1 Perspectives for a Low Carbon Economy in Brazil Scenarios and Challenges within the Carbon Markets...

1

Perspectives for a Low Carbon Economy in Brazil

Scenarios and Challenges within the Carbon Markets

Porto Alegre, May 2012

Dr. Wolfgang JockelTÜV Rheinland Group

2

1. TÜV Rheinland on a Glance

2. Status of Carbon Markets

3. Low Carbon Economy

4. Carbon Neutrality and Carbon Footprint

5. Case Studies from Brazil / Colombia

6. Summary and Perspectives

Contents

3

Shaping the future. Together.

4

140 Years of Innovation

Your advantage: our experience.2009World‘s largest photovoltaic lab

1926First material analysis laboratory

1900Vehicle inspection and driving license tests

1957Commitment to environmental protection: dust register in Cologne

2006Joined the

UN Global Compact

1872 Entrepreneurs take the initiative and set up the DÜV to ensure the safety of their manufacturing plants

1969International product tests and certifications

1918Activities in the energy and mining sectors

1975Medical work

2007Represented on all continents

5

Business Units of TÜV Rheinland

Overall, much more than adding up parts

Industrial Services Mobility Products

Life Care Training and Consulting Systems

6

At Home on All Continents

500 locations in 63 countries around the world.

Year 2011 14,400 People and 1,4 billions € Revenues.

7 7

1990 – Starts activities with foreign products

2001 – First office in Brasilia – Services for ANATEL

2001 – First accreditation - ANATEL

2003 – Office in São Paulo – INMETRO Accreditation

2003 – Office in Rio de Janeiro for PETROBRAS

2006 – Acquisition of UCIEE – Certification Services

2006 – Acquisition of ORPLAN – Inspections

2007 – TÜV Rheinland do Brasil takes control over DUCTOR

2010 – TÜV Rheinland do Brasil takes control over GERIS

TÜV Rheinland do Brasil

8 8

Certification of Management Systems

IT and Communications Systems Security

Civil engineering systems

SASSMQ (Chemical hazardous products safety certification)

Parking certification

Gas installations

Automotive management systems

Social Responsibility

Systems

Elevator, Conveyor and Machine Techn.

Industrial Engineering Safety

Civil Engineering

Energy and EnvironmentProject Management and Supervision

Industrial Services

Electrical Services and products

Mechanical and Machinery Services

Medical Device Services

EMC and Telecomm. Services

Ergonomic and Usability Service

Market Access Services

RoHS

Explosive atmospheres

Informatic services

Safety devices

Electrical Protection devices

CE certification

Products

Foods and food technology

Life Care

Auditor trainings

Norm trainings

Research and Development Management

Coaching and Training

Education

Services of TÜV Rheinland do Brasil

9 9

TÜV Rheinland do Brasil

Workers ~ 2.200

Offices in Brazil 8

Laboratories 1

INMETRO Accreditations ~ 107

Clients ~ 2.000

Emitted Certifications ~ 8.000

10 10

TÜV Rheinland do BrasilTÜV Rheinland do Brasil

- Biggest certification company in Brazil (Electrical devices)

Product Certifications;

INMETRO accredited laboratory;

Follow-up Services;

Conformity certifications;

Quality systems certifications;

Development of Civil Engineering projects;

Sectorial Programs;

Complete certification service paquetes.

11

Environmental Protection Air Pollution Control

Emission Monitoring of Industrial PlantsWaste Treatment and Waste ManagementTÜV Approval / Certification of CEMS/AMSAir Quality Control

Acoustics and Noise ProtectionUrban Development PlanningAcoustics in Commerce and IndustryArchitectural Physics and Outdoor Machines

Energy and Climate Energy Technology

Energy Efficiency and Rational UtilizationTest Laboratory for Energy Appliances

Climate ProtectionKyoto-Mechanisms CDM/JI and OthersEU Emissions Trading and Sustainability

Solar Energy Photovoltaik PV und Solar Therm

Indoor and Outdoor Test FacilitiesApproval of Solar Plants and Power StationsApplied Research and Specific Projects

Further Activities Projects and Studies: GIS, Audits, etc.

