Transcript From PoAs to NAMAs a pilot case

From PoAs to NAMAs
a pilot case
Agenda
1. Context of discussions
2. Objective and concept for NAMA Pilot Case
3. Introduction to example PoA – EE in SME Steel cluster
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The Context
Indian Context
India is committed to contribute to the global efforts towards Climate
Change mitigation
Mitigation target envisioned in Copenhagen Accord: Reduce emissions
intensity of GDP by 20-25% by 2020 in comparison to the 2005 level.
Successful participation in the flexible Kyoto mechanisms; but with
limited impact on EE projects
Climate change policy in India embraces a vision in the form of NAPCC
and related 8 missions and has evolved several measures and actions
International discussions context
On the Agenda since Bali Action Plan 2007
Cancun Agreements differentiates NAMAs into three types (Unilateral
NAMAs; Supported NAMAs; Credited NAMA)
 How to come to fast track practical concepts and pilot NAMAs?
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Bridging the Gap – PoA to NAMA
Why PoA as starting point?
 Various strategies are possible
Top-Down
- Bottom-Up
- Combination
 Bottom-Up strategy for NAMA
development can use elements of a PoA
- Baseline definition
- Monitoring and Verification
- Incentive systems
 Assumption
- Fast track pilot schemes using PoAs
are possible
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 Scoping study for four case studies
Low Carbon
Development Policy
NAMA
PoA
CPA
CPA CPA
…
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Bridging the Gap – How to get from PoA to
NAMA
Research Study*
Module 1: Understand the PoA: scope, eligibility criteria, implementation
arrangements, targeted GHG emission categories
Module 2: Analyse four key technical PoA design elements and their
suitability for scaling up:
- eligibility criteria / baseline setting procedure / MRV process and PoA
management and
- identify if PoA design is a) already fully applicable, b) needs to be
adjusted or c) needs to be developed for NAMA design.
Module 3: Evaluate the domestic policy & institutional framework to
assess whether the existing framework is supportive of NAMA
implementation or not.
Module 4: Identify follow-up actions for NAMA readiness based on the
need for adjustments and new designs as identified
• *Study by South Pole on behalf of German Ministry for Environment and KfW
Case Study India –
PoA EE in SME Steel Cluster
 PoA Objective: Improve Energy Efficiency of furnaces and
burners in Indias SME Steel Industry by 20-50%.
 Scope: Nationwide – In Clusters / Jodhpur cluster first CPA
 PoA Managing Entity: Small Industries Development Bank
(SIDBI) supported by India SME Technology Services (ISTSL)
 GHG Emission Source: Reduce fossil fuel use in SME Steel Mills
 Methodology: AMS II. D Energy Efficiency and fuel switching
measures for industrial facilities.
Measures of the PoA
1. Controlling supply of excess air
2. Installation/retrofitting Recuperators
3. Insulation of furnace surfaces
4. Retrofitting/Modification of furnace doors
5. Fuel preparation and heating
6. Automation of furnace operation
Advantages and Limitations of the PoA
Advantages
 National scale of PoA
 Nationally operating, state owned, privately acting CME
 PoA goals contribute to Indias political will to reduce GHG Emissions
 Investments straight forward
 Target group are bankable SMEs
Limitations
 No new facilities allowed – only existing
 No capacity upgrade allowed
 Only the 6 measures are allowed
 Changing the fuel type not allowed
 PoA is limited to steel sector
Draft NAMA Design Sheet (of desk study)
Scope: Energy intensive SME Sector (not covered under Perform, Achieve
Trade Scheme) that operates similar equipment
- glass, cement, pulp and paper, textile etc.
- allows for measures not permitted under AMS II.D
Management: Under National Mission for Enhanced Energy Efficiency
- Nodal Agency: Bureau of Energy Efficiency.
- Potential Implementation partner: SIDBI using similar incentive structure
(subsidised loan scheme).
Baseline setting: standardisation approaches and benchmark system
must be developed, MRV and eligibility criteria can be adapted.
Link to carbon market: PoA issued CERs should be deducted from
NAMA achievements when a NAMA target is defined. Further linkages tbd.
Conclusions and next Steps
 Up-scaling is possible, but adaptation work would need to be undertakten
 Evaluation of SME to be included needs to be done
 Adaptation of MRV Structure
 Development of standardised Baseline based on AMS II. D
Contact
KfW Carbon Fund
KfW Bankengruppe
Palmengartenstrasse 5–9
60325 Frankfurt am Main
Germany
Tel +49-69-7431-4218
Fax +49-69-7431-4775
[email protected]
Contact us for further information!
Carolyn Neufeld
Tel +49-69-7431-3233
[email protected]
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