CDM Project of Coalbed Methane in China

(1) Overview of greenhouse gas emissions in China

Because energy consumption is the main source of greenhouse gas emissions, China's coal-based energy structure determines that China's total greenhouse gas emissions are large. With the development of China's economy, the demand for energy is increasing year by year, and the resulting greenhouse gases are also increasing. In 2000, us energy information administration estimated that in 20 10, China's per capita greenhouse gas emission level would exceed the world's per capita level. In April 2006, EIA released the energy demand forecast structure of China. According to economic growth, three scenarios are designed: reference scenario, high economic growth scenario and low economic growth scenario (Table 5- 1 1), which shows that there is a positive correlation between economic growth, energy demand and greenhouse gas emissions. In 2000, China's carbon dioxide emissions were 76 1.586× 106t carbon, accounting for 1 1.42% of the world's total emissions, second only to1528.796x106t carbon in the United States. From 1990 to 200 1, China's carbon dioxide emissions increased by 8.23× 108t, accounting for 27% of the world growth in the same period. It is predicted that by 2020, the emissions will increase by 1.32 times compared with 2000, which is greater than the global total emissions in 5438+0 years from1.990 to 2006 [1.008]. Around 2020, China will surpass the United States in carbon dioxide emissions and become the largest emitter in the world. China is one of the countries that ratified the Kyoto Protocol and is in the process of industrialization. At present, China ranks first in the world in all kinds of greenhouse gas emissions except carbon dioxide emissions. Although the Kyoto Protocol does not stipulate specific emission reduction obligations for developing countries such as China, China's energy policy will be greatly affected with the approach of the second phase of emission reduction negotiations (the first commitment period of the Kyoto Protocol is 20 12). In the negotiations of the second commitment period, China, as a developing country with huge greenhouse gas emissions, will surely become the focus of negotiations. Although according to the first commitment period stipulated in the Kyoto Protocol, China does not need to undertake emission reduction obligations. However, in the medium and long term, due to the rapid growth of greenhouse gas emissions in China, there is greater international pressure to reduce or limit emissions. According to the forecast of the National Development and Reform Commission, in order to achieve the economic growth goal of building a well-off society in an all-round way, China's energy demand will be around 3 1× 108t (standard coal), of which coal is about 23x108t. The resulting energy consumption and environmental pollution problems are very prominent. If not controlled, energy-intensive and carbon-intensive industries will be greatly impacted when they are bound by specific emission reduction targets in the future, and they will have to spend a lot of money to buy carbon emission rights from countries with small emissions. Therefore, the formal entry into force of Kyoto Protocol will affect the adjustment of China's economic structure and energy policy. China's steel, electricity, chemistry, paper, cement and glass industries are energy and carbon-intensive industries, and these industries will undergo structural adjustment and technological upgrading. The adjustment of China's energy policy is mainly reflected in energy conservation, introduction of CDM projects, renewable energy, development and utilization of coalbed methane and other policies. Among them, the development and utilization of coalbed methane is of great significance to reduce greenhouse gas emissions.

Table 5-5-11EIA Forecast of China's Energy Demand and Greenhouse Gas Emissions in 2020

(According to Environmental Impact Assessment, 2006)

(two) the relevant management institutions of the clean development mechanism in China.

1In February, 990, the State Council established the National Coordination Group for Countermeasures against Climate Change, which was responsible for coordinating the formulation of policies and measures related to climate change. After China ratified the Kyoto Protocol in August, 2002, relevant CDM management institutions were established to implement the CDM mechanism stipulated in the Protocol, and CDM management was divided into three levels. These three levels are the National Coordination Group for Climate Change Countermeasures, the National CDM Project Audit Committee and the National CDM Administration (Table 5- 12).

Table 5- 12 CDM management system in China

(1) The National Coordination Group for Climate Change Countermeasures has the National CDM Project Audit Committee, which has the National CDM Project Management Agency.

(2) The Coordination Group is the deliberation and coordination body for major policies of the CDM, and reviews relevant national policies, norms and standards of CDM projects.

