Carbon Market Mechanism & Sustainable Development AGENDA 1- - PDF document

Carbon Market Mechanism & Sustainable Development

AGENDA 1- Introductjon to Carbon Markets 2- Company Profjle 3- Carbon Reductjon Projects of Akenerji 2

The Great Environmental Awakening Kyoto Protocol vs. Paris Agreement In December 2015, 196 partjes to the UNFCCC adopted the Paris Agreement for an internatjonally coordinated Kyoto Protocol Paris Agreement efgort to tackle climate change. The 1997 2005 goal is to keep global warming ‘well below’ 2°C, or even 1.5°C. Actjon by Annex 1 Actjon by all countries partjes Focus on mitjgatjon, Focus on mitjgatjon adaptatjon and fjnance 1 - INTRODUCTION TO CARBON MARKETS Focus on government Inclusion of non-state actjon actors Science as a driver Science as a driver to to take actjon defjne ambitjon 4 5

Paris Climate Agreement Turkey’s INDC (Intended Natjonally Determined Contributjon) Turkey’s plans and policies to be implemented according to its INDC: A landmark moment in the global efgort to address the drivers of climate change. • Increasing capacity of productjon from solar & wind power untjl 2030 • Tapping the full hydroelectric potentjal OBJECTIVES • Rehabilitatjon of public electricity generatjon power plants • Inplementatjon of Natjonal Strategy and Actjon Plan on Energy Effjciency • Strengthen the global response for the threat of climate • Promotjng alternatjve fuels and clean energy vehicles change • Enhancing combined transport • Increasing the ability to adapt to the adverse impacts of • Controlling the use of fertjlizers and implementjng modern agricultural practjces climate change and foster low greenhouse gas emissions • Solid waste management development • Recovery of methane gas from landfjll gas • Forestry rehabilitatjon and afgorestatjon campaigns • Making fjnance fmows consistent towards climate resilient development % 21 % 21 246 (Mt 246 (Mt CO 2 e) CO Nearly every country in the world agreed to limit its natjonal greenhouse gas emissions 6 6 7

Carbon Ofgset Program The Ofgset Cycle • Carbon offsets are measurable, quantifiable and trackable units of greenhouse gas (GHG) emissions reductions. Project Developer • Carbon offset projects reduce or avoid emissions by carrying out certain activities, from installing Project Idea Note End Buyer Retjrement renewable energy infrastructure like wind turbines or solar panels to planting trees that remove and Project Design Document Request store carbon from atmosphere that results in quantifiable emissions reduction. Validatjon & Verifjcatjon Issuance • Project developers certify their offsets under a third-party standard through a list of approved methodologies. • Voluntary end buyers purchase offsets from project developers to meet their own carbon neutrality or other environmentally friendly goals. Certjfjcate = = 1 VER 1 tCO 2 e 8 9

Carbon Projects Voluntary Carbon Standards • Carbon Offsets can be created by a broad array of project types: A standard is a set of project design, monitoring and reporting criteria against which carbon offsetting activities and/or projects’ environmental and social co-benefits can be certified or verified ➢ Windpower ➢ Energy efficiency ➢ Fuel-switching ➢ Landfill methane ➢ Transportation projects ➢ Run-of-river or reservoir hydropower ➢ Clean cookstoves ➢ Forestry-based projects Established in 2003 by World Wildlife The VCS Program is the world’s Socialcarbon is a Standard developed Fund and other internatjonal Non- most widely used voluntary GHG by the Ecologica Instjtute that Carbon Standards governmental organizatjons as a program. More than 1300 certjfjed certjfjes carbon reductjon projects best practjce standard to ensure VCS projects have collectjvely for their contributjons to sustainable projects that reduced carbon reduced or removed more than development. Six aspects of project • Standards difger by which project types they certjfy and the process for achieving certjfjcatjon emissions under the UN’s Clean 200 million tonnes of carbon and sustainability are individually Development Mechanism (CDM) other GHG emissions from the measured using the Socialcarbon • Project requirements to get standards also delivered on the dual mandate atmosphere. hexagon: carbon and biodiversity as ➢ Emission reductjon to foster sustainable development. well as social, fjnancial, human and www.verra.org ➢ Employment for local populatjons natural components. www.goldstandard.org ➢ Biodiversity protectjon www.socialcarbon.org Compliance Markets Benefjts of Carbon Ofgsettjng • Major Standard types mitjgated 12% of global ➢ Verifjed Carbon Standard (VCS) emissions (about 7 ➢ Since 2005, carbon projects have helped to reduce, sequester, or avoid over 427 million tonne ➢ The Gold Standard gigatonnes of GHG) CO 2 e, which is more than all of Australia’s energy related emissions in 2016. in 2015 ➢ Social Carbon ➢ Multiple Contributions to Sustainable Development ➢ Climate Actjon Reserve (CAR) ➢ Safeguarding Biodiversity ➢ Finance Global Transition to a Low Carbon Economy ➢ Contribute to the Paris Agreement ➢ Achieve Corporate Social Resposibility Requirements ➢ Increase Public Relations ➢ Improve Customer Retention 10 11

