1 / 7

Gas flaring reduction: contribution from carbon finance

Gas flaring reduction: contribution from carbon finance. Sectoral policies on GHG emission mitigation Moscow Carbon Market Forum April 28-29, 2008 Alexandrina Platonova-Oquab The World Bank. New approaches in the gas flaring reduction policy in Russia.

fala
Download Presentation

Gas flaring reduction: contribution from carbon finance

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Gas flaring reduction:contribution from carbon finance Sectoral policies on GHG emission mitigation Moscow Carbon Market Forum April 28-29, 2008 Alexandrina Platonova-Oquab The World Bank

  2. New approaches in the gas flaring reduction policy in Russia • Russian government has been developing a set of measures aimed at gas flaring reduction • Balanced combination of regulatory and economic tools is key • Cumulative positive effect of gas flaring reduction is significant both from the environmental (local and global) and economic perspectives: • One of the major sources of atmospheric pollution in Russia* • currently, gas flaring in Russia is emitting at least 50 MtCO2e per year *Source : Oil & Gas Journal Russia, March, 2008

  3. Oil companies’ programs for gas flaring reduction • APG utilization programs are being developed by oil companies: • Several projects are considered under the framework of the Joint Implementation • Implementation timeline realistically requires several years to meet satisfactory levels of APG utilization

  4. Harnessing opportunities through carbon finance • Achieving higher satisfactory level of the AG utilization will take time • Opting for the best available opportunities is key • Some projects will remain uneconomic due to specific barriers • Carbon finance could support the use of most efficient alternatives that often require significant additional investment… • and accelerate the achievement of sectoral goals

  5. Demonstrated impact of carbon finance on gas utilization (CDM projects) Al-Shaheen Gas-to-GPP (Qatar) • APG utilized: 1500 Mln.m3/y • CO2e reductions: 2.5 MtCO2/y • Leveraged investment: USD 260Mln Tambun Gas-to-LPG (Indonesia) • APG utilized: 260 Mln.m3/y • CO2e reductions: 0.4 MtCO2/y • Leveraged investment: USD 30Mln Kwale Gas-to-Power (Nigeria) • 480 MW CCGT • APG utilized: 600 Mln.m3/y • CO2e reductions: 1.5 MtCO2/y Total results for 10 years • GHG emission reductions: 44 MtCO2e • APG utilized: 23.6 Bln.m3

  6. Expected benefits of carbon finance in Russian context • Incentivizing project developers to select the Best Available Technologies • Contributing to the implementation of new technological solutions: • Gas conversion to products: GTL, methanol, DME • Gas to reinjection • Switching projects with marginal economics from “-” to “+” • Boosting economics of gas utilization programs grouping APG sources under unique umbrella (scaling effect)

  7. Potential role of JI gas flaring reduction in the Russian climate change policy • Project-based mechanisms have provided tool to accurately evaluate baseline and additionally of projects • Confidence in capabilities of Independent Entities in assessing compliance with JI requirements • Carbon finance has demonstrated substantial leverage effect on investment • Carbon finance could strengthen the scope of short and medium term gas utilization activities in Russia • JI window may be closing: could Green Investment Scheme complement JI?

More Related