31 May 2007 JI Monitoring of WWF Russia (www.wwf.ru [email protected])

Russian JI projects submitted to UNFCCC JISC web-site

Since the launch of the Track II JI verification procedure on 26 October, 2006, 54 JI projects were made available at JISC web-site for review and consultations public consultations, including 25 Russian projects. Russian share is about 50% by number of projects. It is state-of-the-art at the moment of Government’s positive decision-making on JI (Decision No 322 of 28 May 2007) and before start of work of domestic JI system. It confirms leading role of the country in the JI process as a whole. Total volume of Russian Kyoto units (ERU) to be transferred is about 66 Mt CO2-eq. (including 25 Mt of one large methane leakage project, 11 of 1-6 Mt projects and 13 relatively small projects) from 19 Russian Regions.

There are special ecological or additionality concerns (risks) on 9 projects, while 3 of them could be considered as large. Concerns are relevant to: large JI on large hydro Dam (new turbines on an object, which is not completely “green”); use of outdate coal technologies (use of old instead of very old); waste incineration (that is out of local public support); avoiding of gas flaring (that may become a baseline); renovation of district heating in relatively rich area (financial additionality is doubtful); landfill gas utilization with “just flaring” of methane (mainly without use of gas as a fuel), use of sawdust biofuel without information on origin of timber and FSC information. All these project proposals will be under additional monitoring of domestic and international NGOs, including WWF and Climate Action Network as a whole.

# in Project Title Sectoral Region Project company Counterparty Accredited ERU Comments (doubts and concerns are JISC scope(s), # in Independent volume underlined) data JICS list Entity (2008- base 2012)

