1. EnergyEfficiencyin Urban Areas MonaliRanade Carbon Finance Unit May 27, 2008

2. GHG Emission Reduction ScenariosEnergy Efficiency is the Lowest Cost Mitigation Option… IPCC 2030 Scenario IEA 2050 Scenario Source: IPCC 4th Assessment Report- WG.III, 2007 Some of the highest GHG reduction potential is in EE sectors are in the form of dispersed smaller measures (transport, buildings, industry) Improved end use (demand side) energy efficiency most important contributor to reduced emissions Source: IEA Energy Technology Perspectives 2006

3. # OF UNITS Challenges for end use EE in CDM • Financing Issues • Split incentives • More complex design. • Barriers to end-use EE: • Lack of enabling policies • Lack of information RED/UNIT Few large units Long tail: large number of small end-use units owned by many owners Source: World Bank (2007)

5. Project Example: Street-lighting • Key data requirements • Identification of streets covered under the project • Detailed information on baseline light fittings: Number, type, wattage, lumen • Mode and hours of operation of the street-lights • Manufacturer data on new light fittings: Number, type, wattage, lumen • Sample metering of light switching points to monitor hours of operation • Sample random survey of lights

6. Project Example: Water pumping • Key data requirements • Identification of pumping stations • Detailed information on baseline and new pumping systems: • Number, type, wattage, head, output • Mode and hours of operation • Metering of hours of operation, electricity consumption and water output kWh Meter Project Boundary Suggested Pump replacement m3 1200 mm dia rising main to IPS-2 P 2 P 1 P 3

7. Project Example: Cook-stoves • Options: • Thermal efficiency improvement only: AMS II.C • Renewable biomass + thermal efficiency improvement: AMS II.G • Solar energy + thermal efficiency improvement: AMS I.C • Key data requirements (common for all options) • Identification of geographical area and the baseline technology • Detailed information on baseline energy source (e.g., source of biomass) • Thermal efficiency of the baseline and project technology • Hours of use or quantity cooked • Sample tests and measurement of new technology

8. Thank You! http://carbonfinance.org (mranade@worldbank.org)