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ACME

Applying CLEANER PRODUCTION to MULTILATERAL ENVIRONMENTAL AGREEMENTS

Introduction to UNFCC
& Kyoto protocol

SESSION 4
United Nations Environment Program
Division of Technology Industry and Economy

Swedish International Development Agency

OUTLINE

Objectives of this session

1/ Background information
> What is the greenhouse effect and its impact on the climate system?
2/ Climate Change
> How is climate change linked to human activities?
3/ UNFCCC
> What are the objectives of UNFCCC and how is it organised?
4/ The Kyoto protocol
> What greenhouse gases are targeted?
> What are the 3 implementation mechanisms?
5/ CP and Kyoto Protocol
> How can industry in developing countries use CP as a tool to identify
opportunities for projects under the Kyoto protocol?
6/ Information and tools
> Tools and information about CP and the Kyoto protocol
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CLIMATE CHANGE

Introduction to Climate Change

A few basic facts


> Human activities are releasing greenhouse gases (GHG)
into the atmosphere.
> Climate change is a global issue:
1 tCO2 emitted in India = 1 tCO2 emitted in USA.
> Rising levels of greenhouse gases are already changing
the climate.
> Climate models predict the global temperature will rise by
about 1,4 to 5,8 degrees by 2100.
> Climate change is likely to have a significant impact on the
global environment, economy and society.
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BACKGROUND

Planets and atmospheres

Thin atmosphere (CO2 in the ground)


Average temperature: - 50C
MARS

0,03% of CO2 in the atmosphere


Average temperature: + 15C

EARTH

VENUS
96% of CO2 in the atmosphere
Average temperature: + 420C
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BACKGROUND

The greenhouse gaz effect


1) Solar radiation

2) Reflected back to space


3) Absorbed by atmosphere

1
4

4) Infra-red radiations
emitted from Earth
5) Some of the IR passes
through the atmosphere
6) Some is absorbed and
re-emitted by greenhouse
gas molecules

The effect is increasing temperatures on Earth


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BACKGROUND

Present carbon cycle


Storage and flux of carbon
(in billions of tones)

SPEED OF EXCHANGE PROCESS


Very fast (less than 1 year)
Fast (1 to 10 years)
Slow (10 to 100 years)
Very slow (more than 100 years)

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BACKGROUND

Human activity influence

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BACKGROUND

Variation of the temperature on Earth

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BACKGROUND

Temperature trends (1976 to 2000)

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BACKGROUND

Precipitation trends (1900 to 2000)

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BACKGROUND

Climate change tends by 2100


TEMPERATURE

PRECIPITATIONS

5 degrees = What separates us from the last glacial era (-15 000 BC)
: IPCC/SRESA2
ModelsSource
forecasts
: +1,4 to +5,8 degrees by 2100.

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CLIMATE CHANGE

Visual impact of Climate Change

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CLIMATE CHANGE

Impact of Climate Change on society

Katrina, Rita, Stan, Wilma

Climate change will cause heavier tropical cyclones.


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CLIMATE CHANGE

Cost of extreme weather events

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CLIMATE CHANGE

Less visual but with major impact

Consequences of
climate change:

Agriculture and food security


Crop yields, irrigation demands...
Forest
Composition, health and productivity...
Water resources
Water supply, water quality...
Coastal areas
Erosion, inundation, cost of prevention...

> Temperature increase


> Sea level rise
> More rain

Species and natural areas


Biodiversity, modification of ecosystems...
Human health
Infectious diseases, human settlements...

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UNFCCC

Overview of UNFCCC

United Nations Framework Convention on Climate Change


A global legal instrument (international agreement) on the
control and management of greenhouse gases (GHG).
Adopted in 1992, entered into force in 1994.
Status of participation: 189 Parties.
Contains 2 annexes:
Annex 1: countries with obligations to take measures to mitigate
the effects of climate change
Annex 2: countries with obligations to provide financing to
developing countries for their obligations under UNFCC

Affiliated instruments: Kyoto Protocol.


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UNFCCC

Overall goal and objectives

What is the overall goal?


to protect the climate system for the benefit of
present and future generations of mankind.
What are the further objectives?
to achieve stabilisation of greenhouse gas
concentrations in the atmosphere at a level that
would prevent dangerous anthropogenic
interference with the climate system.

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UNFCCC

Time taken to reach equilibrium

CO2 concentration, temperature, and sea level


continue to rise long after emissions are reduced !
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UNFCCC

Means to achieve the objectives

What can be done to protect the climate system?


> Enhancement of energy efficiency in relevant sectors and
development of new and renewable energy forms/sources.
> Protection of sinks and reservoirs of GHGs.
> Limitation and reduction of transport and waste
management-related emissions.
> Policy changes toward elimination of market imperfections
and implementation of market-based instruments, and policy
reform to support GHG limits and reductions.

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UNFCCC

Institutional framework

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UNFCCC

Organisation of the Convention

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UNFCCC

National level actors

National UNFCCC focal points


> Responsible for the Governments interaction and communication
with UNFCCC.
> Usually a specific ministry / department.
> Usually interacting with a wide range of other organizations /
stakeholders at the national level.