(3) The joint leadership of the Audit Committee is the National Development and Reform Commission and the Ministry of Science and Technology, the deputy head is the Ministry of Foreign Affairs, and the members are the Ministry of Environmental Protection, the China Meteorological Bureau, the Ministry of Finance and the Ministry of Agriculture.

(4) The main duties of the audit committee include: ① auditing the participation qualification of CDM project, PDD (project design document), emission reduction transaction price, capital and technology transfer and the expected effect of the project on promoting sustainable development. ② Report the implementation of CDM project, problems and suggestions in the implementation process to the coordination group. (3) Put forward suggestions on revising the operation rules and procedures of national clean development mechanism project activities.

(5) National Development and Reform Commission (NDRC) is the competent authority of China Municipal Government to carry out CDM project activities.

(3) CDM project management policy

From June 5, 2005 to 10, the National Development and Reform Commission, the Ministry of Science and Technology, the Ministry of Foreign Affairs and the Ministry of Finance jointly promulgated the Measures for the Administration of Clean Development Mechanism Projects, which clearly stipulated the licensing conditions, management and implementation institutions and their functions, application, examination and approval, implementation, supervision and verification procedures of clean development mechanism projects. It is stipulated that the key areas of developing clean development mechanism projects in China are improving energy efficiency, developing and utilizing new and renewable energy sources, and recovering methane and coalbed methane. The specific requirements of the Measures for the Administration of the Operation of CDM Projects for the development of CDM projects are:

(1) Cooperation in CDM projects in China must be approved by relevant departments in the State Council.

(2) The project must meet the general requirements of China laws and regulations, sustainable development strategies and policies, and national economic and social development planning.

(3) The implementation of CDM projects cannot make China undertake any new obligations beyond those stipulated in the Convention and the Protocol.

(4) The project should promote technology transfer beneficial to the environment.

(5) The project should be able to attract funds, which should be in addition to the existing official development assistance of developed countries.

(6) The main body of the project is a domestic Chinese-funded or Chinese-funded holding enterprise. This is to prevent developed countries from transferring income in disguise by setting up companies to operate CDM projects in China.

(7) Enterprises implementing CDM projects must submit CDM project design documents, certification documents of enterprise qualification status, project overview and financing related explanations.

New progress of clean development mechanism projects in China

At present, CDM projects have been widely carried out in developing countries around the world. These projects have brought capital and technology for improving the environment to developing countries, which is conducive to achieving sustainable economic and environmental development in developing countries. Because CDM is based on the principle of cost-effectiveness, it encourages the most effective greenhouse gas emission reduction in the world at the lowest cost. Therefore, countries and regions with the lowest emission reduction costs in the world can often get more funds and technical assistance. Take China and India as examples. Because China's marginal emission reduction cost (US$ 65,438+02.67 per ton of carbon) is almost 65,438+0/3 [65,438+009] of Indian marginal emission reduction cost (US$ 34. 10/0 per ton of carbon), developed countries are more willing to choose China for capital and technical cooperation under CDM, because the investment is. According to the statistics of the World Bank, the potential of CDM projects in China accounts for 48% of the world total, which can become a new profit growth point for many China enterprises. The research shows that China will be able to provide more than half of CDM projects in the world, about/kloc-0 /×108 ~ 2×108t CO2 equivalent greenhouse gas. Therefore, for these developing countries and regions with the lowest emission reduction costs, CDM provides them with greater selective incentives, and these countries are more likely to participate in CDM [103].

China started CDM projects in 2002, among which the Phaeton Siler Wind Farm Project in Inner Mongolia was officially registered with the Secretariat of the United Nations Framework Convention on Climate Change on June 26th, 2005, becoming the first CDM project successfully registered in the United Nations in China and the first wind power project successfully registered in the world. As of September 4, 2009, the total number of CDM projects registered by developing countries in the United Nations was 1797, and China registered 625 CDM projects in the United Nations, accounting for 34.78% of the total, ranking first (Figure 5-25). The total certified emission reduction (CER) generated by global registered CDM projects is estimated to be 365,438+02,685,856 t CO2 equivalent, of which China is 65,438+08,469,0764 t CO2 equivalent, accounting for 59% of the global annual CER [65,438+065,438+00].

