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Climate Change Initiative Newsletter

July 2002 (25)

Table of Contents

Climate Change initiative

1. International Climate Change Investment Conference

Upcoming events

August 20-22 Training seminar: Carbon Sequestration in Forestry and Agriculture
Ivano-frankivsk, Ukraine

September 11 Roundtable of the Industrial Council on Climate Change: GHG mitigation for woodworks industries
Ivano-frankivsk, Ukraine

Ukraine Climate Change news

2. Interministerial Commission on Climate Change Hears on Kyoto Advisability

3. Five New Ecolinks Grants Awarded in Ukraine

4. Ngos Are Involving Ukrainian Cities in Climate Protection Activities

US Climate Change News

5. US GHG Emissions from Energy Use Declined

6. US Officials for à Better GHG Program

7. Fuel Cell Technology Aimed at Residential Sector

8. Report Says US Nature under Threat from Climate Change

International climate change news

9. Kyoto Protocol Ratification by Bulgaria, Hungary and Brazil

10. UNFCCC Subsidiary Bodies Meeting in Major Landmarks

11. More Promised Contributions to Prototype Carbon Fund

12. Largest Ever Public GHG Trade, Co2e.com Facilitated

13. EU Green Scheme Away from Industry

14. Japan – Kazakstanús Deal on CO2

15. Another GHG Reduction Package

16. Industry Supports Climate Change Action in Poland

 

Climate Change Initiative

1. International Climate Change Investment Conference

On July 10-11, in Kyiv, the U.s. Agency for International Development and the Ministry of Ecology and Natural Resources of Ukraine held à two-day international conference on “Investments and Climate Change: Opportunities for Ukraine.” The conference attracted over 270 participants from Ukraine, the United States, Canada, Germany, Denmark, Sweden, Russia, Poland, Armenia, Georgia, and other countries. The conference objectives were to promote investments to reduce greenhouse gas (GHG) emissions in the energy, fuel, municipal, industrial, agricultural and forestry sectors of Ukraine’s economy. Leading Ukrainian economists presented an overview of the current investment climate in Ukraine. An update on the international progress in implementing the United Nations Framework Convention on Climate Change (UNFCCC) was given by à representative of the UNFCCC Secretariat. Project developers and investment brokers who are facilitating climate change projects financing around the world spoke about project development and facilitating approaches that may be applicable to Ukraine. International financial institutions such as the World Bank and the European Bank for Reconstruction and Development reported on their respective efforts to assist Ukraine to develop GHG mitigation projects in Ukraine.

A full report on the conference will soon be available at the CCI website www.climate.org.ua.

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Ukraine Climate Change news

2. Interministerial Commission on Climate Change Hears on Kyoto Advisability

On July 18, 2002, the Ukraine’s Interministerial Commission on Climate Change (IMCCC) held its 11th meeting. Scientific support for the Ukraine’s position at international climate change negotiations, Kyoto Protocol ratification advisability and substantiation were among the key issues discussed at the meeting.

The Commission designated the Institute of Energy of the National Academy of Science of Ukraine (NASU) to provide technical and scientific support to the IMCCC to ensure Ukraine’s compliance with the UN Framework Convention on Climate Change (UNFCCC) requirements. The Institute’s task also includes assistance in preparing necessary background materials for the Kyoto Protocol ratification.

Ministry of Economy, Ministry of Finance and Ministry of Industrial Policy consider premature the Kyoto Protocol ratification by Ukraine. The government officials assert that the Kyoto mechanisms are extremely complex and require additional studies to evaluate the full legal, economic and social impact resulted from the ratification. A specific concern was raised about the emissions trading mechanism as it might adversely affect the economic situation in Ukraine. The Ministry of Economy emphasized the uncertainty surrounding Ukraine’s future production structure and economic growth rates, as well as poor economic forecast figures resulting in unclear estimates of Ukraine’s prospective GHG emissions and available salable credits.

