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Potential for JCM in Viet Nam:
Sectors and Technologies
By Ha Dang Son – Carbon Finance Expert (Vietnam)
hson.consultant@adb.org
Promoting Bilateral Mechanisms in Asia and the Pacific:
A Workshop on the Joint Crediting Mechanism
Hilton Opera Hanoi Hotel, 21-21 April 2015
Outline
• Overview
• Carbon Finance Experience with CDM
• How JCM can help?
• Opportunities for JCM projects
April 30, 2015 2
Vietnam at a glance
• Area: 330,972.4 km2
• Population: 89,708,900
• GDP per capita: USD 1,902
• Growth rate: 5.42%
• GDP structure:
o18.38% in agriculture, forestry and fishery
o38.31% in industry and construction
o43.31% in services
• Agricultural land: 25.6m hectares
o10.2m hectares production land
o15.4m hectares forest land
(General Statistics Office, 2013)
April 30, 2015 3
Background
• Vietnam signed the United Nations Framework Convention on
Climate Change (UNFCCC) in 1992 and ratified it in 1994, signed the
Kyoto Protocol (KP) in 1998 and ratified it in 2002.
• Ministry of Natural Resources and Environment (MONRE) is the National Focal
Point of Vietnam for implementation of UNFCCC and KP.
• Department of Meteorology, Hydrology and Climate Change (DMHCC) of
MONRE is responsible for coordinating implementation of UNFCCC and KP,
and acts as the Designated National Authority for the Clean Development
Mechanism (CDM) and the National Focal Point for NAMA registration to
UNFCCC.
April 30, 2015 4
GHG emissions and removals in 2010 and
projections to 2020 and 2030
Source: The Initial Biennial Updated Report of Vietnam to UNFCCC, 2014
April 30, 2015 5
GHG emissions from energy and transport
sectors
April 30, 2015 6
Source: ADB TA-7779 Mitigation Technical Working Paper, 2014
Main source of
emissions: coals
Clean Development Mechanism (CDM)
April 30, 2015 7
As of April 2014…
• 11,385,000 CERs have been issued (#9 in the world)!
Volume of CERs until 2012 in Asia by countryTop countries by issued CERs
Source: cdmpipeline.org
Clean Development Mechanism (CDM)
• 256 registered projects
• Hydropower plants (SSC, LSC) majorly: 55.3%
• Waste management (landfill, composting, wastewater treatment): 15%
• Other renewable energy: wind, biomass (rice husk), biogas: 4.2%
• Energy efficiency, incl. power co-generation
• Fuel switching
• Afforestation & reforestation
• 11 registered Program of Activities (PoAs)
• Only 2 CDM project rejected by EB
• 90MW Bac Ha hydropower project (2011)
• The model project for renovation to increase the efficient use of energy in brewery
(2008)
April 30, 2015 8
Experience and lesson-learnt with CDM
• Heavy validation, registration and issuance process
within CDM: up to 4-6 years between starting up
the process and the first issuance of CERs
• Few methodologies, hence few CDM projects in
building, transport, iron and steel sector
• Very difficult and time-consuming for proposing and
approving new/revised methodologies
• Additionality requirements of the UNFCCC
• Availability of the certified DOEs for validation,
verification, monitoring
• ODA related issues
April 30, 2015 9
“Technology development and transfer are included as priorities in both the United Nations
Framework Convention on Climate Change and its Kyoto Protocol. Article 4.1 of the Convention
requires all Parties to promote and cooperate in the development, application and diffusion,
including transfer, of GHG mitigation technologies.
The Kyoto Protocol requires all Parties to cooperate in the development, application, diffusion and
transfer of environmentally sound technologies that are in the public domain.”
Source: The Contribution of the Clean Development Mechanism under the Kyoto Protocol to Technology Transfer (UNFCCC, 2010)
Technology Transfer (TT) in CDM?
April 30, 2015 10
How JCM and low carbon technology could
respond to these issues?
