Welcome to Fourth Newsletter from T@W: Sustainable Energy Technology at Work, a project supported by the EU’s Sixth Framework Programme (FP6) having as a key aim to promote sustainable energy technologies at carbon markets with focus on EU ETS and CDM markets in Asia .

The G8 Summit in Germany this spring was successful. It resulted in a common conclusion that involves the USA in the UNFCCC process of establishing binding CO₂ reduction agreements in continuation of the Kyoto Protocol. The decision at the G8 Summit was vague in the wording but nevertheless showed a change in the US Climate policy. This change should not be underestimated as it is backed by domestic US development and will affect both Indias and Chinas positions as well as others, making it more likely that these countries will also accept reduction oblications.

In this summer edition of the T@W newsletter you will find:

• A brief analysis of the US climate policy situation and likely effects on the energy technology markets
• A report from the T@W workshop at Carbon Expo 2007
• Recent additions to the website including a number of Project Idea Notes (PINs)
• Presentation of four new interesting reports: One on RE law in China; one on the role of CDM in proposed post-Kyoto agreement approaches and two from the World Energy Council on energy and climate change.

For further information about T@W or any of the issue raised on this website please contact: info@setatwork.eu

The T@W Management Team

T@W is funded by the European Commission FP6 Programme under contract TREN/05/FP6EN/S07.55796/020065

An analysis by Vilhjálmur Nielsen, Energy Consulting Network

The G8 Summit in Heiligendamm in Germany this spring saw a US president that was vague in the wording, but nevertheless was willing to accept that US will be bound by a UN decision on climate commitments after 2012.

Before he left for the Summit, the US president presented his Climate Plan for the public at the US Global Leadership Campaign. Maybe it was a coincidence that the words "US Global Leadership" were connected to the climate policy, but it is evident that the US sees itself as the natural global leader on all major issues. A recent report from retired admirals and generals from all branches of the armed services on "National Security and the Threat of Climate Change" that was published just before the G8 Summit gave further evidence that the US needs to act seriously on Climate Change.

It is thus clear that the US has a strong incentive to take a leading role of what should become a successful policy regime. Up to now the development and formulation of policies and mechanisms are developing without the participation of the US.

Several US states have declared unilateral CO₂ reduction commitments; so have many large cities and industrial companies. With working voluntary CO₂ markets and a market for carbon offset projects, the political distance to a federal involvement in overall national actions is not that far. No wonder that, for example, Exxon Mobil stops lobbying against the Kyoto Protocol and emission reduction efforts and starts a discussion on how a national cap and trade programme should be designed.

The US has the capability to define ambitious goals and lead the process to success. This has been shown with the Apollo Programme which has the goal "...before this decade is out, of landing a man on the Moon and returning him safely to the Earth". A fullhearted participation of the US to combat Climate Change will thus be seen in more effort put into technology development and technology transfer.

I look forward to seeing the development.

The T@W workshop, Sustainable Energy Technology at Work, took place as part of Carbon Expo on 3 May 2007. The workshop presented the latest and most relevant issues regarding the development of carbon markets and the possibilities for technology transfer. Among the speakers were representatives from the International Emission Trading Association (IETA) and European Investment Bank (EIB).

About 50 participants took part in the event. Through discussions and lectures the audience learned about new opportunities for technology transfer and carbon financing, and development trends in the Emission Trading Scheme and CDM Markets. The participants were also presented with first-hand experience from CDM projects in India and China. A brief presentation of the identified technologies needs in South East Asia partner countries was also given.

Besides interesting discussions and the making of many new contacts, the workshop resulted in concrete proposals from technology suppliers who wish to enter the CDM market. Market actors had the opportunity to sign up for participation in further development of identified projects.

During the workshop, the Sustainable Energy Technology at Work team received an invitation from the European Investment Bank to consolidate the cooperation between EIB and T@W. T@W will now continue the work already started. In future Carbon Expos and other premiere meeting places for companies doing business in the carbon market, the Sustainable Energy Technology at Work team will share a stand with the European Investment Bank. This will be a unique opportunity for T@W to meet companies acting in the market. The T@W team sees this as a platform to communicate with high profile participants and exhibitors.

• Workshop Summary and Presentations

The partners of the T@W project are now in their second 'season' of work before finalisation of the project by the end of March 2008.

The first year of action concentrated on analysing the targeted CDM markets in China, Thailand, Malaysia and India. Reports on this are available at:
www.setatwork.eu/cdm_countries.htm

Another focal point has been to identify CDM projects within renewable energy and poly-generation technologies. A majority of these have been materialised into Project Idea Notes (PINs) or Mini PINs (see the following article).

The second season will be dedicated to facilitating match between the CDM project owners and EU stakeholders, first of all ETS companies in need of CO₂ credits (CER buyers) and EU equipment suppliers.

