Co-benefits Approach

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On December 9, 2009, the Co-benefits of Climate Change and Sustainable Development in Developing Countries took place as a side event at the United Nations Climate Change Conference Copenhagen 2009 (COP15 and CMP5). In total, some 300 participants gathered from delegates and organizations including NGO to engage in a lively debate for the event. The event was co-hosted by the Ministry of the Environment Japan (MOEJ), Japan International Cooperation Agency (JICA), Institute of Energy Economics, Japan (IEEJ), and the Global Environment Centre Foundation (GEC) and Overseas Environmental Cooperation Center, Japan (OECC).

During Session 1, MOEJ reported their activities on the co-benefit approach aimed at both climate change and environmental pollution. Specifically, cases for materializing the co-benefits approach implemented under support of MOEJ were introduced, such as the Co-Benefits CDM Model Projects (Subsidy Projects), Manual for Quantitative Evaluation of the Co-Benefits Approach, and the Bilateral Co-benefits Cooperation Programme. A presentation was also given covering a quantitative assessment of the effect of greenhouse gas (GHG) reduction in a Chinese city’s environmental pollutant control plan, as a outcome of an ongoing collaborative project. The project is being conducted under the framework of Japan-China co-benefits cooperation—one of the bilateral co-benefits cooperation projects. This brought to light a shared concept of the importance of activity experiences based on an actual co-benefits approach as well as a quantitative assessment of the approach. Also, the participants reconfirmed the effectiveness of the co-benefits approach in promoting plans to mitigate climate change in developing countries, while sharing recognition of the core role of quantitative assessment of the co-benefits approach to determine Nationally Appropriate Mitigation Action (NAMA), a concrete scheme which is a key agenda of international negotiation.

During Session 2, a discussion was held on the ideal form of clean development mechanisms (CDM) with the goal of determining how Least Developed Countries (LDCs) can create concrete proposals for CDM reform by themselves. At the meeting, JICA explained that to promote CDM in LDCs, it is essential to improve institutions, such as ensuring the broader use of public funding (including Official Development Assistance (ODA)), immunity from assessment of additionality, and the application of simplified rules instead of ongoing complicated rules (e.g. complicated calculations of GHG emission reduction). Further, after receiving a clear indication from the LDC side that Capacity Development through specific CDM cases was particularly effective, the Japan side provided technical input with the aim of making a concrete CDM improvement proposal in the future.

• Ministry of the Environment, Japan
• Japan International Cooperation Agency (JICA)
• Institute of Energy Economics, Japan (IEEJ)
• Global Environment Centre Foundation (GEC)
• Overseas Environmental Cooperation Center, Japan (OECC)

• Chair’s Guidance by Mr. Taka Hiraishi, IGES
• Japan’s Activities to Promote Co-benefits Approach by Mr. Yuji Koresawa, Director, International Cooperation Office, Environment Management Bureau, Ministry of the Environment, Japan
• Quantitative Assessment of Effect of GHG Reduction in a Chinese City’s Environmental Pollution Control, by Mr. Makoto Kato, Senior Researcher, Overseas Environmental Cooperation Center, Japan (OECC)
• Promoting CDM Project with Co-benefits―through Experiences of CDM Feasibility Study Programme by Mr. Yoshio Mizutani, Director, Project Division, Global Environment Centre Foundation, Japan (GEC)

• Initiative for Clean Development in LDCs by Mr. Shinya Ejima, Japan International Cooperation Agency (JICA)
• Chair’s Summary of the Roundtable at LDCs for CDM Promotion by Mr. Philip Gwage, Ministry of Water, Lands and Environment, Uganda
• CDM Reform Proposal to promote CDM activities in LDCs by Mr. Takahiko Tagami, Senior Researcher, Institute of Energy Economics, Japan (IEEJ)

