project Participants (PP): private or public companies, or entities that have become associates in order to develop the CDM project. They can be from the country where the project is being developed (host country) or from a country with emissions restrictions (Annex 1 country).  Designated National Authority (DNA): public organisation which must approve the project. There must be one in the host country and another in the country that is purchasing the Certified Emission Reductions.  Designated Operational Entity (DOE): private independent entity which performs an independent study of the project and issues a report on the same.  Executive Board (EB): organisation belonging to the United Nations which makes the final decision on the project. 3. STAGES OF THE CDM PROJECT A Clean Development Mechanism project must go through a series of stages in sequential order. The sequence of activities can be separated into two stages: pre-registration (Implementation) and post-registration (Operation). Pre-registration stage (Implementation) In the first stage, the PP will prepare the Project Design Document (PDD) and will submit it to be validated by the DOE. Once the EB has completed the validation, the Clean Development Mechanism project will be registered. The main processes of this stage are: Informe Carbon Training Página 9 Process Group Description of the process Responsible PDD PP The PDD (Project Design Document) presents essential information Preparation on the project activity and is a key product for the validation, registration and verification of the project. In particular, the PDD contains information on the project activity, the approved methodology applied to the design of the base line and monitoring and calculation of the emission reductions expected from the project activity. Validation DOE Validation is the process of independently evaluating the project activity in order to ensure that the requirements of the CDM are fulfilled in accordance with the PDD. The DOE determines whether the project meets the necessary requisites to be considered a CDM project. There is a formal procedure for the validation. Approval by DNA The PP must obtain written approvals of their voluntary participation the DNA from the Designated National Authority (DNA) of each involved party, including the host country. The detailed approval procedures are specific to each party (country). Registration EB Registration is the formal acceptance of a validated project as CDM project activity. The registration is carried out by the Executive Board (EB) of the CDM. There is a formal procedure to acquire registration. The PP will pay a registration fee during the registration period. Post-Registration Stage (Operation) Once the project is registered, the PP will begin monitoring the data in accordance with that described in the PDD. Periodically (for example annually), the PP will submit the monitoring period summarised in the Monitoring Report to be verified by the DOE. Once it has been verified, the DOE will certify the emissions and the EB will issue the CER. The main processes in this stage are: Process Group Description of the process responsible Monitoring PP The PP will collect and file all the relevant and necessary data to calculate the reduction of GHG emissions generated by the CDM project activity, in accordance with the Monitoring Plan stated in the PDD. The PP will present a Monitoring Report to the DOE at the end of the process. Verification DOE Verification is the periodic independent review and a posteriori determination of the reduction of GHG emissions observed (monitored) with the aim of ensuring that the reduction of the emissions has been real. Verification is carried out by a Designated Operational Authority (DOE). This DOE must be different from that which carried out the process of validation for large scale CDM projects. Certification DOE Certification is the written insurance issued by a DOE that a project activity has reduced GHG emissions by the amount stated in the verification. Issuance EB The Executive Board will issue certified emission reductions (CERs) equivalent to the verified reduction of GHG emissions. There is a formal procedure for the issuance of CERs. Informe Carbon Training Página 10