Past and Future of Clean Development Mechanism (CDM) …css.escwa.org.lb/SDPD/1879/3.pdf · Clean Development Mechanism ... Al-Shaheen Oil Field Gas Recovery and ... Fertilizer Co

Copyright © 2002-2007 Gulf Research Center. All rights reserved.Climate Change and CDM in GCC countries 1

Past and Future of Clean

Development Mechanism (CDM) in the

Arab World

Meeting of the Climate Change Working Group

Arab Integrated Water Resources Management Network

29-30 July 2009

Beirut, Lebanon

Mohamed Abdelraouf

Program Manager, Environment Research, GRC, Dubai


Contents

CDM

CDM Project Cycle

CDM projects in 2009 Worldwide

CDM in the Arab World CDM: Registered projects

CDM: Requesting Registration

Al-Shaheen Oil Field Project

Why no CDM in the Oil & Gas Industry?

Future of CDM in the Arab World

CDM Issues for post 2012

NGOs role in CDM

Conclusion


Clean Development Mechanism

Joint Implementation (JI) The mechanism known as “joint

implementation,” defined in Article 6 of the Kyoto Protocol, allows a country

with an emission reduction or limitation commitment under the Kyoto

Protocol (Annex B Party) to earn emission reduction units (ERUs) from an

emission-reduction or emission removal project in another Annex B Party,

each equivalent to one tonne of CO2, which can be counted towards

meeting its Kyoto target.

Clean Development Mechanism (CDM) The Clean Development

Mechanism (CDM), defined in Article 12 of the Protocol, allows a country

with an emission-reduction or emission-limitation commitment under the

Kyoto Protocol (Annex B Party) to implement an emission-reduction project

in developing countries. Such projects can earn saleable certified emission

reduction (CER) credits, each equivalent to one tonne of CO2, which can be

counted towards meeting Kyoto targets.


In other words, CDM aims to “generate cost-

efficient emission reductions through

investment in developing countries that

reduces GHG emissions and the compliance

costs for Annex I Parties, and to promote

sustainable development in developing

countries.” [Streck, 2 Env. Liability, 2007, 92]


Baseline emissions (BAU)

Emission reductions

Crediting

Period

GH

G e

mis

sio

n

Project

Implementation

equals Carbon Credits

(CERs)

Emissions from CDM project

CDM facilitates the investment in GHG reduction projects …

… and allows for the monetization of the resulting emission reductions

What is the Clean Development

Mechanism?


CDM

Kyoto is not about money only it is an incentive for

better environmental management.

Environmental laws should encourage beyond

Business As Usual (BAU).

Additionality:

Environmental;

Economic;

Technological …etc.



CDM projects in 2009

Worldwide

CDM projects in greater Mena

expected to increase dramatically!Source: UNFCCC

Location of registered projects

India: 31%

China: 22%

Brazil: 13%

Mexico: 9%

Other: 23%

MENA: 14 registered CDM project

Egypt : 4

Morocco: 4

Tunisia: 2

Qatar: 1; UAE 1

Jordon: 1; Syria 1


CDM: Registered Projects

Project Title

Host

Country

Registeration

Status Sectoral scopes Activity Size

ADFEC 10 MW Solar Power Plant. UAE 08-Jun-09

1 : Energy industries (renewable - /

non-renewable sources) SMALL

Al-Shaheen Oil Field Gas Recovery and

Utilization Project Qatar 29-May-07

10 : Fugitive emissions from fuels

(solid, oil and gas) LARGE

Dir Baalbeh Landfill Gas Capture Project in

Homs Syria 16-Mar-09



Fuel Switching Project of the Aqaba

Thermal Power Station (ATPS) Jordan 30-Sep-08


non-renewable sources) LARGE

Catalytic N2O destruction project in the tail

gas of the Nitric Acid Plant of Abu Qir

Fertilizer Co. Egypt 07-Oct-06 5: chemical industries LARGE

Onyx Alexandria Landfill Gas Capture and

Flaring Project Egypt 15-Dec-06 13: Waste handling and disposal LARGE

Zafarana Wind Power Plant Project Egypt 22-Jun-07

1: Energy industries (renewable - /


Waste Gas-based Cogeneration Project at

Alexandria Carbon Black Co. Egypt 26-Jul-08



Essaouira wind power project Morocco 29-Oct-05 1 Energy Industries LARGE

Photovoltaic kits to light up rural

households in Morocco Morocco 28-Apr-06


non-renewable sources) SMALL

OULJA Landfill gas recovery and flaring Morocco 06-Nov-07 13 : Waste handling and disposal SMALL

Tétouan Wind Farm Project for Lafarge

Cement Plant Morocco 23-Sep-05

Sectoral scope 1: Energy industries

(renewable - / non-renewable sources) SMALL

Landfill Gas Recovery and Flaring for 9

bundled landfills in Tunisia Tunisia 23-Nov-06 13: Waste handling and disposal LARGE

Djebel Chekir Landfill Gas Recovery and

Flaring Project – Tunisia Tunisia 06-Oct-06 13: Waste handling and disposal LARGE


CDM: Requesting Registration

Project Title

Host

Country Sectoral scopes

Activity

Size

Abu Dhabi solar thermal power

project, Masdar UAE

1 : Energy industries (renewable -

/ non-renewable sources) LARGE

Biogas Technology Group Ras

Al-Khaimah Landfill Gas to

Energy Project UAE 13 : Waste handling and disposal LARGE

Soroosh & Nowrooz Early Gas

Gathering and Utilization

Project (S&N project) Iran



Tal Dman Landfill Gas Capture

Project in Aleppo Syria 13 : Waste handling and disposal LARGE

Reduction of Methane

Emissions from Ruseifeh

Landfill Jordan 13 : Waste handling and disposal LARGE

Egyptian Brick Factory GHG

Reduction Project Egypt


/ non-renewable sources) LARGE

Surac Bagasse Plant Project Morocco


/ non-renewable sources) SMALL


Al-Shaheen Oil Field

Project

Qatar Avoided Flaring Project, Registered May 29, 2007 (path to

registration took one year), aiming at Recovery and utilization of gas

from oil wells that would otherwise be flared.