• Chair’s Guidance
  Mr. Taka Hiraishi (Senior consultant, Institute for Global Environmental Studies, IGES) Presentation(PDF)
• Japan’s Activities to Promote Co-benefits Approach
  Mr. Yuji Koresawa, Director, International Cooperation Office, Environment Management Bureau, Ministry of the Environment Japan Presentation(PDF)
  The CDM (a co-benefits-type measure against global warming for coping with the environmental pollution issue) is an approach/project aimed at reducing greenhouse gas (GHG) emissions and preventing environmental pollution (reduction of contamination) at the same time—one of the development needs of developing countries. In order for the co-benefit approach to promote a mechanism to cope with climate change and environmental pollution at the same time, MOEJ implements various concrete assistance measures, including 1) co-benefits CDM model projects (subsidy projects), (2) the Manual for Quantitative Evaluation of the Co-Benefits Approach to Climate Change Projects, and (3) the Japan-China co-benefits cooperation programme. Specifically, (1) co-benefits CDM model projects are subsidy projects started in 2008. In FY2008, MOEJ decided to provide support for model projects in Malaysia and Thailand for this fiscal year after selecting suitable recipients based on co-benefit evaluation criteria. Further, for (2) the bilateral co-benefits cooperation programme, MOEJ has signed a letter of intent with the Ministry of Environmental Protection (MEP) of the People’s Republic of China in December 2007 to promote the co-benefit approach. Based on discussion between the two countries, Panzhihua city, Sichuan province was chosen for the model project. Now, co-benefit cooperation projects are in operation (e.g. a co-benefit evaluation of a city-level environmental pollutant plan in Panzhihua City, capacity building, and formulation/implementation of co-benefit-type projects in the steel industry).
• Example of Japan-China collaborative research: Quantitative Assessment of Effects of GHG Reduction in a Chinese City’s Environmental Pollution Control
  Mr. Makoto Kato, Principal Researcher, Overseas Environmental Cooperation Center, Japan (OECC) Presentation(PDF)
  In December 2007, the statement of intent was agreed between MOEJ and MEP, P. R. China for the Japan-China Co-benefits Cooperation Programme. Based on this statement, joint study, capacity building, etc. are put into operation by having Panzhihua city, Sichuan province as a model city for the Japan-China Co-benefits Cooperation Programme. For the joint study, experts on the two countries collaborate to conduct quantitative assessment of GHG emission reduction brought by a city-level pollutant control plan in China. The experts also collaborate to assess climate change mitigation brought by measures/programmes to achieve pollutant emission reduction in the city. The five-year programme started in 2006 and is planned to continue through 2010, with a set goal of 33,741t/year of SO2 emission reduction to improve air pollution. Three specific measures were planned and implemented to achieve the annual goal: structural adjustment, projects, and management. As of now, Panzhihua city has achieved an annual SO2 emission reduction for 55,800t/year. A quantitative assessment was conducted to study the amount that can be converted to methodologies for GHG emission reduction from methodologies for calculation of the SO2 emission reduction shown above. The study indicated that it is possible to reduce emissions by 2,104,000 tons every year. The calculation was conducted based on a formula for SO2 emission reduction determined by the MEP, P. R. China, after a formula for GHG emission reduction was discussed and confirmed between the two countries. The figures used for the formulas were the same ones used for calculating SO2 emission reduction. The calculation proved the effectiveness of China’s ongoing efforts at environmental pollutant reduction, not only for environmental pollutant control but also for climate change mitigation. In light of this, the calculation can be used as a key reference for determining China’s future environmental pollutant reduction plans and development plans. At this time, the calculation was used only for measures falling into the categories of structural adjustment and projects for SO2 emission reduction in air quality management. In the future, however, the calculation results should be used for other measures and in broader management fields. This should be done by conducting quantitative evaluation while bringing co-benefits evaluation into view in other cities or even at a national level in order to continue carrying out joint research between the two countries.
• Promoting CDM Project with Co-benefits―through Experiences of CDM Feasibility Study Programme by
  Mr. Yoshio Mizutani, Director, Project Division, Global Environment Centre Foundation, Japan (GEC) Presentation(PDF)
  As co-benefits quantification initiative through the CDM/JI study carried out by GEC, specific examples for action areas of air quality management, wastewater treatment, and waste management were targeted for quantitative evaluation of environmental improvement effects under the feasibility study programme of the previous year. China’s coke-oven gas-based power generation project can be cited as an example of air quality management. In this case, 97t/year of SO2 emissions can be reduced compared to flaring, and 1,062t/year of SO2 emissions can be reduced by saving the use of the local electric grid supplied by a coal-fired power plant. In terms of challenges for quantitative evaluation of the Co-benefits approach, the following factors exist: difficulty setting up a “Co-benefits” baseline scenario and determining the methodology for evaluating odor, noise and other factors. In the future, more specific plans must be proposed based on further consideration of “Co-benefits” Integrated Indicators. Under the CDM/JI study of FY2009, Quantitative evaluation of the Co-benefits approach was put into operation based on the Manual for Quantitative Evaluation of the Co-Benefits Approach to Climate Change Projects (Version 1.0), released by MOEJ in June 2009. Actual activity procedures using the manual shall be reflected in future manuals.