Know More about Carbon Credits

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Slide 1:Clean Development Mechanism (CDM)


Background :Background Industrial Growth and High Levels of GHG Emissions. (UNFCCC) provides the outline of a global action plan to mitigate adverse effect on the atmosphere. The Kyoto protocol was designed to further strengthen the provisions of the UNFCCC and introduce flexible mechanisms that would allow a reduction of greenhouse gas emissions in the most cost effective, efficient and sustainable manner.


Slide 3:Of these instruments, the CDM allows the channeling of foreign investment by the Annex 1 countries to developing nations to promote sustainable development and abate greenhouse emissions while generating certified emissions reduction units (CERs) that the industrialize nations can apply towards meeting their own emissions reduction targets.


Anthropogenic factors that trigger Climate Change :Anthropogenic factors that trigger Climate Change Industrial process which is responsible for 43% global carbon dioxide emissions in 1995 Buildings both commercial and private accounts for 31% of carbon dioxide emissions in 1995. Transportation accounts for 22 percent of dioxide emissions


Slide 5:Land use changes accounts for 4 percent of global carbon dioxide emissions but over 20% of global anthropogenic GHG emissions are mainly from methane and nitrous oxide in 1995.


Consequences of Global Warming :Consequences of Global Warming The latest scientific assessment predicts global warming of 1.4% to 5.8% by 2100 relative to 1990. Consequences of global warming include: 1) Rise in sea levels: Due to thermal expansion that occurs as water is heated, melting alpine glaciers and melting polar caps could course sea levels to rise by 11 to 77 centimeters (0.27 ft to 2.64ft) by 2100. According to UNEP study, about half of the world population live by the coastal areas and stand directly or indirectly affected by such changes.


Slide 7:2) Changes in weather patterns: Global warming is likely to increase the frequency and severity of extreme weather events such as storms and hurricanes, heat waves and droughts. Warming will be greater in high latitude than the tropics during winter and fall seasons while mid-latitudes would experience more summer dryness.


Slide 8:3) Human health: warming temperature will result to severe drought and severe flooding and would create problems with irrigation, drainage and ground water salination. More people would be exposed to vector borne (e.g. malaria) and water born (e.g. cholera) diseases and increase in heat stress mentality.


Slide 9:4) Decline in overall biodiversity: Coastal areas, which contain diverse and productive ecosystems such as mangrove forest, coral reefs, salt marshes and wetlands, will be affected by rising levels and increase in ocean temperatures. Flora and fauna might not be able to adapt to rapid climatic change.


Slide 10:5. Implications for agricultural and food security: Studies have shown that as little as 1 degree centigrade of global warming could promote produce a 161- kilometer shift in temperature zones. This will result to regional shift and agricultural productivity. There will be reduction in crop yields in tropical and sub tropical regions. Currently one billion people are starving. There would be loss of human lives in least developed countries.


UNFCCC / IPCC / KYOTO PROTOCOL :UNFCCC / IPCC / KYOTO PROTOCOL In the year 1988, the governing council of UNEP met in Nairobi, Kenya and with help of world meteorological organization (WMO) created an inter-governmental body to conduct on going studies of global warming. The body came to be known as Intergovernmental Panel On Climatic Change (IPCC). The IPCC first assessment report was published in and presented at the second world climate conference in 1990.


Slide 12:An intergovernmental negotiating committee (INC) was created and charged with the task of negotiating a Framework Convention On Climatic Change (FCCC) as well as associated protocols designed to counter climatic change. UNFCCC was presented for signature at the earth summit in Rio De Janeiro in 1992. Under the convention, Annex 1 countries agree to bring their emission levels down to the 1990 levels while the Non-annex 1 agreed to adopt GHG reduction policies, contributing to climatic change mitigation.


Slide 13:The conference of parties (COP) became the convention ultimate authority. COP-3 was attended by about 10,000 delegates, observers and journalist in December 1997 at Kyoto, Japan. The result was the Kyoto protocol adopted by consensus.


CDM Project Cycle :CDM Project Cycle


CDM Project cycle :CDM Project cycle


CDM Project cycle (contd…) :CDM Project cycle (contd…)


CDM Project cycle (contd…) :CDM Project cycle (contd…)


Types of Projects :Types of Projects Renewable energy (Wind, Biomass, Solar) Switching to Alternate Fuels Energy Efficiency Waste Management Agriculture Afforestation/Reforestation


GHGs eligible under Kyoto Protocol :GHGs eligible under Kyoto Protocol Carbon dioxide (CO2) Methane (CH4) Nitrous oxide (N2O) Hydrofluorocarbons (HFCs) Perfluorocarbons (PFCs) Sulphur hexafluoride (SF6)


Sectoral scope :Sectoral scope Energy industries (renewable - / non-renewable sources) Energy distribution Energy demand Manufacturing industries Chemical industries Construction Transport Mining/mineral production Metal production Fugitive emissions from fuels (solid, oil and gas) Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride Solvent use Waste handling and disposal Afforestation and reforestation Agriculture


Indian Scenario :Indian Scenario India is leading developing nations in carbon credits, expecting over 2.27 billion US dollars by selling certified emissions reduction units (CER) from approximately 300 Clean Development Mechanism (CDM) projects The first Indian project that was issued CERs was Kalpataru Power Transmission's electricity generation from mustard crop residues in Rajasthan. GUJARAT Alkalies and Chemicals Ltd (GACL) became the first Indian public sector undertaking (PSU) to register its clean development mechanism (CDM) project with the executive board of CDM under the UNFCCC.


Project documentation :Project documentation Background and information Project boundary GHG sources and sinks (direct/indirect, onsite/offsite) Baseline methodology selection and justification Estimates of project emission using selected baseline(s) Leakages Crediting period Monitoring and Verification Protocol Stakeholders’ comments


Slide 23:Thank You!