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Sustainable Development

Our experience in the Kyoto project-based mechanisms

One necessary condition for an emission reduction project to be considered as a «Kyoto project» is that it must be additional when compared to a baseline scenario.

The additionality principle

Environmental additionality:
A project is considered additional if GHG emissions are reduced to a level that is below what would have occurred in a « business as usual » situation (baseline scenario). The volume of certified emission reductions is calculated as the difference between the actual project emissions and the baseline scenario.
Financial additionality:
The sale of certified emission reductions allows a project, that would have been difficult to implement without this additional revenue, to become economically viable.

CDM projects’ contributions to sustainable development

Improved environmental performance and controls
Transfer of technology
Reinforced local participation/employment
Technical training of on-site personnel.

Project-based mechanisms

The Kyoto Protocol put in place two categories of «project-based mechanisms» that can complement emission reduction policies and measures implemented at national level by the signatory States. Currently, these mechanisms only apply to the first compliance period of the protocol (2008-2012).

Clean Development Mechanism (CDM):
Between states with GHG emission targets, and those that have ratified the Kyoto Protocol but do not have targets (e.g., developing countries and large emerging countries). It enables countries with targets and their companies to obtain emission credits by investing in emission reduction projects in these host countries.
Joint Implementation (JI):
Between two countries with quantified targets. This mechanism enables a country or a company with targets to invest in emission reduction projects in another country under constraint.

National Programs

In addition to Kyoto-related projects, Veolia Environmental Services is also interested in new emission reduction mechanisms in different regions of the world: regional markets in the United States, namely Chicago Climate Exchange, domestic projects in Australia, in France…

Veolia Environmental Services developed and invested into two landfill-based Clean Development Mechanism Projects, which are registered by the CDM Executive Board (United Nations). The experience acquired by Veolia Environmental Services with these two initial registered projects is applied to the new projects under development (CDM in South America, in Asia, in Africa and in Middle East, JI in Eastern Europe).

CDM Project in Tremenbé, Brazil:

Veolia Environmental Services’ first carbon transaction Based on a landfill owned and operated by Veolia Environmental Services North of Sao Paolo, the project consists of the installation of a landfill gas collection system, a landfill gas-fueled leachate evaporator and landfill gas flaring equipment.

2001: Responsed to Dutch Government tender (CERUPT).

2003: Signed contract for sale of future emission reductions to the Netherlands: 490,000 tonnes of CO2eq over 10 years.

November 2005: Project registration by the CDM Executive Board.

Total estimated emission reductions for the project: 700,000 tonnes CO2eq over 10 years.

CDM project in Alexandria, Egypt

The CDM project covers the two landfills operated as part of global waste management contract. It consists of the upgrading of the landfill gas collection system and the commissioning of an evaporator on one of the two sites to treat the leachate.

December 2006: Project registration by the CDM Executive Board.

Signed Emission Reduction Purchase Agreement (ERPA) with the World Bank for the first tranche of CERs (30%).

Total estimated emission reductions for the project: 3.7 million tonnes CO2eq over 10 years.

For a number of years, Veolia Environmental Services has been active in the fight against climate change. To reinforce these efforts, the Group created a new Corporate Department, dedicated to the subject: the Greenhouse Gas Department.

Increasing awareness on this subject within Veolia Environmental Services and promoting its efforts to reduce GHG emissions.
Creating tools to help integrate carbon credits into the company’s waste management service offers.
Optimising the Group’s opportunities for emission reduction project development and, in this perspective, providing centralised support to business units for the development of such projects.

Veolia Environmental Services provides support from A to Z:
from project identification through to the marketing of credits


	Site visits ....................... Feasibility study (future work evaluation, required investment) ....................... Initial emission calculation ....................... Initial research on applicable regula- tionsin host countries, on legal aspects and other elements of interest (political context…).	Project preparation (i.e methodologies, baseline scenario/project emission calculations, justification of additionality, definition of monitoring plan…) ....................... Coordination of CD M/JI approval by an independent verifier ....................... Institutional rela- tions with the Parties for the approval of the projects, along with the CDM Executive Board for registration.	Follow monitoring of emissions according to the approved plan ....................... Coordination of annual verification ....................... Assistance with the issuing of CERs and management of their transfers ....................... Institutional follow- up ....................... Management of the CERs sale contract.	Definition of an optimal credit sale strategy ....................... Identification of counterparties ....................... Contract selection ....................... Risk analysis (concerning buyers, non-delivery risks, commitments…) ....................... Negotiations of sale contracts with buyers.

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