Introduction tothe Bilateral Offset Credit Mechanism(BOCM)and BOCM DS/FS Programme 2012 Kick off Seminar on “Studies for Greenhouse Gas Emission Reduction inTransportation Sector of Vietnam under the Bilateral Offset Credit Mechanism” 23th August 2012, at Melia Hanoi, Hanoi, Viet Nam Hideki TAKAO, Carbon Management Dept., Global Environment Centre Foundation (GEC)
Purpose of the BOCM Contribute to the ultimate objective of the UNFCCC through promotion of mitigation activities globally. Facilitate the bilateral cooperation in the field of climate change in such a way that best suits each country’s national circumstances. Contribute to the sustainable development of developing countries. Appropriately evaluate the contribution to GHG emission reductions or removals. Facilitate diffusion of low carbon technologies, products and services and enhance capabilities to utilize them. Partner JAPAN Low Carbon Technologies, Products, Services Country Methodologies will Project be developed cooperatively by both Japan and Partner Country Used to achieve Japan’s GHG emission emission Offset Credits reduction/ reduction target removals 2
The BOCM as new means of addressing climate change 2008～2012 2013～ Japan will continue to make emissions reduction Japan is currently making utmost efforts to efforts beyond 2012. Its concrete targets are currently achieve its target under the first commitment reviewed and considered domestically. period of the Kyoto Protocol through domestic The BOCM can be an effective way to achieve measures(GHG emissions reduction and Japan’s post 2012 targets, complementing the existing carbon sinks) as well as acquiring credits of the Kyoto Mechanism. Although Japan will not participate Kyoto Mechanism. in the second commitment period of the Kyoto Protocol, it will remain in the Protocol and will intend to continue to use the Kyoto Mechanism to achieve its post 2012 targets. Emissions reduction Emissions reduction Carbon sinks Carbon sinks Kyoto mechanism Kyoto mechanism ＢＯＣＭ 3
MRV Model Project and BOCM Model ProjectJFY2011 JFY2012 JFY2013 Formal/Basic understandings on Governmental Consultation the design of BOCM Operation BOCM, and start BOCM Feasibility Studies Explore potential BOCM projects/activities Study feasibilities Develop MRV methodologies MRV Model Projects Apply proposed MRV methodologies to projects in operation Improve MRV methodologies by using them Finalize MRV methodologies BOCM Model Projects Further improve the institutional design of the BOCM, while starting BOCM operation Capacity Building 4
MOEJs FS Programme for New mechanisms (Bilateral Offset Credit Mechanism) JFY 2010 3 projects/activities were surveyed.• Each FS entities made rough estimation of GHG emission reductions from target sector/project, and proposed concept of MRV of GHG emission reductions under New Mechanisms. JFY 2011 29 projects/activities were surveyed.• Each FS entities surveyed following points; reference scenario, monitoring plan, calculation protocol and quantification of GHG mitigation effects, proposal of a MRV system, securing environmental integrity, etc.. JFY 2012 10 MRV DSs & 11 BOCM FSs will be surveyed.• To develop MRV methodologies applicable to BOCM projects/activities.• MRV Demonstration Study (DS) will be conducted in addition to the past FS programme. 5
Overview of BOCM DS/FS Programme in 2012 MOEJ Host countries’ commission Japanese entities counterparts DS/FS DS/FS implementation GEC (Secretariat) proposals• Invite public proposals on DS/FS from Japanese entities.• Select the proposals to be officially adopted as qualified DS/FS• Provide advice and supervision to the qualified DS/FS. - Through an expert committee and task force teams• Consult with host countries to promote cooperative relationships - Through meetings with host countries’ governments and stakeholders• Outreach the DS/FS results - Through GEC website, UNFCCC Side Events, etc. 6
Points of MRV Meth Development• Identification of the Reference Scenario• Quantification of the Reference Emissions• Setting Default Values – Specific to the project/activity? – Particular to the host country or the locality? – Subject to host country’s approval? – Periodical update or review?• Minimising monitoring items & frequency – Reduce burden for projects/activities owner. – Reduce cost for verification process. 7
Purposes of BOCM FS 2012• To develop MRV methodologies applicable to BOCM projects/activities: – Eligibility criteria (positive list) – Quantifications of reference emissions, project/activity emissions, leakage emissions (if any), and emission reduction effects – Minimised monitoring items and frequency • As many default values and/or specific fixed values as possible should be found and set. • The default values should lead to conservative calculation results. Actual monitoring activity should be workable for a project/activity owner in a host country. 8
