Greenpeace response to Kyoto Protocol's CDM investing in CCT: The decision takes away India's incentive to enable shift to real solutions

K Srinivas - Energy Expert, Greenpeace responds to the Kyoto Protocol's CDM investing in CCT

Press release - September 19, 2007
NEW DELHI, India — The recent statement by an UN official confirming that "very efficient coal fired power plants" will be able to sell carbon offsets under the Kyoto Protocol exposes the distortions of the Clean Development Mechanism (CDM) mechanism as it currently stands. Permitting its inclusion within the CDM makes a mockery of the mechanism and robs money from real solutions to climate change. The decision provides India the wrong incentives and will promote fossil fuel addiction.

The current project based structure of the CDM is completely flawed. While deciding whether a project delivers reductions when measured against a baseline of a dirty coal plant, it is obvious that a cleaner coal plant will improve upon the previous environmental outcome and is dubiously awarded credits. Yet, if the baseline were to be 100% clean energy plants - as it is rightly meant to be - then the so called Clean Coal Technology (CCT) wouldn't stand a chance. Similarly, CDM

credits are also awarded to projects which eliminate climate destroying gases such as Hydro-fluoro-Carbons (HFCs), but why permit the production of HFCs in the very first place, when there are cleaner substitutes to HFCs? 

The CDM methodology approved by the UN body on September 14 is clearly based on proposals for new coal fired power plants in India and China, the very countries that need to make the crucial shift from coal to cleaner technologies to fight climate change. 

With 67% of our electricity coming from coal and an additional 55000 MW of electricity to be generated from coal-fired power plants by 2012 (11th Five year Plan), India is already on its way to become the third largest CO2 emitter in the world. It is a real concern now that with this new CDM for CCT methodology in place, there is now absolutely no incentive for India to change its energy policy and direction and embark on a de-carbonisation roadmap.

While coal can be made to burn at higher efficiencies, as in the case of supercritical plants, it is far from "clean" since it continues to produce chronic pollution, with detrimental effects on the environment and to human health. Clean coal is a contradiction in terms and CCT claims are nothing more than a desperate attempt by the coal industry to remain relevant in the face of climate change. 

The need of the moment is to not only expand the CDM project but also its complete revamp to make it meaningful - to make it seriously address the issue of mitigating climate change which is best addressed by sustained investments in clean production technologies such as renewable energy and the aggressive promotion of energy efficiency as a means of saving electricity rather than making more efficient coal plants. 

The CDM decision grants legitimacy to dubious technologies such as Carbon Capture and Storage (CCS), which does nothing to prevent generation of CO2, merely capturing it in one place, and moving it to another location. This is waste storage, not a solution to the climate crisis. CCS is also years away from being commercially viable. Investing in this end of pipe dream diverts resources away from clean renewable technologies, which are market tested and ready to tackle the climate crisis. 

Moreover, the day-to-day running costs of so-called "clean-coal" are very expensive. The US Energy Information Administration (EIA) estimates the capital costs of a typical "low-emission" coal power station to be US$1,383/kW or $2,088/kW with CCS. In comparison a typical wind farm costs just US$1,015/kW. 

For further information, contact

K. Srinivas, Climate and Energy Expert, Greenpeace: Mobile: 0 9845112130
Ruchira Talukdar, Communications Manager, Greenpeace India Mobile: 0 9900264127

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