Certification and TUVDOTCOM

Business Field: ENERGY & ENVIRONMENT

12







Contents

13

Carbon Systems for GHG Standards

Clean Development Mechanism CDM Joint Implementation JI

- Flexible Mechanisms under Kyoto Protocol

EU Emission Trading System (EU ETS)- EU legislation of GHG reduction

TÜV Rheinland is accredited for Project Validation + Verification

Voluntary Carbon Standard (VCS)- Voluntary program of GHG reduction

Chicago Climate Exchange (CCX)- Voluntary program of GHG reduction

Voluntary Markets

Compliance Markets

Gold Standard (GS)- Voluntary program of GHG reduction

Program of Activities PoA

14

Registered CDM Projects Worldwide

Data source: UNFCCC website, September 2011

Registered CDM projects worldwide

55%

25%

7%

5%

3%

2%

1%

0%

1%

1%

China

India

Brasil

Mexico

Malaysia

Indonesia

Ecuador

Costa Rica

Peru

Colombia

China 55 % 1410

India 25 % 705

Brazil 7 % 194

Mexico 5 % 129

Malaysia 3 % 96

Indonesia 2 % 70

Colombia 1 % 32

Peru 1 % 24

Ecuador 0.7% 16

Costa Rica 0.4% 8

TOTAL 100% 2.684

China

IndiaBrazil

Colombia

Peru

15

Data source: UNFCCC website, September 2011

Registered CDM Projects by Scope

0,17%

0,02%

11,75%

0,34%

7,21%

0,40%

1,60%

2,01%

0,67%

0,27%

0,35%

26,13%

5,37%10,23%

1,16%

0,27%

0,79%

1,84%

0,02%

0,64%

23,61%

2,01%1,10% 1,23%

0,06%0,75%

Afforestation

Agriculture

Biomass energy

Cement

CO2 usage

Coal bed/mine methane

Energy distribution

EE households

EE industry

EE own generation

EE service

EE supply side

Fossil fuel switch

Fugitive

Geothermal

HFCs

Hydro

Landfill gas

Methane avoidance

N2O

PFCs and SF6

Reforestation

Solar

Tidal

Transport

Wind

Registered CDM Projects Worldwide by Scope

WindHydro

Biomass

MethaneAvoidance

Landfill

OwnEnergy

16

China 70 % 408´919.730

India 19 % 112´173.710

Brazil 10 % 57´377.019

Colombia 0,2 % 1´069.716

Ecuador 0,2 % 1´131.968

Peru 0,1 % 619.651

Costa Rica < 0,1 % 320.463

Amount of Issued CERsMillions of t CO2

17







Contents

18

Baseline for Low Carbon Economy

It is an economy in which:

• Growth of GHG emissions is halted and then reduced

• Carbon has a price and affects balance sheets

• Energy from fossil fuels is made a constrasting resource

• Enterprise stakeholders take action based on carbon

• Carbon presents a risk and an opportunity to the enterprise

A low carbon economy includes the implementation of carbon

neutrality schemes, geo-engineering and adaptation to

global warming

Minimal output of GHG emissions

into the biosphere, esp. CO2

19

Social compliance Social compliance

Time

Co

mp

lexi

ty

Corporate Social ResponsibilityCorporate Social Responsibility

Occupational SafetyOccupational Safety

Product Safety & Product Safety & International CertificationInternational Certification

Environmental OwnershipEnvironmental Ownership

Ergonomics & UsabilityErgonomics & Usability

Information SecurityInformation Security

Society’s ExpectationSociety’s Expectation

REACHREACH

ELVELVWEEEWEEE

Environmental complianceEnvironmental compliance

Carbon FootprintCarbon Footprint

Water FootprintWater Footprint

ISO 14001ISO 14001

ISO 16001ISO 16001

Set up of a Low Carbon Economy Sustainable systems for all sectors

20

Low Carbon Economy - Targets

Transport

Integrate aspects from sectors around technologies that produce energy and materials with low GHG emissions, efficient use of these and good practices of waste handling.

