1. Standardized national/sectoral baselines UNFCCC Technical Workshop on Joint Implementation Bonn, 16 October 2007 Manfred Stockmayer Managing Director Camco International

2. 1Standardized national/sectoral baselines Agenda  Concept of standardized baselines  Applicability of standardized baselines  Case study Bulgaria  Current issues  Thoughts for the future

3. 2Standardized national/sectoral baselines The Camco Group structure Assets <Camco is a leading carbon asset developer with one of the world’s largest carbon credit portfolios. We generate carbon credits by partnering with companies to identify, develop and manage projects that reduce greenhouse gas emissions. Camco then arranges the sale and delivery of carbon credits to international compliance buyers and into the voluntary market. Camco offices: Vienna, USA, UK, China, Russia, South Africa ESD offices: UK, Bulgaria, China, Kenya, South Africa, Tanzania Camco Ventures <Camco Ventures provide the management infrastructure, financial structuring, business planning and technical support required to take each start up business from inception to commercialisation. Consultancy <The consulting practice combines specialist technical, strategic and financial expertise and experience accrued over two decades to deliver a sustainable low carbon society. We are uniquely positioned to work with clients, leveraging our collective experience to turn climate change liabilities into economic, social and environmental assets.

4. 3Standardized national/sectoral baselines Concept of standardized baselines  What are standardized baselines? Baselines for multiple projects in one sector  Why are they applied? Reduction of transaction costs Increased transparency Better predictability of emission reductions Faster preparation of PDDs  Who benefits from standardized baselines? All stakeholders

5. 4Standardized national/sectoral baselines Potential sectors for standardized baseline studies Grid-based electricity generation (renewables and fossil fuels)  Industrial energy efficiency  Transport  Demand side energy efficiency  Landfill gas (methane component)

6. 5Standardized national/sectoral baselines Why are they not applied more often?  Who prepares standardized baseline, who pays?  No methodologies in early JI  No priority in countries  Not applicable for certain sectors  Russia late in the JI process  Linking directive is limiting potential in target sectors

7. 6Standardized national/sectoral baselines Guidance from JISC Guidance on Criteria for Baseline Setting and Monitoring 18. A baseline shall be established on a project-specific basis and/or using a multi-project emission factor 19. A multi-project emission factor may be used and its application shall be justified. Sector-wide baselines may e.g. be used if: (a) The physical characteristics of the sector justify the application of a standard emission factor across the sector; and/or (b) The emissions intensity does not vary significantly across the sector. Source: JISC, Guidance on Criteria for Baseline Setting and Monitoring

8. 7Standardized national/sectoral baselines The first standardized baseline studies... Source: ERUPT, May 2004

9. 8Standardized national/sectoral baselines Case Study: Bulgaria  Study by NEK on Carbon Emission Factors for electricity sector  Based on CDM ACM0002, with BM/OM share of 50:50  Dispatch data analysis basis for calculations  More realistic data than ERUPT figures  Baseline approved by Bulgarian Ministry of Environment and Waters 20082009201020112012 ERUPT0.7610.7430.7250.7070.689 NEK1.0060.8880.8500.8340.791

10. 9Standardized national/sectoral baselines Issues with standardized baseline studies  Who initiates and pays for preparation?  Who supports data collection for monitoring?  No approval process for standardized approaches  Can we rely on precedents?  How easy to refer to precedents?

11. 10Standardized national/sectoral baselines Where could we use them?

12. 11Standardized national/sectoral baselines Some thoughts for the future...  Support from DFPs for development of standardized baselines  Cooperation between DFPs and AIEs on standardized baselines („pre-validation“?)  Guidance for project developers from AIEs on reference to standardized baselines  No additional procedure necessary, BUT stick to JISC rules...

13. 12Standardized national/sectoral baselines Thank you for your attention Manfred Stockmayer manfred.stockmayer@camcoglobal.com www.camcoglobal.com