Title: Industry view of renewable energy and the CDM
Sponsors: European Wind Energy Association (EWEA) and the European Photovoltaic Industry Association (EPIA)
Contact: Vicky Pollard, EWEA, (ewea@ewea.org), and Dr. Murray Cameron, EPIA , (epia@epia.org)
Internet: www.ewea.org and www.epia.org 

Vicky Pollard, EWEA, and Dr. Murray Cameron, EPIA, presented a view on the CDM from the perspective of the renewable energy industry. The session was chaired by Mahendra Kumar, South Pacific Regional Environment Programme.Pollard noted that the basic characteristics of wind energy make it a good candidate for the CDM. Wind energy, she noted, is pollution free, uses a inexhaustible energy source, is well suited for technology transfer, and is easily installed in remote areas. In addition, wind energy generates income and creates local jobs. The market for wind energy projects in Europe has experienced an annual growth rate of approximately forty percent, and much of this growth has been stimulated by targeted renewable energy policy measures. In addition, the economics of producing wind energy have improved as the production size of wind turbines has increased. Pollard explained that while the OECD market for wind energy has been largely driven by environmental considerations, many developing countries are facing capacity shortage and regularly depend on imported electricity to meet their demand. She argued that the CDM would stimulate investment in wind energy in those countries, and that wind energy should be included in a positive list under the CDM. To this end the EWEA is actively lobbying the European Union.

The market for photovoltaics (PV) in Europe has also grown at an annual rate of forty per cent, according to Cameron. This growth rate is equal to the annual growth in the telecom industry. He emphasized that the PV industry includes several large players, some of which are located in developing countries such as India and China. Studies show that it is more economic to install stand-alone PV systems in remote rural areas than to connect them to the regular electricity grid. He also advocated the inclusion of stand-alone technologies in a positive list under the CDM, and argued that such a list should be exclusive, at least in the initial phase.
Discussion: The ensuing discussion focused on the storage of electricity, maintenance, user training, and finance schedules, cooperation with counterparts in the United States, and a European conference on renewables to be held in October 2000. One participant noted that a positive list is also required for Annex I countries because technologies included in such a list are intended to produce a net reduction of CO₂ emissions. One NGO representative advocated the inclusion of cogeneration in a positive list.

Title: Join the international NEU-CO₂ network and use the NEAT model (Getting rid of errors in inventories for the petrochemical sector)
Sponsor: European Commission (DG RTD)
Contact: Dr. Martin Patel, Fraunhofer Institute Systems and Innovation Research (ISI) (martin.patel@isi.fhg.de)
Internet: www.eu.fhg.de/NENERGY/

With support from the European Commission, the NEU-CO₂ network has been working on uncertainties and knowledge gaps in data on CO₂ emissions from the petrochemical industry and its products. The research is being funded by the EC's European Network for Research in Global Change (ENRICH), which enhances networking between European researchers and their international colleagues, linking past, ongoing or planned research activities. Julia Kunderman, Research Directorate General, introduced the ENRICH research programme elements, including the Key Action Global Change, Climate and Biodiversity.Patel explained that a significant amount of fossil fuels is consumed for the production of petro-chemicals and other synthetic organic materials, e.g. plastics, paints, solvents, lubricants and bitumen. A lot of uncertainty exists regarding the CO₂ emissions related to the petrochemical industry and its products. In many cases the current inventory guidelines propose the use of default values, which, given the available statistical data and the structure of the petrochemical industry, are inadequate.

To counter some of these uncertainties, the NEU-CO₂ network is developing the NEAT model to generate insights into the release of CO₂ emissions from petrochemicals. The network has already contributed to improvements in the annual IEA/EUROSTAT energy balance questionnaire regarding the harmonization of data on non-energy use.

The network plans to:

·         Expand the existing network and intensify the exchanges among partners;
·         Use the network's understanding of the non-energy use of fuels and the NEAT model to improve the reporting of CO₂ emissions required by the FCCC Common Reporting Format and the IPCC Guidelines; 
·         Test the applicability of the NEAT model for predicting future trends;
·         Provide recommendations on strategies for reducing CO₂ related to non-energy use;
·         And disseminate results.

Discussion: During exchanges with participants, including industry, IPCC and FCCC Secretariat representatives, Patel responded to questions on:  new network candidates in Japan and the United States; the quality of industry data available from consultants; the willingness of the Parties to adopt new methodologies, given their likely desire to maintain consistency and simplicity in data collection methods; the flexibility of IPCC Guidelines for inventories and the current weakness of those Guidelines in addressing emissions from products; the IPCC's preparations to review its 1996 Guidelines; and informal contact between the IPCC and the NEU-CO₂ network. 
More information: European Commission research: http://europa.eu.int/comm/research/rtdinfo.html

Title: Top-down emission baselines: a case study (Estonia)
Sponsors: Swedish delegation, Swedish National Energy Administration (SNEA) in collaboration with the Stockholm Environment Institute, Tallinn (SEI)
Contact: Tiit Kallaste, SEI (tiit@seit.ee)
Internet: SNEA: www.stem.se SEI: www.seit.ee

He explained that an important part of the methodological work has been to examine possible ways to construct standardized CO₂ emission baselines for various project types.The objective of the Report was to examine different ways of standardizing baselines for AIJ or JI projects in the district heating sector in Estonia. One of the conclusions was that significant changes in a country's economic development should be considered when constructing emission baselines. It is hoped that the Report will contribute to the current discussion on baseline methods within the framework of the FCCC and the Kyoto Protocol. 
Discussion: The discussion focused on the use of GDP to calculate a baseline,  using renewable energy to achieve sustainable development, and the success of the emission reductions achieved through boiler conversion. Some participants suggested that the proposed top-down emissions approach is a hybrid of the top-down and benchmarking approaches.