Uniform Reporting Format:
Activities Implemented Jointly Under the Pilot Phase
The uniform reporting format contained below is to be used in reporting on activities implemented jointly
under the pilot phase. It is noted that the reporting should be consistent with decision 5/CP.1 and 8/CP.2
(reproduced in annexes I and II to this reporting format). The SBSTA notes that the uniform reporting
format could possibly require revision in the light of experience gained and methodological work conducted
under the pilot phase.
List of
Projects
A. Description of project
A. 1) Title of project: Chile Natural Gas Project
A. 2) Participants/actors:
Please fill in one table for each participant/actor. For individuals fill in as from item A Function
within activity".
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Item
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Please fill in if applicable
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Name of organization(a):
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The Australian Gas Light Company
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Department:
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Acronym:
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AGL
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Function within activity:
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Project Finance & Implementation
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Street:
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111 Pacific Highway
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City:
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NORTH SYDNEY NSW 2060
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Country:
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Australia
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Telephone:
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61-2-9922 8704
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Fax:
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61-2-9922 8227
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E-mail:
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------------
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WWW-URL:
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Contact person (for this activity):
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------------
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Surname:
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Hattersley
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First name, middle name:
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Stephen
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Job title:
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General Manager, International Operations
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Direct tel:
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61-2-9922 8704
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Direct fax:
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61-2-9922 8227
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Direct E-mail:
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-------------
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Item
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Please fill in if applicable
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Name of organization(a):
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International Greenhouse Partnerships Office
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Department:
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Department of Industry, Science and Resources
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Acronym:
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IGP Office/ISR
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Function within activity:
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Government AIJ/CDM administration
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Street:
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GPO Box 9839
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Post code:
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2601
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City:
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Canberra
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Country:
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Australia
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Telephone:
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61-2-6272 4791
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Fax:
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61-2-6271 6599
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E-mail:
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igp.office@isr.gov.au
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WWW-URL:
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http://www.dpie.gov.au/resources.energy/environment/greenhouse/igp/index.html
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Contact person (for this activity):
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-------------------------------
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Surname:
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Stevens
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First name, middle name:
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Mark R.
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Job title:
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Assistant Manager, International Greenhouse Partnerships Office
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Direct tel:
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61-2-6272 4791
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Direct fax:
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61-2-6271 6599
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Direct E-mail:
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mark.stevens@isr.gov.au
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Item
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Please fill in if applicable
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Name of organization(a):
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Gas Licuado Lipigas SA
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Department:
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Acronym:
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Function within activity:
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Project Implementation
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Street:
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Avenida Libertad 601
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Post code:
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City:
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Vina del Mar
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Country:
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Chile
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Telephone:
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56-32- 97 9138
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Fax:
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-----------------
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E-mail:
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WWW-URL:
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Contact person (for this activity):
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-----------------
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Surname:
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Fernandez Astudillo
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First name, middle name:
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Mario
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Job title:
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General Manager, Gas Valpo
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Direct tel:
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56-32-97 9138
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Direct fax:
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56-32-21 3092
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Direct E-mail:
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Item
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Please fill in if applicable
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Name of organization(a):
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Ministerio de Relaciones Exteriores
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Department:
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Acronym:
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Function within activity:
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Government AIJ administration
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Street:
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Post code:
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City:
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SANTIAGO
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Country:
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Chile
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Telephone:
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562-698 0301
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Fax:
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562-672 5071
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E-mail:
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WWW-URL:
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Contact person (for this activity):
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--------------------------------------------------------------
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Surname:
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Stein Brygin
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First name, middle name:
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Rolando
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Job title:
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Embajador, Director de Medio Ambiente
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Direct tel:
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562-698 0301
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Direct fax:
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562-672 5071
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Direct E-mail:
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dima@minrel.cl
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Item
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Please fill in if applicable
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Name of organization(a):
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Comision Nacional del Medio Ambiente
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Department:
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Departamento Descontaminacion Planes Y Normas
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Acronym:
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CONAMA
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Function within activity:
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Government AIJ administration
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Street:
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Obispo Donoso 6, Providencia, Casilla 265, Correo 55
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Post code:
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City:
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SANTIAGO
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Country:
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Chile
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Telephone:
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Fax:
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E-mail:
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--------------------
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WWW-URL:
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Contact person (for this activity):
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--------------------
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Surname:
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Searle
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First name, middle name:
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Juan Pedro
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Job title:
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Climate Change Coordinator
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Direct tel:
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562-240 5600
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Direct fax:
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562-244 1262
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Direct E-mail:
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a) Organization includes: institutions, ministries, companies, non-governmental organizations, etc.
involved in the activity, i.e. research institutes associated with the project, auditors, government agency
closely following the activity.
