India and the Kyoto Protocol Kyoto Protocol acceded in August 2002 Hosted COP 8 (2002) Presidency of COP ( ) Climate Technology Bazaar & Confere

Transcription

1 CDM Approval Process and Facilitating Technology Transfer Indian Perspective R. K. Vaish 1

2 India and the Kyoto Protocol Kyoto Protocol acceded in August 2002 Hosted COP 8 (2002) Presidency of COP ( ) Climate Technology Bazaar & Conferences (2003) Establishment of DNA ( December 2003) 2

3 Advantages of business with India NATIONAL NATIONAL STRENGTHS STRENGTHS Large Democracy & A Free Press On a fast Track of Growth Large Skilled Human Resource Base Independent Judiciary ECONOMIC ECONOMIC BASE BASE Strong Financial Markets Strong Industrialized Base and Record of Entrepreneurship Huge Potential in Infrastructure and Industrial Development CDM CAPACITY Technical Capacity to Reduce Transaction Costs Proactive and Efficient DNA English the Language for Business Huge potential for GHG Mitigation Huge Diversity of Sectors 3

4 India s growth potential GDP growth rate % 5.4% 5.9% Real GDP (Rs. tr) Year 4

5 Energy & India Per capita total energy consumption is 20 % of global average Energy consumption mtoe mtoe Projected energy requirement mtoe 554 mtoe Renewable energy installed capacity : 4613 MW Renewable energy capacity addition by 2007 : 3075 MW 5

6 Facilitating CDM Implementation Designated National Authority National CDM Authority Inter Ministerial Committee Single Window clearance Project Concept Note (PCN) Project Design Document (PDD) Six meetings since Cabinet approval 6

7 Facilitating CDM Implementation contd... Project approval process Emissions Additionality Sustainable Development Broad Indicators Interim approval criteria available at Diverse views regarding prioritisation of sectors DNA, however, would like to support all the eligible industry sectors 7

8 Host Country Approval Formats consistent Submission of with PCN & PDD international To DNA Best practices Single Window Clearance Review and Clarifications If any About 60 days from submission to issuance of Approval Simple and straight forward documentation Meetings every Month or when there is project load 30 projects approved till date Issuance of Approval Letter 8

9 Type of projects Renewable energy Switching to Alternate Fuels Energy Efficiency Waste Management Oil & Gas Industrial Processes Sinks/Agriculture 9

10 Type of Projects Approved Biomass Cogeneration 14 Industrial Processes/ Energy Efficiency 9 Municipal Solid Wastes 1 Fuel Switching 2 Renewables 4 10

11 Institutional capacity requirements National DOEs to cut down transaction costs Consultants Public Sector Undertakings Financial institution - to play a proactive role Bundling organizations and seller s pool to protect the interests of small project developers 11

12 Capacity building initiatives in India CDM capacity building programme for Biomethanation sector, UNDP-MOEF National Strategy Study, World Bank - TERI MOEF Climate Technology Bazaar & Conferences Ministry and State Governments through various Workshops/ seminars Industry Associations Foreign Governments 12

13 Status of CDM today Few buyers - market dominated by government and multilateral buyers Effect of EU emissions trading scheme on CDM yet to be assessed Low carbon prices - CER revenue will rarely be the deciding factor High transaction costs Modalities and procedures not yet finalized for LULUCF Projects 13

14 Potential in Renewables Technology Potential Cum. Installation upto March 31, 2003 Wind Power MW 2483 MW* Small Hydropower (< 25 MW) MW 1530 MW Biomass MW 571 MW Energy from Waste 1700 MW 26 MW Solar photovoltaic * - As on March 31, MW 14

15 Beneficiary Sectors-Potential INDIAN INDUSTRIAL SECTOR : CARBON DIOXIDE EMISSIONS Others 15% Steel 10% Cement 4% Paper 1% Chemicals 3% Power 51% Power Transportation Chemicals Paper Cement Steel Others Transportation 16% Carbon Dioxide emission as of the year 1995 SOURCE : HANDBOOK OF STATISTICS

16 Potential Areas Average Specific Energy Consumption Sector Best Steel(G.cal/ton) Aluminum(kWh/ ton) Cement(kWh/ton) Caustic Soda(kWh/ton) Paper(MWh/ton) Urea(kWh/ton)

17 Facilitating Technology Transfer - CDM could be an effective mode for transfer of technology. - The progress so far in this area has been far from what was expected - Transfer of technology could accelerate the CDM process thereby enabling the Annex I countries to affect GHG emission reductions as agreed in the Kyoto Protocol. 17

18 Facilitating technology transfer cont d. The Technology Transfer could be effected by putting the technologies in the public domain for access by the non- Annex I countries.the non-annex countries could also be invovlved in the R&D Efforts. 18

19 Thank You 19