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  1. 1. Overview of New Baseline Methodologies 2. Overview of Proposed CDM Projects 3. Concept of GHG reductions in Waste Management Project 4. Calculation of Emission Reductions 5. Approved Baseline Methodology (AM0003) 6. Approved Baseline Methodology (AM0002) Outline of the Presentation

  2. 1. Overview of New Baseline Methodologies Number of submitted new baseline methodologies 49 Considered by the Meth Panel Not considered yet 33 16 Recommended for approval Recommended for revision or Other conclusion 12 21 36%

  3. 2. Overview of Proposed CDM Projects Number of projects which submitted new baseline methodologies Number of projects whose methodology are approved 44 12

  4. 2. Overview of Proposed CDM Projects Number of projects which submitted new baseline methodologies Number of projects whose methodology are approved 44 12

  5. 300,000 250,000 200,000 150,000 100,000 50,000 0 2. Overview of Proposed CDM Projects Average of Annual ERs by Project Type (among approved methodologies excluding HFC decomposition & Oil Field Associated Gas Recovery) Fuel Switching Hydro Power Generation Energy Efficiency Improvement Biomass Utilization Waste Management

  6. 3. Concept of GHG reductions in Waste Mgt Project Baseline Scenario (without CDM) Project Scenario (with CDM) CO2 GWP=1 Landfill Gas (methane) GWP=21 Methane Capture Methane Flaring

  7. 4. Calculation of Emission Reductions Baseline Scenario (without CDM) GHG emissions = 100 t-CH4 /year = [100 x 21(GWP) ] t-CO2 /year = 2100 t-CO2 /year After Flared 2.75 t-CO2 Project Scenario (with CDM) 1 t-CH4 GHG emissions = 2.75 x 100 t-CO2 /year = 275 t-CO2 /year Emission Reductions = 2100 – 275 = 1825 t-CO2 /year

  8. 4. Calculation of Emission Reductions Important Change ! To date The source of the methane and therefore CO2 emissions is the organic fraction in deposited waste, which forms part of the natural organic CO2 cycle CO2 emissions from landfill gas (methane) flaring = 0 t-CO2 Proposed revision by the CDM Meth Panel (9th meeting) Given that after combustion each tonne of CH4 produces 2.75 tonne of CO2, these should be discounted from the total value of CH4 reduced by the project CO2 emissions from landfill gas (methane) flaring will be counted

  9. 4. Calculation of Emission Reductions Important Change ! To date Baseline emissions = 100 t-CH4 /year = 2100 t-CO2 /year Emission Reductions = 2100 t-CO2 Emissions from the Pjt =0t-CO2 /year Proposed revision by the CDM Meth Panel (9th meeting) Baseline emissions = 100 t-CH4 /year = 2100 t-CO2 /year Emission Reductions = 1825 t-CO2 Emissions from the Pjt =275 t-CO2 /year

  10. 5. Approved Baseline Methodology (AM0003) Applicability of this Methodology CO2 Methane Capture Methane Flaring or No emissions reductions are clamed for displacing or avoiding electricity by other sources Electricity Generation

  11. 5. Approved Baseline Methodology (AM0003) How to Determine Additionality (1) Justify there are only the project and BAU scenarios Project Scenario (with CDM) (2) Calculate a conservative IRR, except revenue from sale of CERs (3) If the project IRR is clearly and significantly lower than the conservatively acceptable IRR, the project is additional Methane Capture BAU Scenario (without CDM) e.g. Gov bond rates, commercial lending rates No Change

  12. 5. Approved Baseline Methodology (AM0003) Baseline Emissions In the absence of the project activity, the amount of captured and destroyed methane would be released to the atmosphere. Thus, this is the baseline emissions (basically). methane Baseline Scenario (without CDM) Project Scenario (with CDM) CO2 Methane Capture For the PDD, baseline emissions will be estimated ex ante by using the Model. Once the project activity is operational, baseline emissions will be determined ex post by metering actual quantity.

  13. 5. Approved Baseline Methodology (AM0003) Baseline Emissions Effectiveness Adjustment Factor (EAF) GHG emissions Regulation or contractual requirement might impose methane capture Baseline Emissions Emission Reductions Discounted Emission Reductions Emissions from Project Activity Time

  14. 5. Approved Baseline Methodology (AM0003) Baseline Emissions Effectiveness Adjustment Factor (EAF) Taking into account the effectiveness of the gas collection systems that would be imposed by regulatory or contractual requirements, the final Emission Reductions will be discounted by EAF. The default value for the EAF is 20%. Deviations from the default value can be proposed and justified based on project-specific considerations The EAF shall be revised at the start of each new crediting period.

  15. 5. Approved Baseline Methodology (AM0003) How to calculate Emissions Reductions Monitor the amount of landfill gas collected by a continuous flow meter Calculate the amount of methane destroyed : 100 t-CH4 Baseline emissions = 100 t-CH4 = 2100 t-CO2 Emissions from the Pjt =275 t-CO2 Monitor the percentage of methane in landfill gas by a continuous analyzer Emissions Reductions = 1825 t-CO2 x (1-EAF(20%)) = 1825 t-CO2 x 0.8 = 1460 t-CO2 Monitor the amount of electricity generated

  16. 5. Approved Baseline Methodology (AM0003) Leakage If purchased electricity is used, the associated emissions should be calculated Emissions resulting from generating the electricity used to pump the landfill gas The resulting emissions should be deducted from Emission Reductions If sufficient electricity is generated from recovered landfill gas, there is no leakage

  17. 6. Approved Baseline Methodology (AM0002) Applicability of this Methodology There exists a contractual agreement which requires the amount of methane flaring The contract was awarded through a competitive bidding process The amount of landfill gas to be flared reflects performance among the top 20% in the previous five years No generation of electricity using captured landfill gas occurs or is planned Methane Capture Methane Flaring The project activity is to collect and flare methane greater than the amount determined by the contractual requirement

  18. 5. Approved Baseline Methodology (AM0002) Baseline Emissions The quantity of methane which should be captured by requirement of the contractual agreement Methane emissions Methane Emissions from landfill gas Baseline Emissions The quantity of methane which are captured by the CDM project Emission Reductions Emissions from Project Activity