1. Expertise everyday, everywhere Verifying Sinks and Bio-energy Projects Irma Lubrecht Société Générale de Surveillance

2. Expertise everyday, everywhere Presentation overview Validation, Verification & Certification Sinks project SGS Eligibility Criteria Shortfalls Bio-energy project Introduction of the project Shortfalls

3. Expertise everyday, everywhere Société Générale de Surveillance Worlds largest inspection, testing and verification organisation Offices in 140 countries, > 30 000 employees Climate Change Programme, GHG Project Validation & Verification Service

4. Expertise everyday, everywhere GHG project experience Service started in 1997 9 JI and CDM land-use projects in 8 countries 8 JI Energy projects in Eastern Europe (E RU -PT) WB PCF West Nile Hydro Power Project in Uganda

5. Expertise everyday, everywhere Validation, Verification & Certification

6. Expertise everyday, everywhere Validation Process of establishing conformance with defined criteria (i.e. Article 12) Performed by accredited “Operational Entity” Validation indicates acceptance of baseline and identification and management of leakage Results in recommendation for registration as an eligible CDM project Can be undertaken pre-project implementation

7. Expertise everyday, everywhere Verification Process of verifying emission reductions or sequestration relative to a defined baseline Baseline may be defined via allocation of permits or simply approved by National Authority Performed by an Independent Entity Results in award of ERUs or additional credits Carried out during and after project implementation

8. Expertise everyday, everywhere Certification Process of certifying emission reductions or sequestration relative to a defined baseline Performed by an Operational Entity Baseline is defined via Validation process Results in the award of Certified Emission Reduction Units by CDM Executive Board Performed during and after project implementation

9. Expertise everyday, everywhere Type by Location

10. Expertise everyday, everywhere Climate Change Programme Eligibility Criteria Acceptability - National and International Additionality - Environmental, Financial, Programme Externalities - GHG and Non-GHG Capacity - Financial, Management, Infrastructure and Technology, Demonstrability

11. Expertise everyday, everywhere Project Shortfalls (1) Additionality Environmental additionality: difference between baseline and with-project scenario Programme additionality distinguishes additional activities from business as usual Financial additionality

12. Expertise everyday, everywhere Project Shortfalls (2) Leakage for JI Twin-track approach: If a country is in compliance, it is assumed that leakage will be covered under the National Inventory Possibility for Cross Border Leakage If a country is NOT in compliance, then VALIDATION is required

13. Expertise everyday, everywhere Project Shortfalls (3) Leakage for CDM Activity based leakage - widen project boundaries / reduce benefits Market-based leakage - econometric studies / reduce benefits / test programme additionality

14. Expertise everyday, everywhere Project Shortfalls (4) Social and environmental effects Forestry projects in the past have had significant negative social and environmental impacts Host countries may set their own SD criteria; the international community should require no negative impacts as a minimum

15. Expertise everyday, everywhere Protocol Shortfalls Rating of emission reduction vs sequestered tonne of carbon: RMU TCER Accounting regimes Permanence

16. Expertise everyday, everywhere E RU - PT 28 projects in 1 st ERU-PT tender 9 projects assessed by independent validators 5 projects accepted by Dutch Government: ERU’s @ 8 Euro / t CO 2

17. Expertise everyday, everywhere The Project BTG Biomass Energy Portfolio 28 smaller projects in the vicinity of Prague, Czech Republic 24 municipalities, 3 private companies and state owned hospital Capacity of approx. 130 MW th Reduction calculated at 1.2 M t CO 2 for 1 st commitment period

18. Expertise everyday, everywhere Objectives Reduction of 1.2 M t CO 2 by replacing fossil fuel, mostly brown coal and methane reduction Know-how transfer Establishment of firm basis for further investments in bio-energy Generation of heat/electricity for local heating requirements

19. Expertise everyday, everywhere Assessment Checklist reflecting requirements from E RU -PT guidelines, KP and SGS EC Scientific methodology Risk and uncertainty assessment

20. Expertise everyday, everywhere Results Project complies with mandatory requirements Project design documentation comprehensive, robust and transparent account on expected number of ERUs Uncertainty accounted Highly likely to result in projected emission reductions when implemented

21. Expertise everyday, everywhere Shortfalls (1) Leakage No data present on emissions related to transport of biomass or on the construction of new distribution systems

22. Expertise everyday, everywhere Shortfalls (2) Monitoring Monitoring to detect changes in land-use practices Monitoring of environmental impacts, i.e removal of agricultural residues from soils

23. Expertise everyday, everywhere Shortfalls (3) Other projects Monitoring overall - training of personnel Steps have not been taken to identify and analyse the uncertainty associated with the quantification of emission reductions

24. Expertise everyday, everywhere More information www.sgs.nl/climatechange: Eligibility Criteria Executive summaries Papers www.senter.nl/erupt www.btgworld.com irma_lubrecht@sgs.com

25. Expertise everyday, everywhere Uncertainty of methane (1) Verify how much methane is actually reduced: On-site monitoring: how often and why Scientific approach: IPCC values, UK ETS Instruments: flow meters regularly calibrated by independent party e.g. SGS Redwood Chemical analysis: approved laboratory otherwise include in the verification assessment

26. Expertise everyday, everywhere Uncertainty of methane (2) ERU-PT programme has to accept ERU’s resulting from methane avoidance