clean development mechanism

Clean Development Mechanism
www.CleanDevelopmentMechanism.net

Clean Development Mechanism Consulting and
Renewable Energy Engineering

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Tel. (88321) 758 - 00271

Email: info@CleanDevelopmentMechanism.net

Renewable Energy Ventures is a developer of renewable energy projects providing engineering, legal, finance, feasibility studies and greenhouse gas emissions consulting for projects located in the U.S. and Canada.

We also provide renewable energy engineering services for clients with projects located in Central America and the Caribbean.

The Clean Development Mechanism is a Kyoto Protocol "flexibility mechanism" that was authorized under Article 12 of the Kyoto Protocol which oversees emissions reductions in projects that are located in developing nations. These countries are not subject to the binding Greenhouse Gas Emissions caps under the Kyoto Protocol.

Included in our renewable energy project development offerings is our turnkey "ecogeneration" solutions which includes:

Products and services provided by Renewable Energy Ventures includes the following power and energy project development services:

Under the Clean Development Mechanism, investors from Annex I countries receive Certified Emission Reduction units for the actual amount of greenhouse gas emissions reduction achieved, subject to host country agreement and the Clean Development Mechanism Adaption Charge.

A key component of the Clean Development Mechanism is the requirement of "additionality." Certified Emission Reduction units generated under the CDM will only be recognized when the reductions of Greenhouse Gas Emissions are additional to any that would occur in the absence of the certified project activity.

If necessary, the Clean Development Mechanism presumes administrative assistance in locating project financing, if necessary. The administrative costs of the mechanism and the final structure of certification and verification under CDM are still under discussion.

What are the Clean Development Mechanism rules and conditions?

Clean Development Mechanism projects need to seek approval by the Clean Development Mechanism's Executive Board. A number of rules and conditions will apply, some to all project types and others specifically to afforestation and reforestation projects. While several of the detailed procedures to be applied to Clean Development Mechanism forestry projects are still to be agreed, the overall framework is already established for approving projects and accounting for the carbon credits generated: Only areas that were not forest on 31st December 1989 are likely to meet the CDM definitions of afforestation or reforestation.

Projects must result in real, measurable and long-term emission reductions, as certified by a third party agency ('operational entities' in the language of the convention). The carbon stocks generated by the project need to be secure over the long term (a point referred to as 'permanence'), and any future emissions that might arise from these stocks need to be accounted for.

Emission reductions or sequestration must be additional to any that would occur without the project. They must result in a net storage of carbon and therefore a net removal of carbon dioxide emissions from the atmosphere. This is called 'additionality' and is assessed by comparing the carbon stocks and flows of the project activities with those that would have occurred without the project (its 'baseline'). For example, the project may be proposing to afforest farmland with native tree species, increasing its stocks of carbon. By comparing the carbon stored in the 'project' plantations (high carbon) with the carbon that would have been stored in the 'baseline' abandoned farmland (low carbon) it is possible to calculate the net carbon benefit. There are still a number of technical discussions regarding the interpretation of the 'additionality' requirement for specific contexts.

Clean Development Mechanism projects must be in line with sustainable development objectives, as defined by the government that is hosting them. Projects must contribute to biodiversity conservation and sustainable use of natural resources.

Only projects beginning in the year 2000 forward are eligible.

Two percent of the carbon credits awarded to a Clean Development Mechanism project will be allocated to a fund to help cover the costs of adaptation in countries severely affected by climate change (the 'adaptation levy'). This adaptation fund may provide support for land use activities that are not presently eligible under the Clean Development Mechanism, for example conservation of existing forest resources.

Some of the proceeds from carbon credit sales from all Clean Development Mechanism projects will be used to cover administrative expenses of the Clean Development Mechanism (a proportion still to be decided).

Projects need to select a crediting period for activities, either a maximum of seven years that can be renewed at most two times, or a maximum of ten years with no renewal option.

The funding for Clean Development Mechanism projects must not come from a diversion of official development assistance (ODA) funds.

Each Clean Development Mechanism project's management plan must address and account for potential leakage. Leakage is the unplanned, indirect emission of carbon dioxide, resulting from the project activities. For example, if the project involves the establishment of plantations on agricultural land, then leakage could occur if people who were farming on this land migrated to clear forest elsewhere.

What other Clean Development Mechanism rules remain to be decided?

Many Clean Development Mechanism rules and conditions for land-use projects still remain to be agreed. These include approaches for:

calculating the net carbon benefit of Clean Development Mechanism projects;

dealing with flexible and non-permanent land-use systems;

addressing the social and environmental impacts of projects.

Although decisions will be made at the international level, their impact on the ground and for projects will be significant. Two advisory groups to the Climate Convention, called the Subsidiary Body for Scientific and Technological Advice (SBSTA) and the Intergovernmental Panel on Climate Change (IPCC), will be preparing advice and guidance for a series of meetings between now and the 9th CoP (due in 2003). Developing country agencies are still able to contribute to this process, via their National Focus Points or by sending delegations to attend the IPCC and SBSTA meetings. In the meantime, projects can already be developed using existing methodologies, subject to adjustments once final rules are defined. There is also a range of activities that developing countries can do to prepare and facilitate the development of Clean Development Mechanism projects.

What is "Best Available Control Technology"?

"Best Available Control Technology" or "BACT" refers to an air emissions limitation based on using the most current, state-of-the-art methods, systems, techniques, and production processes available to achieve the greatest feasible air emissions reductions. These processes also include fuel cleaning or treatment or innovative fuel combustion techniques for control of emissions' pollutant. These are the most stringent requirements for new or modified sources and are determined on a case-by-case basis as part of New Source Review, by the permitting authority, taking into account energy, environmental, economic and other costs of control.

The EPA proposes to adopt a presumption that, in the case of PSD permits issued by EPA under 40 CFR 52.21, Best Available Control Technology for emissions of nitrogen oxides from coal-fired electric utility steam generating units is the technology required under section 407 of the Clean Air Act. In general, this will call for the use of combustion modification and/or low-NOx burners or similar, cost- effective technologies by those utilities required to obtain PSD permits for NOx emissions.

The proposed presumption is consistent with Best Available Control Technology requirements because it does not purport to relieve the permitting authority of the obligation to weigh the statutory factors in reaching BACT determinations. Rather, it reflects an exercise of policy judgment by the permitting authority that in most cases a Best Available Control Technology analysis of currently demonstrated technologies for retrofitting existing utility boilers would lead to the selection of low NOx burners and/or combustion modifications identified in section 407(b)(1).

What are Nitrogen Oxides?

Nitrogen oxides, or NOx, is the generic term for a group of highly reactive gases, all of which contain nitrogen and oxygen in varying amounts. Many of the nitrogen oxides are colorless and odorless. However, one common pollutant, nitrogen dioxide (NO₂) along with particles in the air can often be seen as a reddish-brown layer over many urban areas.

Nitrogen oxides form when fuel is burned at high temperatures, as in a combustion process. The primary sources of NOx are motor vehicles, electric utilities, and other industrial, commercial, and residential sources that burn fuels.

Reasons for Concern: Nitrogen Oxides

Selective Catalytic Reduction (SCR) is a proven and effective method to reduce nitrogen oxides which is an air pollutant associated with the power generation process. Nitrogen oxides are a contributor to ground level ozone.

How does Selective Catalytic Reduction work?

Selective Catalytic Reduction works similar to a catalytic converter used to reduce automobile emissions. Prior to exhaust gases going up the smokestack, they will pass through the Selective Catalytic Reduction where anhydrous ammonia reacts with nitrogen oxide and converts it to nitrogen and water.