05. cronenberg 31

31-03-2012 Cronenberg/Durable Energy for Curaçao 1

CO2 emission trading

Creating new opportunities for Curaçao

Saturday 31 March 2012

Carel Cronenberg PhD


Aviation

Transportation

Water

Building

Industry

Spatial Planning

Environment


Introducing myself

- Leading Professional Sustainable Industry

Energy and Climate Policy for the Industry

My projects include:

- Implementing EU CO2 trading in Bulgaria

- Underground CO2 storage in the North Sea

- CO2 allocation and monitoring in the refinery sector (BP)

- Large scale natural gas introduction in Israel


CO2 footprint of Curacao


CO2 in the newspaper

� ‘CO2-uitstoot per inwoner Curaçao hoog’

� 28-03-2012 9:13 | NIEUWS | Leoni Leidel-Schenk

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Nr 4 CO2 emitter


CO2 emissions of Curacao

Approximately 4 Mton/yr

transport

energy/electricity

refinery

3,4

0,3

0,4

Uncertain data


This presentation

- Needing a new sense of urgency on climate change

- Uncertain status of the climate debate

- Carbon markets and CO2 emission trading

- Can Curaçao take part in CO2 emission trading?

- The need to make strategic choices for Curacao


CO2 concentrations and emissions


Sense of urgency will come back

� Climate change

remains a reality, new

alarming reports

(UNEP Nov 2011)

Clim

ate

po

licy


Climate Agreements

1998: Kyoto protocol• Set of rules and reduction targets up to 2012

2009: COP 15, Copenhagen• Pledges/promises for further reductions

2010: Pledges are insufficient (give temp rise 3 to 5C !)

December 2011 : COP 17 Durban• Spring 2012: inventory of levels of ambition• 2012 – 2014 Development of new climate agreement

• In 2015 new climate agreement for 2020 onwards

• Prolonging Kyoto up to 2020?


Ambitions of countries

Small Island states (AOSIS)• serious reductions to maintain level 1,5 C temp rise

EU• -20% CO2 reduction in 2020 compared to 1990• Core: European Emission trading system (ETS)

US, Australia• Regional initiatives

Japan, Canada

China, India“It is not our problem (yet)”

LO

W

H

IGH


Emission trading, Cap and Trade


Cap and tradeRules of the game

The Cap: Set emission ceilings for

each installation based on best-of-

class efficiencies and supply limited amount of emission credits

into the market.

The Trade: organize auctions, introduce trading platforms

Essentials: Detailed an verified

monitoring plans for each installation +

Yearly emission reports,

Verified, because CO2 is money


Emission trading: project credits

Emission reductions are:

Real,

Additional,

Compared to an established

baseline

Monitored and reported

Verified and certified


The carbon markets

Kyoto Project CreditsEmission reductions: CDM (CER), JIDomestic Offset projects

Regional systemsCap and Trade: EU-ETS (EUA)North American, Asian and Australian markets

DurbanNew market based instrument, to be developed

Other marketsVoluntary emission reductions (VER)


CO2 price developments

� Too low demands and oversupply of carbon

credits

� Credits allowed to plants that were shut down


The special position of Curacao

Current situation

� Kyoto protocol (1998 – 2012)

� Curaçao is an Annex-I country without reduction targets, without

CDM credits

Future options

� Prolonged Kyoto protocol (2012 -2020)

� Continue current situation

� New position, e.g. take part in Domestic off set projects

� New Climate Agreement (2020 - )

� Follow EU position

� New position


Opportunities

� Curacao has significant potential for energy saving and introducing renewable energy

� and consequently may generate CO2 credits

� No need to wait until new climate agreement has reached

� Voluntary CO2 markets

� CO2 compensation to introduce green space travel

� In carbon markets, the guaranteed quality of the credits is determining its price

� Curacao has the potential to deliver high quality carbon credits


High quality CO2 credits

Show that the CO2 credits represent a real CO2 reduction

1) Project is transparent and reductions are verified and in accordance with international standards (UNFCCC)

2) Reductions are based upon verified historical base data

In this respect a greenhouse monitoring and reporting system for Curacao is needed. Inclusion of refinery is essential

For monitoring and reporting international standards apply (NIR, UNFCCC)


Recommendations for Curacao

� Prepare for the future: better insight is needed in current CO2 emissions, particularly the

refinery

� Setting up an Emission Inventory Reporting system NIR

� Start setting objectives and CO2 reduction policy (note CO2 policy ≠ renewable energy policy)

� Be informed on the post Durban discussions and preparations for COP 18 in Qatar (Nov –Dec 2012)

� Put the issue on the agenda in NL.

� Also look for additional partnerships to get influence (Carribbean countries but also AOSIS)


Make Curacao a Caribbean Paradise Make Curacao a Caribbean Paradise

for high quality CO2 creditsfor high quality CO2 credits


[email protected]

Environment and SustainabilitySafety and Environment – IndustryAmesrfoort THE NETHERLANDS

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05. cronenberg 31

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