Estudio de pre‐factibilidad y diseño de un sistema de captación y transporte de biogás para generación eléctrica en lagunas de estabilización de San José‐Lambayeque

PTTEP Siam Limited (PTTEPS), a subsidiary of PTT Exploration and Production Public Company Limited (PTTEP), has pioneered a Clean Development Mechanism (CDM) project that takes aim at recovering and then using associated gas from the oil wells of Thailand’s Sao Thian-A field. Situated in the S1 Concession area in Sukhothai Province, the Sao Thian-A field has produced approximately 1.5 MMscfd of associated gas and 1,900 BPD of crude oil. Without a CDM project, this associated gas, comprised primarily of methane with lesser amounts of other energy rich hydrocarbons, would have simply been continued to have been flared and more greenhouse gases would have been released into the atmosphere. At its core, the CDM project involved the installation of a gas treatment system to filter out hydrocarbon droplets from the associated gas prior to its internal use and sale to external facility. The CDM Project has indeed helped the whole facility become more economically viable for further investment in similar such additional CDM units. The CDM project was approved by the Designated National Authority of Thailand in December 2010. Key benefits of applying CDM to the overall Project included reduction of GHG emissions, which in turn, increased the global energy efficiency of the oil field; the reduction of non-renewable energy use; and the encouragement of best practice of associated oil management among oil and gas operators in Thailand. In addition to revenue gain from carbon emission reduction trading, this Project has fulfilled score-based criteria for national sustainable development evaluation: natural resources and environment, social, technology transfer and development, and economic growth. This CDM application within a petroleum exploration and production project is Thailand’s first! If this Project receives final approval and is officially registered by the CDM Executive Board, it will no doubt encourage other operators in Thailand to initiate their own participation in this business.

Sub-Saharan Africa lags far behind other regions in terms of the implementation of Clean Development Mechanism (CDM) projects due to several reasons. One of the reasons is a general perception that, since the region contributes very little to global GHG emissions, it also offers few opportunities to reduce these emissions. Using a bottom-up approach, this study investigates the technical potential of reducing GHG emissions from the energy sector in Sub-Saharan Africa through the CDM. The study finds that sub-Saharan Africa could develop 3,227 CDM projects, including 361 programs of activities, which could reduce approximately 9.8 billion tons of GHG emissions during the CDM project cycles. The study also estimates that the realization of this CDM potential could significantly enhance sustainable development in the region as it would attract more than US$200 billion in investment and could generate US$98 billion of CDM revenue at a CER price of US$10/tCO2. Another notable finding of the study is that the realization of this CDM potential could supply clean electricity by doubling the current capacity and thereby providing access of electricity to millions of people in the region. However, realization of this CDM potential is severely constrained by a number of financial, technical, regulatory and institutional barriers.

Clean development mechanism projects and portfolio risks

Toward an effective implementation of clean development mechanism projects in China

Towards an Effective Implementation of CDM Projects in China

The Clean Development Mechanism (CDM) has been internationally implemented as a part of the Kyoto Mechanism to reduce Greenhouse Gases (GHG) for mitigating climate change. Although forest is considered as the only carbon sink and its significance has increased, the number of registered Afforestation/Reforestation (A/R) CDM projects has recently decreased. Also, the Paris agreement, the new regime of climate change, sets to outline Sustainable Development Mechanisms (SDMs) to substitute CDM including A/R CDM, but the rulebook does not finalize yet. Therefore, it is essential to review the status of registered A/R CDM projects to build a best practice model on forestry sectors before entering the new framework. This study would research A/R CDM projects implemented in India, which is the most active country to be interested in Afforestation and Reforestation. The used materials were 19 Project Design Documents for A/R CDM projects in India, including statistical and spatial data. Those documents were used to identify the status and analyze the environmental and socio-economic factors in the study area. As Sustainable Development Goals (SDGs) is important during project decision making process, the relationship between current CDM projects and SDGs, the other important framework to be achieved, used for the analysis. The major project areas were in Uttar Pradesh carried out by Divisional Forest Officer (DFO) from Indian administration. The climates of A/R CDM projects areas including Uttar Pradesh were mostly warm, dry, and well-drained, and the native plants were highly preferred. Unlike the other project areas, Uttar Pradesh was economically worse, which means that the area was highly related to SDG 2 and 15. This research could contribute to achieving SDGs by matching each goal with the environmental and socio-economic factors. Throughout the matching, host countries could select the suitable factors to achieve SDGs by implementing the A/R CDM projects. This study would suggest the framework which should be considered before implementing A/R CDM or other projects related to forestry sectors. As a result, it could be connected to respond to climate change, forest management, and GHG reduction ultimately.