The State Committee for Energy Conservation, Ministry of Transport, Ministry of Fuel and Energy and Ministry of Foreign Affairs found that the Kyoto Protocol ratification might be advisable contingent upon the developing and introducing transparent mechanisms that will bring Ukraine in compliance with the Kyoto requirements and should account for financial and economic implications resulting from ratification.

The Ministry of ecology and natural resources (MENR) recommendations stated that the Kyoto Protocol ratification is environmentally justified. The Ministry proposed to develop an Action Plan specifying concrete steps to be undertaken by various ministries and agencies to prepare documentation necessary for starting the ratification process and in bringing Ukraine in compliance with UNFCCC provisions.

IMCCC at its 11th meeting obligated:

  • all concerned government agencies to participate in drafting an Action Plan on Ukraine’s preparation for ratification of the Kyoto Protocol. Additionally each agency should develop à study within the area of agency’s responsibilities to evaluate possible implications resulting from Ukraine’s decision to ratify the Kyoto Protocol
  • all concerned government agencies to submit their proposals on à list of actions required for starting the Kyoto Protocol ratification process/ in particular the IMCCC tasked:

    the Ministry of Economy to prepare à national macroeconomic forecast through 2020;

    the Ministry of Fuel and Energy to prepare forecasts on developing the energy sector through 2020, and its impact on climate change;

    the Ministry of Industrial Policy to prepare an assessment of economic growth rate in the industrial sector of Ukraine and possible impacts on climate change;

    the Committee for Energy Conservation to prepare à list of possible energy conservation and energy efficiency measures aimed at reducing greenhouse gas emission levels.

By September 1, 2002, MENR will summarize the submitted proposals and prepare à draft Action Plan for IMCCC review and approval. The next meeting of the Interministerial Commission is scheduled for the period between October 1 to 15, 2002.

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3. Five New Ecolinks Grants Awarded in Ukraine

In July 2002, five new Ecolinks Challenge Grants totaling $225,000 were awarded in Ukraine. The Ecolinks Partnership Grants Program is à USAID funded initiative, administered by the Institute of International Education (IIE, USA). The program provides support to industries, utilities and local governments in the CEE /nis regions to address urban-industrial environmental problems. In Ukraine, the Ecolinks program has awarded 28 Challenge Grants to date, equaling $1,225,000.

The new awardees in Ukraine selected in à Cee/nis region-wide competition include the following:

  • Nadezhda Concern of Kryviy Rih, Ukraine and Biothane Corporation of Camden, New Jersey were awarded an Ecolinks Challenge Grant to assess the potential for introducing an anaerobic wastewater treatment system at Nadezhdaús wastewater treatment plant.
  • Lúviv City Municipality and BSP Electronics of Bielsko-biala, Poland were awarded an Ecolinks Challenge Grant to identify and assess measures to increase the energy efficiency of the Lúviv Emergency Hospital heating system.
  • Berdyansk Water Utility of Berdyansk, Ukraine and UEM, Inc. of Florida, USA were awarded an Ecolinks Challenge Grant to assess the potential for increasing the efficiency of water and power resources within the Berdyansk water supply system and for decreasing the volume of sewage and contaminating substances discharged into the Azov Sea.
  • Yagotyn Sugar Plant, Kyiv, Ukraine and the Union of Entrepreneurs for the Utilization of Energy Sources, of Prague, Czech Republic were awarded an Ecolinks Challenge Grant to develop systematic, low-and no-cost measures for improving energy efficiency at YSP.
  • Slavutych Heating Utility, Slavutych, Ukraine and CIBET, Ltd. of Warsaw, Poland were awarded an Ecolinks Challenge Grant to improve the environmental performance and efficiency of the Slavutych district heating system.