A key means for doing so will be arranging of 'Facilitation Workshops' in Asia to take place during November 2007 to February 2008, where the EU stakeholders will be invited to exploit these opportunities. In addition to offering specific partner matching, the workshops are to address the technological and financial aspects of CDM market development.

The planning of the workshops is going on now and further details will be provided in the T@W project news services.

A further eleven T@W Good Practice Case Studies (GPs) were added to the website at the end of May 2007. All the GPs relate to projects in Bulgaria, covering a wide range of topics, including biomass, natural gas CHP, energy efficiency, geothermal power, small hydropower, solar heating and wind energy.

• View all Good Practice Case Studies
• How to add your own case study to T@W

Three Project Idea Notes (PINs) and ten Mini PINs have also been added to the website since the last newsletter. The PINs cover hydropower projects in China and the Mini PINs describe bioenergy projects in Thailand.

PINs are ongoing and potential CDM and JI projects involving Sustainable Energy Technologies (SETs). The PINs will offer business investment opportunities for EU ETS companies enabling them to offset their emissions by actively increasing the use of SETs.

If you are interested in pursuing any of the projects described in the PINs, please contact the relevant PIN/PDD Developer shown on the PIN.

• View the Project Idea Notes (PINs)
• How to add your own PIN case study to T@W

A review of the Chinese Renewable Energy Law and policy was published in June 2007 by the RELaw Assist project – a Chinese-Australian cooperation which aims to promote renewable energy in China and support Australian industry into this market.

The 72 page report gives background information of the energy industry, the chinese legal system and policies as a background for a detailed review of the renewable energy law and future implementation and remaining gaps in the regulation. The report also discusses the wider issues associated with implementing a project in China, including project approvals, project financing and structuring, projects under the Kyoto Protocol, and protection of intellectual property.

Further Information

The International Institute for Sustainable Development has issued an assessment of how the Clean Development Mechanism (CDM) or other market based mechanisms will work in the different approaches for a post-Kyoto agreement.

The report list 43 different approaches in five categories that have different functions, but are not necessarily mutually exclusive:

1. targets with flexibility mechanisms;
2. targets with emissions trading only;
3. policy and sectoral approaches;
4. technology approaches; and
5. other approaches.

Download the full report (623 Kb PDF)

In June 2007, the WEC has published two studies on Energy and Climate Change.

The first, entitled "Energy and Climate Change", draws on the collective experience and resources of energy professionals worldwide. It has looked in detail at the impact of existing climate change measures and how effective they have been in promoting sustainable development, using the criteria of the three "As" – accessibility (to affordable energy); acceptability (of the energy sources used, particularly in environmental terms); and availability (how secure and reliable are those sources?).

Energy & Climate Change - Full Report (850 Kb PDF)
Energy & Climate Change - Executive Summary (373 Kb PDF)

The second publication, "2007 Global Energy Survey", focuses on the topic "Tackling the Three Ss: Sustainability, Security and Strategy" and is based on interviews with more than 50 senior executives from the world's leading energy companies and their strategic suppliers by Korn/Ferry International.

2007 Global Energy Survey (303 Kb PDF)

T@W will be represented at this event by TERI and the findings of the conference will be integrated in the further project progress.

Join leading carbon brokers, financiers and leaders of Indian industry and learn how your company can benefit from mitigating climate change and reducing greenhouse gases.

Further Information

The newly restructured energy market has opened the door to new players, making Central & Eastern Europe an exciting, evolving opportunity. The Central European Power Show has been established to bring together a diverse range of organisations and individuals.

The three-day exhibition and conference will allow power industry professionals, investors, power producers and government officials from all sectors of the power industry to meet and discover new ideas, make new connections, and most importantly advance the thinking for today's fast moving market place.

www.cepowershow.net

In March 2007, the European Union Member States adopted an action plan to integrate the Community climate and energy policy. The plan includes the following objectives to be achieved by 2020:

• streamlined energy consumption leading to the reduction of used energy by 20 percent,
• the increase in the share of renewable energy to 20 percent in the total primary energy consumption in all EU countries on the average,
• at least a 10-percent share of biofuels in the sales of transport fuels in each Member State.

As a result, the Minister of the Environment, as the honorary patron of POLEKO 2007, proposed "Renewable Energy Sources" as the lead theme of the show.

Further Information

Based on the success of last year’s workshop, Green Power Conferences is pleased to present an intensive, interactive seminar focusing on the development and progress of Emissions Trading in Central & Eastern Europe (CEE). The workshop will assess the current progress and development of JI and GIS within the EU ETS from the perspective of CEE countries and examine the future challenges moving forward into the next phase of trading. The programme will provide an insight on what being in the scheme really implies for companies and will enable delegates to successfully access this expanding market. New areas of analysis will include an overview of developments across the Balkan area focusing specifically on Bulgaria, Romania, Latvia and the Ukraine.

Further Information