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Bio-Energy and Forestry. Capacity Development for the CDM COP 10 Side Event, Dec. 11, 2004. Overview. Rationale for project integration Services provided by afforestation and bioenergy Small (scale) is beautiful? Outlook on research agenda. Why integrate CDM AR & Energy?.
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Bio-Energy and Forestry Capacity Development for the CDMCOP 10 Side Event, Dec. 11, 2004 Michael Dutschke
Overview • Rationale for project integration • Services provided by afforestation and bioenergy • Small (scale) is beautiful? • Outlook on research agenda
Why integrate CDM AR & Energy? • Land use change contributes to 20 – 25% of anthropogenic GHG emissions • Expiring CERs (tCERs & lCERs) have low present value • Restoration forestry is unprofitable except for carbon credits
Rationale for integrated projects Millennium Development Goals: • Eradicate poverty and hunger (goal 1) • Ensure environmental sustainability (goal 7) • Build a global partnership for development (goal 8) Renewable Energy and Energy Efficiency Partnership (REEEP): • Foster renewable energy & energy efficiency systems in pursuit of national environmental, economic, social and security objectives
Rationale for integrated projects UNFCCC: • Development and poverty eradication are the first and overriding priorities of the developing country Parties (Art. 4.7) • In order for developing countries to progress towards that goal, their energy consumption will need to grow • Measures should be comprehensive, cover all relevant sources, sinks & reservoirs (Art. 3.3)
Services provided by afforestation • Soil protection • Protect quantity & quality of water level • Reduce forest depletion by fire wood substitution • Increase incomes for local communities • Increase land asset value for local communities • Capacity building for local communities in sustainable management techniques
Bio-energy in DCs • Renewable energy supply 14 percent of the world's primary energy use (WEA 2004): • Predominantly biomass used for cooking and heating in rural areas of developing countries, (e.g. 50 – 60 % in Asia, 70 - 90 % in Africa) • Biomass power occurs commonly in form of direct combustion in developing countries • Anaerobic digestion to produce biogas for use in engines also common • Most feedstock from agricultural and forest industry residues
Services provided by bioenergy • Residential and commercial cooking and hot water (wood, crop, dung, charcoal) • Rural small industry, agriculture and other productive uses (mainly residues from production) • Grid-based power generation • Transport fuels (ethanol from sugar cane, biodiesel, synthetic fuels from residues) • Rural residential and community lighting, television, radio and telephony (biogas)
Small biofuels and development • Costs of fossil fuels to increase • CDM “leapfrogging effect”, if shift to fossil energy is avoided • No radical change in energy use patterns required • Better fire wood availability frees women’s workforce • Cleaner stoves improve health situation
Integrated project C accounting Stand level Landscape level • Expiring CERs • Definitive CERs (Example: Schlamadinger et al. 2001)
check for possible partial fuel switch increasing retrofitting for sustainable fuel (at maintainance) residue prices co-firing experience with new biofuel from AR Bioenergy Project sustainable bio-energy from AR residues at a low 2. biomass boiler price level 1. biomass boiler 5 10 15 20 25 30 35 years general lifetime of a biomass boiler Switch from fossil to CO-neutral fuel 2 combined with available amount of sustainable biofuel from AR (simplified) AR Project rotation period of AR 1. harvest (e.g. thinning) Example for combination scenario
Risks of integrated projects • Large areas blocked • Former land uses disrupted • Fast-growing species vs. biodiversity • Drainage of arid soils • Increased use of fertilizers • Soil depletion by short rotation forestry
C t Risks of integrated projects Crediting for fuel wood use may lead to short rotation and lower C fixation C0 C1
Small is beautiful? Conditions for source projects • Renewable energy < 15 MW or • Energy consumption reduction < 15 GWh y-1, or • Emission reduction & emissions < 15 kt CO2e y-1, or Conditions for AR projects • Net removal <8 kt CO2e y-1, and • developed or implemented by low-income communities and individuals
Small is beautiful? • Combinations between source & sink ssc projects do not add up to one full-scale project • Each activity to be treated separately • Small PDD cost reduction • EB-level practical problems (which Meth Panel is responsible, or both?)
Outlook on further research • Combine different scale activities • Find suiting project examples • Pooling on different levels & timescales • Project quality indicators • Options for co-financing the core activity • Ssc fund options • Potential ODA involvement in CDM
Thank you for your attention! Michael Dutschke