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Approach to Energy Efficiency Project Standardization

Gareth Phillips Chief Climate Change Officer, Sindicatum Chairman Project Developer Forum

Energy Efficiency has NOT been successful under CDM. Why not?
Difficult to establish additionality barriers hard to define; many actions are cost positive Savings are relatively small compared to baseline emissions means projects require scale to overcome transaction costs Ownership of emissions building / technology owner vs tenant / operator Quantification of baseline is either conservative or complex cannot be measured after technology is installed Interactions between energy saving devices makes multiple technology projects difficult e.g. CFLs and efficient air conditioning will result in some double counting Recent guidance on multiple meths may help this, but the monitoring requirements are not attractive

Can standardized baselines make EE projects practical?

EE initiatives are well served by benchmarks Benchmarks are a performance target defined by reference to peers They can accommodate multiple technological interventions For example, energy use (GHG emissions) per m2 office space, shops, hotels, for lighting per km of highway, per unit of output Facilities may be grouped based on current technology and set a target which is for example 10% above the average of their cohort If they can achieve their target then they have deviated from the performance of their peers and if they can beat the target they are acting additionally and generating emission reductions CERs are quantified by multiplying number of units by the extent to which they beat the benchmark

Benchmarks under CDM

Standardized baseline text can easily be interpreted to include benchmarks New approach to additionality assessed against a benchmark defined by peers. Alternatively, BM could be defined by e.g. building standards, historic performance, technical specifications New means of defining baseline baseline is the benchmark which is better than current performance this is also conservative New means of quantifying emission reductions = number of units * (performance benchmark) Also greatly simplifies monitoring as only two parameters are monitorednumber of units and total GHG emissions