CCBF Blog

The CDM … evolution of mind-numbing rules

COP15 Blog 2 - By Christine Loh

Meetings on the future of the Clean Development Mechanism (CDM) are on-going at COP15. The CDM is supervised by the CDM Executive Board under the COP as part of the Kyoto Protocol process.

 

The Executive CDM Board presented recommendations this week on how to improve the CDM, the key aspects included improving the clarity and accessibility of the rules, providing more detailed reasons for decisions, improving appeals, establishing a separate technical body to assess projects, and providing training. These proposals were generally welcomed. However, while the setting up of the new independent technical body should enable the board to review many more projects, it isn’t yet clear where resources will come from.

 

At an open Q/A session about the CDM, heated arguments between the Executive Board and market participants exploded over the Board’s recent rejection of 10 wind farm projects in China. The Board explained with China having changed the tariff, the Board didn’t have enough proof for them to pass the test of ‘additionality’.

 

The concept of additionality was created under the CDM to prevent giving credit to projects that would have happened anyway.  The rules on additionality are complex and mind-challenging. There are plenty of arguments over interpretation. Is it based on whether a project can show the emissions from the project are lower than the baseline i.e. there are additional emissions reductions that would not have happened without the project, or do you have to show the project would not have happened without the credits because it would not otherwise be financially possible. These two approaches have been called ‘environmental additionality’ vs. ‘financial additionality’. It seems the Chinese wind projects were rejected on the basis of the latter.

 

At a COP plenary session, China made interventions on the government’s disappointment about the reject of those wind farm projects. As for carbon capture and sequestration (CCS) projects and whether they should be included in the CDM, countries had different views. For example, Brazil was against it but Saudi Arabia was for it. So, we need to see how this will be agreed going forward.

Electric Vehicles Start Up in Hong Kong

by Mr. Robert Gibson

Following the Government’s Budget announcements on Electric Vehicles (‘EVs’) many questions are being asked about them.

• When will we be able to buy viable EVs in Hong Kong?
• Given that marginal electricity generation in Hong Kong is likely to be from coal, do EVs lead to a significant reduction in carbon emissions?

The October 2008 report by Arup for the Department of Transport in the UK. Its key findings include:

• For the UK’s mix of electricity supply EVs have the potential to offer significant carbon dioxide and greenhouse gas emissions reductions compared to conventional petrol/diesel fuelled internal combustion engines. This applies over a full life cycle, taking account of emissions from power generation and emissions relating to production and disposal.
• Due to vehicle development lead times, mass production and volume availability of EVs is unlikely to occur before 2014 at the earliest.
• The wide spread roll-out and uptake of EVs after 2014 would require increased consumer confidence and education; improvements in battery performance and cost; charging infrastructure which keeps pace with demand; and stimulation of the market through appropriate incentives which encourage the uptake of low carbon vehicles. Without these a ‘Business as Usual’ scenario would prevail.
• Largely due to the high cost of batteries, the consensus is that EVs will cost more to produce than comparable existing vehicles for the foreseeable future. Over the medium term the whole-life running costs of EVs are expected to be lower than conventionally-fuelled alternatives, primarily due to differences in fuel prices. Currently private consumers buy on capital cost rather than running costs and so education will be required to raise awareness of this benefit.
• Pilot and demonstration projects will be critical to address the questions and concerns of all stakeholders involved in EVs in order to provide an evidence base for a possible future wider rollout of vehicles.

The report goes on to make a number of recommendations on action the UK Government should take to promote EVs.

It would be helpful to have a study for Hong Kong which builds on the attached study and similar ones from other countries to clarify the viability and the net environmental impact of EVs here.

Waste and sewage powering tomorrow?

by Mr. TC Yee

Waste could be crucial in search for cleaner fuels

LONDON (Reuters) - What we throw away could soon be used to power our cars, if projects to produce ethanol from commercial waste are ramped up. Some companies are exploring the environmental and financial benefits of putting waste to good use and are developing technology to produce bioethanol.
Source: Waste could be crucial in search for cleaner fuels [Reuters]

Flush hour: Oslo to run buses powered by biomethane from human sewage

Free, friendly and non-fossil – biomethane from human waste will soon power public transport in the capital city. Waste not, want not: Oslo buses to run on human-sourced biomethane. It is available for free in huge quantities, is not owned by Saudi Arabia and it contributes minimally towards climate change.
Source: Flush hour: Oslo to run buses powered by biomethane from human sewage [guardian.co.uk]

Personal views: HK is facing increasing burden to dispose urban and construction wastes. With the dwindling capacities of existing landfill sites, it has become imminent to find our way forward. Following deep correction in most commodity prices along with the financial tsunami, the local waste recycling contractors appeal for urgent help for survival against fast diminishing off-taking volumes, or else the entire recycling business would come to a complete halt. Unfortunately, the social dispute on “Not at my backyard” has continuously suppressed, if not killed, any proposals on finding new landfill sites or waste incineration. Could the Government and the society as a whole come to a compromise to turn the economic downturn challenge into a green business opportunity so that we will not only alleviate waste disposal problem but also bring in new employments?