The MENA region is an attractive CDM destination as it is rich in renewable energy resources and has a robust oil and gas industry. Surprisingly, countries in MENA host very few and declining number of CDM projects with only 23 CDM projects registered till date. The region accounts for only 1.5 percent of global CDM projects and only two percent of emission reduction credits.
The two main challenges facing many of these projects are: weak capacity in most MENA countries for identifying, developing and implementing carbon finance projects and securing underlying finance.
The registered CDM projects in MENA countries are primarily located in UAE, Egypt, Jordan, Morocco, Qatar, Syria and Tunisia. Other countries in the region, like Saudi Arabia, Bahrain and Oman, are also exploring opportunities for implementing projects that could be registered under the Kyoto Protocol.
Potential CDM projects that can be implemented in the region may come from varied areas like sustainable energy, energy efficiency, waste management, landfill gas capture, industrial processes, biogas technology and carbon flaring. For example, the energy efficiency projects in the oil and gas industry, can save millions of dollars and reduce tons of CO2 emissions. In addition, renewable energy, particularly solar and wind, holds great potential for the region, similar to biomass in Asia.
Let us take a look at some of the recent registered CDM projects from the MENA region.
Al-Shaheen Project (Qatar)
The Al-Shaheen project is the first of its kind in the region and third CDM project in the petroleum industry worldwide. The Al-Shaheen oilfield has flared the associated gas since the oilfield began operations in 1994. Prior to the project activity, the facilities used 125 tons per day (tpd) of associated gas for power and heat generation, and the remaining 4,100 tpd was flared.
Under the current project, total gas production after the completion of the project activity is 5,000 tpd with 2,800-3,400 tpd to be exported to Qatar Petroleum (QP); 680 tpd for on-site consumption, and only 900 tpd still to be flared. The project activity will reduce GHG emissions by approximately 2.5 million tCO2 per year and approximately 17 million tCO2 during the initial seven-year crediting period.
GASCO Project (Abu Dhabi)
Located at the Asab and Bab gas processing plants in Abu Dhabi, the energy efficiency project is the fifth CDM project in the UAE to be registered under the Kyoto Protocol. The ADNOC’s GASCO CDM project helps to reduce CO2 emissions through installation of a device in the flare line to considerably reduce the consumption of fuel gas, thereby ensuring lower greenhouse gas emissions.
The project contributes to Abu Dhabi’s and ADNOC’s goals for sustainable development while improving air quality in the region. This retrofit project is expected to generate approximately 7,770 CERs per year.
Kafr El Dawar Project (Egypt)
Located at the Egypt for Spinning, Weaving and Dying Company in Kafr El Dawar near Alexandria, the fuel switching project is the latest CDM project from MENA to be registered under the Kyoto Protocol. The Kafr El Dawar CDM project helps reduce CO2 emissions through switching from the higher carbon intensive fuel such as Heavy Fuel Oil (HFO) to natural gas, a lower carbon intensive fossil fuel, contributing to Egypt’s goals in sustainable development.
It has also significantly mitigated atmospheric emissions of pollutants while improving air quality in the region. The replacement of HFO with natural gas is expected to generate approximately 45,000 Certified Emissions Reductions (CERs) per year.