A. 3) Activity:
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Item
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Please fill in if applicable
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General description:
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The project includes the rehabilitation of existing gas distribution systems in Chile, using nylon
pipe technology developed by AGL and already used extensively in Sydney, Australia. The nylon pipe
will reduce leakage of greenhouse gas from existing gas pipelines. In addition, greenhouse gas
emissions and other associated pollutants arising from the use of fuel oil in industrial facilities
will be reduced by converting these facilities to natural gas and installing cogeneration
facilities.
The project will build a close working relationship between the government agencies in Chile and
Australia which are responsible for the establishment of AIJ projects. At an operational level, the
project will strengthen commercial arrangements between AGL and Lipigas, including the transfer of
nylon pipe technology developed by AGL.
To provide transparency of emission reductions, the baselines for each element of the project will
be independently audited. Auditing will be undertaken by an organisation based in Chile, thereby
providing further opportunities for capacity building and the transfer of know-how.
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Type of project:a)
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Fugitive gas capture, fuel switching, energy efficiency.
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Location (exact, e.g. city, region, state):
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Not available at this time.
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Activity starting date:
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August 1999
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Expected activity ending date:
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December 2003
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Stage of activity:b)
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In advanced planning stage
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Lifetime of activity if different from ending date:c)
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The various elements of the project are designed to remain in operation well beyond the AIJ pilot
phase.
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Technical data:d)
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a) For example, using Intergovernmental Panel on Climate Change (IPCC) classification: energy efficiency;
renewable energy; fuel switching; forest preservation, restoration or reforestation; afforestation;
fugitive gas capture; industrial processes; solvents; agriculture; waste disposal or bunker fuels.
b) Circle the appropriate option.
c) Methodological work will be required to define lifetime of activities.
d) Methodological work will be required to determine for each type of activity what the minimum data
requirements are.
A. 4) Cost (to the extent possible):
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Item
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Total Cost
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Cost of the project in US$:
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$76 mill (approx)
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AIJ component in US$:
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$76 mill. (approx)
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US$ per avoided ton of CO2 equivalent:
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Not available
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Describe briefly how costs are determined:
The costs are associated with all elements of the project. The figures in the table are based on a
conversion rate $1Aus to $0.63 US.
When all proposed elements of the project are implemented, it is estimated that annual savings in
CO2 will be in the region of 1.3 million tonnes. These estimates will be refined for each
element of the project, taking into consideration actual emissions at industrial sites immediately prior to
implementation of the AIJ activity. The lifetime of the project will also be determined for each project
element, taking into consideration the economic life of the equipment to be refurbished. As the economic
life of equipment has yet to be determined, it is not possible to estimate the avoided costs of the project
at this time.
Further information on emission savings is contained in Section E of this paper.
A. 5) Mutually agreed assessment procedures:
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Describe the procedures, including name of organizations involved):
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The project contains two main aspects; the rehabilitation of existing city gas distribution systems
to reduce fugitive emissions and the conversion of industrial customers from fuel oil and coal to
natural gas. The gas distribution aspect of the project will be monitored to compare discrepancies
in manufactured gas and gas sales before and after refurbishment of the distribution systems. The
conversion aspects will be monitored to compare energy consumption before and after conversion of
each customer.
Further information on the determination of greenhouse gas emissions is contained in Section E of
this report.
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a) Please ensure that detailed contact information for all organizations mentioned is reported under
section A.2 above.
B. Governmental acceptance, approval or endorsement
Bearing in mind that all activities implemented jointly under this pilot phase require prior acceptance,
approval or endorsement by the Governments of the Parties participating in these activities, which shall be
shown as follows:
(a) In the case of joint reporting, the report is submitted by the designated national authority of one
participating Party with the concurrence of all other participating Parties as evidenced by attached
letters issued by the relevant national authorities;
(b) In the case of separate reporting, the reports are submitted separately by the designated national
authority of each and every participating Party. Information will only be compiled once reports have been
received from all participating Parties.