(Ecolinks, July 22)

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4. Ngos Are Involving Ukrainian Cities in Climate Protection Activities

After successful roundtable entitled “Global climate change and city participation in climate protection programs”, held in the city of Yenakievo, Donetsk Oblast on July 12, 2002, members of the Ukrainian NGO Climate Change Working Group continued their work on the involvement of Ukrainian cities in climate protection activities. On July 17 and 24, 2002 new roundtables were held in the cities of Cherkasy and Kryvyi Rih. The roundtables were initiated by the Cherkasy oblast organization “Zeleny Svit” and Ternivsky “Zeleny Svit” of Kryvyi Rih in partnership with the Kiev office of the Us-based NGO Alliance To Save Energy.

Cherkasy and Kryvyi Rih are major centers of the chemical, mining and metallurgical industry of Ukraine and their contribution to greenhouse gases emissions of the country are significant. In addition, substantial amount of greenhouse gases emissions in these cities is linked to inefficient use of energy in the communal sector. The roundtables helped to initiate à dialogue between representatives of city administrations, communal services, industrial enterprises, business firms, public organizations and mass media on the involvement of local communities in greenhouse gases emissions reduction activities through development and implementation of local action plans on climate change. Roundtables participants learned about opportunities for participation of Ukrainian cities in international programs, such as MUNEE (Municipal Network for Energy Efficiency) and LEAP (Local Environmental Action Program) and partnership with the Polish Network “Energie Cities” and the Cities for Climate Protection campaign of the International Council for Local Environmental Initiatives.

Participants of the roundtables criticized the performance of city administrations for the lack of information and poor involvement of local communities in energy efficiency measures that would allow significant reduction of greenhouse gases emissions and at the same time saving of money needed for solving of most acute problems of social and economic development of these cities. It was decided to send proposals to heads of city administrations to gain their support in the development and implementation of local action plans on climate change in the cities of Cherkasy and Kryvyi Rih.

Next roundtables are scheduled for August 2002 in the cities of Dniprodzerzhinsk and Khmelnitsky. Roundtables are part of the “Climate Of The Future Without Threat To Life” information tour that is held this year by the Ukrainian NGO Climate Change Working Group.

For more information, please contact:
Alla Pleskach, Chairwoman of the Board, Cherkasy oblast organization “Zeleny Svit”
tel: (380 472) 47-48-91, email: zelsvit@pub.nensi.net
Mykola Korobko, Chairman, Ternivsky “Zeleny Svit” of Kryvyi Rih
tel: (380`564) 36-35-97, email: greens@alba.dp.ua
Stanislav Potapenko, Climate Change Specialist, Alliance To Save Energy
tel: (380 44) 246-4799, email: spotapenko@ase.org

(Stanislav Potapenko, Alliance To Save Energy, August 5)

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US Climate Change News

5. US GHG Emissions from Energy Use Declined

WASHINGTON - U.s. energy-related carbon dioxide emissions fell by 1.1 percent last year, the first drop in à decade, because of à manufacturing slowdown and warm weather, the government said.

The drop in emissions was due to the slowing U.s. economy, which grew only 1.2 percent in 2001, and warm winter weather that reduced demand for heating fuel, rather than to voluntary efforts pushed by the Bush administration to get U.s. companies to act on their own to cut heat-trapping emissions.

U.s. carbon dioxide emissions totaled the equivalent of 1,540 million metric tons in 2001, down from 1,558 million metric tons the year before, according to preliminary estimates from the Energy Information Administration. The 1.1 percent decline is the first drop since 1991, when emissions decreased by 1.2 percent. "Because energy-related carbon dioxide emissions account for 81 percent of total U.s. greenhouse gas emissions, they are à good indicator of the level of, and rate of change in, total U.s. greenhouse gas emissions", EIA said.

U.s. energy-related carbon dioxide emissions have averaged à 1.2 percent annual growth since 1990, according to EIA, the Energy Departmentús statistical arm.

The reduction in U.s. manufacturing output in 2001 lowered industrial emissions, the agency said. Ironically, warmer winter weather last year that many scientists blamed on global warming decreased the demand for heating fuels and electricity from coal-fired power plants, which reduced emissions growth from electricity generation.

While industrial emissions were down 9.1 percent from slower manufacturing activity, transportation sector carbon-dioxide emissions increased by 0.6 percent. Residential sector emissions grew by 1.8 percent as warmer weather helped increase housing starts, EIA said.