The clean development mechanism (CDM) was created with two main goals: help developed countries achieve the greenhouse gas emissions reduction targets set out in the Kyoto Protocol and provide sustainable development to developing countries who host the projects. Sustainable project management shares the same goals as the CDM project, which could be a valuable asset in the development of new projects. Much has been discussed about the effectiveness of the program in achieving those goals and even more in the post-2012 period when the CDM has experienced fewer new projects and lower certified emissions reduction (CER) prices compared to previous years. Based on Brazilian CDM project data, this works aims to analyze the economic aspect of sustainable management by observing the influence of the obtained CERs on the internal rates of return (IRRs) of a small hydro plant (SHP) according to the current CDM scenario, marked by CER prices reaching their lowest historical values. For this study, a spreadsheet was developed to simulate a project’s cash flows and thus determine its IRRs. The results show that using the current CER prices, carbon credits do not significantly affect SHP projects’ IRRs, with increases of less than 0.2% compared to a scenario with no credits. CDM projects may benefit more from optimizing the investment costs or increasing energy production. These results highlight a need to emphasize the sustainable benefits of the CDM program rather than only focusing on the economic return perspective.

Purpose – Since the registration of the first clean development mechanism (CDM) project in 2004, the CDM has seen a dynamic expansion: the CDM pipeline currently comprises 6,725 projects generating 2.73 billion certified emission reductions (CERs) up to 2012. These CERs result in a substantial financial flow from Annex I to Non-Annex I countries. But CDM projects also result in investments in low carbon technologies, a substantial share of which is focused on the energy sector. The total installed capacity of all CDM projects amounts to 288,944 MW. However, the CDM is not widely taken up in Africa. This holds true for Africa's share in the CDM project pipeline (2.62 per cent), for Africa's share in CERs generated up to 2012 (3.58 per cent) and for the normalized CERs per capita, per country. Two hypothesizes are commonly discussed: first, the continent features low per capita emissions and low abatement potentials. Second, African countries may be hampered by weak institutional frameworks. This article reviews both hypotheses and presents new empirical data. The paper aims to discuss these issues. Design/methodology/approach – Investigating the greenhouse gas (GHS) abatement potential of 16 energy-related sectors for 11 selected least developed countries in sub-Saharan Africa shows a total theoretical CDM potential of 128.6 million CERs per year. Analyzing investment indicators confirms that most countries are impeded by below average investment conditions. Findings – It is concluded that Africa offers a considerable range of substantial abatement potentials. However, the weak institutional framework is limiting the uptake of the CDM in Africa. This is underpinned by an analysis which shows if a CDM sector has high investment cost, Africa will have a low share in the sector. If the sector has low investment needs per CER, Africa's share in the CDM sector will be bigger. Investment needs and Africa's share in the pipeline feature a negative correlation. Research limitations/implications – Supporting CDM development in Africa should not be constraint to technical assistance. It will be crucial to develop an integrated financing approach, comprising the CDM as a co-financing mechanism, to overcome the institutional challenges. Originality/value – Until today, there are few empirical studies that use concrete criteria and indicators to show why the CDM is underrepresented in Africa. The work presented here contributes to filling this gap.

Energy efficiency, carbon emission performance, and technology gaps: Evidence from CDM project investment

Determinants of technology transfer through the CDM: a within-country analysis for China

This chapter discusses the role and behaviour of the corporate sector in Clean Development Mechanism (CDM) projects by examining a case from Indonesia. The chapter reviews: the role of the private sector in the CDM process and the manner in which this has influenced the types of CDM projects; the benefits accrued to Indonesia from these projects; and the wider implications for sustainable development through the CDM scheme. It identifies several types of drivers for private sector involvement in CDM: viz. CSR, international obligations and profit-making. By analysing ongoing CDM projects in Indonesia, the issue of realisation of development impact through CDM is examined. Finally the chapter presents a series of recommendations for the country to encourage the private sector to play a greater role in the CDM scheme.

This article proposes an analysis of the technical and economic feasibility of a Clean Development Mechanism (CDM) project for the generation of electricity through the use of biogas from landfill through the use of microturbine technology. In order to obtain the baseline and project scenarios, the methodology ACM-0001 was used, which is specific for the use of landfill biogas. For the economic viability analysis, the Net Present Value (NPV), the Modified Internal Rate of Return (MIRR) and the Payback method were used. After the results, the methods of economic analysis indicated that its CDM project with microturbine is economically viable.

