Transcript NAMAs and building sector - CDM

NAMAs and the Building Sector
UNFCCC Workshop
Buildings under UNFCCC Flexible Mechanisms
Chia-Chin Cheng
UNEP-SBCI
Beihang University
International Green Energy Center
Bonn, Germany
March 24, 2011
Outline
 NAMAs context
 CDM and NAMAs working together– a two-track

developing country mitigation support mechanism
Benefits of the new NAMAs mechanism
Three Papers/Reports from SBCI and Risoe:
1. The Kyoto Protocol, the CDM & The Buildings & Construction
Industry- 2008
2. NAMAs for Dispersed Energy End-Use Sectors: Using the Building
Sector as an Example- 2009 Perspective Series
3. CDM, NAMAs and the Building Sector: a Two-Track Financing
Mechanism for Post-2012 – 2011 working paper
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New Development under UNFCCC
Developing Countries will share mitigation responsibilities

Bali Action Plan
Nationally appropriate mitigation actions by developing country
Parties in the context of sustainable development, supported and
enabled by technology, financing and capacity-building, in a
measurable, reportable and verifiable manner.

Copenhagen Accord started signing up for NAMA
Cancun Agreement confirmed setting up NAMA
registry for support

Underlying causes for low EEB uptake
 Long-tail characteristics of the sector- small saving, big effort
 Fragmentation of sector / uncoordinated stakeholders
 Insufficient R&D and information for new EEB technologies
 Insufficient EEB tech and management expertise and tools
 High upfront and transaction costs for tech adoption in DC
 Lack financing mechanism and interests for EE investments
 Lack of awareness and general inertia restrict uptake
Source: Cheng, et al., 2008
To Overcome Generic Barriers in Building Sector
 These barriers are essentially market failure
 CDM as an market-based mechanism cannot correct market failure
 key long-tail sectors – market failures are prominent
 rural sectors and LCD – no sufficient market activities
 Public policies are required to correct market and overcome barriers
 To fundamentally transform the building sector in developing
countries:
 Developing countries requires public sector support to enforce
public policies -- NAMAs
 Developing countries requires private sector support for
compliance of public policies -- CDM
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Possible Post-2012 Mechanisms -- Dual Track Financing
 Policy based financing mechanism (NAMAs)
• create enabling conditions for a systematic uptake for climate
•
change mitigation activities from the private sector in developing
countries
provide necessary funding, technology and capacity assistance for
policy implementation, particularly to difficult sectors and in least
developed countries
 Project/program based carbon financing
• The boost of enabling conditions foster large-scale private sector
investment and make use of CDM as an additional mechanism
• provide necessary means and financial resources to help regulated
•
entities comply with government policies
increase speed, quality and depth of policy implementation
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Important Issues to be Address before inserting NAMAs
 All BAP elements need to be addressed in the new mechanism
• Technology transfer and development
• Capacity building
• Sustainable development
 Avoid double counting with CDM
• Use non-carbon based MRV
- some effective policy measures do not necessarily result in
carbon emission reduction
- many quantitative indicators available to measure success
 Source of funding
• Initially public funding
• Later private sector funding
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Need Based NAMAs Registry for the Building Sector
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Mandatory building inventory and baseline performance
Mandatory minimum performance based standards
Mandatory/voluntary building rating and certification program
Loan, subsidies, incentives and tax breaks
Building auditing programs for compliance and certification
Building survey and monitoring programs for MRV purposes
Minimum performance standards for appliances and equipment
Building professional certification and education programs
Technology need assessment, demonstration and model house
programs
 Public sector building improvement and high performance building
deployment programs
 R&D programs for new building materials, technology, and practices
 Awareness raising and informational campaign programs
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NAMAs to Create Enabling Environment for Project Based Mechanism
BAU BASELINES*
Energy
Performance
KWh/m2
(by topology,
climate
zones)
Time**
NAMAs to Create Enabling Environment for Project Based Mechanism
BAU BASELINES*
Improved Future Baseline
Energy
Performance
KWh/m2
(by topology,
climate
zones)
NAMAs
NAMA Support (non-carbon
credit based financing)
Mandatory Minimum
Performance Standards
Time**
NAMAs to Create Enabling Environment for Project Based Mechanism
BAU BASELINES*
Improved Future Baseline
Energy
Performance
KWh/m2
(by topology,
climate
zones)
NAMAs
Carbon
Credits
NAMA Support (non-carbon
credit based financing)
Mandatory Minimum
Performance Standards
CDM or Project & Program
Based Mechanism (carbon credit
based financing)
Voluntary technology upgrade
Building rating & certification
Time**
NAMAs to Create Enabling Environment for Project Based Mechanism
BAU BASELINES*
Improved Future Baseline
Energy
Performance
KWh/m2
(by topology,
climate
zones)
NAMAs
Carbon
Credits
Premium
Carbon
Credits
NAMA Support (non-carbon
credit based financing)
Mandatory Minimum
Performance Standards
CDM or Project & Program
Based Mechanism (carbon credit
based financing)
Voluntary technology upgrade
Building rating & certification
CDM or Project & Program
Based Mechanism (premium credits)
State of the Art Technology,
Best Practices
Time**
Benefits of the new NAMA mechanism
 Because carbon credits are not the measurement of success , it
avoids the double counting problem with the existing mechanisms.
 Utilize public policy and funding to foster and mobilize private sector
investment through the CDM.
 For developed countries, the NAMA framework goes beyond
offsetting mechanisms and focuses on supporting enabling
environment for mitigation actions in developing countries.
 Address all essential elements in the BAP 1b(ii) and include
mechanisms to support activities for capacity building, technology,
financing and MRV.
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Benefits of the new NAMA mechanism
 Integrate funding from developed countries for development aids for
capacity building and technology transfer in the climate change
sector and implement in a more systematic manner.
 Correct market barriers for key end-use long-tail sectors and boost
CDM activities in these underdeveloped sectors.
 Change the regional distribution of the CDM by an enabling policy
framework based on country needs.
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