(by Tom Doggett, REUTERS, July 1)

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6. US Officials for à better GHG program

Four federal agency leaders recommended to President Bush that he support à transferable credit system for cutting carbon dioxide (Co2), better accounting methods, independent verification and several other principles to improve the Energy Departmentús voluntary greenhouse gas (GHG) reporting program.

The recommendations respond, albeit past the June 14 deadline, to Bushús Feb. 14 directive that the agencies look at ways of improving the program, which the president has touted as à key part of his plan for restraining GHG growth short of participating in the Kyoto Protocol.

The DOE program was established in 1994 as à result of the 1992 Energy Policy Act, and is overseen by the Energy Information Administration. Under the program, corporations, associations and individuals voluntarily report their GHG emissions as à means of tracking U.s. emissions and informing any related policy. Eiaús 2000 summary included 222 reports, about half of them "entity", or corporate-wide, reports. There were also 1,882 project-level GHG and sequestration reports, according to DOE. Bush called for revamping the program as part of à broader climate change initiative he announced in February.

Energy Secretary Spencer Abraham, Commerce Secretary Donald Evans, Agriculture Secretary Ann Veneman and U.s. EPA Administrator Christie Whitman were able to agree on 10 recommendations, including that there be "transferable credits for actions that lead to real reductions". Bush and the administration should also develop fair, objective and practical methods for reporting baselines, reporting boundaries and calculating real results. There should also be credits for actions to remove Co2 from the atmosphere (sequestration), the agency chiefs said. The program should also standardize widely accepted, transparent accounting methods, whereas in 1994 such methods were allowed to be flexible to promote greater participation in the fledgling program, they noted. Independent verification of registry reports should also be promoted as the "current voluntary program evolves from à reporting program toward à crediting program." The agency leaders also said program participants should be encouraged to report their GHG "intensity" (emissions per unit of output), especially since the administrationús goal is to cut emissions relative to growth in gross domestic product. The program should also encourage more corporate-wide reporting, allow for credits to apply for past reductions, factor in international as well as state-level efforts, and minimize transaction and administrative costs for companies and the government, the letter said.

(Co2e.com, July 9)

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7.Fuel Cell Technology Aimed at Residential Sector

NEW YORK - For more than à month Bevers and his family have volunteered to power their home in Lynsay, Okla., with à test-stage hydrogen fuel cell, catching à glimpse of what the future of the beleaguered power industry might bring. "Itús currently three times as expensive and not nearly as reliable as the grid, but its improving", said Bevers, who works as à manager of engineering and operations at Rural Electric Cooperative Inc. "My gut feeling tells me that this technology will go."

Hpower Inc., which provided the fuel cell, is swimming against à tide of skepticism but says it is still making headway in its aim to power homes with hydrogen. The experimental effort at the Bevers home illustrates some of the trials and errors the hydrogen fuel technology. The 4.5 kilowatt, four-foot cubed fuel cell has shut down twice in à month due to minor design problems, Bevers said. But that marks à "Quantum leap" from some of the earlier stage Hpower test units, which broke down every couple of days.

Tests of its residential fuel cells, taking place in homes and facilities in the U.s., Japan, France, and Sweden, are revealing advances that have bolstered the companyús confidence in making the futuristic power units competitive on the market as early as 2005, Hpower chief executive officer Frank Gibbard said. "The response from our tests is that weúve made some truly significant improvements in reliability and cost", he added. "In 2005 to 2008 weúll hit à marketable price for these units. Eventually this could be mainstream."

The industry continues to look for niche markets initially to use hydrogen powers. But it eventually expects to win à wider following for its fuel since it creates almost no toxic emissions and potentially easier to use than traditional energy sources. "This is going to make economic sense in the long-term", said Bill Cetti, CEO of ECO. "There are no poles and wires, there are no new power plants, there are less harmful emissions, and it is cheaper in day-to-day operations."