Shaheen field (flare reduction) first project in the region and third petroleum

project world-wide. Registered CDM Projects– “Rang Dong”,

Vietnam– “Kwale”, Nigeria – Al-Shaheen”, Qatar.

The project activity has three main components:

1. Recovery of associated gas.

2. Transmission of associated gas along a pipeline.

3. Processing of the associated gas at the gas processing plant, and local

end-user utilization.


Al-Shaheen oil field

Project

Al-Shaheen oil field has flared the associated gas since the oil

field began operations in 1994. Prior to the project activity, the

facilities, used 125 t/day of associated gas for power & heat

generation and the remaining 4100 t/day was flared.

Total gas production after the completion of the project activity

is 5000 t/day.

- 2800-3400 t/day is exported to QP.

- 680 t/day is for on-site consumption.

- 900 t/day is flared.

The project activity will reduce GHG emissions by 2.5 million

t/CO2per year.


Al-Shaheen oil field

Project


CDM projects in the

region

Projects in the region especially gulf region are very huge and

takes some time to develop (special characteristics of the region).

Bureaucratic procedures.

In the Middle East either no knowledge or there is

misunderstanding.

Now projects moving fast as awareness is raised on all levels.

Only one local company, Masdar in Abu Dhabi.

Currently various CDM projects under study in various fields like

renewable energy, waste, cement…etc.

No sinks. So need to focus on clean technology.

Main obstacles: the transfer of technology.

Effectively became active in 2005.


Why no CDM the Oil &

Gas Industry?

Political will.

Lack of education and awareness (even tax-wise).

Development is happening so fast and the region wants to use themoney to develop as much as they can.

Lack of infrastructure and capacity (expertise) in private and publicsectors.

Process takes more time especially in big oil companies.

Belief that it is against the oil business.

No need for extra few thousands that would accrue out of CDM.

Can‟t stop or change production so easily …unlike in cement whereinovernight changes are possible.


Other oil & gas sector

opportunities

Approved CDM Methodologies:

1. Gas transmission compressor stations:

Leak detection & repair program.

Waste heat recovery.

Wet to dry seal replacement.

2. Gas processing plants:

Waste heat recovery.

Avoided flaring.

3. Oil Refineries:

Waste gas/heat/pressure recovery systems.


Future of CDM

Development here is very fast, political support and funds are

available, awareness is growing.

Additional revenue source based on carbon credit sales.

All types of activities like Cement, Landfills, Industrial efficiency,

Waste mgt., Industrial processes, Agriculture sector, Land Use

change and Forestry Inventory.

Energy efficiency projects in the Gulf can save millions and reduce

tons of co2 emissions and yet qualify as CDM project.

Renewable energy holds great potential for the region, like

biomass in Asia. Here it could be solar energy.


Future of CDM

Masdar, Abu Dhabi to work with Dubai Aluminum

Company Limited (Dubal) to develop and register a

project under the CDM of Kyoto to reduce greenhouse

gas emissions from aluminum smelting, to claim credits

of reduced GHGs at Dubal smelter at Jebel Ali.

Doha Bank plans to launch the Arabian Gulf‟s first

carbon credits exchange this year to tap an emerging

market for emissions trading.


• Each additional ton of CO2 transferred as a CER entitles an Annex I country to effectively increase its cap, while remaining in compliance

– Thus, the more CERs generated, the more Annex I parties can increase emissions

• Technology Transfer has not significantly increased

• “Additionality” (the emissions reduction is „additional‟ to reductions that would have occurred in the absence of the project) has not always been properly evaluated, and many projects have later been proven not to be additional

• The CDM Executive Board is overworked and doesn‟t scrutinize projects properly

• Inequitable Geographic Distribution of Projects

CDM Criticism


• Carbon Capture and Sequestration (CCS)

• Nuclear

• Both above technologies are recognized as “options” for mitigation and stabilization

• US and other industrialized countries, as well as some Arab States are investing heavily and are interested in expanding capacities

CDM Issues for post 2012


NGOs role in CDM

Public image.

Active in many fields like human rights, environment, social

services, woman, disasters, children…etc.

Family and tribal roles are still present.

Members are usually Foreigners/ expatriates rather than locals

(Gulf Status).

Initially, awareness raising (for individuals, public and private

sectors.

As watchdogs to monitor, foster and propose CDM projects for

different industries.


Thank You…[email protected]

Gulf Research Center

P.O. Box 80758, Dubai

United Arab Emirates

www.grc.ae

Tel: +971 4 3247770

Fax: +971 4 3247771

mailto:[email protected]

http://www.grc.ae/

Documents

Past and Future of Clean Development Mechanism (CDM) …css.escwa.org.lb/SDPD/1879/3.pdf · Clean Development Mechanism ... Al-Shaheen Oil Field Gas Recovery and ... Fertilizer Co