Sectoral Opportunity for CDM Benefits in Central and West Asia

Keisuke Iyadomi Technical Support Facility Asian Development Bank

Characteristics in Central/West Asia

Geographically diverse (mountainous, vast
deserts/grasslands, glacier-fed river basins; Amu Darya, Indus, Syr Darya) and vulnerable to climate change

Lower GHG emissions due to inherited energyinefficient industrial structures from the Soviet era, but rapidly increased (e.g. Uzbekistan, Turkmenistan) Lower GHG emissions per capita due to hydro-rich energy mix (e.g. Tajikistan, Kygyztan, Georgia) Untapped CDM opportunities (only Pakistan and
Uzbekistan with more than 10 registered projects)

 Power sector

Potential Sectors in Central/West Asia

Rehabilitation (AM0044, AM0056, AM0061, AM0062) Energy efficiency (AM0029) Hydro (ACM0002, AMS-I.D.)

Gas Pipeline
Leak reduction (AM0023, AM0043)

Transport
Bus Rapid Transit (AM0031, ACM0016) Railway electrification

Agriculture
Improvement of irrigation systems/water management (AM0020,
AMS-II.F.)

Energy efficiency
Buildings (AMS-II.E.), lightings, water savings, etc.

Status of the Carbon Market by Region

Ref: UNFCCC as of 1 Sep 2011

Shares only 1% from Central/West Asia (1.4% for annual emission reductions) Gradually active in PoAs among under-represented countries, but only Pakistan in Central/West Asia

Power Sector Rehabilitation

Project Title Country Methodology Annual ERs Status Rehabilitation of the AzDRES Power Plant Azerbaijan AM0061: Methodology for rehabilitation and/or energy efficiency improvement in existing power plants Approx. 3 million t CO2e under validation

Project Description
the rehabilitation of seven 300 MW power generating units in Azerbaijan incorporation of a cooling system for the entire eight units

Opportunity
the overall generation capacity restored and increased by approx. 8%; 360MW of the overall increase expected in the generation capacity (of which 210MW increase would be direct due to technological upgrades)

Challenges
No project registered yet

Power Sector Renewable Energy

Project Title Country Methodology Annual ERs Status Dagachhu Hydropower Project, Bhutan Bhutan ACM0002: Consolidated baseline methodology for grid-connected electricity generation from renewable sources Approx. 500,000 t CO2e Registered

Project Description
A run-of-river type with an installed capacity of 114 MW, generating annual 500 GWh of electricity connected to the regional grids comprising the grids in Bhutan and eastern region of India First cross-boarder CDM exporting power from Bhutan to India

Opportunity
Open to countries where clean energy (e.g. hydro) is dominant Promote regional clean-energy trade

Challenges
Multinational agreement is required

Gas Pipeline Leak reduction

Project Title Country Methodology Annual ERs Leak Reduction in Above Ground Gas Distribution Equipment in the KazTransgaz-Tbilisi Gas Distribution System- Tbilisi, Georgia Gerogia AM0023: Leak reduction from natural gas pipeline compressor or gate stations Approx. 340,000 tCO2e

Status

Registered, CER already issued (53 k CER)

Project Description
To reduce leaks at above-ground infrastructure in the Tbilisi as distribution system (at gas stations, pressure regulator stations, valves and fittings)

Opportunity
Decrease on dependency on imported fossil fuels

Challenges
Review undertaken (reasons: substantiation of the current leak detection and repair practice and compliance with the gas safety rules )

Issues to be discussed for way forward

Q1: Ever reassessed untapped sector/project types?
New meth. development ongoing (e.g. Modal shift from road to water/rail, higher efficient tech. for power transmission line) Activities likely eligible for PoA (e.g. demand-side energy efficiency for specific tech. incl. CFL/LEF, water saving device, etc.)

Q2: Are DNAs ready to play more critical role?

Standardized baselines (positive list, baseline emission factor)

Q3: Any regional specific issues remained to simplify CDM rules and procedures?
E.g. Recent EB decision for simple method for grid emission factor only for LDCs and countries with less than 10 registered projects

Thank you very much for your kind attention

Keisuke Iyadomi Kiyadomi.consultant@adb.org