Incorporating GHG Emissions Into Environmental Impact Assessment Of Coal-Fired Power PlantsEmmanuel BouletIAIA Symposium on Climate ChangeNovember 15,2010GHG emissions are a major environmental challenge for coal-fired power plants• Quantity of CO2 released per unit of energy produced by its combustion is the highest of all fossil fuels• Coal plants are one of the most significant contributors to accumulation of GHG in the atmosphere• GHG emissions cannot be significantly abated with current commercially available coal plant technologies• Carbon lock-in riskBUT GHG emissions are generally not adequately addressed in traditional EIAs• National legal or regulatory framework generally not developed, particularly in developing countries• Only indirect links to physical impacts• Quantification of GHG emissions in absolute value does not say much in terms of impacts• Example: a 700-MW coal fired power plant emitting 4.9 MtCO2 per year – is it a lot?• 0.01 % of total GHG emissions in the world in 2004• equivalent of annual emissions of 500,000 inhabitants of Latin America and CaribbeanIDB’s approach to address GHG emissions from coal plant in the EIA process• Principles• Priority to renewable energy, and, if a thermal solution is required, to less carbon intensive fossil fuels • Use the best appropriate available technology to allow for high efficiency and lower GHG emissions intensity.• Two stage process• Screening stage: Minimum Performance Criteria- Minimum Thermal Efficiency (%)- Maximum Carbon Intensity (tCO2/MWh)• EIA stage: comprehensive alternatives analysis including GHG emissions to justify the proposed fuel and technologyScreening: IDB’s minimum performance criteria for GHG emissions from coal plantsEIA – Analysis of Alternatives• Multi-criteria analysis, including:(i) source of fuel and whether the coal is indigenous or needs to be imported;(ii) capital and operational costs;(iii) overall efficiency of the technology; (iv) level of GHG emissions per MWh;(v) size of the grid in relation to the selection of units size• Could also include a costs-benefits analysis with climate change externalities (e.g. shadow-carbon pricing)• Documents and demonstrates the use of best appropriate available technology to maximize efficiency and minimize carbon intensityNext steps• Extend the approach to other GHG intensive industries-Cement Manufacturing Climate Change Guidelines finalized- Climate change Guidelines on other fossil fuel power plants currently under preparation• Get further practical experience in incorporating GHG emissions in the EIA’s analysis of alternatives and refine the criteria accordingly• Explore ways to take into account climate change externalities into costs – benefits analysis• Explore ways to incorporate carbon offsets in the analysis• Revise the guidelines periodically to take into account new technological developments (e.g. carbon capture and storage) as they become commercially availableFurther information: IDB’s Sustainability Portal: www.iadb.org/en/topics/sustainability9 Slide Number 1 GHG emissions are a major environmental challenge for coal-fired power plants BUT GHG emissions are generally not adequately addressed in traditional EIAs IDB’s approach to address GHG emissions from coal plant in the EIA process Screening: IDB’s minimum performance criteria for GHG emissions from coal plants EIA – Analysis of Alternatives Next steps Further information: IDB’s Sustainability Portal: www.iadb.org/en/topics/sustainability Slide Number 9

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