National CDM or JI organizations (DNA)


> Specific organization (authority) that is responsible for approving
CDM and JI activities at the national level.
> Often, but not always, the same as the National Focal Point.
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KYOTO PROTOCOL

Bringing UNFCCC into action

The Kyoto Protocol


> An addition to UNFCCC that requires developed countries to limit their
GHG emissions in 2012, as compared to their emissions in 1990.
> Provides detailed methods and mechanisms for how the emission
reductions can be achieved, measured and verified.
> All members in UNFCCC have not agreed to sign the Kyoto Protocol!

A long process of ratification


> Adopted in 1997, but required the ratification of more than 55 countries
representing more than 55% of GHG emissions.
> Entered into force on February 16th, 2005 after ratification of the
Russian Federation (now 163 countries covering 61.6% of global
emissions have ratified the protocol).
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KYOTO PROTOCOL

A market-based instrument

Kyoto Protocol characteristics


> Commits Annex 1 countries to reduce GHG emissions by 5.2% by 2012
compared to 1990.
> Actual commitment period: 2008 - 2012.
> Individual goals for each country.

3 mechanisms to help countries to reach their commitments


> ETS - Emissions Trading System
> CDM - Clean Development Mechanism (session 5)
> JI - Join Implementation (session 6)

6 greenhouse gases: CO2, CH4, N2O, PFCs, HFCs, SF6.


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UNFCCC

Ratification of the Kyoto protocol

Signed and ratified


Signed, ratification pending
Signed, ratification declined
No position
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KYOTO PROTOCOL

Greenhouse gases and GWP

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KYOTO PROTOCOL

List of countries in Annex 1

Australia
Austria
Belarus
Belgium
Bulgaria
Canada
Croatia
Czech Rep
Denmark
EC

Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan

Latvia
Liechtenstein
Lithuania
Luxembourg
Netherlands
New Zealand
Norway
Poland
Portugal
Romania

Russia
Slovakia
Slovenia
Spain
Sweden
Switzerland
Turkey
Ukraine
UK
USA

* Countries with economies in transition to a market economy.


* Countries which did not ratify Kyoto protocol.
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KYOTO PROTOCOL

Greenhouse gas emissions in Annex 1

GHG emitted
(in billions tons CO2 equivalent)

Changes relative to 1990


(in %)

Countries in Annex 1
Economies in transition
Annex 1 - Economies in transition
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KYOTO PROTOCOL

Emissions evolution in Annex1 (2003)

Decreased emissions in 2003


(1990 baseline)

Increased emissions in 2003


(1990 baseline)

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KYOTO PROTOCOL
Sectors concerned

Energy supply (24 to 48% of total GHG)


> Fuel combustion (energy production, manufacturing, transport, etc.)
> Fugitive emissions (oil and natural gas, solid fuels, etc.)

Industrial processes (5 to 36% of total GHG)


> Production (metal production, mineral products, chemical industry etc.)
> Consumption (halocarbons and sulphur hexafluoride, solvents etc.)

Waste management (primarily CH4)


> Solid waste disposal on land, incineration, wastewater handling etc.

Land use (0,3 to 9% of total GHG)


> Agriculture (enteric fermentation, manure management, rice cultivation,
agricultural soils, prescribed burning of savannas, field burning of
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KYOTO PROTOCOL

CO2 emissions from industrial process

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KYOTO PROTOCOL

CO2 emissions from land use change

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KYOTO PROTOCOL
Flexible mechanisms

ETS - Emissions Trading System


> Can be used as supplementary to actions to meet reduction
commitments.
> One AAU (Assigned Amount Units) represents the tradable right to emit
one t CO2eq.

CDM - Clean Development Mechanism


> Allows public or private entities to invest in greenhouse gas (GHG)
mitigating activities in developing countries.
> CERs (Certified Emission Reductions) can be used by the project
investor to meet its own commitments, or sold on the open market.

JI - Joint Implementation
> Emission reduction projects implemented jointly between Annex I
countries (developed countries and transition economies).
> ERUs (Emission Reduction Units) can be used by the project investor to
meet its own commitments, or sold on the open market.
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KYOTO PROTOCOL
CO2 market mechanisms

Limitations of CO2 emissions in


developed countries (Annex I)
4 options for companies
1/ Pay expensive
fines.

2/ Carry out carbon


reduction through
processes
improvement.

3/ Buy emissions
4/ Carry out carbon
credits on the
reduction through
CO2 market (ETS). technology transfers
in CDM or JI project.

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KYOTO PROTOCOL

Key Opportunities for industrials

In Developing Countries (part of Annex 2):


No national GHG reduction commitments but opportunity to host
CDM projects, thereby benefiting from associated investments,
technology transfer and transfer of know-how.

In Economies in Transition (part of Annex 1):


JI present an opportunity for these countries with emission
reductions to spare to attract investments and technology transfer.

What are the main opportunities for industrials?