• ISO 14065 certification entities can conduct validation step, beside
Designated Operational Entities (DOEs)
• Default value can be used for calculating emission reductions while
limit on monitored parameters
• Uses of eligibility criteria instead of additionality
• Less time-consuming for JCM procedure
• Shorter and more flexible procedure for JCM project
• Both Government can decide what technologies, products, etc.
should be included in the eligibility criteria
 Facilitate Low-carbon Technology Transfer
April 30, 2015 11
Eligibility?
• In general:
sustainable
development criteria
• In particular: As
identified and
prioritized in the
national strategies
and policies on
climate change
mitigation and low
carbon development
• Technology transfer
April 30, 2015 12
Source: Vietnam’s Market Readiness Proposal, 2014
GHG mitigation options in energy sector
Option
GHG reduction
potentials, MtCO2/yr
Costs,
US$/tCO2
Remark
POWERGENERATION
Biomass thermo-power development 57.343 4.8 VGGS, 2012 and Initial BUR, 2014
Small hydropower development 55.741 -4.7 VGGS, 2012 and Initial BUR, 2014
Wind power development 68.145 41.1 VGGS, 2012 and Initial BUR, 2014
Solar (0.74 TWh) VGGS, 2012
Geothermal (1.87 TWh) VGGS, 2012
Biogas power generators (0.7 TWh) VGGS, 2012
Power generation from landfill gas (1.8 TWh) VGGS, 2012
Tidal power (0.4 TWh) VGGS, 2012
Thermoelectric power (0.6 TWh) VGGS, 2012
Solar thermoelectric power (0.6 TWh) VGGS, 2012
Nuclear power (69.3 TWh) VGGS, 2012
Further development of nuclear power (71.5 TWh) VGGS, 2012
New supercritical coal fired power (6*1000 MW) VGGS, 2012
CCS for coal fired power (2*600 MW) VGGS, 2012
April 30, 2015 13
GHG mitigation options in energy sector
Option
GHG reduction
potentials,
MtCO2/yr
Costs,
US$/tCO2
Remark
BRICK Replacement of manual brick kiln 0.98 -14.39 VGGS, 2012
CEMENT
INDUSTRY
Waste heat recovery for power generation (400 MW) 5.16 -44.69 VGGS, 2012
Improvement of Energy Management VGGS, 2012
Installation of VSD for motors VGGS, 2012
STEEL Waste heat recovery for power generation (50 MW) 0.5 -44.07 VGGS, 2012
Improvement of Energy Management VGGS, 2012
Installation of VSD for motors VGGS, 2012
TEXTILE AND
GARMENT
Improvement of Energy Management (electricity and
coal consumption)
0.15 -60.28 VGGS, 2012
PULP AND
PAPER
Improvement of Energy Management (electricity and
coal consumption)
0.53 -93.46 VGGS, 2012
April 30, 2015 14
GHG mitigation options in energy sector
Option
GHG reduction
potentials,
MtCO2/yr
Costs,
US$/tCO2
Remark
BUILDING Using high efficiency air conditioners 39.083 -7.8 VGGS, 2012 and Initial BUR, 2014
High efficient lighting VGGS, 2012
Application of Building Energy Management VGGS, 2012
HOUSEHOLD High efficient lighting (5 types of lamps) VGGS, 2012
High efficient refrigerators VGGS, 2012
High efficient air conditioning VGGS, 2012
Solar water heating (SWH) VGGS, 2012
Improved cookstove (ICS) VGGS, 2012
Improved biogas stove (IBS) VGGS, 2012
TRANSPORT Switching from petroleum to ethanol use in
transport sector
12.265 19.2 VGGS, 2012 and Initial BUR, 2014
Converting to LPG in transport sector 4.726 -10.9 Initial BUR, 2014
April 30, 2015 15
GHG mitigation options in agriculture sector
Option
GHG reduction
potential, MtCO2/yr
Costs,
US$/tCO2
Remark
Short duration rice varieties 11.170 -321.69 VGGS, 2012
3R3G for rice 7.570 -291.64 VGGS, 2012
Compost for peanut (i.e. using peanut
crop residues as composts)
