Valuation of CO2 Emissions Reduction from Renewable Energy and Energy Efficiency Projects in Africa: A Case Study of Burkina Faso
Seutche Nono, Rice Verouska
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Africa contributes to about 2% of global energy related carbon emissions but remains the most vulnerable region to the impacts of the global rising temperatures caused by them. 52 African countries including Burkina Faso are parties to the Kyoto Protocol that promotes sustainable development by contributing to the development of low carbon projects in less developed countries through the clean development mechanism (CDM). Africa is host to only about 3% of the registered CDM projects as at 2020. Like many other African countries, Burkina Faso is host to many renewable energy (RE) and energy efficiency (EE) projects that are not registered to the CDM. The main aim of this study was to determine these projects’ impact on the level of GHG emissions in the country, and to determine their CDM potential by quantifying their greenhouse gas (GHG) emission reductions using appropriate CDM methods. The CDM methods applied were AMS-II.C., AMS-II.L., AMS-I.A., AMS-I.F., AMS-I.D. and AMS-III.AR. according to the projects. 34 projects were identified, but only the 28 for which data was available were considered. The results revealed that the total annual energy saved by the EE projects is 68709.424MWh, while the total energy displaced by the RE projects is 9430.446MWh, accounting respectively for 36871.701 tCO2e and 11285.967 tCO2e emissions reduced annually, giving a total of 48157.668tCO2e emissions reduced annually by all these projects. This represents a shift in emissions from 76300.098 tCO2e in the baseline scenario to 28142.430 tCO2e in the project scenario, accounting for about 63.12% emission reduction. The total amount of emissions reduced could generate about 48157.668 Certified Emission Reductions (CERs) per year and 481576.68 CERs in 10 years, assuming a fixed 10 years crediting period for all the projects. Considering a carbon price of $10/tCO2e, these CERs will generate a total revenue of about $481576.68 annually and $4815766.8 in the 10 years crediting period, and consequently increasing the sector’s attractiveness to investors. The RE and EE projects implemented in Burkina Faso actually contribute to the reduction of GHG emissions and represent a huge potential for the CDM, ready to be harnessed. Like Burkina Faso, many other African countries are hosts to similar projects, at a bigger scale in some cases. It is therefore essential to register these projects to the CDM in order for the individual countries and the region in general to benefit from the sustainable development it offers, added to its contribution to the achievement of their Intended Nationally Determined Contributions (INDCs). This will also increase the representation of African countries in the CDM, where they are still very poorly represented, yet endowed with enormous CDM potential. Meanwhile, more programs like the CDM Assist program should be put in place in Burkina Faso and other African countries for awareness enhancement and capacity building with hands on experience in real CDM projects. This is to help the country/region to attract more CDM projects, to develop and manage them. This study put more focused on Burkina Faso, similar studies done in other African countries and on more scopes covered by the CDM are openings for future research.