003 Methane emissions 10: Fugitive Bryansk Rosgazifikatsiya AddGlobe, LLC Det Norske 4,485,243 Low pressure natural gas distribution for local avoidance in Bryansk emissions from Oblast (U.S.A.) Veritas population and small business. Projects use gas distribution fuels (natural gas Centergasservice- Certification modern sealing materials instead of outdate network leaks) opt usual for Russia. Projects solve the problem Bryanskoblgas of gas leaks, improve safety and have good 004 Methane emissions 10: Fugitive Kostroma Rosgazifikatsiya AddGlobe, LLC Det Norske 524,095 local social effect. They positively facilitate avoidance in emissions from Oblast (U.S.A.) Veritas public opinion on Kyoto protocol. Kostroma gas fuels (natural gas Centergasservice- Certification distribution network leaks) opt Kostromaoblgas 005 Waste biomass 1: Energy Archangelsk Archangelsk pulp CAMCO Det Norske 1 021,452 Large scale woody waste use instead of fossil utilization at industries Oblast and paper mill International Veritas fuel. It demonstrates real possibility of fuel Archangelsk pulp and (renewable Certification switch; it has full support of local paper mill sources - biofuel) administration and people. The Plant is following progressive ecological policy relevant to FSC 012 Improvement of 1: Energy Irkutsk Irkutskenergo Climate Change TÜV-SÜD 4 398,917 Replacement of old hydro-power units by efficiency in power industries Oblast Management modern. It is on large dam on plain Siberian Alfa-Carbon generation by Bratsk (renewable (Sweden) River Angara (doubts are because it is subject hydropower plant sources – large of Dam Convention) but without expansion of hydro) reservoir or rise of it’s level. Additional hydro power allow to reduce local coal use, while without significant influence on employment 013 GHG emission 1: Energy Irkutsk Irkutskenergo Climate Change TÜV-SÜD 288,500 Construction of heat pipeline for district reduction through industries (non- Oblast Management heating system with shutdown of smaller energy efficiency renewable Alfa-Carbon (Sweden) boilers using coal. Heat will be delivered from improvement in the sources) more efficient coal plant, but without use of communal heating new coal technologies. Doubts are that the system of Zima town project is coal by coal project without implementation of new technologies (turbines are from 1970-80-ies). There is no significant influence on employment. 014 Methane emissions 10: Fugitive Kursk Rosgazifikatsiya Russian Carbon Det Norske 1,200,000 Projects deal with low and middle pressure avoidance in Kursk emissions from Oblast Fund (Denmark) Veritas natural gas distribution for local population gas distribution fuels (natural gas Centergasservice- Certification and small and middle-size business. Projects network leaks) opt use modern sealing materials instead of Kurskoblgas outdate usual for Russia. Projects solve the 015 Methane emissions 10: Fugitive Tula Oblast Rosgazifikatsiya Russian Carbon Det Norske 3,955,000 problem of gas leaks, improve safety and avoidance in Tula gas emissions from Fund (Denmark) Veritas have good local social effect. They positively Centergasservice- distribution network fuels (natural gas Certification facilitate public opinion on Kyoto protocol. leaks) opt Tulaoblgas 017 Methane emissions 10: Fugitive Stavropol Rosgazifikatsiya AddGlobe, LLC Det Norske 25,000,000 avoidance in emissions from Oblast (U.S.A.) Veritas Stavropol gas fuels (natural gas Centergasservice- Certification distribution network leaks) opt Stavropolkraygas 019 Methane emissions 10: Fugitive Belgorod Rosgazifikatsiya Russian Carbon Det Norske 4,871,000 avoidance in emissions from Oblast Fund (Denmark) Veritas Belgorod gas fuels (natural gas Centergasservice- Certification distribution network. leaks) opt Belgorodoblgas 020 Methane emissions 10: Fugitive Orel Oblast Rosgazifikatsiya Russian Carbon Det Norske 1,820,000 avoidance in Orel gas emissions from Fund (Denmark) Veritas distribution network fuels (natural gas Centergasservice- Certification leaks) opt Oreloblgas 021 Waste coke oven gas 1: Energy Kemerovo Khimprom Baltic Sea Det Norske 354,055 Utilization of waste coke-oven gas fro stem utilization at industries (waste Oblast Region Testing Veritas production. Currently coke-oven gas is flared Khimprom company, coke-oven gas) Ground Facility Certification and fired on open air. Economy of natural gas Kemerovo (TGF) and coal used for steam production now. Doubts are that Russian government could decide to set up tax for such flaring and baseline should be principally changed. 022 Fuel switch of boiler- 1: Energy Leningrad BaltKotloMash Danish Det Norske 523,400 Replacement of several old mazut, coal and houses in the South- industries (non- Oblast FORCE Environmental Veritas gas boilers by new high efficient natural gas Western part of the renewable Technology Protection Certification electricity and heat unit. Significant air Leningrad oblast sources) Rusland Agency pollution reduction. There is no significant 4: Manufacturing influence on employment. Non-feasibility of industries replacement by renewable energy in near future in Russian conditions is considered in detail. 026 Switch of Khabarovsk 1: Energy Khabarovsk Khabarovskenergo J-Power (Japan) TÜV-SÜD 6,101,500 Replacement of old coal units by modern CHP-1 plant from industries (non- Kray natural gas units. Replacement by renewable coal to natural gas renewable Energy Carbon Cargill energy in near future is not considered, but it sources) Fund (RAO UES International seems as non-feasible in Russian conditions. 4: Manufacturing Rossii) (Switzerland) Influence on local social problems and industries sustainable development is not considered, while it could be estimated as positive. Significant air pollution reduction. There is no significant influence on employment. 