Industry

Relevant SectorsAgriculture /

ForestryServicesBuilding

Smart motors,

Industrial process automation,

Dematerialisation

Alternative fuels,

Cogeneration,

Heat recovery,

Environmental

control systems

Smart logistics and buildings,

Dematerialisation (teleworking),

Smart grid

Smart logistics,Transport optim-isation,Efficient vehicles,Traffic flow monitoring,Planning+Simulation

Smart grid,

Efficient power generation,

CHP

21




4. Carbon Neutrality and Carbon

Footprint



Contents

22 22

Carbon Credits in Economic Markets

- E CDM / JI

- E offset project

CAP = EUA

ERU/CER

VER

Carbon Footprint

Carbon Neutrality

Voluntary Standards

Compliance Market

Kyoto Standards (CDM / JI)

23 23

How to Reach Carbon Neutrality ?

CO2 release CO2 offsetAtmosphere

CO2 release – CO2 offset = 0

The Principle of Offsetting

Emission Sources

Company

Product Manufaction

|

Implementation of Carbon Neutrality System

Basis: „Carbon Offsetting“ and „CO2 - Compensation“

Retirement of registered carbon credits / or rights

Offset Project RegistrySupplier of CO2

neutral products Atmosphere

Generated certificates in

metric units

Registered certificates with serial numbers

Buy and retire the certificates

Removal of these emissions

25

Carbon Footprint

Certificates

Compensation

CalculationConsultant

Product Suppliers

Independent

Test + Certification

AwardRegistry

Program Supplier

Project Standard

RetirementProduct Suppliers

Consultant

Approval Process of Carbon Neutrality

26

Why Carbon Neutral Products ? Look at their benefits

Environment Technology Image Quality

Indirect investment in climate protection projects will be actively supporting of environmental protection objectives

Climate protection projects abroad help to transfer technology and promote sustainable development

A positive image is the good perception of problems which means a multiplication of the effects

The Carbon Footprint calculation shows potential for innovations and improvements.

CO2 emissions verified

CO2 neutral

Annual Audit

27

Corporate Sustainability Management and reporting(e.g., GRI, ISO 14.001, ISO 16.000,

OHSAS 18.000)

Key Performance Indicator (KPI) systems

Corporate Carbon Footprint Supply Chain Management

Product Sustainability

Life Cycle Assessment

Design for Environment

Product Carbon Footprint

Carbon FootprintSustainable Systems for e.g. Industries

28

Tool to assure quality and energy efficiency

Increase of transparency and identification of "hot spots"

Reinforce the position within the supply chain

Basis of legal framework Pre-requisite for certification as a

climate neutral company Good for the company’s image Compatibility with other management

systems and certifications

28

CO2 emissions verified

CO2 neutral

Annual audit

Reasons to certify a Corporate Carbon Footprint

Carbon FootprintBenefits

|

Cost of a Climate Neutrality Process ?

Example:

Compensation of 1,0 ton CO2

EUA´s 2009/10 @ 15 €/t

17,80 €

VCU not China 2009/10 @ 3,10 €/t

3,70 €

GS VER 2009/10 @ 7 €/t

8,30 €

Additional costs need to be added Additional costs need to be added for the carbon footprintfor the carbon footprint

3,10 € 7,00 € 15,00 €3,10 € 7,00 € 15,00 €

30







Contents

SUSTAINABLECARBON.COM31

Red ceramic industry

Red ceramic factory

Red ceramic industry: Energy intensive: non-renewable

fuels: Native timber Coal Fuel oil

Low efficiency: Inadequate kilns Manual feeding of fuels No operational control

Carbon intensive: Average 0.295 tCO2e/ton of production in Latin

America¹ (peaking at 1.54 tCO2e/ton)

High environmental and social impacts.

