Climate Projects for “Green” Buildings

Energy-Efficient Technologies and Low-Carbon Fuels for Buildings

 

For buildings certified under international environmental standards such as LEED, BREEAM, and CLEVER (referring to eco-preferred buildings with characteristics that significantly reduce environmental impact over their lifecycle compared to similar structures), implementing a climate project—measures to reduce greenhouse gas (GHG) emissions—is possible.

 

These verified reductions allow for the release of carbon units to the market. At the same time, such emission reduction measures should lack economic justification, following the principle of additionality: the sole aim of the project should be the issuance of carbon units, without which the solutions would otherwise be unviable (e.g., operating costs of energy resources in the building do not decrease).

 

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In Russia, the term “climate project” is defined by the Russian Ministry of Economic Development’s Order No. 248 dated May 11, 2022, “On the Approval of Criteria and Procedures for Classifying Projects Implemented by Legal Entities, Individual Entrepreneurs, or Individuals as Climate Projects.” From a regulatory and technical perspective, climate projects are governed by GOST R ISO 14080-2021, “Russian National Standard. Greenhouse Gas Management and Related Activities. Approaches and Methodology for Implementing Climate Projects.” This article does not cover the verification of GHG emissions from various technologies for comparison and selection in climate projects.

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Primary Methods for Implementing a Climate Project for Buildings:

 

  • Installation, replacement, or upgrading of existing equipment to improve energy efficiency (e.g., efficient electrical appliances and insulation) and additional measures to transition to other fuel types (e.g., switching from liquid fuel to gas) in residential, commercial, or administrative buildings.
  • Saving electricity and/or thermal energy and/or fuel, conserving thermal energy by enhancing energy efficiency, and sometimes using less carbon-intensive fuels.

 

 

Climate Project Baseline for Buildings

 

A specific challenge in developing a climate project is establishing a “baseline”—the level of GHG emissions from which reduction will be measured for the building. The baseline is defined in GOST R ISO 14080-2021 based on the Fifth Assessment Report by the Intergovernmental Panel on Climate Change (IPCC, 2014, AR5) and GOST R ISO 14064-2-2021. The project developer sets this baseline.

 

 

Methods for Developing Emission Reduction Projects:

 

  • Selection of the best available technologies that are economically viable and environmentally focused.
  • Comparison of business processes and performance indicators with industry best practices, aiming to reach at least the average level of emissions of the top 20% of comparable activities that provide similar results and services in a given sector.
  • Using current (actual) or historical GHG emissions data from similar projects, adjusted downward by at least 5%.

 

Thus, the baseline is not set at the industry average but rather a more advanced level, ensuring the climate project demonstrates significant GHG emission reductions through the use of technologies, resources, and equipment that further lower GHG emissions. Key approaches to setting baselines are outlined in the Decision of the Conference of the Parties (FCCC/PA/CMA/2021/10/Add.1, Article 6.4 of the Paris Agreement).

 

 

Project Additionality

 

The additionality of a climate project should be demonstrated in accordance with Article 9 of the Federal Law No. 296-FZ “On Limiting Greenhouse Gas Emissions” (dated July 2, 2021) and criteria established by the Ministry of Economic Development’s Order No. 248 (dated May 11, 2022). However, projects using certain technologies (one or more) automatically qualify as additional:

 

  • Solar thermal energy generation, including concentrated solar power;
  • Offshore wind technologies;
  • Offshore wave technologies;
  • Offshore tidal technologies;
  • Building-integrated wind turbines or residential wind turbines on roofs with a capacity of up to 100 kW;
  • Combined-cycle plants with in-cycle gasification powered by biomass;
  • Mini hydro turbines (up to 100 kW capacity);
  • Mini wind turbines (up to 100 kW capacity);
  • Wind-solar power plant (up to 100 kW capacity);
  • Geothermal power plant (up to 200 kW capacity);
  • Biomass/biogas gasification (up to 100 kW capacity).

 

 

Specific Provisions for Multi-Family Residential Buildings (MFD):

 

  • Installation of control units for heat energy consumption in heating and hot water systems, with one of two options:
    1. Automated heating system control unit with weather-dependent adjustments for heating parameters;
    2. Automated individual heat point with automatic adjustments for heating and hot water parameters.

 

 

Verification of GHG Reductions

 

100% of climate projects require GHG reduction verification. Certain parameters must either be continuously monitored during the verification and/or crediting period or calculated once per period, depending on the parameter. For instance, the amount of fossil fuel consumed by a building annually is measured continuously, while the average technical losses in energy distribution are assessed annually.

 

For more details on climate project methodology for buildings, please refer to “Climate Project Implementation Methodology No. 0005,” developed by the Institute of Global Climate and Ecology named after Academician Y.A. Israel.

 

 

 

Authors:

Marina Kupriyanova
Andrey Kuznetsov

Published: February 22, 2024