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The U.S. EPA is in the final stages of promulgating regulations to reduce CO2 emissions from the electricity generating industry. A major component of EPA's regulatory strategy targets improvements to power plant operating efficiencies. As the EPA expands regulatory requirements to other industries, including petroleum refining, it is likely that plant efficiency improvements will be critical to achieving CO2 emission reductions. This paper identifies efficiency improvement measures applicable to refining, and quantifies potential cost of conserved energy for these measures. Analysis is at the U.S. petroleum refining sector national-level employing an aggregated notional refinery model (NRM), with the aim of estimating the efficacy of efficiency improvements for reducing emissions. Using this method, roughly 1500 petajoules per year (PJ/yr) of plant fuel savings and 650 gigawatt-hour per year (GWh/yr) of electricity savings (representing 54% and 2% of U.S. refining industry consumption, respectively) are potentially cost-effective. This equates to a potential 85 Mt-CO2/yr reduction. An additional 458 PJ/yr fuel reduction and close to 2750 GWh/yr of electricity reduction (27 Mt-CO2/yr) are not cost-effective at prevailing natural gas market prices. Results are presented as a supply-curve ordering measures from low to high cost of fuel savings versus cumulative energy reduction.

Adoption of efficient end-use technologies is one of the key measures for reducing greenhouse gas (GHG) emissions. How to effectively analyze and manage the costs associated with GHG reductions becomes extremely important for the industry and policy makers around the world. Energy-climate (EC) models are often used for analyzing the costs of reducing GHG emissions for various emission-reduction measures, because an accurate estimation of these costs is critical for identifying and choosing optimal emission reduction measures, and for developing related policy options to accelerate market adoption and technology implementation. However, accuracies of assessing of GHG-emission reduction costs by taking into account the adoption of energy efficiency technologies will depend on how well these end-use technologies are represented in integrated assessment models (IAM) and other energy-climate models.

This paper summarizes studies of carbon (C) mitigation potential and costs of about 40 forestry options in seven developing countries. Each study uses the same methodological approach - Comprehensive Mitigation Assessment Process (COMAP) - to estimate the above parameters between 2000 and 2030. The approach requires the projection of baseline and mitigation land-use scenarios. Coupled with data on a per ha basis on C sequestration or avoidance, and costs and benefits, it allows the estimation of monetary benefit per Mg C, and the total costs and carbon potential. The results show that about half (3.0 Pg C) the cumulative mitigation potential of 6.2 Petagram (Pg) C between 2000 and 2030 in the seven countries (about 200 x 106 Mg C yr-1) could be achieved at a negative cost and the remainder at costs ranging up to $100 Mg C-1. About 5 Pg C could be achieved, at a cost less than $20 per Mg C. Negative cost potential indicates that non-carbon revenue is sufficient to offset direct costs of these options. The achievable potential is likely to be smaller, however, due to market, institutional, and sociocultural barriers that can delay or prevent the implementation of the analyzed options.

The Brazil/U.S. Aspen Global Forum on Climate Change Policies and Programs has facilitated a dialogue between key Brazil and U.S. public and private sector leaders on the subject of the Clean Development Mechanism (CDM). With support from the U.S. government, a cooperative effort between Lawrence Berkeley National Laboratory and the University of Sao Paulo conducted an assessment of a number of projects put forth by Brazilian sponsors. Initially, we gathered information and conducted a screening assessment for ten projects in the energy sector and six projects in the forestry sector. Some of the projects appeared to offer greater potential to be attractive for CDM, or had better information available. We then conducted a more detailed assessment of 12 of these projects, and two other projects that were submitted after the initial screening. An important goal was to assess the potential impact of Certified Emission Reductions (CERs) on the financial performance of projects. With the exception of the two forestry-based fuel displacement projects, the impact of CERs on the internal rate of return (IRR) is fairly small. This is true for both the projects that displace grid electricity and those that displace local (diesel-based) electricity production. The relative effect of CERs is greater for projects whose IRR without CERs is low. CERs have a substantial effect on the IRR of the two short-rotation forestry energy substitution projects. One reason is that the biofuel displaces coke and oil, both of which are carbon-intensive. Another factor is that the product of these projects (charcoal and woodfuel, respectively) is relatively low value, so the revenue from carbon credits has a strong relative impact. CERs also have a substantial effect on the NPV of the carbon sequestration projects. Financial and other barriers pose a challenge for implementation of most of the projects. In most cases, the sponsor lacks sufficient capital, and loans are available only at high interest rate and with substantial guarantee. A few of the projects might go ahead without the benefit of CERs, but most probably would not. Whether the projected revenue from CERs would be sufficient to induce sponsors to proceed with the projects is an important issue that requires further investigation. All of the projects contribute to economic development in Brazil. The forestry projects in particular would create a significant number of rural jobs, and contribute income to rural communities. Some of the carbon sequestration projects would provide environmental benefits with respect to protection of biodiversity and soil.

This paper describes a standardized method for establishing a multi-project baseline for a power system. The method provides an approximation of the generating sources that are expected to operate on the margin in the future for a given electricity system. It is most suitable for small-scale electricity generation and electricity efficiency improvement projects. It allows estimation of one or more carbon emissions factors that represent the emissions avoided by projects, striking a balance between simplicity of use and the desire for accuracy in granting carbon credits.

The use of compact fluorescent lamps (CFLs) for household lighting could result in reduced electricity demands, sales of subsidized electricity and decreased environmental effects. CFL use was promoted by the Ilumex project in Monterrey and Guadalajara, Mexico. Analysis for this project was extended to a Mexico-wide program and showed a potential decrease in peak demands by 1.2 GW if CFLs replace lamps which are used at least two hours per day.