🏭CDM AMS-I.C.: Thermal Energy Production with or Without Electricity

Table of Contents

Introduction

Need and Use for the AMS-I.C. Policy

Policy Workflow

Policy Guide

Available Roles

Tools Referenced

Step By Step

Introduction

The combustion of fossil fuels for thermal energy and electricity generation is a significant contributor to global GHG emissions and the associated climate risks. Avoiding potentially irreversible and worst-case scenario impacts of climate change will require an imminent transition to sustainable and renewable sources of thermal energy and electricity. AMS I.C. is a small-scale CDM methodology for thermal energy production with or without electricity that can be used by project participants to quantify, validate, and verify emissions reductions from thermal energy projects. The policy generates tokenized Certified Emission Reductions (CERs) to incentivize additional projects that reduce GHG emissions that would not otherwise be financially feasible.

This methodology accounts for renewable energy technologies that supply consumers (i.e., residential, industrial, or commercial facilities) with thermal energy that displaces fossil fuel use. Energy generating units may utilize technologies such as solar thermal water heaters and dryers, solar cookers, energy derived from renewable biomass, and other technologies. Emission reductions may result from supplying renewable energy to electrical grids, producing electricity and/or thermal energy for on-site consumption, or a combination of both.

Project may include activities include:

  • Biomass-based cogeneration and trigeneration systems.

  • Retrofits or modifications of existing facilities for renewable energy generation.

  • New renewable energy facilities (Greenfield projects) and/or capacity additions.

The framework of the methodology accounts for baseline, project, and leakage emissions as applicable under a variety of project circumstances. A series of questions determine applicability, additionality, required parameters, and applicable GHG sources and reductions. The methodology is supported by a number of methodology tools that support specific GHG calculations and additionality assessments. Additional details on the methodology tools can be found under the Important Documents & Schemas section below.

Need and Use for the AMS-I.C. Policy

Fossil fuel combustion for thermal energy generation is a significant source of GHG emissions. Further, the demand for thermal energy and electricity is likely to increase for the foreseeable future, making the need for sustainable and renewable alternatives increasingly critical.

Along with the need for sustainable energy comes the need to financially incentivize projects that reduce GHG emissions. Ensuring that real GHG reductions have been achieved, and that successful projects receive the credits they earned requires innovative solutions that streamline the quantification and verification of climate benefits while enhancing the transparency and credibility of carbon credits.

This policy is a digitized version of the CDM’s methodology AMS IC: Thermal energy production with or without electricity. The policy is supported by the Guardian platform, a technical solution built on Hedera’s Distributed Ledger Technology to streamline project onboarding, MRV data management, GHG calculations, as well as the CDM’s validation and verification processes. The solution digitizes GHG quantification methodologies, tokenizes carbon credits, and encapsulates all the critical project information, MRV data, GHG calculations, and third-party verification process steps in discoverable and immutable verified credentials. The result is carbon assets supported by unprecedented transparency and credibility and an dMRV system that can better identify and prevent double counting and overestimations.

Policy Workflow

Policy Guide

This policy is published to Hedera network and can either be imported via Github (.policy file) or IPSF timestamp.

Available Roles

  • Project Proponent - The project proponent is responsible for executing the emission reduction project. The project proponent must adhere to the requirements outlined by the CDM and provide evidence of the emission reductions achieved. Upon successful verification, the project proponent receives certified emission reduction (CER) tokens as an incentive for their emission reductions.

  • Verification and Validation Body (VVB) - The VVB plays a critical role in independently verifying and validating the project data submitted by the project proponent. They thoroughly assess the project's emission reduction potential, methodologies, and adherence to the policy guidelines. Based on their evaluation, the VVB either approves or rejects the project for registration.

  • Registry (UNFCCC) - The United Nations Framework Convention on Climate Change (UNFCCC) serves as the registry for the CDM. They oversee the multiple workflow steps involved in the project's approval, including the verification and validation process by the VVB and the endorsement by the DNA. The UNFCCC's approval is necessary for the project's successful registration and issuance of CER tokens.

Tools Referenced

  • Methodological Tool 03- Tool to calculate project or leakage CO2 emissions from fossil fuel combustion.

  • Methodological Tool 04- Emissions from solid waste disposal sites.

  • Methodological Tool 05- Baseline, project and/or leakage emissions from electricity consumption and monitoring of electricity generation.

  • Methodological Tool 06- Project emissions from flaring.

  • Methodological Tool 07- Tool to calculate the emission factor for an electricity system.

  • Methodological Tool 09- Determining the baseline efficiency of thermal or electric energy generation systems.

  • Methodological Tool 12- Project and leakage emissions from transportation of freight.

  • Methodological Tool 16- Project and leakage emissions from biomass.

  • Methodological Tool 19- Demonstration of additionality of microscale project activities.

  • Methodological Tool 21- Demonstration of additionality of small-scale project activities.

  • Methodological Tool 22- Leakage in biomass small-scale project activities.

Step By Step

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