> Technology transfer to improve process and energy efficiency
> Co-finance investments by selling emission credits
> Prepare for future commitments (after 2012)
> Achieve sustainable development
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KYOTO PROTOCOL
Financial assistance

Special Climate Change Fund (UNFCCC)


Will fund projects relating to capacity building, adaptation, tech
transfer, climate change mitigation, economic diversification for
countries highly dependent on fossil fuel.

Least developed countries Fund (UNFCCC)


Will fund a special work programme to assist LDCs.

Adaptation Fund (Kyoto Protocol)


Global Environment Facility (GEF)
GEF is the operating entity of the financial mechanism and the
main funding channel for developing countries.

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KYOTO PROTOCOL

Assistance at national level

What can be done at the national level?


> National reporting of GHG emissions;
> Sources of technical assistance;
> Training and technology transfer;
> Ensuring compliance: penalties for not meeting reduction
targets (Annex B countries [Kyoto]):
For every 1 ton of CO2 emissions of non-compliance
during the first implementation period, 1.3 must be
reduced during the following implementation period.

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CP & KYOTO PROTOCOL

CP practitioners: focal points for action

1/ Enabling activities - overcoming barriers


> work with government
> work with industry

2/ Kyoto Protocol implementation


> work with JI or CDM projects as project partner/proponent

3/ Function as a verification agency (DOE)


> auditing and on-going verification

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CP & KYOTO PROTOCOL


CP practitioners (2)

How can they work with governments ?


> Public sector awareness and education
> Policy advice related to industries needs to enable JI/CDM
projects, in co-ordination with National CDM authority.
> Build relationship with National JI/CDM authority:
- co-operation on awareness-raising, workshops;
- co-operation with policy advice to government;
- co-operation with pilot studies, projects.

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CP & KYOTO PROTOCOL


CP practitioners (3)

How can they work with industry ?


> Private sector awareness and education workshops.
> Continued emphasis on enhancement of energy efficiency in relevant
sectors including GHG measurements:
- renewable energy sources
- energy conversion and recovery
- new energy efficient processes
- technology transfer for non-energy-related GHG reductions

> Develop projects with industry:


- integrate greenhouse gas calculations into in-plant assessments;
- transfer CP investment financing knowledge toward JI/CDM related
project development for.
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CP & KYOTO PROTOCOL


Synthesis

Policy advice on industrys


needs to enable JI/CDM.
With national focal point (NFP),
submit pilot and full-scale projects to GEF.

Cleaner
Production
Activities

Engage in technology needs


assessments project with NFP.
Propose JI/CDM projects.
Raise awareness of JI/CDM opportunities
among local key industries and partners.
Assistance in formulation of National
Implementation Plans
(GHG inventories, needs, etc.).

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Kyoto
Protocol

INFORMATIONS & TOOLS


Official websites

UNFCCC, site of the Convention


http://unfccc.int

IPCC, Intergovernmental Panel


on Climate Change
http://www.ipcc.ch
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INFORMATIONS & TOOLS

Technology Information System (1)

TT:CLEAR
> Web-based technology transfer information system /
clearing house developed by the secretariat.
> Up-to-date information on the latest technology transfer
projects and case studies of successful technology transfer,
environmentally sound technologies and know-how.
> http://ttclear.unfccc.int

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INFORMATIONS & TOOLS

Technology Information System (2)


> Over 40 case studies;
> More than 600 links to relevant web sites;
> An inventory of methods, models and tools;
> Inventory of technology cooperation projects:
- Projects cited in National Communications of Annex I
Parties or non-Annex 1;
- Projects cited in submissions from Parties within the
consultative process

> Activities implemented jointly projects;


> Global Environmental Facility projects and
programmes;
> Some bilateral projects not reported in national
communications of Annex I Parties,
> Some multilateral projects and programmes
such as non-GEF related activities of UNEP,
UNDP, UNIDO, regional development banks and
other multilateral implementing agencies.
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INFORMATIONS & TOOLS


GHG Indicator

UNEP Greenhouse Gas Indicator


> UNEP guidelines for calculating greenhouse gas emissions
for businesses and non-commercial organizations.
> http://www.unep.fr/energy/tools/ghgin/index.htm

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INFORMATIONS & TOOLS


GERIAP

GERIAP - Greenhouse Gas Emission Reduction


from Industry in Asia and the Pacific (2001-2006)
> The project seeks to support Asian businesses to become
more energy efficient.
> The project home page contains a complete set of tools and
information for business, government and intermediaries,
including case studies, work sheets and guideline materials.
> http://www.energyefficiencyasia.org
> http://www.geriap.org

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INFORMATIONS & TOOLS


CP-EE projects

Promoting Industrial Energy Efficiency through a Cleaner


Production / Environmental Management System Framework
> UNEP project to use CPO for improving energy efficiency in industry
> Focus on capacity building in National CP Centers
> The CP-EE Manual on CD-ROM
> http://www.unep.fr/energy/projects/cp-ee/cpee_project.htm

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CONCLUSION
End of session 4

Thank you for your attention


Any questions?

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