Nationally Appropriate Mitigation Actions for low-carbon end-use sectors in Azerbaijan
Azerbaijan is a fast developing, oil and gas oriented economy. According to 2nd National Communication to UNFCCC, Azerbaijan’s annual GHG emissions were 50.6 mln tCO2e/year in 2005 with the energy sector (i.e. combustion of oil&gas) accounting for the largest share of domestic emissions, more than 50% or 31.3 mln tCO2. National annual consumption of oil and gas is now at about 5.2 mln toe, with the residential and transport sectors together accounting for over 90% of end-use. Azerbaijan’s energy intensity (0.71toe/US$) is twice as high as the world’s average (0.3 toe/US$) and nearly 4 times above the level of energy intensity in OECD countries (0.18 toe/US$). There exists, therefore, a significant potential to increase efficiency of oil&gas use and reduce the country’s GHG emissions.
With this aim, UNDP-Azerbaijan has submitted to GEF-5 the proposal on Nationally Appropriate Mitigation Actions (NAMAs) for low-carbon end-use sectors in Azerbaijan (oil and gas sectors), and got its approval and initial funding in the amount of $100,000. By using this funding, UNDP-Azerbaijan in partnership with State Oil Company of Azerbaijan and the Ministry of Ecology and Natural Resources has started preparation of the Project Document for the Project with the total amount of 3,670,000.
While the Third National Communication to UNFCCC will focus on national, sector level inventories, this project will prepare detailed sub-sectoral GHG inventories, (e.g. electricity generation, heat generation, buildings, urban transport), reference baseline scenario for identified sub-sectors, and alternative/low-carbon scenarios with accelerated implementation of energy efficiency and renewable energy measures in key sub-sectors.
- Preparation of energy/GHG emission inventories, identification of baselines and reduction targets;
- Development of mitigation actions for oil&gas end-use sectors, first of all in eletcricity generation, buildings, and transport;
- Implementation of NAMAs in the oil&gas end-use sectors;
- Preparation and implementation of Measurement, Reporting and Verification (MRV) system and national registry for mitigation actions in the energy generation and end-use sectors.
- A team of international and local experts have been formed to work on the project. First fact-finding mission of international experts to Azerbaijan has been organized.
- Initial data related to the end-use sectors in Azerbaijan - eletcricity generation, buildings, and transport, -has been collected.
- Initial ideas for potential NAMAs were analyzed and most feasible NAMAs with the biggest potential for reducing emissions were selected.
- The work on the Project Document has started
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