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Dam Synchronisation and Flood Releases - agriwaterpedia.info

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DAM SYNCHRONISATION AND FLOOD RELEASES IN THE ZAMBEZI RIVER BASIN: ANNEX 4 OF FINAL REPORT<br />

Appendix D<br />

Making use of the Clean Development Mechanism<br />

for new Hydropower in the Zambezi River Basin<br />

The ToRs asked for an expert opinion on the potential of the Clean Development Mechanism<br />

for development of hydropower in the Zambezi River Basin. This is reported on in this<br />

Appendix <strong>and</strong> is discussed where new dams are proposed in Chapter 3 <strong>and</strong> 4 under the criterion<br />

―Biophysical impact‖ for its influence on emission reduction, <strong>and</strong> ―Likelihood of realization‖ for<br />

its influence on financing possibilities.<br />

Use of the Clean Development Mechanism<br />

The Clean Development Mechanism (CDM) is designed to facilitate the registering of carbon<br />

equivalent credits, which can be freely traded for money on the open market.. The United<br />

Nations Framework Convention on Climate Change (UNFCCC) manages the CDM process,<br />

with the brokerage of ‗Carbon Credits‘, facilitated by the private sector. Developing countries<br />

can acquire Carbon Credits by developing projects through the CDM process, the carbon credits<br />

acquired are then sold on to entities in first world countries. The income gained from these<br />

carbon offset projects is then used to offset the costs of a projects development. For owners of<br />

the carbon credits the following needs to be understood:<br />

Their is no fixed income from Carbon Credits per KWh; the initial purchase amount for the<br />

credits held needs to be negotiated through a broker with a willing purchaser. Usually the<br />

credits sold are held by the purchaser for a set period after which they are again released onto<br />

the open market for sale. At this time the price per credit can be renegotiated with the aid of<br />

a broker to a new entity. Thus the price of the credits sold can fluctuate as it is also depends<br />

on the dem<strong>and</strong> for Credits from industrialized countries, <strong>and</strong> the availability of credits in the<br />

market place.<br />

In order to register a project within the CDM process, the UNFCC evaluates a project on<br />

‗additionality‘: A project needs to prove that the project would not be financially viable<br />

without the acquired Carbon Offsets being considered<br />

The CDM process which needs to be followed <strong>and</strong> which is required to register <strong>and</strong> validate<br />

the carbon credits to be earned can take considerable effort <strong>and</strong> time.<br />

For the three countries that are central in development of new hydropower projects in the<br />

Zambezi Basin (Zimbabwe, Zambia <strong>and</strong> Mozambique) no CDM projects for hydropower have<br />

been lodged with the UNFCC to date.<br />

Hydropower <strong>and</strong> greenhouse gas emissions<br />

Hydropower is a form of energy which has in the past been presented as giving off relatively<br />

little greenhouse gasses. Many studies have suggested that greenhouse gas emissions from dams<br />

are unequivocally small. However, results of new research indicate that considerable amounts of<br />

greenhouse gases are emitted from reservoirs (Gaffin, date unknown):<br />

Firstly, the construction of the dam itself, in some cases an enormous engineering endeavor,<br />

consumes fossil fuels <strong>and</strong> requires the production of large quantities of cement.<br />

D-1

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