1 / 11

Carbon Financing in the Residential Sector

Carbon Financing in the Residential Sector. Latin American Carbon Forum. Alberto Carrillo Pineda. San José, Costa Rica 28 September , 2011. Objective and Contents. Objective. Contents.

rinah-hicks
Download Presentation

Carbon Financing in the Residential Sector

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Carbon Financing in the Residential Sector Latin American CarbonForum Alberto Carrillo Pineda San José, Costa Rica 28 September, 2011

  2. Objective and Contents Objective Contents • To discuss the potential of CDM to finance and facilitate the adoption of “third-generation” low-carbon measures in the residential sector in Latin America. • To present one case study of “third-generation” Program of Activities under development in the region.

  3. Objective and Contents Objective Contents • To discuss the potential of CDM to finance and facilitate the adoption of “third-generation” low-carbon measures in the residential sector in Latin America. • To present one case study of “third-generation” Program of Activities under development in the region.

  4. Three mega-trendsshapingtheclimate in theregion Increasing GHG Emissions • Cities represent between 40 and 80% of the global greenhouse gas emissions. (ICLEI, 2010) • According to the International Energy Agency cities accounted for 67% of the world primary energy demand and more than 70% of global CO2 emissions in 2006. • Continued urbanization and economic growth is expected to increase the GHG emissions associated with cities. Urbanization Vulnerability Increasing GHG Emissions • The high (uncontrolled) urban growth has considerably increased the vulnerability to natural disasters of a large share of the population in the region. • Climate change is likely to increase many of the already existing urban stresses (i.e. heat islands, insufficient sanitation / water supply, inadequate housing, etc.). • LA is the region with the highest urban population concentration in the developing world.(IAI, 2007) • By 2030, about 83% of the population in LA will be living in cities. (IAI, 2007) • Cities (and especially capital cities) concentrate a large share of the GDP in the region. Vulnerability Urbanization

  5. Needtodesign and implementcarbon-financeinstrumentsthatrespondtothese mega-trends 1st Generation Carbon Initiatives 2nd Generation Carbon Initiatives Key Elements Type of Projects Examples • Strong focus on projects that reduce emissions from urban infrastructure (supply side). • Some co-benefits addressing urban issues. • Landfills • WWTP (not Industrial) • LFG (several throughout the region) • Projects that reduce emissions changing energy consumption patterns (demand-side) • Typically disaggregated project activities • BRT • Demand-Side Energy Efficiency • BRT(Transmilenio, Medellin, Mexico City, Guatemala) • Solar Water Heaters (Peru, Chile), Efficient appliances (Mexico, Brazil) • Energy consumption patterns and/or urban infrastructure (demand side) • Mitigation + Adaptation Co-benefits • Green Mortgage / Subsidy (Mexico) • Water & Energy Efficiency PoA (Mexico) • Demand-side water efficiency • Sustainable Housing 3rd Generation Carbon Initiatives

  6. Objective and Contents Objective Contents • To discuss the potential of CDM to finance and facilitate the adoption of “third-generation” low-carbon measures in the residential sector in Latin America. • To present one case study of “third-generation” Program of Activities under development in the region.

  7. Case study: Demand-SideWaterEfficiencyand CarbonFinance Water Marginal Cost Curve WaterDemandScenario Cost EfficientWaterFixtures Water Availability CO2 Marginal Abatement Curve Household Hot-WaterEfficiency Cost CO2 0.5 – 1 tCO2 / yr H2O 30 – 50% EfficientWaterFixtures

  8. Case study: Demand-SideWaterEfficiency and CarbonFinance Methodologies Mitigation Potential for the largest cities in the region • Clean Development Mechanism • AMS-II.M “Demand-side energy efficiency activities for installation of low-flow hot water savings devices” • Gold Standard • Indicative Program, Baseline and Monitoring Methodology for Large-Scale Supply and Distribution of Efficient Light Bulb, Showerheads and Water Saving Products to Households tCO2 / yr tCO2 / household / yr

  9. Case study: Demand-SideWaterEfficiency and CarbonFinance Whogetsthewaterbenefits? Financialprofilefor a 100,000 householdproject Lowvolume High volume Verylowincome Whogetsthewater-savingbenefits? Low income Middle income High income Household Government

  10. Case study: Demand-SideWaterEfficiency and CarbonFinance Challenges / Barriers Sustainability co-benefits • Environmental • Reductions of GHG emissions and water-consumption • Reduction in local air pollution and generation of wastewater • Social / Economic • Significant savings for households and governments (or water utilities) • Economic way to address water stress issues • Cultural • Water perceived as a free, infinite resource • Regulatory • Post 2012-deadline • Economic • Difficult to realize the water-saving benefits benefits for investors • Unusual project for traditional financing

  11. Thanksforyourattention! Contact Information • Alberto Carrillo Pineda • Managing Partner • a.carrillo@carbonding.com • Carbonding Climate Community S. de R. L. de C.V. • Tel. +52 55 8421 7749 • www.carbonding.com We are lookingforpartners!

More Related