(by Richard Valdmanis, REUTERS, July 15)

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8. Report Says US Nature under Threat from Climate Change

WASHINGTON - Global warming is threatening many U.s. parks, forests, marine sanctuaries and wildlife refuges, and the federal government must act to protect them, à report by the environmental group Bluewater Network said. Average global temperatures may increase by 10.4 degrees Fahrenheit (12 C) this century, which could raise sea levels by almost 3 feet (1 metre), increase catastrophic wildfires and storms, and wipe out entire species, the group said.

The report was released by the group and California Democratic Sen. Barbara Boxer.

The Bluewater Network will also file petitions with the Departments of Interior, Agriculture and Commerce asking them to minimize the effects of global warming on public lands and waters under their jurisdiction.

The Bluewater Networkús report warned of dire consequences for the United States this century if temperatures continue to rise. Among other things, it predicted:

* All glaciers in Montanaús Glacier National Park will disappear in 28 years.

* Rising sea levels will submerge much of the Florida Keys and Everglades National Park.

* Wildfires will double in some areas.

* Massachusetts' Cape Cod will become home to à large tick population carrying Lyme disease.

* Lake Tahoe, Nevada, will lose 75 percent of its snow cover, displacing nearly 2 million skiers à year.

The Bluewater Network said it wants government agencies that oversee public lands and water to begin studying impacts of climate changes and plan ways to lessen the impact. "Most public land and water management plans project scenarios only one or two decades into the future. Unfortunately, climate change occurs over much broader time horizons", the report said.

The group suggested agencies could take protective steps such as banning all tree-cutting in national forests so that trees can help absorb carbon emissions. The federal government should also establish "corridors" between wildlife habitats to accommodate plant and animal migrations due to habitat loss caused by climate changes. Another helpful measure would be to stop water diversions from streams, lakes and rivers where water will become critical to ecosystems when global temperatures rise, it said.

(by Tom Doggett, REUTERS, June 28)

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International climate change news

9. Kyoto Protocol Ratification by Bulgaria, Hungary and Brazil

VIENNA -- The Bulgarian parliament on ratified the Kyoto Protocol on July 17. Earlier, on July 16, Hungary had also approved ratification.

The 1997 protocol obliges Bulgaria and Hungary to cut their carbon dioxide emissions by 8% from 1988 levels and by 6% from 1987 levels, respectively, by 2012.

(Kyodo News, July 17)

On July 25, Brazilian President Fernando Henrique Cardoso officially signed the Kyoto Protocol, making Brazil the 77th country to ratify the treaty.

"The response to climate change does not accept unilateralist and isolationist attitudes because this is à global issue that affects all peoples and regions", said the President. "The consequences of global warming, particularly on less developed countries, makes it imperative to adopt new paths to development and cooperation, on the international level and in Brazil." Brazilús Congress approved the treaty in June, allowing Cardoso to fulfill his goal of ratifying the protocol ahead of the World Summit on Sustainable Development in Johannesburg. Cardoso said that ahead of Johannesburg, Brazil plans to make à major diplomatic effort to push Russia and Poland to accede to the treaty, which would ensure that it comes into force. Cardoso also said that he would call on other South American countries to ratify the treaty when he meets with them at à South American summit in Ecuador.

(Associated Press/Sydney Morning Herald July 26)

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10. UNFCCC Subsidiary Bodies Meeting Major Landmarks

In June, the advisory bodies of the UN Framework Convention on Climate Change completed à week and à half of negotiations in Bonn, Germany. This was the first such session in eight years that was not dominated by negotiation of either the Kyoto Protocol in its initial, skeletal form (concluded in December of 1997) or the details amplifying its structure and operation (concluded last Fall in Marrakech).

There were substantive negotiations, that generally involved the processes of the parent Framework Convention, particularly reporting obligations among Parties, coordination with other international bodies, financial arrangements and the like (very significant matters to the countries).

