Presentation title. Project based offsetting under the Swiss CO 2 Act. Laurence Mortier, FOEN

Transcription

1 Federal Department of the Environment, Transport, Energy and Communications ( DETEC ) Federal Office for the Environment FOEN Climate Division Presentation title Project based offsetting under the Swiss CO 2 Act Presentation 26 th November date 2013, FOEN

2 Outline (1) History and emergence of the scheme Legal instruments, objective and measures The Climate Cent on transport fuels (2) Embedding in national policy The revised CO 2 Act ( ) Obligation to domestically offset CO 2 (3) Use of offsets and principal structure of the offset market (4) Scopes involved Included technologies Excluded technologies (5) Baseline scenario and additionality Legal framework Setting the baseline 2

3 The Swiss Climate and Energy Policy Legal Instruments 1) Federal Energy Act (entry into force in 1999) Aims at ensuring sufficient, safe, diversified and environmentfriendly supply of energy Sets targets for the production of electricity from renewable energies 2) CO 2 Act (entry into force in 2000) Defines binding targets for the reduction of CO 2 emissions (until 2012) Gives priority to voluntary measures Other instruments Building codes, energy labels for cars, performance-related heavy vehicle fee, etc. 3

4 History an Emergence of the scheme The CO 2 Act till 2012: Sectors Buildings: CO 2 levy on heating fuels (since 2008) Buildings Programme (since 2010): financing for the renovation of buildings through parts of the CO 2 levy Industry: CO 2 levy on heating and process fuels (since 2008) Emissions Trading Scheme (ETS) Transports: Climate Cent (since 2005) Agreement with car importers to lower specific emissions of new cars (to be replaced with compulsory technical prescriptions for vehicles) 4

5 History an Emergence of the scheme Climate Cent on transport fuels Voluntary measure of Swiss industry No CO 2 levy on transport fuels Climate Cent from October 2005 until August 2012 (= charged on all imports of petrol and diesel) 1.5 cents per litre ~100 mio CHF per year Private foundation with mandate from the Swiss Confederation, founded in 2005 Commitment to reducing 17 million tonnes of CO 2 over the period 2008 to 2012, of which at least 2 million tonnes within Switzerland Examples of projects financed in Switzerland: Eco-Drive (eco-friendly driving) District heating system with wood chip or geothermal energy Waste heat recovery 5

6 Embedding in national policy Revised CO 2 Act: Context The revised CO 2 Act regulates the Swiss climate policy beyond 2012 and sets new targets for 2020 The Parliament adopted the new legislation in December 2011 Adoption by the Federal Council of the CO 2 Ordinance in November 2012 Entry into force of the Act and the Ordinance on 1 st January 2013 CO 2 Act legally anchors a revised instrument closed to the Climate Cent CO 2 compensation duty for fuel importers 6

7 Embedding in national policy Revised CO 2 Act: 2020 target Overall reduction target: minus 20% compared to 1990 levels (absolute reduction of 10.5 MtCO 2 ). This reduction has to be achieved domestically. Possibility to increase the target up to minus 40%, if a satisfying international agreement can be reached at UNFCCC level. In this case, ¾ of the additional reduction could be achieved by using market mechanisms. Covers all gases of the Kyoto Protocol 7

8 Embedding in national policy Main policy measures post 2012: overview CO 2 Act post 2012 Buildings CO 2 levy Buildings programme Industry Reduction targets Exemption from levy ETS Compensation duty fossil thermal power plants Transports Emission standards for new passenger cars CO 2 compensation duty for fuel importers 8

9 Embedding in national policy Obligation to domestically offset CO 2 Obligation for motor fuels importers to domestically offset CO 2 emitted by the transport sector (5-40%) 10% in 2020, i.e. 1,5 mio. tco 2 KliK is the cross-sector carbon offset grouping for motor fuels, established in the context of the revised CO 2 Act Obligation to fossil (gas) power plants to fully offset their emissions (min. 50% domestically, max. 50% abroad) Domestic offset scheme (emission reduction projects in Switzerland) This new domestic market is currently under development 9

