Calculation method for Chinese CO2 quotas

COWI has pioneered a CDM method for calculating CO2 credits for district heating projects - and received UN approval for this unique tool.

COWI's model for documenting specific reductions in CO2 emissions for district heating projects is no. 58 on the list of calculation methods approved by the UN. This method was originally developed for Danida and used in the Chinese town of Houma, where small, highly polluting coal fired boilers have been replaced by a far more effective district heating system based on CHP (combined heat and power).

Trading in CO2 reduction
The CDM method calculates how many tons of CO2 emissions are generated by specific projects. These figures can be valuable when countries, such as Denmark, are planning to invest in the development of new district heating plants in non-western countries.

The new CDM method can be utilised by western governments and quota-assigned companies to invest in CHP projects capable of reducing emissions in other countries. This can be used to "negotiate" the writing down of one's own CO2 accounts and to achieve the goals outlined in the Kyoto Agreement.

Demand in China
This is the first time UN approval has been received for a calculation method for district heating. As it is only a first release, this method currently has a somewhat limited application and will mainly be used for district heating systems based primarily on CHP.