Among the matters of more direct significance to industry discussed:

Hfcs/pfcs: Fluorochemicals are finding increasing use as substitutes for Cfcús and other ozone-depleting chemicals phased-out under the Montreal Protocol, as well as in critical semiconducter applications, etc.; but they do have significant warming potential when released into the environment.

Consensus view that was reached included: to develop an information package summarizing scientific information on the issue, technical information on the various potential practices and technologies for phasing out of ozone depleting substances and information relating to various economic and performance considerations; and discuss the future supply & demand of Hfcs, especially in developing countries. Both the Technical and Economic Assessment Panel (TEAP) of the Montreal Protocol and IPCC were requested to comment on how such an information package might be developed and to relay those thoughts at the next SBSTA meeting.

CANADAÚS CLEAN ENERGY EXPORTS INITIATIVE: After much controversy over whether it should be even be put on the agenda, Canada finally introduced their proposal to have Cop8 decide on whether to adopt à "Clean Energy Export" provision. This provision is sought by Canada to allow it to take some measure of credit for its substantial export of energy to the United States. Canada argues that its production of fossil fuels, particularly from Albertaús oilsands, burdens it with considerable GHG emissions. They argue that much of this fuel is destined for the US, where it displaces even greater GHG emissions by displacing coal and therefore benefits the larger cause of climate mitigation. Since the US has withdrawn from the Kyoto structure, however, there is effectively no mechanism for Canada to secure any compensating credits or the like from the US. Instead, they have argued for recognition under the Protocol.

TRANSPARENCY AND ACCESS: Several important meetings have been held in the months since the Marrakech COP, including à workshop hosted by Canada to explore its Clean Energy Exports proposal and the first several meetings of the Protocolús CDM Executive Board. Importantly, these meetings have all been conducted with very limited opportunity for observers (industry or environmental Ngos). In the case of the CDM EB, they have operated without observers in the room and have limited the number of groups that can observe via closed circuit television at the meeting venue. Even the panels of experts commissioned to work on relevant aspects were not provided advanced copies of some important documents.

IPCC THIRD ASSESSMENT REPORT (TAR): Perhaps the most significant discussion of the week in terms of the long term future of the global climate change response was the subtle, nuanced debate around the Ipccús Third Assessment Report. The question before this negotiation was the role the report would play in deliberations of the advisory body.

Simply put, even if the Kyoto Protocol comes into force, it may well not have à long term future if delegates fail to agree on what happens after its first (and so far, only) commitment period, from 2008-2012. That will likely require bringing the US back into the global framework in some way, whether under à second iteration of the Protocol or under some subsequent structure. It will also require divining à structure under which the developing countries will bring their emissions to some form of active management. Neither of these will be easy tasks, but the Protocol mandates that negotiation on the post-2012 future begin by 2005. The Ipccús Third Assessment Report (TAR), will be its statement-of-record at that point, regarding its sense of the prevailing scientific wisdom.

ODDS & ENDS: A few other points of interest

· With the EU and Japan now on board with ratification of the Kyoto Protocol, its fate rests with the Russian Federation. If they ratify, the Protocol will have enough countries representing à high enough percentage of 1990 developed country emissions to meet its criteria for entry-into-force as an instrument binding upon those who ratify it.

· Indications at this meeting were that the final qualifying ratifications would have to be in-hand by the end of July in order for the upcoming Fall negotiating session (Cop8, in New Delhi) to become also the first "Meeting of the Parties" (MOP) to the Kyoto Protocol. Given the likelihood that à Russian Federation decision will not be forthcoming in that timeframe, it appears the first Cop/mop would likely be in the fall of 2003 (if at all).

· UNFCCC Secretariat reported that plans are moving ahead full speed for the Delhi meeting, despite tensions between India and Pakistan.

(by Thomas R. Jacob, Dupont, June 25)

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11. More Promised Contributions to Prototype Carbon Fund

Zakopane, POLAND – The Netherlands Ministry of Economic Affairs plus nine companies, including seven from Japan, Statoil from Norway, and Fortum from Finland jointly contributed Us$35 million to the World Bank’s Prototype Carbon Fund (PCF). The increase was announced at the PCF annual meeting in Zakopane, Poland. This brings the total fund capital to $180 million, almost twice the amount originally projected, extending the Pcf’s carbon emissions reduction reach in the developing world.

