Carbon 2009 Emission trading coming home - UNEP Finance Initiative

Carbon 2009
and limitation or exclusion of
HFCs as likely changes to this
flexible mechanism, but also the
widespread use of benchmarks
for baselines and additionality
purposes is a highly rated change.
Like in China, a high share of
respondents in India expect
that a limitation or exclusion of
HFCs and a widespread use of
benchmarks for baselines and
additionality purposes will apply
to the CDM after 2012, but the
change next on the list is the
limitation or exclusion of largescale
hydro.
HFCs and hydro
have been controversial
project types
Both hydro- and HFC projects
have been controversial project
types in the CDM. Environmental
groups have lead a high profile
political and media campaign
against hydro projects, claiming
that many of these schemes
harm the local environment and
communities. 330 hydro projects
have already been approved by
the UN, with the potential to
generate 135 million credits. On
the other hand, HFC projects
currently account for around 55
percent of all certified emissions
reductions (CERs) issued from
CDM projects. The EU is likely to
propose the production of HFC
gases be eliminated in a bid to
cut greenhouse gas emissions,
in return for revenue to help
poor countries adapt to climate
change.
Proposals for an increased use
of benchmarks in the CDM were
thrown out from the negotiations
in Poznan in December 2008,
due to resistance from Brazil,
Figure 4.7: Time for change?
“Which changes, if any, do you think will be made to the CDM from 2013 onwards?”
CER project developers/aggregators. Multiple answers possible. N = 407.
HFCs limited/excluded
Sectoral CDM
Benchmark use
Large hydro limited/excluded
Marine transport
N2O limited/excluded
CER value differentiation
Other changes
Source: Point Carbon
China and India. An increased
use of benchmarks was pushed
by the EU, as this would simplify
methodologies. It is believed that
Brazil, China and India resist this
because they see it as a first step
towards commitments.
Among those that think sectoral
CDM will be allowed in the
post-2012 framework, more
than 60 percent believe that
cement, power and steel will
be part of this expansion of the
mechanism (see Figure 4.8). All
Figure 4.8: Which sectors for sectoral CDM?
Respondents who think that sectoral CDM will be allowed. N=22.
Cement
Power (electricity)
Steel
Aluminium
Aviation
Marine transport
Other:
None of the above
Share of respondents
Policy CDM
REDD
CCS
Nuclear
No changes
Source: Point Carbon
Aviation
0% 10% 20% 30% 40% 50% 60%
Share of respondents
0% 10% 20% 30% 40% 50% 60% 70% 80%
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