Transcript Presentation

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Climate Change and Carbon
Climate
Change and
Trading
– an update
the Carbon Market
October 2010
Ciska Terblanche
TAPPSA – October 2010
TAPPSA 2010
Conference
Durban, South Africa
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Content
International status of Climate Change
• Description of Incentive schemes to reduce Carbon Footprint –
South Africa
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REFIT
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TREC
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Tax
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CDM
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Climate Change Status
EU
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Phase III of the Trading system runs from 2013 to 2020
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Commit to a 20% or 30% reduction in GHG emissions below 1990
levels
China
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January 2010 announced they will reduce their economy’s carbon
intensity by 40-45%
South Africa
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34% by 2020
Indicates a reduction objective at COP 15
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Commitment made on condition that appropriate funding is
provided to South Africa
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Green Paper to be published after the World Cup Soccer
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White Paper to be communicated to stakeholders by end 2010
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Typical Incentive Schemes for GHG
reduction and the promotion of RE
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Cap and Trade
Feed-in tariff regimes
Fiscal and Financial
Incentives
Tradable Green
Certificates
• EU *ETS, **CDM
• REFIT (Renewable Energy Feed-in Tariff
• Tax incentives (vehicles)
• Positive incentives – VAT, import taxes
• TREC in South Africa - under
development
*ETS – Emissions Trading Scheme
**CDM – Clean Development Mechanism
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Tradable Renewable Energy
Certificates (TREC)
• TREC = Tradable Renewable Energy Certificate
• Sell kWh generated from a renewable energy
source (sell electricity)
• Host: Department of Energy
• Model: REC system implemented in EU
• Initially a Voluntary system, but legislation
provides the framework to switch to a
mandatory system, i.e. industry will have a RE
electricity use target
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REFIT
Department launches refit programme for
renewable energy
September 30, 2010
• SA Target announced 2009: 10 000GWh will be
generated by renewable energy sources by the year
2013 – comprising approximately 4% (1667 MW) of the
country's energy supply
• REFIT = Renewable Energy Feed-in Tariff
• Hosted by the Department of Energy, input from NERSA,
Eskom
• Under REFIT the power producer is paid for each kWh
produced from a RE
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CDM Background
CDM = Clean Development Mechanism
• One of three cap and trade mechanisms under Kyoto - developing
countries
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Emission reductions are traded (carbon credit): 1 ton CO2 = 1 CER
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Project based mechanism
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CDM Statistics
Registered Projects
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> 2,400 registered projects in 51 countries
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> 900 projects in China
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> 500 projects in India
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> 170 projects in Brazil
• Retistered projects expected to generate > 374 million CERS p.a. and > 1.8
billion CERs by end 2010
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1,900 CDM projects in the project pipeline, 31 awaiting registration
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CDM Trades
2009: US$144 billion
traded globally under the
Kyoto mechanisms
CDM: US$2.7 billion with
slightly more than 200
million tons of CO2e
transacted at an average
price of US$12.7
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CDM Trades
• Forward sales
• Spot market
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CDM Supply and Demand
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CDM Process Flow
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CDM Projects in the Pulp and Paper Industry
Demand side energy efficiency programmes for specific technologies at ITC
Bhadrachalam pulp and paper making facility in India
Rice Husk based Cogeneration project at Shree Bhawani Paper Mills Limited (SBPML),
India
Methane recovery from wastewater generated at Paper manufacturing unit of Sree
Sakthi Paper Mills Ltd., Kerala
American Israel Paper Mill (AIPM) Natural Gas Fuel Switch
Steam Optimization in Cooking Process in Paper Plant
Optimization of steam consumption in the process by installation of free flow falling
film finisher evaporator and retrofit to the chemical recovery boiler in Cachar Paper
Mill of Hindustan Paper Corporation Limited
Energy Efficiency Measures At Paper Production Plant
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CDM Africa Climate Solutions
Thank You for your attention
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