The issue of the carbon market and
cdm focused on carbon capture and storage (
ccs), non-renewable and renewable biomass, and regional distribution of
cdm projects. While some parties, including
eu, Saudi Arabia, Japan, Canada, Norway and South Africa, expressed a clear interest in accessing
ccs technology under the
cdm, others opposed it for various reasons. Brazil expressed fears that such technology could massively impact the current
cdm portfolio. "
ccs would crowd out other
cdm projects.Like us, the Alliance of Small Island States is equally concerned about the technical uncertainties surrounding
ccs, such as seepage, storage, boundaries and long-term liability," said Fernando Antonio Lyrio Silva, adviser for international affairs, ministry of environment, Brazil.
"Carbon capture and storage technologies will reduce the need for increasing international expenditure on renewable energy since it will provide clean and environmentally sound oil supplies," countered Saudi Arabian oil minister Ali Ibrahim Naimi. But Yvo de Boer, one of
unfccc's top officials, warned that it was unknown how permanently carbon can be buried. "Who would be responsible if it escapes?" he asked while talking to
DTE.
Afforestation and reforestation issues were raised by Brazil, Colombia, Bolivia and a number of other Latin American countries, who objected to what they regarded as a restrictive interpretation by the
cdm executive board of procedures for defining land eligibility for
cdm projects. The debate was about the methodologies to demonstrate that land proposed for a
cdm project was not a forest when a project started. An agreement was reached when
eu conceded that parties should invite the
cdm executive board to revisit the issue, and deal with relevant project proposals on a case-by-case basis in the interim.
Equitable distribution of
cdm projects, which are now bagged mostly by India and China, was also an important concern. "Very strong concerns were expressed by the African countries not getting access to
cdm projects. The only way out is capacity building," said Boer. The
eu conceded on an African group proposal to "insert language" that encourages Annex I countries to engage in initiatives, including financial support, for
cdm projects in least developed countries. "But the
eu just spoke about inserting language; nothing in this world happens without funding. So we have to wait and watch what happens," said Sawyer.
Another result of the
cdm debate was to defer a decision on the controversial issue of whether or not to include new
hfc-23 projects into the carbon trading regime. Companies manufacturing
hcfc-22, a gas used in refrigeration, generate a by-product called
hfc-23. The global warming potential of carbon dioxide is 1;
hfc-23's potential is 11,700 it is that potent. Companies now earn
cdm benefits if they capture and destroy
hfc-23 before it goes into the atmosphere.
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