Figure 5-25 Proportion of CDM projects registered by major developing countries in the United Nations (global total 1797)

Figure 5-26 Estimated annual cer ratio of CDM projects registered by developing countries in the United Nations.

(V) Confidence-building measures Overview of the operation of the clean development mechanism project

As of August 2007, there are 737 CDM projects under construction in China (including those registered with the United Nations, in the approval stage or applying for registration), among which the projects involving methane emission reduction technology and coalbed methane development and utilization account for 5% of the total CDM projects [11]. CDM project in coal mining industry is mainly used for power generation and heating after methane recovery, which can greatly reduce greenhouse gas emissions and coal mine safety accidents while obtaining power generation benefits. According to the prediction of the Coal Information Research Institute, the utilization of coalbed methane in large and medium-sized coal mines in China will reach 80% of the current year's extraction volume in 20 16× 108m3. If half of them are developed into CDM projects, the annual verified emission reduction quota is 413080×1012t. According to the statistics of projects approved by the National Development and Reform Commission, the greenhouse gas emission reduction of a 350MW gas-steam combined cycle unit can reach 45× 1 04t in 1 year, and the additional income of 1 unit can reach 36 million yuan according to the calculation of 80 yuan per ton. In 20001year, Shanxi jinmei group cooperated with the world bank for the first time to develop the sihe coalbed methane power plant project, which was approved by the national CDM project review Committee at the project review meeting. On June 5438+February 1 day, 2004, Jinmei Group signed emission reduction purchase agreements with the World Bank Carbon Sink Fund, in 2005, with the Japan Carbon Fund and in June 5438+1October, 2006, with the British Escai Carbon Fund. At present, Sihe gas-fired power plant in Jincheng City, Shanxi Province has become the largest gas-fired power plant in the world, with a total installed capacity of 1.20 MW and an annual power generation of about 8.4× 1.8× 1.08 m3 (purely calculated). The annual emission reduction of transferable carbon dioxide in Jinmei Group is 300× 104t, and it is estimated that the emission reduction income will be 65438+400 million USD in seven years [1 12]. The power plant was officially put into operation in July 2009. The completion and commissioning of Sihe gas-fired power plant will have great social benefits for improving coal mine safety, using clean energy and protecting the environment. It can be seen that introducing funds and technical support through CDM mechanism will promote the development of coalbed methane industry.

By June 2007, 12, there were 25 CDM projects in the field of coalbed methane approved by the National Development and Reform Commission (Table 5- 13). Among them, the Haizi and Luling gas power generation projects of Huaibei Mining Group were publicized on the United Nations website on February 18, 2007, and were officially approved and registered, becoming the first CDM project of coalbed methane (mine gas) successfully registered in China [1 13]. According to the agreement, Huaibei Mining Group Co., Ltd. will comprehensively use gas to generate electricity during the period from June 65438+1 October 1 June 65438+February 3 1 2006, and will receive 9 US dollars of financial support from its partner, International Energy Systems Group Netherlands, for each reduction of1ton of carbon dioxide emissions. Since the Haizi and Luling gas power generation projects of Huaibei Mining Group were put into production, four gas storage tanks of 5000m3 and 10000m3 were built respectively, which pumped the high-concentration gas in the mine to the ground and transported it to all households through gas supply pipelines for workers' families to make a fire and cook, all of which were used for civil use. All low-concentration gas is used for power generation, and two world-advanced low-concentration gas-fired power plants have been built. As of June, 2008 165438+ 10, the cumulative utilization of gas exceeded 7800× 104m3, the power generation exceeded 9800×104kw h, and the converted * * * meter gas purity was about 7600×/kloc. The project has played a positive role in the comprehensive utilization of coal mine gas and environmental protection in Huaibei Mining Group Company, and achieved good social and economic benefits.

Table 5- 13 CBM CDM Project in China Coal Mining Area [1 13]

sequential