Akenerji - Company Profjle Akenerji - Company Profjle 2011 Energy import and export actjvitjes 2011 2018 2011 started AYYILDIZ WPP 28 1989 Won Energy Oscar Presence in Turkey’s fjrst in the Category First We generate 3% of Turkey’s BULAM HEPP 7 Borsa Istanbul EFET autoproducer of ‘Best Leading power need with a total Sustainability agreement was Investor in Turkey HIMMETLI HEPP 27 Index implemented installed capacity of 1224 MW of the Year’ BURÇ HEPP 28 FEKE I HEPP 30 2010 2017 2000 2011 GÖKKAYA HEPP 30 Uluabat, Burç, Capacity of 25% of Shares Joined the Carbon began to trade Bulam and Feke Ayyıldız WPP was Disclosure Project FEKE II HEPP 70 II HEPPs became increased on the BIST under (CDP) Turkey operatjonal to 28.2 MW ‘AKENR’ TI ULUABAT HEPP 100 MW 2005 2016 2012 Renewable Energy Portgolio: 2010 WE ARE THE ENERGY OF TURKEY Was granted the First company to 7 Hydroelectric Power Plants Feke I, Himmetli 2009 Annual right to operate and Gökkaya apply virtual power 1 Wind Power Plant Report won a Gold Uluabat HEPP plant tender in HEPPs became Award at ARC for 49 years Turkey operatjonal 2 - AKENERJİ COMPANY PROFILE Uluabat A yyıl d ı z 2005 2013 2015 2009 Kemah* Titled as an The Carbon Included in the Ayyıldız WPP independent Management CDP Water became power generatjon Project was Program Burç Bendi Bulam operatjonal Feke I company launched voluntarily 2014 Carbon Management: Himmetli 2009 Egemer CCGT Carbon Certjfjcatjon Gökkaya Feke II Partnership became Erzin Carbon Disclosure Project with ‘CEZ Group’ operatjonal Monitoring of GHG Emissions Sustainability Reports Wind Hydroelectric Natural Gas * Kemah is in the project please. * You may access Akenerji Sustainability Reports from akenerji.com.tr 12 13

Ayyıldız Wind Power Plant Bulam Hydroelectric Power Plant Locatjon Balıkesir, Turkey Locatjon Adıyaman, Turkey Installed Capacity 28 MW Installed Capacity 7 MW Standard Type Gold Standard Standard Type Gold Standard Emission Reductjons per year ~60.000 tCO 2 e/year Emission Reductjons per year ~ 20.000 tCO 2 e/year Number of Households Supplied ~22.000 Number of Households Supplied ~ 8.500 3 - CARBON “EMISSION” REDUCTION PROJECTS OF AKENERJİ Bulam Weir and HEPP Project is located in Southeast The project consists 9 turbines in Ayyildiz Hill near the town of Bandirma in the province of Balikesir, Anatolia, in the province of Adiyaman, on the Bulam Northwest of Turkey. The purpose of the project is river - a tributary of the Firat River. The project to contribute to the natjonal economy and provide locatjon is approximately 35 km from the city center a portjon of growing electricity demand with of Adiyaman and 12 km from Kocali village, near the highway joining Adiyaman Celikhan Malatya. renewable energy from wind power. The project reduces emissions of greenhouse gases, avoiding the The project purpose is to generate energy from the generatjon of carbon dioxide due to the productjon Bulam River water fmow and avoid the generatjon of of electricity using fossil fuels. The technology used carbon dioxide caused by electricity productjon from in the plant is a state-of-the-art technology, which fossil fuels. allows operatjonal excellence. 14 15