B. 1) For the activity:
The joint reporting on this project has been endorsed by the project participants; namely the Ministerio
de Relaciones Exteriores, Comision Nacional del Medio Ambiente, the International Greenhouse Partnerships
Office, the Australian Gas Light Company and Gas Licuado Lipigas SA.
B. 2) This report is a joint report:
The presentation of this report and its contents are considered to be submitted as a joint report from
the Ministerio de Relaciones Exteriores, Comision Nacional del Medio Ambiente, the International
Greenhouse Partnerships Office, the Australian Gas Light Company and Gas Licuado Lipigas SA.
B. 3) General short comment by the government(s) if applicable:
C. Compatibility with and supportiveness of national economic development and socioSeconomic and
environment priorities and strategies
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Describe (to the extent possible) how the activity is compatible with and supportive of national
economic development and socioSeconomic and environment priorities and strategies
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This project has a variety of non-greenhouse benefits.
The rehabilitation, co-generation and conversion technologies to be utilised in this project have
been developed and improved by AGL over the past 20 years and are leading, world standard
technologies. The lengthy nature of the program and the establishment of nylon pipe making
facilities in the host country means that there is a complete technology transfer to the host
country.
The substitution of natural gas for other less energy efficient fuels such as coal and oil not only
reduces greenhouse gas emissions but also other pollutants such as SOxx because natural
gas has lower amounts of sulphur and other impurities than coal and oil.
The project will also deliver economic benefits for Chile and its industrial enterprises in the
form of reduced energy costs. However, AGL and Lipigas will bear significant costs in the short
term. The IGP Office is reducing the cost burden by bearing some of these costs; notably costs
associated with baseline determination and monitoring and verification of emission reductions.
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D. Benefits derived from the activities implemented jointly project
Whenever possible, quantitative information should be provided. Failing that, a qualitative description
should be given. If quantitative information becomes available, it could be submitted using the update(s).
(If the amount of quantitative information is too large, the source could be indicated.)
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Item
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Please fill in
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Describe environmental benefits in detail.
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As outlined above, the project will lead to a major reduction in greenhouse gas emissions arising
from the reduction in fugitive emissions from gas distribution systems, and from the conversion of
industrial sites from fuel oil and coal to natural gas also with consequent improvements in energy
efficiency. In addition, the project will lead to reduction in pollutants (SOx, particulates)
arising from the use of natural gas in place of fuel oil and coal.
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Do quantitative data exist for evaluation of environmental benefits?
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Yes
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Describe social/cultural benefits in detail:
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As outlined in Section C, the project will deliver a wide variety of social benefits.
The project will increase employment, throughout the local manufacture of nylon pipe technology. In
addition, by reducing the energy costs of Chile’s energy intensive industry, the project will
improve the international competitiveness of these industries and enhance employment in these
industries. The project will also have a positive impact on the balance of payments of Chile by
reducing the domestic demand for petroleum products (fuel oil).
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Do quantitative data exist for evaluation of social benefits?
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No
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Describe economic benefits in detail:
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See above.
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Do quantitative data exist for evaluation of economic benefits?
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Information gathered from this project will enable an assessment to be made of the economic
benefits of the project
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E. Calculation of the contribution of activities implemented jointly projects that bring about real,
measurable and long-term environmental benefits related to the mitigation of climate change that would not
have occurred in the absence of such activities
E. 1) Estimated emissions without the activity (project baseline):
Description of the baseline or reference scenario, including methodologies applied:
As noted above, it is estimated that the project will, once fully implemented, lead to a reduction in
greenhouse gas emissions of some 1.3 million tonnes per annum.
In relation to the gas distribution systems, Lipigas has determined, from metering of city gas manufactured
compared with gas sales, that Unaccounted for Gas (UAG) is about 12% of gas manufactured. UAG is made up of
gas losses from fugitive emissions and metering inaccuracies. The main component of the UAG is likely to
arise from fugitive emissions. However, this will be confirmed by comparing UAG levels before and after
refurbishment. Metering inaccuracies are expected to remain constant before and after refurbishment
although efforts will be made to refine the estimates of metering inaccuracies. The methods developed to
verify the accuracy of current emissions will be used to verify emissions after refurbishment. Procedures
to monitor the various elements of UAG are well established in the international gas industry.