Carbon finance through the Clean Development Mechanism (CDM) offers significant opportunity to a developing country like India for an array of greenhouse gas (GHG) emission reduction projects. However, the transaction cost associated with the development of CDM project is a serious barrier to many small scale CDM (SSC) projects due to which these proponents face many difficulties in attracting international investors. To reduce this transaction cost, individual small projects with similar project context can be bundled together to form a single CDM project. These SSC bundled projects that reduce GHG emissions can claim Certified Emission Reductions (CERs) under the concept of bundling. This paper presents 98 bundled CDM projects registered and issued worldwide till October 2014, out of which India has 29 projects, along with a case study on small scale hydro-electric power generation project. The visited project is a good example of clean technology that helps to reduce stress on conventional energy sources and is an improvement of social and economic life of local people. Energy efficiency, grid connected electricity generation, fossil fuels switching, thermal energy production and methane recovery are some of the methodologies in these types of projects. These methodologies reduce GHG emissions without harming the environment.

청정개발체제(CDM) 사업은 신재생에너지사업의 보조를 통해 지구온난화 가스의 감축을 꾀하는 대표적인 국가 및 기업 간 배출권 거래(cap and trade)제도이다. 재래식 발전 방식에 비해 수익성이 낮은 태양광, 풍력, 수력 등의 사업이 CDM 사업으로 승인을 받으면 매년 탄소배출권(CER)을 제공받고, 이의 판매를 통해 발생한 추가 수익으로 인해 사업 타당성이 향상될 수 있다. 그러나 CDM 사업으로 인정받기 위해서는 환경적, 기술적, 경제적 추가성(Additionality)를 입증해야 하는데, 해당 적용 기술, 베이스라인 측정 방법론, 온실 가스 감축량, 사업 내부 수익률(IRR) 등 다수의 변수에 따라 결과가 달라지기 때문에 사전적으로 승인여부를 파악하기가 어렵다. 본 연구에서는 신재생에너지로 분류되는 수력 사업의 CDM 승인여부를 예측할 수 있는 모델을 개발하는 것을 목표로 하였다. 구체적으로 UNFCCC에서 제공하는 수력 사업 데이터를 활용하여 로그 회귀분석 및 CART 분석을 실시하여 예측모델을 개발하였으며 이와 함께 승인 여부에 유의하게 영향을 미치는 핵심 인자들을 파악하였다. 구축된 로그 회귀 및 CART 예측모델은 AUC가 각각 0.7674 및 0.7231로 예측 정확성이 비교적 높게 나왔다. 또한 수력 사업에서는 온실가스 저감량 대비 투자액, 시간당 발전량 및 내부수익률이 승인여부에 유의한 변수들로 파악되었고, 이에 비해 특정 기술이나 측정 방법론은 영향이 없는 것으로 드러났다. 즉, 특정 기술을 불문하고 온실가스를 투자 대비 가장 효율적으로 저감하는 사업과 수력사업들 중 상대적으로 소규모로 진행되는 사업이 CDM 사업으로 승인될 가능성이 높다는 것으로 해석된다. The Clean Development Mechanism (CDM) is the multi-lateral 'cap and trade' system endorsed by the Kyoto Protocol. CDM allows developed (Annex I) countries to buy CER credits from New and Renewable (NE) projects of non-Annex countries, to meet their carbon reduction requirements. This in effect subsidizes and promotes NE projects in developing countries, ultimately reducing global greenhouse gases (GHG). To be registered as a CDM project, the project must prove 'additionality,' which depends on numerous factors including the adopted technology, baseline methodology, emission reductions, and the project's internal rate of return. This makes it difficult to determine ex ante a project's acceptance as a CDM approved project, and entails sunk costs and even project cancellation to its project stakeholders. Focusing on hydro power projects and employing UNFCCC public data, this research developed a prediction model using logistic regression and CART to determine the likelihood of approval as a CDM project. The AUC for the logistic regression and CART model was 0.7674 and 0.7231 respectively, which proves the model's prediction accuracy. More importantly, results indicate that the emission reduction amount, MW per hour, investment/Emission as crucial variables, whereas the baseline methodology and technology types were insignificant. This demonstrates that at least for hydro power projects, the specific technology is not as important as the amount of emission reductions and relatively small scale projects and investment to carbon reduction ratios.

Energy-related Clean Development Mechanism (CDM) projects contribute to sustainable development through reducing air pollutants in addition to CO2 emissions. This paper evaluates the co-benefits of ten coal-fired power generation CDM projects which are currently in registration and validation with a power generation mix linear programming model in India’s power sector from 2006 to 2031. Two scenarios are developed to identify impacts of the CDM projects. As a result, the co-benefits are invoked by the CDM projects in India’s power sector. CO2 emissions decrease by 79 Mt CO2 and SOx and NOx emissions decrease by 0.8 Mt SOx and 0.6 Mt NOx from the baseline in 2031. Including benefits from the reduction of the air pollutants warrants sustainable development benefit and contributes to enhance the generated CER prices. Thus, we argue that addressing co-benefits encourages both host countries and investors to participate CDM projects.