November 2008

Country Profile Iran

Covering an area of 1.6 million km² and with a population of 68.6 million, Iran is the biggest country in the Middle East. Its economy is dominated by the oil and gas industry, which produces one quarter of the country’s gross value creation and is responsible for upwards of 83 percent of its exports, and is also energy intensive. In 2005, per capita consumption amounted to 2.33 t of crude oil units, which can largely be attributed to the use of (domestic) oil and gas. Germany is by far Iran’s biggest trading partner, supplying 13.8 percent of imports in 2005.

Iran ratified the Kyoto Protocol in August 2005 and officially announced the establishment of its DNA in November 2006 during COP 14 in Nairobi. The DNA function is performed by the Climate Change Office at the Department of Environment (DOE) and is run by Dr. Mohammad Soltanieh. It plans to have CDM projects developed by dedicated working groups at the various ministries. The DNA website currently contains four project idea notes which can be downloaded. There are no registered projects to date.

Given the relatively high demand for energy in some industry sectors, there are certainly energy savings to be made. Iran’s greatest potential for energy efficiency projects is seen in its cement, steel, chemicals and sugar industries, and also in improving the conversion efficiency of power plants. Many power plants are also suited to oil-to-gas fuel switch activities. The petrochemicals sector harbours potential for N20 reductions.

Projects are also foreseeable in oil production. The gases produced during oil extraction could, for example, be used to produce gas-to-liquid fuels. The Iranian DNA also reports great potential in the use of renewable energy. According to Dr. Mohammad Soltanieh, Iran’s solar radiation intensity amounts to 2,000 kWh per m² or 2,800 sun hours per year, and its wind energy potential is 6,500 MW. The Renewable Energy Organisation of Iran (SUNA) has announced an ambitious target of generating 500 MW from wind power by 2010. Its implementation is part of Iran’s Five Year Development Plan and is reliant on cooperation with foreign enterprises.

Further selected information:

Iranian DNA and CDM websites
Irans’s National Communication on Climate Change to the UNFCCC (PDF)
UNFCCC: Information on Iran
German Foreign Office: Information on Iran
German Office of Foreign Trade article on the CDM in Iran
European Commission: The EU’s Relations with Iran