¹ Agencia Suiza para el desarollo y la Cooperación COSUDE: Programa de Eficiencia Energética en Ladrilleras Artesanales de America Latina para Mitigar el Cambio Climatico

Insert photo caption here


Energy efficiency

Chamber kiln

Kiln replacement and retrofit: Combustion efficiency (reduced energy

demand) Improved burning process (reduced

production losses)

Process improvement: Fuel processing (biomass shredders) Automatic feeders Termopars Employee training

Automatic feeders


Renewable biomass

Elephant grass

Glicerin

Sawdust Rice husk

Eucalyptus wood

Industrial residues

Renewable energy generation: GHG emission reduction Useful destination of residues Sustainable development Carbon credits

Energy efficiency: Combustion efficiency (reduced

particle size) Fuel processing

Environmental compliance: Legal compliance Pollution mitigation

Environmental and social benefits.


Ceramic factories in Bogota metropolitan area

• Gold Standard VER project involving energy efficiency and partial fuel switch to renewable biomass

• Project Proponents: C.I. Ecoeficiencia S.A.S Sustainable Carbon Ladrillera Santander Ladrillera Las Tapias 3

• 129.000 tCO2e reduced from 2010 to 2017

• Project benefits: Promotion of renewable energy matrix in Colombian ceramic sector Energy efficiency Sustainable development


Manure composting

Composting technology

Swine manure composting

• Automated composting unit

• UMAC® Technology

Aerobic treatment of manure.

Methane avoidance.

Evaporation of manure water content.

(nearly 97% of untreat manure).

GHG emission reduction and carbon credits.

Displacement of anaerobic lagoons.

Operational and environmental benefits.


Pig farmers in Santa Catarina / BR

Bundling of 20 small to medium farms

Between 1.000 to 4.000 animals per farm (manure flow of 10m³ to 40m³ per farm per day)

Composting sites measuring 100m x 8m (investments between 50 kUSD to 100 kUSD)

Between 500 to 2.500 carbon credits per farm per year.

Total of 22.000 credits per year for the bundled project.


Necessary investments:

Retention tanks (civil works)

Composting site (civil works)

Composting technology & machinery

LPC consulting

Monitoring equipments;

Maintenance and substrate (sawdust)

Pig farmers in Santa Catarina / BR



Project benefits

Organic compost

Small and micro projects – contribution for the sustainability

of family agriculture.

Contribution to sustainable development and GHG

emission reduction.

Production of high quality organic compost –income generation for the swine

Mitigation of environmental impacts of swine farming (water, soil, air)

Large potential for replicability.

38

Growing swine

39







Contents


[insert photo]


SUPPLIER PROJECTED GROWTH

The voluntary carbon market will continue to grow • 2015 projected market size 406 MtCO2e

• Third party standards will continue to play a powerful role in shaping the market

41

Brazil on the Way to Set up a Low Carbon

Economy• Business OpportunitiesOptimization of process operations will createcarbon savings and delivery of carbon credits

• Emissions Reduction Using of advanced technologies will provide a wide range of advice and support for all sectors and companies of all sizes

• Policy Set up of appropiate policy frameworks to motivate companies in investments in carbon goods and services

• Areas of Focus Innovation policy, fiscal incentives, Green buildings, goods and products

42

Thank You !

Dr. Wolfgang Jockel

TÜV Rheinland Energie und Umwelt GmbH

Am Grauen Stein, D-51105 Köln

Email [email protected]

Web www.tuv.com

1 Perspectives for a Low Carbon Economy in Brazil Scenarios and Challenges within the Carbon Markets...

Documents

Transcript of 1 Perspectives for a Low Carbon Economy in Brazil Scenarios and Challenges within the Carbon Markets...