“There was so much enthusiasm, that more capital was offered than could be absorbed, forcing the Fund to resort to an allocation system among the contributors. These companies see the PCF as à powerful tool for carbon emissions reductions as the world copes with the threat of imminent and destructive climate change", said Ken Newcombe, the Prototype Carbon Fund Manager.

The PCF will have negotiated 14 carbon purchase agreements by the end of June, and is on track for another 8 by the end of the year. “This means that by the end of 2002, we will achieve more than 55 million tons of carbon dioxide equivalent emissions reductions through these projects", said Newcombe.

Developing country representatives participating in the meeting stressed the need for capacity building and training as priorities by the PCF in those countries where the Fund is operating. “Countries like mine are the most vulnerable to climate change", said Ayite-lo Ajavon of Togo, chairman of the PCF host country committee, made up of representatives from developing and transition countries. “We don’t have prevention strategies, we don’t have adaptation strategies. If you go into villages, farmers will tell you that their world has changed – it has gotten hotter; the rain doesn’t come when it’s supposed to. They don’t call it climate change, but they know that something is very wrong”.

(June 21)

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12. Largest Ever Public GHG Trade, Co2e.com Facilitated

Toronto - Co2e.com announced two transactions totalling 9 million tonnes of carbon dioxide equivalent (tco2eq). One of the transactions of 6 million tco2eq is the largest publicly announced firm purchase of CO2eq in the history of the global greenhouse gas market. The transactions consisted of two trades of CO2eq between Bluesource and Ontario Power Generation (OPG), two innovative companies in the field of emissions trading. OPG purchased the emission reductions to satisfy their voluntary commitment to reduce greenhouse gas emissions.

The two deals were facilitated by Co2e.com Canadian office; the first à forward firm purchase by OPG of 6 million tco2eq and the second an option for 3 million tco2eq. The total amount of Co2eq purchased by OPG is equivalent to the direct CO2 emissions produced by 15,000 airplanes flying from Toronto, Canada to Sydney, Australia. Companies like OPG who aim at reducing greenhouse gas emissions act in accordance with the objectives of the Kyoto Protocol.

Steve Drummond, CEO of CO2e.com stated that, "Co2e.com is delighted to have facilitated this transaction which dramatically demonstrates the power of emissions trading. A huge environmental benefit has been funded in à single, financially efficient transaction, rewarding innovation and enabling OPG to meet its environmental targets cost-effectively. It shows that cross border trading is à viable reality and supports the sort of innovation the world needs to make real reductions in our impact on global climate change."

The purchased emission reductions stem from geological sequestration projects in Texas, Wyoming and Mississippi. In 2000 and 2001, Blue Source’s clients expanded the construction of à CO2 pipeline which gathers locally produced CO2 and transports it to crude oil producers for injection into mature oil fields to enhance oil recovery. The CO2 used for this process would otherwise be vented into the atmosphere by natural gas processing plants. Additionally, Blue Source’s clients expanded their enhanced oil recovery (EOR) operations allowing for additional injections of CO2. The CO2 is sequestered in underlying bedrock that formerly held the oil.

Mr Bill Townsend, CEO, Blue Source, LLC said, “Geologic sequestration of CO2 during EOR operations is an attractive source of greenhouse gas emission reductions in the United States due to its underlying economics and environmental assurance”.

(Co2e.com, July 2)

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13. EU Green Scheme Away from Industry

Brussels - Europeús businesses and public institutions could cut their carbon dioxide emissions by an amount equal to the emissions of Denmark by buying 'green' electricity said WWF, the conservation organization, at the launch of à new campaign.