MRV Demonstration Studies using Model Projects & BOCM Feasibility Studies in FY2012Mongolia:◆ Replacement of Coal-Fired Boiler by Geo- Thermal Heat Pump for Heating◆ Upgrading and Installation of High-Efficient ◆-- MRV Demonstration Study (DS) Heat Only Boilers (HOBs) Thailand: ◇-- BOCM Feasibility Study (FS) ◆ Bagasse-based Cogeneration at Sugar Mill ◆ Transport Modal Shift through Construction of MRTIndia: System◆ Bagasse-based Power Generation ◆ Energy Savings through Building Energy including Waste Heat Utilisation Management System (BEMS) ◆ Waste Heat Recovery System with CogenerationMoldova: ◇ Introduction of Electronic Gate to International◆ Biomass Boiler Heating using Trade Port to Improve Port-related Traffic Jam Agricultural Waste as Fuel ● Mexico: ● ◆ Small-scale Wind Power Generation with Remote Viet Nam Monitoring SystemSri Lanka: ◆ Integrated EE Improvement at Beer Factory◆ Biomass-based Thermal Energy ◇ Biogas-based Cogeneration with Digestion of ● ● Generation to Displace Fossil Fuels ● Methane from Food/Beverage Factory ● ● ● Wastewater ● ◇ Improvement of Vehicle Fuel Efficiency through Introduction of Eco-Drive Management System ●Lao PDR: ◇ REDD+ through Forest Management Scheme,◆ Transportation Improvement through ● and Biomass-based Power Generation using introduction of Efficient Buses and Provision Timber Industry Waste of Good Services Viet Nam, and Indonesia◇ Introduction of Mechanical Biological ◇ Promotion of Modal Shift from Road-based Treatment (MBT) of Municipal Solid Waste, Transport to MRT System Colombia: and Landfill Gas (LFG) Capture, Flaring and ◇ Geothermal Power Utilisation Generation in a Country with Suppressed DemandIndonesia: Cambodia:◇ Solar-Diesel Hybrid Power Generation to Stabilise ◆ Methane Recovery and Utilisation from Photovoltaic Power Generation Livestock Manure by using Bio-digesters◇ Prevention of Peat Degradation through Groundwater ◇ Small-scale Biomass Power Generation with Management, and Rice Husk-based Power Generation Stirling Engine◇ REDD+ for Conservation of Peat Swamp Forest, and ◇ REDD+ in Tropical Lowland Forest Biomass-based Power Generation using Timber Mill Waste NOTE: EE= Energy Efficiency to Process Indigenous Trees derived from Conserved Forest MRT= Mass Rapid Transit 9
BOCM Feasibility Study (FS) Host Country: Viet Nam and IndonesiaPromotion of Modal Shift from Road-based Transport to Mass Rapid Transit (MRT) System FS Entity：Mitsubishi Research InstituteOutline of GHG Mitigation Activity Sites and GHG ReductionsMass Rapid Transit (MRT) systems are planned to be introduced in Expected GHG reductions for each line3 cities; Hanoi, Ho Chi Minh City, and Jakarta. The MRT systems Approx. 110,000 tCO2/yearwill lead to the modal shift from the current road-oriented transportto rail-based mass Line #2public transport in CO2the mega cities toreduce GHG emissions. Draft Simple MRV Methodology Line #1 Station A Station B Limited Boundary: Traffic Volume on MRT origin destinationWhen the project boundary is limited to only MRT transportation, themonitoring burden would be avoided, however the emissionreduction effect would be also deducted. Line #1Under this simpler methodology, the monitoring items are limited tothe numbers of and the travel distance of passengers, which can berecorded through IC-card based ticketing system. CO2 emissionfactor (unit: tCO2/PKM) will be defaulted for each traffic mode. North-SouthIf the project boundary is expanded to the inclusion of Lineaccess/egress traffic, the GHG reductions would increase – but themonitoring practice gets burdensome. GHG emission reductions are Jakartaexpected to be as shown in the right figure including only trafficvolume on MRT. 10
BOCM Feasibility Study (FS) Host Country: Viet NamImprovement of Vehicle Fuel Efficiency through Introduction of Eco-Drive Management System FS Entity: Almec Outline of GHG Mitigation Activity Eco-drive Management System (EMS), which is developed in Japan as application software for smartphone, will be introduced to taxies running in Hanoi. At the same time, the eco-drive training is provided to the taxi drivers: Japanese skilled instructors give lectures with the reference to the analysis results based on EMS driving data, for the Hanoi taxi drivers to learn the eco-driving technique. As a result, fuel consumption will reduce due to the improvement of fuel efficiency through drivers’ eco-drive practices. (1) Install EMS (2) Eco-drive training (3) daily Eco-drive Sites of GHG Mitigation Activity CO2 EMS CO2 EMS Vehicle traffic volume in Hanoi increase 30 times in past 10 years. Hanoi collect and analyze improve drive collect and analyze Economical loss and driving records technique driving records increasing GHG (Before) (After) emission due to traffic Verification of fuel consumption reduction congestion is the issue. Draft Simple MRV Methodology Expected GHG Reductions In principle, CO2 emissions can be calculated through the [GHG Reductions] = [difference of multiplication of fuel consumptions, travel distance, and fuel emission fuel efficencies between pre- and factor (specific to fuel type). post-project] x [driving distance] x Fuel efficiency is the most important parameter to be monitored, [fuel CO2 emission factor] which can be read from data recorded automatically in EMS during project/activity implementation period. The pre-project fuel efficiency In case 1,000 taxis improve fuel (under the reference scenario) should be set based on actual fuel efficiency by 10%, 1,000tCO2/yr of efficiency data at least for past 1 year. If fuel efficiency data for past 1- GHG reductions are expected. It is year are not available, actual data should be monitored after the equivalent to 438kl of fuel installation of EMS equipment. consumption reduction in a year. 11