In relation to natural gas conversion elements of the project, the baselines for each element will be
determined from the consumption of fuel oil and or coal by the industrial plant prior to its conversion to
natural gas. Current fuel consumption will be determined using records of the company or its fuel supplier
and savings will be calculated by comparing current fuel use with metered use of natural gas after
conversion. In determining emission reductions, allowance will be made for variations in production volume
by determining emission reductions on an equivalent unit basis (eg. kg of steam, kWh of electricity, tonnes
of product).
The specific details of baseline development (including independent auditing) and project monitoring will
be subject to the agreement of the project participants, including the designated national authorities for
AIJ in Chile and Australia.
E. 2) Estimated emissions with the activity:
Description of the scenario, including methodologies applied:
See Section E1
E.2.1) Summary table: Projected emission reduction s:
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GHG
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Over Project Year
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A) Project baseline scenario
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CO2
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B) Project activity scenarioa)
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CO2
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C) Effect ( B-A )
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CO2
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D) Cumulative effect
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CO2
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a) Includes indirect GHG leakages.
F. Bearing in mind that the financing of activities implemented jointly shall be additional to financial
obligations of Parties included in Annex II to the Convention within the framework of the financial
mechanism as well as to current official development assistance flows , please indicate
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Source of project funding
(For each source one line)
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Amount
(US dollars)
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AGL/Lipigas
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$78 million (approx.)
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IGPO
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$220,000 (approx)
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G. Contribution to capacity building, transfer of environmentally sound technologies and know-how to
other Parties, particularly developing country Parties, to enable them to implement the provisions of the
Convention. In this process, the developed country Parties shall support the development and enhancement of
endogenous capacities and technologies of developing country Parties
As noted under Sections C and D of this report, the project will contribute significantly to capacity
building and in the transfer of environmentally sound technologies and know-how to the developing country
Parties involved in the project.
H. Additional comments, if any, including any practical experience gained or technical difficulties,
effects, impacts or other obstacles encountered
Annex I
EXTRACT FROM:
FCCC/CP/1995/7/Add.1:
REPORT OF THE CONFERENCE OF THE PARTIES
ON ITS FIRST SESSION, HELD AT BERLIN FROM 28 MARCH TO 7 APRIL 1995
Addendum
PART TWO: ACTION TAKEN BY THE CONFERENCE OF THE PARTIES
AT ITS FIRST SESSION
Decision 5/CP.1
Activities implemented jointly under the pilot phase
The Conference of the Parties,
Recalling that, in accordance with Article 4.2(d) of the United Nations Framework Convention on Climate
Change, the Conference is required to take decisions regarding criteria for joint implementation as
indicated in Article 4.2(a),
Noting that the largest share of historical and current global emissions of greenhouse gases has originated
in developed countries, that per capita emissions in developing countries are still relatively low and that
the share of global emissions originating in developing countries will grow to meet their social and
development needs,
Acknowledging that the global nature of climate change calls for the widest possible co-operation by all
countries and their participation in an effective and appropriate international response, in accordance
with their common but differentiated responsibilities and respective capabilities and their social and
economic conditions,
Recognizing that,
(a) According to the provisions of the Convention, the commitments under
Article 4.2(a) to adopt national policies and to take corresponding measures on the mitigation of climate
change apply only to Parties included in Annex I to the Convention (Annex I Parties), and that Parties not
included in Annex I to the Convention (non-Annex I Parties) have no such commitments,
(b) Activities implemented jointly between Annex I Parties and non-Annex I Parties will not be seen as
fulfilment of current commitments of Annex I Parties under Article 4.2(b) of the Convention; but they could
contribute to the achievement of the objective of the Convention and to the fulfilment of commitments of
Annex II Parties under Article 4.5 of the Convention,
(c) Activities implemented jointly under the Convention are supplemental, and should only be treated as a
subsidiary means of achieving the objective of the Convention,
(d) Activities implemented jointly in no way modify the commitments of each Party under the Convention,
1. Decides:
(a) To establish a pilot phase for activities implemented jointly among Annex I Parties and, on a voluntary
basis, with non-Annex I Parties that so request;
(b) That activities implemented jointly should be compatible with and supportive
of national environment and development priorities and strategies, contribute to
cost-effectiveness in achieving global benefits and could be conducted in a comprehensive manner covering
all relevant sources, sinks and reservoirs of greenhouse gases;
(c) That all activities implemented jointly under this pilot phase require prior acceptance, approval or
endorsement by the Governments of the Parties participating in these activities;
(d) That activities implemented jointly sh
