The role of carbon markets in preventing dangerous climate change - Environmental Audit Committee Contents


Supplementary memorandum submitted by the Department of Energy and Climate Change

ANALYSIS OF CDM PROJECT ACTIVITIES

  At the EAC emissions trading inquiry on 2 June 2009 DECC was asked to provide a more specific break down of CDM projects, and in particular to define what proportion of CDM investments are in low- or zero-carbon technologies as opposed to energy efficiency projects. A total of 1,652 CDM projects have been registered to date, the majority of these are concentrated in the Energy sector, with the second largest sector waste handling and disposal. Figure 1 has a more detailed breakdown of CERS by sector.[6] Figure 1a shows CERs produced to date and figure 1b shows the projected CERS by 2012.

Figure 1a


Figure 1b



  Figure 2 splits this information into "project type" in order to show the investments in zero or low-carbon technologies rather than energy efficiency projects. Again two charts have been provided, 2a shows CERs produced to date, 2b shows projected 2012 levels.

  There are a variety of project types. Some are clear zero technologies for example solar, tidal, wind and hydro. However there are projects that utilise catalysts and processes that reduce emissions from industrial gas production that lead to zero or near zero emissions.

  760 projects (which as shown below produce 62% of credits) are utilising zero or near zero carbon technologies. However the value to the environment of other technologies should not be dismissed. The projects that involve biogas, biomass, and energy from waste along with energy efficiency are extremely valuable if not zero carbon.

Figure 2a



Figure 2b










6   Information taken from The CDM Pipeline report by Jorgen Fenhann UNEP Riso Centre. Back


 
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