IETA & IATA WORKSHOP Carbon Offset and Reduction Scheme for - - PowerPoint PPT Presentation

IETA & IATA WORKSHOP

Carbon Offset and Reduction Scheme for International Aviation (CORSIA) Geneva, 28 February 2017

1

STATKRAFT

NORWAY

12 916 MW

ZAMBIA

5 MW

SWEDEN

1 587 MW

GERMANY

2 692 MW

TURKEY

122 MW

BRAZIL

149 MW

Statkraft SN Power

INDIA

91 MW

NEPAL

23 MW

THE PHILIPPINES

146 MW

THAILAND

SN Power office

LAOS

50 MW

PANAMA PERU

296 MW

CHILE

143 MW

THE NETHERLANDS UK

243 MW

FRANCE BELGIUM

Office

SINGAPORE

SN Power office

SOUTHEAST EUROPE USA San Francisco

7 MW

ALBANIA

Project Project

Installed capacity

18 650 MW

Power production

56 TWh 99%

renewable energy

4 200

employees

CERs VCS

Clean Development Mechanism (CDM)

 Kyoto Protocol

• Developed countries agreed to reduce greenhouse gas emissions to (on average) 5.2% below 1990

levels in the period 2008-2012

• An emissions limit was set for each country

 The Kyoto Protocol established 3 flexible mechanisms to reach the target:

• Emissions trading: between countries
• Joint Implementation:

 Emission reduction projects in developed countries  Example: energy efficiency project in France

• Clean Development Mechanism (CDM)

 Emission reduction projects in developing countries  Example: Small hydro plant in Panama

3

ABOUT CDM

4

Governance: CDM Executive Board

Projects Methodologies

UNFCCC Kyoto Protocol EU Reduction Target EU ETS

EU ETS: MAIN SOURCE OF DEMAND

 The EU Linking Directive forms

a link between the Kyoto Mechanisms and the EU ETS

 The Directive allows for the use

• f CERs and ERUs for company

compliance in the EU ETS up to a certain limit

5

CERs ERUs

EU Linking Directive

CER ISSUANCE TO DATE

6

ISSUANCE

• In total 1,800 million CERs have

been issued YTD

• Average monthly issuance in

2016 was 10.8 million

200 400 600 800 1 000 1 200 1 400 1 600 1 800 10 20 30 40 50 60

• kt.05

apr.06

• kt.06

apr.07

• kt.07

apr.08

• kt.08

apr.09

• kt.09

apr.10

• kt.10

apr.11

• kt.11

apr.12

• kt.12

apr.13

• kt.13

apr.14

• kt.14

apr.15

• kt.15

apr.16

• kt.16

Millions Cumulative Millions Monthly Grey Green Large hydro Cumulative total Cumulative Grey Cumulative Green Cumulative Large hydro

EU ETS: MAIN DEMAND

• EU ETS import limit is ~1,640

million credits

• 900 million CERs & 575 million

ERUs surrendered already

• 165 million left

All CERs ARE EQUAL …

 EC has right to impose “qualitative

restrictions” on the use of certain types of CERs in EU ETS

 In 2010: critical reports on HFC and

adipic acid N2O projects

 In 2011 a formal ban on the use of

these credits was adopted, entering into force as from 1 Jan 2013

 (Risk of) Qualitative restrictions

caused a price differentiation between various credit types

7

CER SOURCING

 Airlines frontrunner – voluntary

carbon footprint offsetting

 Buying CERs directly from projects

(“primary credits”)

 Already issued credits (“secondary

credits”)

 Secondary credits with extra

specifications

• Corporate social responsibility

8

www.statkraft.com

THANK YOU

jo.deketelaere@statkraft.com