Focus on: the Framework Convention on Climate Change and Kyoto Protocol

1. Focus on: the Framework Convention on Climate Change and Kyoto Protocol Control and reduction of greenhouse gas (GHG) emissions

2. Using Cleaner Production to facilitate implementation of the Framework Convention on Climate Change (UNFCCC) Activities for National Cleaner Production Centres

3. UNFCCC - Overview • A global legal instrument on the control and management of greenhouse gases (GHG) which are not controlled by the Montreal Protocol • Adopted: 1992; Entered into force:1994 • Status of participation: 186 Parties • Contains 2 Annexes: • Annex 1: countries with obligations to reduce GHG • Annex 2: countries with funding obligations • Affiliated instruments: • Kyoto Protocol

4. Affiliated Instruments - Detail • Kyoto Protocol (KP) • commits industrialized countries to achieve quantified targets for decreasing their greenhouse gas emissions • Adopted: 1997; not yet in force • Status of Participation: 77 parties, but only 36% of global GHG emissions; 55% needed for protocol to enter into force • Contains 2 Annexes: • Annex A: outlines gases and sources targeted for reduction • Annex B: specific reduction amounts for specific countries

5. Goal and objectives (UNFCCC & KP) • Overall goal: to protect the climate system for the benefit of present and future generations of mankind • Further objectives: • to achieve stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system through: • enhancement of energy efficiency in relevant sectors and development of new and renewable energy forms/sources • protection of sinks and reservoirs of GHGs • limitation and reduction of transport and waste management-related emissions • policy changes toward elimination of market imperfections and implementation of market-based instruments, and policy reform to support GHG limits and reductions

6. Definitions (1) • Greenhouse gases: those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and re-emit infrared radiation (i.e. CO2, CH4, etc.) • Sinks: activities or processes that remove GHGs from the atmosphere (e.g. reforestation, aforestation) • Emission Reduction Units (ERUs): credits added to Annex B parties’ emission reduction totals through activities implemented jointly (AIJ) with Annex 1 parties of UNFCCC • Certified Emission Reductions (CERs):credits added to Annex B parties’ emission reduction totals through activities implemented via the Clean Development Mechanism (CDM) in partnership with non-Annex 1 parties

7. Definitions (2) • Annex A gases (KP): • Carbon dioxide (CO2) • Methane (CH4) • Nitrous Oxide (NO2) • Hydrofluorocarbons (HFCs) • Perfluorocarbons (PFCs) • Sulphur hexafluoride (SF6) • Importance of each gas is based on Global Warming Potential (GWP)

8. Global Warming Potential (GWP) • the ratio of global warming, from one unit mass of a greenhouse gas to that of one unit mass of carbon dioxide over a period of time. • Carbon dioxide (CO2) 1 [baseline] • Methane (CH4)* 21 • Nitrous oxide (N2O) 310 • HFC-23 11,700 • HFC-125 2,800 • HFC-134a 1,300 • HFC-143a 3,800 • HFC-152a 140 • HFC-227ea 2,900 - HFC-236fa 6,300 - HFC-4310mee 1,300 - CF4 6,500 - C2F6 9,200 - C4F10 7,000 - C6F14 7,400 - SF6 23,900

9. Sectors/Source Categories - Annex A (KP) • Energy • fuel combustion (energy industries, manufacturing, etc.) • fugitive emissions (oil/natural gas, solid fuels, etc.) • Industrial Processes • mineral products, chemical industry, metal production, other production, production and consumption of halocarbons and sulphur hexafluoride • Solvent and other product use • Agriculture • Waste • solid waste disposal, incineration, wastewater handling

10. Implementation actors (1) • Conference of Parties: Main governing and decision-making body, facilitate information exchange and activities implemented jointly (AIJ). Meetings are held every year. COP-7 held in Nov 2001, in Morocco • Secretariat: serves bodies of both the UNFCCC and KP, provides implementation assistance to parties • Subsidiary Body for Scientific and Technological Advice: links scientific, technical and technological assessments, the information provided by competent international bodies, and the policy-oriented needs of the COP

