download pdf file

Dutch CDM projects in the palm oil sector

by Jan Willem van Gelder and Petra Spaargaren, Profundo

The Netherlands, through the Dutch Ministry of Housing, Spatial Planning and the Environment (VROM), authorized the Bermuda-based company AES AgriVerde as a project proponent in 23 projects in the palm oil sector in Malaysia and Indonesia during June 2008 to April 2009. The projects are to capture methane gas emitted by open-air effluent ponds at many oil palm mills.  In a seven year project period, these projects should rack up 4.9 million CERs, translating to an earning of €36.6 million (54.5 million USD) when these CERs are sold at average market prices of €7.50 in the primary market.

However, the captured methane do not result in true reductions, as the methane is used by the mill owners as an energy source, generating heat and electricity which can be used in the mill or sold to the power grid.  A cost-benefit analysis shows that even without CERs, a methane recovery facility therefore pays itself back between 2 and 10 years, depending on the exact use of the methane (heat or electricity).  Thus, van Gelder and Spaargaren argue that the projects of AES Agriverde in the oil palm sectors of Malaysia and Indonesia approved by the Dutch government  do not meet the crucial additionality criterion of the CDM, and these projects should not be registered as CDM projects.

download pdf file

Hans Curtius and Tobias Vorlaufer examine the success of CDM projects in the biogas sector of China, where the majority of biogas projects are in the food processing industry.   By September 2009, 34 projects were either registered or in validation process at the UNFCCC, which account for 2% of all projects.  They conclude that these projects are not expected to meet the CDM goal of contributing to sustainable development because of low operation skills and inadequate technology due to low foreign technology and know-how transfer.  Curtius and Vorlaufer point out that inadequacies in the international CDM framework and complications with national regulations and legal obstacles also hinder these biogas plants to operate for successful sustainable development.  A new CDM framework or reform must be in place to improve biogas project operations in China.

download pdf file

In a collective effort by several Indian NGOs, another important issue of Mausam - meaning ‘climate’ in Hindi - was published in September 2009. With the aim to initiate persistent and critical dialogues in ‘public space’ on the capitalism-induced climate change and its bogus market solutions, i.e. CDM, the magazine addresses a series of issues and analyses climate policies in India. Moreover, it gives concrete analysis of certain CDM projects and scrutinizes companies and policies.

The current Mausam issue includes the following articles:

• Glimpses of ‘clean’ development in India
• Did the meteorological department mislead the nation on monsoon 2009?
• Monsoon’s extreme make over
• The Climate Politics Metals are obstructing political visions
• Dark are the clouds: concerns from Karnataka
• Himachal Pradesh Climate Change Policy: counting on credits
• The Bhilangana dam on troubled waters
• Atmospheric brown cloud and projected impacts
• THE CDM SCAM: Case study on Jindal CDM projects in Karnataka
• Wind power projects in Karnataka Case studies on CDM projects in Maharashtra
• The inside story of the Reliance Sasan Power Ltd Waste-to-Energy Plants: clean or dirty?
• Global Warming: what is to be done?

Happy Reading!

download pdf file

Clean Development? - How Luxembourg is reducing its greenhouse gas emissions abroad

by Dietmar Mirkes

The study, prepared by Action Solidarité Tiers Monde (ASTM) focuses on climate policy in Luxembourg on the occasion of national and European elections in June 2009, but it also serves as a case study for how EU member states are tackling their objectives at national level.

Avoiding heavy technical jargon, this study explains what emission rights are and gives a brief overview on the process of the CDM. It then examines how international climate policy is implemented by giving concrete examples. Inviting to a small trip around the world, it focuses on a selection of the 79 projects, which at the time of publication generate emission credits for Luxembourg. The projects in focus include dams, sinks, landfill gas and power plant renewal projects. Looking in detail at the stakeholders involved, the study provides background on the environmental integrity of these projects, the reasoning for methodologies under question and the incentives for investment. Finally, Dietmar Mirkes - the author of the report - focuses on the questions what these projects really contribute to the fight against climate change, and if this is a sustainable path, or is rather a dead end.

Happy reading!