A new report from WWF (The Role of Businesses and Governmental Bodies in Promoting Green Electricity) that accompanies the start of the campaign says that if European businesses purchased an additional 10 per cent of their electricity from clean 'green' sources, emissions of carbon dioxide (Co2) would be cut by 38 million tonnes per year. If Europeús public institutions went even further and bought an additional 30 per cent of their power from 'green' sources, including the wind, sun, and biomass, it would prevent à further 18 million tonnes of Co2 from adding to the blanket of global warming gases around the planet. The total pollution cut (56 million tonnes) would be roughly equivalent to Co2 emissions from Denmark in 1998 or to the annual emissions of 18 large coal power stations.

"Businesses and public bodies have an important role in helping beat global warming", said Giulio Volpi, Renewable Energy Policy Officer in Wwfús European Policy Office. "Their investment and spending power can accelerate the rapidly developing market for clean energy in Europe. This is à chance for them to show they are in tune with public concern about solving this problem."

Businesses accounted for about 38 per cent of the electricity consumed in the EU in 1999, while public institutions used just over 6 per cent, says WWF.

Wwfús campaign focuses on the five European nations that are the leading producers of electricity - France, Germany, Italy, Spain and the UK - which together generated three quarters of the Euús power in 1999. Germany and the UK are among the countries that already allow all consumers, including businesses and local authorities to choose their electricity suppliers in switching to 'green' electricity. In France, Italy and Spain all non-residential consumers will be able to choose their power supplier in 2004. However, there is nothing preventing suppliers from offering 'green' electricity to their existing consumers.

"WWF also wants to see additional moves by governments", said Giulio Volpi. "Consumers have à right to know about energy sources and levels of pollution associated with the electricity they buy. It’s also time that policy makers promote public procurement of green power."

(WWF, June 24)

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14. Japan – Kazakstanús Deal on Co2

TOKYO — Japan has signed an agreement with Kazakstan allowing Tokyo to count the Central Asian countryús carbon dioxide (Co2) emissions cut as part of Japanús own reduction required under the 1997 Kyoto Protocol to curb global warming, government officials said.

The accord, under which Kazakstanús reductions of about 60,000 tons of Co2 emissions annually will be counted as Japanús over à five-year period from 2008, marks Japanús first deal to trade greenhouse gas emission cuts with another country.

(Kyodo News, July 7)

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15. Another GHG Reduction Package

Japanese coal miner Idemitsu Kosan intends to plant one million eucalyptus trees on rehabilitated coal mines it owns in Australia. The planting program will occur over à five-year period between 2002 and 2006. The company seeks to sequester carbon dioxide from the atmosphere and to sell carbon credits to coal buyers. The first stage planting will cost $A350,000.

(Australasian Business Intelligence, June 24)

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16. Industry Supports Climate Change Action in Poland

Companies belonging to WWF Polandús Corporate Club joined the e-mission 55 initiative to appeal to the Polish parliament for rapid ratification of the Kyoto Climate Treaty, whilst also supporting global efforts towards protecting against global warming and climate change.

Eleven companies from the WWF Poland Corporate Club joined over 180 companies worldwide that are encouraging state governments to promptly ratify the Kyoto Climate Treaty. Following recent ratification by the European Union and Japan as well as à declaration by the Russian Government to commence à process of formal ratification, the Kyoto Climate treaty will become international law if it is ratified by either Canada or Poland.

"Should Canada refuse to implement the ratification process, the treaty’s fate could be saved by Polandús long-awaited ratification. By joining the countries that have ratified the Kyoto Climate Treaty, Poland could gain not only international recognition but considerable economic benefits as well", said Wwf-poland’s Climate and Energy Project Leader, Mr Wojciech Stêpniewski.

WWF, together with companies from the WWF Corporate Club, is encouraging the Polish parliament to complete the ratification process before the World Summit on Sustainable Development, which will start in Johannesburg on the 26 August. It would be very good if Poland, the world’s sixth largest carbon dioxide emitter (accounting for 3 per cent of global Co2 emissions), joined the countries that have taken responsibility for the fate of the planet in place of short-term economic plans.

(WWF, 16 July, 2002)