CONCEPT AND PROCESS OF MITIGATING CLIMATE CHANGE BY A FRAMEWORK OF TRADE OF CARBON CREDITS

Emission of Green Houses Gases have undesirable impact on Earth which are identified with Climate Changes i.e., increased uncertainty of livelihood and calamities, and economic losses to market.
Green House Gases accumulated in Earth atmosphere should be reduced by 10% from levels existing in 1995, by the end of 2012.

FRAMEWORK OF PROCESS OF CARBON ACCOUNTING AND TRADE

Step 1: Determine REQUIREMENT of heat and/or power
REQUIREMENT (Date, at end of project) is = SHOULD BE (Date when Project should end) - IS (Date of Plan)

For example: for Electricity power, the statement of Requirement Determination could read as:
IS (currently October 2007)= 12 MW(e)
SHOULD BE(by January 2009) = 45 MW(e)
Thus, REQUIREMENT (by January 2009)= 45- 12 = 33 MW(e)

Step 2: Determine FULFILMENT PLAN of REQUIREMENT

FULFILMNT = PROPOSED (EMULT, EIMP, NEW) - 'IS' EXISTING CONTINUED - 'TO BE DEDUCTED' EXISTING IS EITHER ABONDONED OR IMPROVED

PROPOSED INCLUDES THREE OPTION
EMULT - ADDITIONAL (EXISING TYPE IS MULTIPLED WITHOUT CHANGE)
EIMP- IMPROVED (EXISTING TYPE IS IMPROVED INCLUDING ENABLING FUEL CHANGE)
NEW (NONE THE TYPE EXISTED BEFORE)

For Example
FULFILMENT 33 MWe = PROPOSED ( 35 MWe) - EXISTING CONTINUED (10 MWe) - EXISTING ABONDONED OR FORM CHANGED (2 MWe)

PROPOSED 35 MWe = EMULT (20 MWe)+EIMP (5 MWe)+ NEW (10 MWe)

Step 3: Determination of BASELINE
Select ECONOMICAL MOST OPTION (ONLY ONE) OUT OF TECHNICALLY AND OPERATONALLY ACCEPTABLE OPTIONS
EXISTING
NEW
EIMP
EMULT


For example

EXISTING -3

• Diesel run Power Plant
• Old technology Biomass residue based power plant
• Grid power

NEW -2

• New Technology based biomass residue plant
• New Diesel run Power plant

E MULT -1

• Old Technology Biomass residue power plant

E IMP-2

• Old Technology Biomass residue plant modified in one way which can handle more than one fuel
• Old Technology Biomass residue plant modified in another way

MOST ECONMICAL OUT OF TECHNICALLY AND PEATIONALLY ACCEPTED OPTION
say New Diesel Run Power Plant - This is baseline


FUEL TYPE EXISTING – PROPOSED
Non renewable
LOCAL ADVANTAGE: Renewable but amount of supply is limited by local natural condition viz., wind, agricultural biomass
STRATEGIC ADVANTAGE: Renewable but amount of supply is limited by captive production viz, biomass residue as industrial byproduct
MANAGED REPLACEMENT: Renewable but supply of it is market based

Trading CDM substitution

Global CDM - Local CDM