Gas Flaring in Developing Countries – Need for Kyoto Mechanisms or Sectoral Crediting Mechanisms

Gas flaring is a phenomenon that is wasteful in terms of valuable resources as well as a contributor to global GHG emissions, and occurs mostly in developing countries. It can only be mitigated through long-term and strategic investments, involving a myriad of stakeholders. A crediting mechanism could be seen as a starting point to create incentives for both private and public parties to build infrastructure enabling the utilisation of the associated gas. In this paper, the Clean Development Mechanism is examined to determine its adequacy in this regard. As the CDM provides limited means due to its single-project nature, this paper further explores Sectoral Crediting Mechanisms, which reflect a more sustainable approach.

Gas flaring is globally known to be a problem causing both detrimental effects to the environment, as well as a significant waste of natural resources, thus representing a “lose-lose” situation. Non-Annex I countries are responsible for about 85 % of the global emissions caused by flaring, and yet it is in those countries that the associated gas could for example be used to provide necessary electricity. International efforts have been made to limit gas flaring activities, and the market-based Clean Development Mechanism (CDM) constitutes the outset of this paper. CDM in its current form however, is not an optimal international framework to provide incentives for the reduction of gas flaring in developing countries. As gas flaring starts in the upstream sector, but can only be mitigated through the involvement of the downstream sector as well, a need for crossboundary cooperation presents itself. Moreover, to be able to effectively cope with the issue of gas flaring, efforts need to take place on a larger scale and need to move away from the single-project based CDM. Mitigation actions taking place at the sectoral level are more likely to achieve the potential of turning the “lose-lose” situation into a “win-win” situation. Many of the alternative scenarios for gas flaring call for a relatively large development of infrastructure, a process that should start top-down but should incorporate bottom-up elements as well. This paper will explore to which extent the Sectoral Crediting Mechanisms could be applicable in the context of gas flaring, and which advantages they would entail in comparison with the original Clean Development Mechanism. After the general review of facts and figures with regards to gas flaring, as well as possible technical solutions thereto, the applicability of the Clean Development Mechanism and the inherent flaws of this mechanism in its current form will be explored. The final section will then pick up on the gaps in the CDM system, and discuss possible manners in which gas flaring can be mitigated within a Sectoral Crediting Mechanism.

Copyright:	© Lexxion Verlagsgesellschaft mbH
Quelle:	Issue 1/2010 (April 2010)
Seiten:	9
Preis:	€ 41,65
Autor:	Cathy Suykens

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