More Bang for the Carbon Buck! Despite the fact that developed countries consume so much more energy, even on a per-capita basis, under-investment in infrastructure throughout the developing world means that energy intensity is extremely high. In other words, it takes a great deal of energy to produce a unit of GDP in the former Communist countries and Asia than in the developed world. The poor state of industries and public works mean that technical opportunities for energy efficiency are significant. The fruit is often so low-hanging that efficiency improvements have extremely quick paybacks, sometimes for very little investment. All that is needed to take advantage of these opportunities is capital and sometimes, only seed capital.
Carbon finance has been criticized by many in the developing world as not bringing a whole lot of money to the table - with the market price per ton of CO2eq. A study in Brazil estimated that for a number of capital-intensive wind farms, adding only $5 for every tonne of CO2 avoided would increase the rate of return by only about 2 percent. In other words, carbon finance could not be expected to add a significant amount of capital for implementing the project.
The situation for energy efficiency, however, can be different. Carbon finance can pay for a project over several years. Energy efficiency can get more for the carbon buck. The challenge with energy efficiency projects is to find projects with large enough energy savings to overcome the current high CDM and JI transaction costs. QT has developed expertise in a number of key energy efficiency project areas that we can replicate.
Room Air Conditioner
Efficiency in Ghana
Most Developing countries face significant barriers to implement appliance standards. As a result developed countries enjoy better quality appliances that use less energy, while developing countries are often the dumping ground for inefficient appliances that cost users much more over their lifetime. Using CDM to help developing countries develop the infrastructure to implement appliance standards could have huge impacts on global demand growth, fossil fuel consumption, and economic development.
Reduction of Steam Losses in Oil and Petrochemical Facilities