MRV Demonstration Study using Model Project Host Country: Viet NamIntegrated Energy Efficiency Improvement at Beer Factory FS Entity: Recycle One Outline of GHG Mitigation ActivityIntegrated energy-saving and renewable energy systems are introduced to the energy-intensive manufacturingprocesses of breweries in Vietnam, to substantially reduce energy consumptions and GHG emissions. Beer manufacturing process Employed technologies (1) (2) (1) Vapor recompression system (VRC) (2) Cascade cooling system (3) (4) (3) Biogas recovery boiler (4) Heat pump pasteurizer Preparation Brewing Fermentation Filtration Packaging Draft Simple MRV Methodology Site of MRV Model ProjectGHG emission reductions are evaluated based on Thanh Hoa Brewery as the pilot project, located atspecific energy consumption. Thanh Hoa City, Thanh Hoa ProvinceBy setting default values, only energy consumptions andproduction amount under the project/activity scenarioare necessary to be monitored. Calculation for GHG emission reduction amount ER,y = (AEMRR,y - AEMPJ,y) x POy ER,y GHG emission reduction amount (tCO2/year) AEMRR,y Specific GHG emissions of Reference Scenario (tCO2 /HL) [to be defaulted] Expected GHG Reductions AEMpj､y Specific GHG emissions of Project Scenario • 7,500 tCO2/year (for the model project） (t-CO2 /HL) Poy Annual beer production volume (HL/year) • 150,000 tCO2/year (potential in entire Vietnam) 12
BOCM Feasibility Study (FS) Host Country: Viet NamBiogas-based Cogeneration with Digestion of Methane from Food/Beverage Factory Wastewater FS Entity: Tepia Corporation Japan Outline of GHG Mitigation Activity Sites of GHG Mitigation ActivityTo treat highly concentrated organic wastewater dischargedfrom food-processing plants (breweries and tapioca plants),utilizing UASB reactor.To generate electricity and hot water from biogas occurred inthe process, using biogas cogeneration system. This will bereplacing the considerable amount of fossil fuel and gridpower consumed in the plants, and lead to GHG reductions. Draft Simple MRV Methodology Expected GHG ReductionsIn this MRV methodology, GHG emission reductions 3.9m t-CO2 in 10 years (from 2012 to 2021)are to be calculated using calorific values and CO2 <Hypothetical situation>emission factors of both baseline fossil fuel and grid a. Targeting food processing plants whosepower, applying specs (power generation efficiency and displacement is over 1,000 m3 per day.hot water recovery efficiency). b. Annual GHG reduction is 39k t-CO2/y per plant.The amount of methane emitted from waste water c. The project is to be implemented at 10 plantstreatment (anaerobic lagoon) is to be calculated, every year for the next 10 years – 100 plants 13applying CDM methodology 【AMSIII.H】. altogether.
BOCM Feasibility Study (FS) Host Country: Viet NamREDD+ through Forest Management Scheme, and Biomass-based Power Generationusing Timber Industry Waste FS Entity:Sumitomo Forestry Co., Ltd. Outline of GHG Mitigation Activity Carry out development of community forests and Sites of GHG Mitigation Activity production forests for the purpose of timber sales to FS will be carried out in Dien Bien province, outside parties, as well as regeneration of reserve Northwest region of Vietnam. forests through low-cost methods such as natural regeneration. Additionally provide guidance on sustainable agriculture methods to replace slash-and- burn techniques. Through this establishment of agricultural and forestry business, reduce pressure on existing natural forest, and quantify the resulting increase in carbon accumulation by plantations in order to estimate the reduction in GHG emissions.In the future, timber processing businesses will be attracted to manufacture high value-added timber products, and biomass power generation will be undertaken to supply electricity otherwise provided through thermal power Draft Simple MRV Methodology generation, Establish new MRV methodology thereby • REDD+: based on existing MRV methods, such reducing as VCS and J-VER GHG • Biomass power generation: based on existing emissions. approved CDM methodologies Expected GHG Reductions Forest management : 1.3mil t-CO2 and Biomass utilization : 1.6 mil t-CO2 for 20 years 14
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