0.070 -281.73 VGGS, 2012
Biochar for rice 4.140 -264.58 VGGS, 2012
(NH4)2SO4 for rice 10.970 -251.64 VGGS, 2012
Biochar for peanut 0.013 -194.61 VGGS, 2012
Biochar for sugar cane 0.024 -181.59 VGGS, 2012
Compost for sugarcane 0.037 -167.26 VGGS, 2012
Biochar for cassava 0.005 -163.72 VGGS, 2012
April 30, 2015 16
GHG mitigation options in agriculture sector
Option
GHG reduction
potential,
MtCO2/yr
Costs,
US$/tCO2
Remark
Compost for rice 9.430 -59.05 VGGS, 2012 and
Initial BUR, 2014
Compost for cassava 0.004 -46.13 VGGS, 2012
Biochar for soybean 0.011 -6.24 VGGS, 2012
Compost for maize 0.014 -2.17 VGGS, 2012
Biogas for livestock 1.460 4.62 VGGS, 2012
Compost for soybean 0.010 8.88 VGGS, 2012
Biochar for maize 0.280 61.31 VGGS, 2012
AWD/SRI for rice 1.47 76.29 VGGS, 2012 and
Initial BUR, 2014
April 30, 2015 17
GHG mitigation options in LULUCF sector
Option
GHG reduction
potential,
MtCO2/yr
Costs,
US$/tCO2
Remark
Mixture plantation of indigenous tree
species
504.17 1.30 Initial BUR, 2014
Natural forest regeneration with
enrichment planting of indigenous trees
under forest canopy
151.29 1.60 Initial BUR, 2014
Community based-forest management
under the forestry socialization policy with
planting of non-timber forest products
137.30 0.90 Initial BUR, 2014
April 30, 2015 18
April 30, 2015 19

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S2-3 JCM_Opportunities_HDS

  • 1. Potential for JCM in Viet Nam: Sectors and Technologies By Ha Dang Son – Carbon Finance Expert (Vietnam) hson.consultant@adb.org Promoting Bilateral Mechanisms in Asia and the Pacific: A Workshop on the Joint Crediting Mechanism Hilton Opera Hanoi Hotel, 21-21 April 2015
  • 2. Outline • Overview • Carbon Finance Experience with CDM • How JCM can help? • Opportunities for JCM projects April 30, 2015 2
  • 3. Vietnam at a glance • Area: 330,972.4 km2 • Population: 89,708,900 • GDP per capita: USD 1,902 • Growth rate: 5.42% • GDP structure: o18.38% in agriculture, forestry and fishery o38.31% in industry and construction o43.31% in services • Agricultural land: 25.6m hectares o10.2m hectares production land o15.4m hectares forest land (General Statistics Office, 2013) April 30, 2015 3
  • 4. Background • Vietnam signed the United Nations Framework Convention on Climate Change (UNFCCC) in 1992 and ratified it in 1994, signed the Kyoto Protocol (KP) in 1998 and ratified it in 2002. • Ministry of Natural Resources and Environment (MONRE) is the National Focal Point of Vietnam for implementation of UNFCCC and KP. • Department of Meteorology, Hydrology and Climate Change (DMHCC) of MONRE is responsible for coordinating implementation of UNFCCC and KP, and acts as the Designated National Authority for the Clean Development Mechanism (CDM) and the National Focal Point for NAMA registration to UNFCCC. April 30, 2015 4
  • 5. GHG emissions and removals in 2010 and projections to 2020 and 2030 Source: The Initial Biennial Updated Report of Vietnam to UNFCCC, 2014 April 30, 2015 5
  • 6. GHG emissions from energy and transport sectors April 30, 2015 6 Source: ADB TA-7779 Mitigation Technical Working Paper, 2014 Main source of emissions: coals
  • 7. Clean Development Mechanism (CDM) April 30, 2015 7 As of April 2014… • 11,385,000 CERs have been issued (#9 in the world)! Volume of CERs until 2012 in Asia by countryTop countries by issued CERs Source: cdmpipeline.org
