Carbon trading for Caribbean hotels
Case study – India’s ITC Hotel Sonar Bangla
Sheraton & Towers
Caribbean Tourism: The Energy Forum 2013
Barceló Bávaro Palace Deluxe, Punta Cana
10 December 2013
Karla Solís, Eng.D.
Team Lead
CDM Regional Collaboration Centre, St. George‘s
Outline
• UNFCCC case study – India’s ITC hotel
• Carbon trading & the hospitality sector
• Regional Collaboration Centre & the hospitality sector
2
UNFCCC case study – India’s ITC hotel
• Background
• Measures
• Project finance
• Co-Benefits
3
Hotel Facts
 Opened in 2002
 Five star hotel in Kolkata
 238 guest rooms
The first hotel in the world with
certified emission reductions, CERs, by UNFCCC
4
CDM Project Facts (*)
Name
(Ref.686)
Improvement in Energy Consumption of a Hotel
Sectors
Energy industries (1) - Renewable energy;
Energy demand (3) – Energy efficiency (EE)
Methodologies
Supply side EE improvements– generation side; AMS-II.B
EE & fuel switching measures – demand side; AMS-II.E
CDM Lifetime
10 years
Investment
US$ 1 million
Reductions
2,987 tCO2/year
Registration
18/11/2006
Participant
ITC Limited – Hotel Sonar Bangla Sheraton and Towers
Location
Kolkata, West Bengal, India
(*) The Clean Development Mechanism is a market tool that promotes clean 5
technologies in developing nations and allows trading certified carbon reductions
Measures and Savings at demand and generation sides
TOTAL
SAVINGS
177,100
US$/year
(*) Diesel & electricity prices sourced from Validation Report, CDM 0686,
1 US$=45 INR, 2006
6
Project finance
Total investment, US$
India, 2006
Dominican Republic,
2013 (*)
1 million
1.5 million (50% higher)
Total savings demand,
US$/year
145,100
@0.29 US$/kWh
541,140
Total savings
generation, US$/year
32,000
@1.35US$/L
74,779
Total savings,
US$/year
177,100
615,919
Pay-back period,
years
5.7
2.4
Carbon revenues,
US$, 10 years
93,000
(@10US$/CER)
28,173
(@3US$/CER)
(*) http://www.ier-institute.org/2070-1918/lnit13/v13/268.pdf
http://data.worldbank.org/indicator/EP.PMP.DESL.CD
7
Co-Benefits
Technological
• Introduces clean technology measures to ‘common’
technologies
• Encourages replication of measures in the sector or other
sectors
Economic
• Increases profitability by reducing electricity and diesel
consumption due to savings in energy bills
• CDM fund expected encourages Indian hotels for
investing in energy efficient measures
Social
• Creates new skills and jobs by the introducing new
technologies such as solar
• Reduces grid demand and allows grid electricity to be
used by the ones in need
Environmental
• Reduces GHG emissions
• Reduces pollution due to extraction, processing and
transporting fossil fuels such as diesel (for steam
generation at hotel and for electricity generation at country
level)
8
Outline
• UNFCCC case study – India’s ITC hotel
• Carbon trading & the hospitality sector
• Regional Collaboration Centre & the hospitality sector
9
What can carbon trading do for the hospitality sector?
• Provides a clear framework for monitoring and reporting of
the electricity savings due to the introduction of the EE
measures
• By ensuring long-term sustainability and deliverables of
the EE activity
• Enhances public image due to UNFCCC certification
• E.g.: Corporate Social Responsibility
• Engages new sources of funds
• At CDM level
• At climate level
10
Engages new sources of funds – At CDM level
• CDM loan scheme: CDM costs for certification
5 million US$ committed, 45 projects
Next window: January – March 2014
• kfW – German Development Bank: financing and grants
CDM Programme of Activities
EE activities, funds for implementing and marketing
• NEFCO Carbon Fund– Nordic Environment Finance
Corporation
CDM projects in Latin American & Caribbean
EE activities
• Climate Development Initiative – UK & Sweden
Buying CERs from special projects EE
Deadline for next application: End January 2014
11
Engages new sources of funds – At climate level
• Global Environmental Facility Small Grant Programme
UNDP, UNEP, World Bank – UNOPS
EE activities: Energy audits
• Australian Government Aid
 Small Islands Developed States – Community Based
Adaptation Programme
• Inter-American Development Bank
• International Finance Corporation
12
Outline
• UNFCCC case study – India’s ITC hotel
• Carbon trading & the hospitality sector
• Regional Collaboration Centre & the hospitality sector
13
What can the RCC St. George’s do for the hospitality sector?
• Provides free technical support
• CDM project cycle: design, registration, validation,
monitoring & certification
• Advices on potential EE measures, energy savings and
carbon revenues
• Identifying methodologies and similar projects
• Calculating savings and revenues
• Links stakeholders with funding agencies
• Designs and delivers capacity building
• Creates a framework for CDM EE activities for the hospitality
sector in the Caribbean upon request
14
Thank you!
?
rccstgeorges@unfccc.int
Skype: rcc.stgeorges
CDM Regional Collaboration Centre, St. George‘s