027 Murmansk district 1: Energy Murmansk TEKOS Swedish Energy TÜV-SÜD 297,793 Reduction of heavy energy and hot water heating rehabilitation industries (non- Oblast Agency losses in district heating system in Arctic project renewable region. Significant energy saving by new sources) Baltic Sea technologies. Economy of heavy oil (mazut). 3: Energy Region Testing Air pollution reduction. More reliable heating demand Ground Facility facilitates solution of social problems. (TGF) Renewable options are not feasible in near future. 030 Energy conservation 1: Energy Moscow Khimki district The Belgium Det Norske 323,301 Replacement of old and non-reliable district at Khimki district industries (non- oblast heating company Government Veritas heating system by modern system. Old and heating company renewable Certification new are both natural gas use. The district is sources) actually fast growing suburbs of very rich 2: Energy Moscow City, therefore potential variety of distribution sources of finance cause some doubts on additionality. 033 Combined Vodokanal 13: Waste St. Vodokanal of St EBRD TÜV-SÜD 681,716 Incineration of wastewater sludge in large city wastewater sludge handling and Petersburg Petersburg with use of modern technologies. Public incinerator projects disposal City. Baltic Sea concern relevant to waste incineration in Region Testing general, including potential non-proper Ground Facility management and operation of incineration (TGF) plant in Russia. Location in rich city cause some doubts on non-availability of local funding for waste management. Environment impacts and benefits are considered in detail. 036 Coal-to-Waste Wood 1: Energy Archangelsk Onega Energy GFA Consulting TÜV-SÜD 788,054 Replacement of coal (delivered from other Energy Switch in the industries Oblast Group GmbH regions) by wood waste of large local saw Town of Onega (renewable (Germany) mills. Forest cutting and management is sources) expected to be certified by FSC. Additional 3: Energy measures to reduce energy demand. demand Significant air pollution reduction. 13: Waste handling and disposal 037 Zheshart biofuel 1: Energy Komi Zheshart Plywood Nordic TÜV-SÜD 77,151 Replacement of natural gas by local sawdust. conversion project industries Republic Factory Environment Transfer of modern technologies absent in (renewable Finance region. Additionally (about 20%) avoiding of sources) Corporation methane emission from landfill of sawdust. 13: Waste NEFCO Testing There is no information on origin of timber and handling and Ground Facility relevance to FSC standards, why 80% of disposal (TGF) plywood products are exported and could be under a control of origin 038 Implementation of 4: Manufacturing Orenburg Ural Steel CI CAMCO Det Norske 3,164,729 Upgrade of two electric furnaces; Resource-Saving industries Oblast Limited Veritas modernization of plant infrastructure and Technologies at “Ural Certification power supply system; phase out of outdate Steel”, AS (DNV technologies. Certification AS) 039 Wood waste-to- 1: Energy Archangelsk Sawmill-25, CAMCO Det Norske 210,988 Construction of two new wood waste boilers energy project at industries Oblast Arkhangelsk, International” Veritas instead of oil coal and heavy oil boilers. Sawmill-25 (renewable Certification “Sawmill 25” is a member of Association of (Archangelsk) sources) AS (DNV Responsible Timber Companies of Russia Certification with close cooperation with WWF (FSC, etc.). AS) 041 Flare gas reduction 10: Fugitive Khanty- Yukon Gas OJSC Danish Det Norske 433,072 Utilization of oil associated gas currently project in Kondisky emissions from Mansyisk Environmental Veritas flared. Gas will be used in the district instead District fuels (oil and gas) Autono- Protection Certification of coal. Detail calculation of gas use and mous Okrug Agency (DEPA) AS (DNV leakages. There may be doubts on baseline Certification because government could increase flaring AS) tax in many times. 042 Landfill gas recovery 13: Waste Moscow State Enterprise of Austria SGS United 2,143,630 Utilization of methane on large landfill. Some in Moscow – landfill handling and Oblast the city of Moscow ECOCOM Kingdom Ltd. part of gas will be used for internal use of site DMITROVSKIJ disposal Ekotechprom Climate (SGS) landfill (as a fuel), but main part will be flared. Protection There are no possibilities for access to 043 Landfill Gas recovery 13: Waste Moscow State Enterprise of Austria SGS United 1,855,139 electricity grid. There are doubts that “just in Moscow – landfill handling and Oblast the city of Moscow ECOCOM Kingdom Ltd. flaring” will be banned by Russian site CHMET’EVO disposal Ekotechprom Climate (SGS) government or fall under large tax potentially Protection introduced by the government. Flaring is not the best available technology from ecological point of view. 052 Associated petroleum 10: Fugitive Khanty- OOO IBRD (World Det Norske 812,445 Utilization of oil associated gas currently gas (APG) flaring emissions from Mansyisk Regionenergogas Bank) as Veritas flared. Gas will be used for electricity reduction project at fuels (oil and gas) Autono- Trustee of Certification production. Detail calculation of gas use. the North-Danilovsk mous Okrug Netherlands AS (DNV There may be doubts on baseline because oil field, Western European Certification government could increase Payment of Siberia, Russia Carbon Facility AS) Environmental Fee (flaring gas) in many times. 054 Baratayevka Landfill 13: Waste Ulyanovsk JSC Green Project IBRD (World Det Norske 581,880 Utilization of methane on large landfill. Gas Gas Flaring and handling and Oblast Management Bank) as Veritas will be flared. There are doubts that “just Treatment Project disposal Trustee of Certification flaring” will be banned by Russian Netherlands AS (DNV government or fall under large tax potentially European Certification introduced by the government. Flaring is not Carbon Facility AS) the best available technology from ecological point of view. 25 TOTAL 19 Regions 65913,06 9 projects have some doubts