ies macc
DESCRIPTION
Educational Material of Vietnam Blended Learning Program, undertaken by Institute of Energy Science, with support of World Bank and Vietnam Development Information CenterTRANSCRIPT
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Th W ld B k i Vi Vi t D l t I f ti C t
Vietnam Blended Learning Program
The World Bank in Vietnam Vietnam Development Information Center
CARBON ABATEMENT CARBON ABATEMENT PROJECT APPRAISAL EXERCISEPROJECT APPRAISAL EXERCISEPROJECT APPRAISAL EXERCISEPROJECT APPRAISAL EXERCISE
Proposed by: Proposed by:
Institute of Energy Science (Vietnam)Institute of Energy Science (Vietnam)UQ SMART UQ SMART –– The University of Queensland (Australia)The University of Queensland (Australia)
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ScheduleSchedule
I d i P j A i l & MACC Introduction to Project Appraisal & MACCs Case Study Case Study: Redland City Council Carbon Abatement Project Appraisal Exercise
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Introduction to Project Appraisal & MACCs
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WHAT ARE MARGINAL ABATEMENT COST CURVES(MACCS)?
“A MACC is an economic decision making tool, designed to assist managers to identify, rank and prioritise the implementation of GHG abatement projects. Projects are ranked from lowest (most desirable) to highest cost per
tonne of CO2-e reduced”
A MACC presents three visual indicators:
• The cost per tonne CO2-e abatement for a project
• The volume of abatement that the project can deliver (annually or over project life) at that cost per tonne CO2-e abatement
• The given point at which it becomes cheaper to purchase carbon offsets or permits
i.e. where abatement is no longer competitive with offsets.
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MACCS
HOW TO READ A MACCHOW TO READ A MACC
Projects that present net savings are located Projects that present net savings are located below the horizontal axis, and should be prioritised for implementation.
B f d b h By contrast, projects found above the horizontal axis have a net cost to implement per tonne of CO2-e reduce.
A MACC may be considered as part of a pre-feasibility assessment of potential GHG abatement projects.
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MACCS
BACKGROUNDBACKGROUND
In the past, MACCs have mainly been focused at the macroeconomic
level…
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ND
MACCS
KG
RO
UB
AC
K
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BACKGROUND
MACCS
BACKGROUND
I h MACC h l b f d In the past, MACCs have mainly been focused at the macroeconomic level…
…but this is not very valuable to a business, l MACC fl h i i l unless a MACC reflects the organisational
or facility level.
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACC
The steps are summarised as follows: p
1. Identify potential abatement projects
2 Conduct high level technical / risk pre feasibility analysis of each project2. Conduct high-level technical / risk pre-feasibility analysis of each project
3. Gather financial and GHG information on each project
4. Determine NPV and net emissions savings (NES) for each project
5. Develop the MACC (you will do this).
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACC
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACC
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACCE.G. T-5 RETROFIT
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACC
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACC
E.G. T-5 RETROFIT
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HOW TO BUILD A MACC
MACCS
HOW TO BUILD A MACC
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C St d R dl d Cit C ilCase Study: Redland City Council
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MACCS
CASE STUDYCASE STUDY
Development of a comprehensivecarbon inventory + organisation
specific MACC for a large local council in Queensland.
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CASE STUDY – CARBON FOOTPRINT (OVERVIEW)
MACCS
CASE STUDY – CARBON FOOTPRINT (OVERVIEW)
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CASE STUDY – CARBON FOOTPRINT (DETAIL)
MACCS
CASE STUDY – CARBON FOOTPRINT (DETAIL)
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CASE STUDY –TARGETS / OBJECTIVES
MACCS
CASE STUDY –TARGETS / OBJECTIVES
Corporate emissions reduction targets set:- based on 1998 levels- 25% by 2020- 50% by 2030-75% by 2050y
Objective:Model to determine out how does this translate intoannual emissions reduction targets?
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CASE STUDY –TARGETS / OBJECTIVES
MACCS
CASE STUDY –TARGETS / OBJECTIVES
Used carbon footprint and modelling to figure out what they need to achieve, now to plan how to do it most cost effectively...
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CASE STUDY – APPROACH
MACCS
CASE STUDY – APPROACH
2 MACCs created for purposes of legibility2 MACCs created for purposes of legibility- efficiency measures- fuel switching measures
• Two years of intensive eco-efficiency program meant theyneeded to look hard and outside the box for additional savings
• Data availability issues and typical people barriers.
• Electronic framework created for ongoing updating. g g p g
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UR
ES
MACCSY
ME
ASU
ICIE
NC
YE
FF
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HIN
GMACCSSW
ITC
HFU
EL
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CASE STUDY – FINDINGS
MACCS
Large scale solar, on-site wind, natural gas cogeneration, LED lighting and hybrid vehicles remain cost prohibitive technologies for now...
CASE STUDY – FINDINGS
Economics of solar and LED projects constantly changing…
Projects are hampered by cheap electricity rates and short asset life cycles
A large portion of ‘low hanging fruit’ has been ‘picked’ likely a consequence of A large portion of low hanging fruit has been picked , likely a consequence of achieving impressive reductions in recent years
Reductions getting harder to find and cheap ‘no regrets’ projects and their contribution are increasingly small.
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CASE STUDY – FINDINGS
MACCS
CASE STUDY – FINDINGS
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CASE STUDY – FINDINGS
MACCS
CASE STUDY – FINDINGS
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C b Ab t t Carbon Abatement Project Appraisal Exercise
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CARBON FOOTPRINT EXERCISE
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CARBON FOOTPRINT EXERCISE
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CARBON FOOTPRINT EXERCISE
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CARBON FOOTPRINT EXERCISE
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CARBON FOOTPRINT EXERCISE
Important notes!
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CARBON FOOTPRINT EXERCISE
Answer the following QuestionsAnswer the following Questions
1. What are your company’s Scope 1 and Scope 2 emissions in t/CO2e
2. Have any activities been excluded?
3. What is your company’s ‘carbon intensity’ in tCo2-e/$000?
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CARBON FOOTPRINT EXERCISE
PRESENTATIONS
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Viện Khoa học năng lượng (Việt Nam)Viện Khoa học năng lượng (Việt Nam)UQ SMART UQ SMART –– The University of Queensland (Australia)The University of Queensland (Australia)