The Methodology Panel of the CDM at its September meeting said methodology number NM0228, which outlines procedures for the allocation of certified emission reductions (CERs) for the production of biofuel from plant oil in Brazil, should be listed as an approved methodology at next week’s meeting of the board.

The first of its kind, next week’s approval could generate significant profits for biofuel producers as it effectively opens the door for growers to claim carbon credits for the emissions of carbon dioxide they have abated in fossil fuel combustion in the transport sector.

Biofuel from plant oil has long been heralded as one way to reduce emissions in the transport sector, which accounts for around 14 per cent of the world’s emissions of greenhouse gases, as it can be used as a substitute for gasoline and conventional diesel.

The EU, the US and large developing countries are all proposing targets to boost the consumption of biofuels, but so far the CDM executive board, which issues CERs to emission reduction projects under the Kyoto protocol, has refused to approve plans to finance the production of plant oil for fuel.

Two of the main issues that have blocked approval of methodologies and successful registration of emission reduction projects have been concerns that increased biofuel use will lead to deforestation, and that its sale to countries with mandatory targets could lead to counting the same emission reduction twice.

However, the proposal by carbon consultants Factor Consulting to expand an existing methodology that produces biofuel from waste oil (AM0047) to include plant oil has increased the chances of success.

To avoid the twin issues of double counting and deforestation, the methodology states biofuels producers will have to identify exactly the type of land and consumer in each project.

“Double counting is addressed in the same way as it was addressed by AM0047, so that the consumers of the biofuel must be included in the project boundary. In this way you have to prove that the biofuel is being consumed within the country and for that you must need to know the consumer,” said Urs Brodmann, managing partner of Factor Consulting

“To avoid deforestation, the plantation is included in the boundary of the methodology and the plantation must be on underutilised agriculture land or on severely degraded land. In addition, the methodology requires you to monitor the emissions of initial clearing of land,” he said.

“In other words, if there are any trees on the land that you need to clear before planting the seed, then this will be counted as project emissions and deducted from the emission reductions,” Brodmann told Point Carbon

The CDM EB will hold its 35th meeting next week from 15-19 October.


Source: www.pointcarbon.com/news/1.257625