11. Implementation actors (2) • Subsidiary Body for Implementation: develop recommendations to assist the COP in the review and assessment of the implementation of the Convention and in the preparation and implementation of its decisions • Joint Working Group on Compliance (JWG): develop procedures and mechanisms relating to a compliance system • Relevant international bodies: • Global Environment Facility (GEF) - financing of projects • Intergovernmental Panel on Climate Change (IPCC) - research on climate change measurement and impacts • National UNFCCC focal points • National CDM authorities

12. Implementation mechanisms (UNFCCC & KP) • Clean Development Mechanism (CDM) - developing country parties can volunteer to reduce emissions via joint activities with developed country parties • Joint Implementation - activitiesimplementedjointly between developed country parties • Emissions trading - can be used as supplementary to actions to meet reduction commitments

13. Implementation mechanisms (UNFCCC & KP) • Financial assistance: • Special Climate Change Fund (UNFCCC) - will fund projects relating to capacity building, adaptation, tech transfer, climate change mitigation, economic diversification for countries highly dependent on fossil fuel • Least developed countries Fund (UNFCCC) - will fund a special work programme to assist LDCs • Adaptation Fund (KP) • GEF is the operating entity of the financial mechanism and the main funding channel for developing countries

14. Implementation mechanisms (UNFCCC & KP) • National reporting of GHG emissions • Sources of technical assistance • Training and technology transfer • Ensuring compliance: penalties for not meeting reduction targets (Annex II countries [UNFCCC]) • for every 1 ton of CO2 emissions of non-compliance during the first implementation period, 1.3 must be reduced during the following implementation period

15. Key Opportunities for Developing Countries & Countries with Economies in Transition • No GHG reduction commitments (except for Slovakia, Czech Rep., Hungary, and some others) • opportunity to engage in Clean Development Mechanism / Joint implementation projects • attract new technology and investment • contribute towards KP implementation • achieve sustainable development • prepare for future commitment periods

16. GHG sources in Developing Countries & Countries with Economies in Transition • energy sector • from 24~48% of total GHG • includes, inter alia, manufacturing, construction, transport • primarily CO2 • industrial processes • from 5~36% of total GHG • primarily CO2 and VOC • waste management • from 0.3~9% of total GHG • primarily CH4 • From UNIDO, 2002 - Country Reports

17. Clean Development Mechanism - Detail (1) • CDM is a essentially a market: • the product is certified emission reduction credit - CER • demanded by Annex I parties • supplied by developing country parties to KP • 3 goals of CDM: • to assist in the achievement of sustainable development • to contribute to the attainment of environmental goals of the UNFCCC • to assist Annex I parties in complying with their emissions reduction commitments

18. Clean Development Mechanism - Detail (2) • How it works • project acceptance based on selected criteria (not yet determined) • baseline of GHG emissions is measured • ‘additionality’ examined (incl. “leakages”) • project monitoring, assessment • final audit certifying CERs and follow-up assessments • resultant CERs are added to Annex B party portfolio • partner country receives benefits of technology transfer

19. Clean Development Mechanism - Detail (3) • Barriers to entry for developing countries (1) • UNIDO studies (2002) from 5 countries reports the following barriers: • absence of CDM national authority • inadequacy of perception and awareness on climate change in general • lack of industry knowledge of relevant energy efficiency technologies • lack of laws and regulations for implementation; lack of investment regulations for CDM project investment

20. Clean Development Mechanism - Detail (4) • Barriers to entry for developing countries (2) • government budgets for CDM project implementation is small; foreign financing is at a beginning stage • insufficient government awareness and legal infrastructure • rigidity in financing climate-sound projects because of strict business regulations and goals (e.g. financial returns over environmental goals)

21. Clean Development Mechanism - Detail (5) • Potential Supply-side projects under CDM • from Philippines country study (UNIDO 2002) • fuel switching from coal to natural gas • use of renewable energy • use of fuel cells • system loss reduction • heat rate improvements • clean coal technologies