10 Embedding in national policy Revised CO 2 Act: Other instruments Continuation of the CO 2 levy on fossil heating fuels Earmarking (300 mio. CHF/a) of the CO 2 levy for the national buildings programme Technical prescriptions for buildings Emission limits for new passenger cars (130 g CO 2 / km) Technology fund to promote climate friendly innovations Possibility of CO 2 levy exemption for some companies Emissions trading scheme (further development and possible linking to the EU ETS) Influence on potential and baseline for domestic offset projects 10

11 Principal structure of the market Market Overview Attestations Compensation obligation motor fuels CH-emissionreduction projects NonETS Company ETS Company Fossil-fuel thermal power plants Emission reduction certificates Emission allowances 11

12 Principal structure of the market Market participants Offsetting and project development in CH Offsetting and project development in CH and abroad (UNFCCC) Financial support Offsetting in contex of legal obligations Knowledge plattforms 12

13 Principal structure of the market Driver Obligation for motor fuels importers ~ 1,5 Mio. (10%) Domestic only 2 % 5 % 8 % 10 %

14 Principal structure of the market Domestic projects: Situation today Up today: 55 CH-emission reduction projects registered (48 projects are part of a bundle)* Expected amout of emission reductions per year: tonnes CO 2 Average project: ~ t CO 2 eq per year Smallest project: ~ 400 t CO 2 eq per year (heat from biomass) Biggest project: ~ t CO 2 eq per year (bundle, agricultural biogas) Project types: Biogas production (agricultural and industrial) Flaring of landfill gas Heat production from biomass District heating with waste heat *) List of registered projects (in German: 14

15 Principal structure of the market Domestic projects by scopes (State: Summer 2013) Estimated Emission reductions per year in t CO 2 eq Already registered: Already registered or in validation: 6'000 3'000 1'000 Heat from biomass 27'000 Agricultural biogas Industrial biogas 6'000 3'000 2'000 34'000 Landfill 29'000 Waste heat recovery 35'000 In total ~ t CO 2 eq In total ~ t CO 2 eq 15

16 Scopes involved GHG emissions in Switzerland In total Mio. t CO2eq (State: July 2013) 7.5% 6.2% 2.7% 83.7% Carbon dioxide Methane Nitrous oxide HFCs, PFCs, SF6 12.3% 7.2% 21.1% Industry Commercial/Institutional Residential 8.5% Transport 32.6% 18.3% Agriculture Waste 16

17 Scopes involved Included Technologies (examples) Energy Efficency Renewable energy Transport Avoidance of CH 4 - and N 2 O-emissions Avoidance of Fgasemissions Biological sequestration Waste heat recovery and avoidance Reduction of fossil fuel use and corresponding emissions through energy efficiency improvements Introduction of centralized geothermal heat supply system for space heating in buildings Production of diesel of vegetable oil Efficency in Transport (Modal Shift of cargo from road transportation to rail transportation Avoidance of landfill gas emissions by flaring Manure collection and treatment in a single central treatment plant Recycling, replacement and/or leak reduction of HFC-, PFC. or SF6-Gases Harvest Wood Products (HWP) 17

18 Scopes involved Excluded Technologies No attestations will be issued for a domestic emission-reduction project if the emission reductions have been achieved through the use of nuclear energy; the use of biological or geological CO2 sequestration; exempted is the biological CO2 sequestration in wood products; research and development or information and consultation; the use of non-sustainable fuels derived from renewable resources motor fuel changeover from petrol or diesel vehicles to natural gas vehicles; excluded is the change of entire vehicle fleets thermal fuel changeover from natural oil to natural gas heating systems for buildings. 18

19 Baseline Scenario and additionality Legal framework Legal frame is set in CO2-Act and Ordinance Further information on framework, procedures and conditions of the implementation enforcement aids Available in German under 19

20 Emission reductions in t CO 2 eq Baseline Scenario and additionality Additionality Uninfluenced development With developments in technology With measures in energy policy, (e.g. Efficiency regulations, the SwissEnergy (action) programme) With measures in climate policy (e.g. CO2 emission regulations for cars, The federal and cantonal buildings programme) Total amount = Baseline Additional emission reductions Years

21 Thank you for your attention! For further information: 21