Cost-effective applications of the Clean Development Mechanism in Eritrea, East Africa

Panel: Panel 6: Energy Efficiency Under Joint Implementation & The Clean Development Mechanism

Authors:
Debesai Gebrehiwot, Eritrea Department of Energy
Samuel Baire, Eritrea Department of Energy
Semere Habtetsion, Eritrea Department of Energy
Robert Van Buskirk, Lawrence Berkeley National Laboratory

Abstract

Optimum mitigation of global climate change impacts requires minimising the cost of reductions in greenhouse gas emissions reductions. The two requirements for achieving cost minimisation are (1) identifying minimum cost projects, and (2) negotiating access and credit for minimum-cost projects. Energy efficiency and renewable energy investments in Eritrea, East Africa provide some of the most cost effective emissions reductions investments available. In Eritrea an emissions reduction credit or payment of $10 per ton ($1.0 = 1.1 Euro) of avoided carbon emissions can provide approximately 85% of the cost of a national rural household efficiency enhancement program. The most effective projects in the Eritrean case involve market transformation programs that can double or triple efficiency of household cooking. For such programs an approximate reduction of annual Carbon emissions of 0.3 tons per year per household are possible. CDM can also make substantial contributions to efficiency enhancements throughout the energy sector along with contributions to wind energy development. In this paper we provide descriptions and cost/benefit estimates of a spectrum of potential Eritrean CDM projects. We conclude with a discussion of equity issues and fair exchange prices for carbon emissions reduction programs.