22. Clean Development Mechanism - Detail (6) • Potential Demand-side projects under CDM • from Philippines country study (UNIDO 2002) • compact fluorescent lamps • energy efficient window-type room air conditioners • energy efficient refrigerators • high-efficiency motors • efficiency improvement in fuel combustion processes • specific projects detailed in training manual • UNIDO 2002 - Indonesia country report • UNEP 2002 - Carbon Offset Opportunities

23. Cleaner Production in the UNFCCC • Preamble • “various actions to address climate change can be justified economically in their own right and can also help in solving other environmental problems” - the win-win scenario which Cleaner Production offers • Principles • “Parties should take precautionary measures to anticipate, prevent or minimize the causes of climate change and mitigate its adverse effects” • Commitments • Parties…shall promote and cooperate in the development, application and diffusion, including transfer, of technologies, practices and processes that control, reduce or prevent anthropogenic emissions of greenhouse gases. • A recurring theme in the texts is that measures which have as little negative impact as possible in economic terms should be undertaken

24. Potential Activities for CP Centresto facilitate implementation of the UNFCCC and KP

25. CP Centres - Areas of intervention • Enabling activities - overcoming barriers • work with government • work with industry • KP implementation • work with CDM projects • Follow up and preparation for next stages • auditing and on-going verification

26. Enabling Activities - Working with government • public sector awareness and education on climate change, in co-ordination with National UNFCCC focal point • public sector awareness and education on opportunities for key local industries • policy advice related to industries’ needs to enable Clean Development Mechanism projects, in co-ordination with National CDM authority • assistance in formulation of national implementation programmes (i.e. inventories, needs, priorities, dialogue, etc.) • implementation of projects (pilot and full-scale) with measures to mitigate climate change

27. Enabling Activities - Working with industry • private sector awareness and education workshops related to climate change, in co-ordination with National UNFCCC focal point • private sector awareness and education workshops on CDM, in co-ordination with National CDM authority • continued emphasis on enhancement of energy efficiency in relevant sectors including GHG measurements • promotion, application and diffusion of technologies, practices and processes that control, reduce or prevent GHG emissions in addition to energy efficiency measures

28. Kyoto Protocol Implementation • Build relationship with National CDM authority • co-operation on awareness-raising, workshops • co-operation with policy advice to government • co-operation with pilot studies, projects • Develop projects with industry • integrate greenhouse gas calculations into in-plant assessments • transfer CP investment financing knowledge toward CDM related project development for: • renewable energy sources • energy conversion and recovery • new energy efficient processes • technology transfer for non-energy-related GHG reductions

29. Follow-up and planning for next stage • seek CDM project auditor status • industry feedback regarding upcoming reduction commitments • next round of negotiations may involve reductions for newly industrialized parties with high GHG releases (e.g. China, India, etc.)

30. Questions to consider • What are your country’s opportunities under the Convention? • What are your nation’s priority energy issues and related industry sectors? • What kind of expertise/services do you have to offer in regard to your country’s implementation priorities? • What kind of necessary expertise/services you can obtain from the NCPC network? • What kind of financial assistance can your country qualify for in order to implement projects under the Convention?

31. Summary: develop an action plan • Collect information • Define competitive advantages • experience of work in the priority sectors, existence of developed methodologies for addressing the priority waste streams, successful training initiatives, trust of the main industry actors,etc. • Organise meetings/seminars/workshops • co-ordinate with the Convention implementation bodies to exchange information and experiences and build capacity • Develop joint projects and training programs • relate to national priorities under the Convention and Protocol • Explore funding opportunities • consider other UNFCCC and KP financing mechanisms

32. Useful information sources • UNFCCC website: unfccc.int • UNEP DTIE: www.uneptie.org/energy • UNIDO: www.unido.org/doc/310797.htmls • The UNFCCC / Kyoto Protocol Secretariat • National focal points and CDM authorities in your country • National Ministry of Environment