IETA & IATA WORKSHOP Carbon Offset and Reduction Scheme for - PowerPoint PPT Presentation

IETA & IATA WORKSHOP Carbon Offset and Reduction Scheme for International Aviation (CORSIA) Geneva, 28 February 2017 1

STATKRAFT NORWAY SWEDEN 12 916 MW 1 587 MW 99% Installed capacity renewable 18 650 MW energy THE NETHERLANDS Power production 4 200 UK 243 MW 56 TWh employees GERMANY 2 692 MW VCS NEPAL 23 MW BELGIUM Office TURKEY 122 MW FRANCE Project LAOS USA San Francisco 50 MW ALBANIA Project THAILAND SN Power office SOUTHEAST EUROPE INDIA 91 MW THE PHILIPPINES CERs 146 MW PANAMA 7 MW ZAMBIA 5 MW PERU 296 MW SINGAPORE SN Power office CHILE 143 MW BRAZIL 149 MW Statkraft SN Power

Clean Development Mechanism (CDM)  Kyoto Protocol • Developed countries agreed to reduce greenhouse gas emissions to (on average) 5.2% below 1990 levels in the period 2008-2012 • An emissions limit was set for each country  The Kyoto Protocol established 3 flexible mechanisms to reach the target: • Emissions trading: between countries • Joint Implementation:  Emission reduction projects in developed countries  Example: energy efficiency project in France • Clean Development Mechanism (CDM)  Emission reduction projects in developing countries  Example: Small hydro plant in Panama 3

ABOUT CDM Governance: CDM Executive Board Projects Methodologies 4

EU ETS: MAIN SOURCE OF DEMAND  The EU Linking Directive forms UNFCCC a link between the Kyoto Mechanisms and the EU ETS Kyoto Protocol  The Directive allows for the use EU Reduction of CERs and ERUs for company Target compliance in the EU ETS up to CERs ERUs a certain limit EU ETS EU Linking Directive 5

CER ISSUANCE TO DATE Millions Monthly Millions Cumulative 1 800 60 ISSUANCE 1 600 50 1 400 • In total 1,800 million CERs have been issued YTD 1 200 40 • Average monthly issuance in 1 000 2016 was 10.8 million 30 800 600 20 400 EU ETS: MAIN DEMAND 10 200 • EU ETS import limit is ~1,640 million credits 0 0 okt.05 apr.06 okt.06 apr.07 okt.07 apr.08 okt.08 apr.09 okt.09 apr.10 okt.10 apr.11 okt.11 apr.12 okt.12 apr.13 okt.13 apr.14 okt.14 apr.15 okt.15 apr.16 okt.16 • 900 million CERs & 575 million ERUs surrendered already Grey Green Large hydro • 165 million left Cumulative total Cumulative Grey Cumulative Green Cumulative Large hydro 6

All CERs ARE EQUAL …  EC has right to impose “qualitative restrictions” on the use of certain types of CERs in EU ETS  In 2010: critical reports on HFC and adipic acid N 2 O projects  In 2011 a formal ban on the use of these credits was adopted, entering into force as from 1 Jan 2013  (Risk of) Qualitative restrictions caused a price differentiation between various credit types 7

CER SOURCING  Airlines frontrunner – voluntary carbon footprint offsetting  Buying CERs directly from projects (“primary credits”)  Already issued credits (“secondary credits”)  Secondary credits with extra specifications - Corporate social responsibility 8

THANK YOU jo.deketelaere@statkraft.com www.statkraft.com