  • 8. Clean Development Mechanism (CDM) • 256 registered projects • Hydropower plants (SSC, LSC) majorly: 55.3% • Waste management (landfill, composting, wastewater treatment): 15% • Other renewable energy: wind, biomass (rice husk), biogas: 4.2% • Energy efficiency, incl. power co-generation • Fuel switching • Afforestation & reforestation • 11 registered Program of Activities (PoAs) • Only 2 CDM project rejected by EB • 90MW Bac Ha hydropower project (2011) • The model project for renovation to increase the efficient use of energy in brewery (2008) April 30, 2015 8
  • 9. Experience and lesson-learnt with CDM • Heavy validation, registration and issuance process within CDM: up to 4-6 years between starting up the process and the first issuance of CERs • Few methodologies, hence few CDM projects in building, transport, iron and steel sector • Very difficult and time-consuming for proposing and approving new/revised methodologies • Additionality requirements of the UNFCCC • Availability of the certified DOEs for validation, verification, monitoring • ODA related issues April 30, 2015 9
  • 10. “Technology development and transfer are included as priorities in both the United Nations Framework Convention on Climate Change and its Kyoto Protocol. Article 4.1 of the Convention requires all Parties to promote and cooperate in the development, application and diffusion, including transfer, of GHG mitigation technologies. The Kyoto Protocol requires all Parties to cooperate in the development, application, diffusion and transfer of environmentally sound technologies that are in the public domain.” Source: The Contribution of the Clean Development Mechanism under the Kyoto Protocol to Technology Transfer (UNFCCC, 2010) Technology Transfer (TT) in CDM? April 30, 2015 10
  • 11. How JCM and low carbon technology could respond to these issues? • ISO 14065 certification entities can conduct validation step, beside Designated Operational Entities (DOEs) • Default value can be used for calculating emission reductions while limit on monitored parameters • Uses of eligibility criteria instead of additionality • Less time-consuming for JCM procedure • Shorter and more flexible procedure for JCM project • Both Government can decide what technologies, products, etc. should be included in the eligibility criteria  Facilitate Low-carbon Technology Transfer April 30, 2015 11
  • 12. Eligibility? • In general: sustainable development criteria • In particular: As identified and prioritized in the national strategies and policies on climate change mitigation and low carbon development • Technology transfer April 30, 2015 12 Source: Vietnam’s Market Readiness Proposal, 2014
  • 13. GHG mitigation options in energy sector Option GHG reduction potentials, MtCO2/yr Costs, US$/tCO2 Remark POWERGENERATION Biomass thermo-power development 57.343 4.8 VGGS, 2012 and Initial BUR, 2014 Small hydropower development 55.741 -4.7 VGGS, 2012 and Initial BUR, 2014 Wind power development 68.145 41.1 VGGS, 2012 and Initial BUR, 2014 Solar (0.74 TWh) VGGS, 2012 Geothermal (1.87 TWh) VGGS, 2012 Biogas power generators (0.7 TWh) VGGS, 2012 Power generation from landfill gas (1.8 TWh) VGGS, 2012 Tidal power (0.4 TWh) VGGS, 2012 Thermoelectric power (0.6 TWh) VGGS, 2012 Solar thermoelectric power (0.6 TWh) VGGS, 2012 Nuclear power (69.3 TWh) VGGS, 2012 Further development of nuclear power (71.5 TWh) VGGS, 2012 New supercritical coal fired power (6*1000 MW) VGGS, 2012 CCS for coal fired power (2*600 MW) VGGS, 2012 April 30, 2015 13
  • 14. GHG mitigation options in energy sector Option GHG reduction potentials, MtCO2/yr Costs, US$/tCO2 Remark BRICK Replacement of manual brick kiln 0.98 -14.39 VGGS, 2012 CEMENT INDUSTRY Waste heat recovery for power generation (400 MW) 5.16 -44.69 VGGS, 2012 Improvement of Energy Management VGGS, 2012 Installation of VSD for motors VGGS, 2012 STEEL Waste heat recovery for power generation (50 MW) 0.5 -44.07 VGGS, 2012 Improvement of Energy Management VGGS, 2012 Installation of VSD for motors VGGS, 2012 TEXTILE AND GARMENT Improvement of Energy Management (electricity and coal consumption) 0.15 -60.28 VGGS, 2012 PULP AND PAPER Improvement of Energy Management (electricity and coal consumption) 0.53 -93.46 VGGS, 2012 April 30, 2015 14
  • 15. GHG mitigation options in energy sector Option GHG reduction potentials, MtCO2/yr Costs, US$/tCO2 Remark BUILDING Using high efficiency air conditioners 39.083 -7.8 VGGS, 2012 and Initial BUR, 2014 High efficient lighting VGGS, 2012 Application of Building Energy Management VGGS, 2012 HOUSEHOLD High efficient lighting (5 types of lamps) VGGS, 2012 High efficient refrigerators VGGS, 2012 High efficient air conditioning VGGS, 2012 Solar water heating (SWH) VGGS, 2012 Improved cookstove (ICS) VGGS, 2012 Improved biogas stove (IBS) VGGS, 2012 TRANSPORT Switching from petroleum to ethanol use in transport sector 12.265 19.2 VGGS, 2012 and Initial BUR, 2014 Converting to LPG in transport sector 4.726 -10.9 Initial BUR, 2014 April 30, 2015 15
  • 16. GHG mitigation options in agriculture sector Option GHG reduction potential, MtCO2/yr Costs, US$/tCO2 Remark Short duration rice varieties 11.170 -321.69 VGGS, 2012 3R3G for rice 7.570 -291.64 VGGS, 2012 Compost for peanut (i.e. using peanut crop residues as composts) 0.070 -281.73 VGGS, 2012 Biochar for rice 4.140 -264.58 VGGS, 2012 (NH4)2SO4 for rice 10.970 -251.64 VGGS, 2012 Biochar for peanut 0.013 -194.61 VGGS, 2012 Biochar for sugar cane 0.024 -181.59 VGGS, 2012 Compost for sugarcane 0.037 -167.26 VGGS, 2012 Biochar for cassava 0.005 -163.72 VGGS, 2012 April 30, 2015 16
  • 17. GHG mitigation options in agriculture sector Option GHG reduction potential, MtCO2/yr Costs, US$/tCO2 Remark Compost for rice 9.430 -59.05 VGGS, 2012 and Initial BUR, 2014 Compost for cassava 0.004 -46.13 VGGS, 2012 Biochar for soybean 0.011 -6.24 VGGS, 2012 Compost for maize 0.014 -2.17 VGGS, 2012 Biogas for livestock 1.460 4.62 VGGS, 2012 Compost for soybean 0.010 8.88 VGGS, 2012 Biochar for maize 0.280 61.31 VGGS, 2012 AWD/SRI for rice 1.47 76.29 VGGS, 2012 and Initial BUR, 2014 April 30, 2015 17
  • 18. GHG mitigation options in LULUCF sector Option GHG reduction potential, MtCO2/yr Costs, US$/tCO2 Remark Mixture plantation of indigenous tree species 504.17 1.30 Initial BUR, 2014 Natural forest regeneration with enrichment planting of indigenous trees under forest canopy 151.29 1.60 Initial BUR, 2014 Community based-forest management under the forestry socialization policy with planting of non-timber forest products 137.30 0.90 Initial BUR, 2014 April 30, 2015 18

Editor's Notes

  1. Bac Ha Hydropower project (90MW) – PDD consultant la Ecotawa – Ng mua la Thuy Si The model project for renovation to increase the efficient use of energy in brewery – PDD consultant la Climate Experts – nguoi mua la Japan