s2-3 jcm_opportunities_hds

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Potential for JCM in Viet Nam: Sectors and Technologies By Ha Dang Son – Carbon Finance Expert (Vietnam) [email protected] Promoting Bilateral Mechanisms in Asia and the Pacific: A Workshop on the Joint Crediting Mechanism Hilton Opera Hanoi Hotel, 21-21 April 2015

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Page 1: S2-3 JCM_Opportunities_HDS

Potential for JCM in Viet Nam: Sectors and

TechnologiesBy Ha Dang Son – Carbon Finance Expert (Vietnam)

[email protected]

Promoting Bilateral Mechanisms in Asia and the Pacific:A Workshop on the Joint Crediting Mechanism

Hilton Opera Hanoi Hotel, 21-21 April 2015

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Outline• Overview• Carbon Finance Experience with CDM• How JCM can help?• Opportunities for JCM projects

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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 fisheryo38.31% in industry and constructiono43.31% in services• Agricultural land: 25.6m hectareso10.2m hectares production lando15.4m hectares forest land

(General Statistics Office, 2013)

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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.

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GHG emissions and removals in 2010 and projections to 2020 and 2030

Source: The Initial Biennial Updated Report of Vietnam to UNFCCC, 2014

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GHG emissions from energy and transport sectors

Source: ADB TA-7779 Mitigation Technical Working Paper, 2014

Main source of emissions: coals

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Clean Development Mechanism (CDM)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

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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)

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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

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“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?

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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 Þ Facilitate Low-carbon Technology Transfer

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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

Source: Vietnam’s Market Readiness Proposal, 2014

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GHG mitigation options in energy sector

Option GHG reduction potentials, MtCO2/yr

Costs, US$/tCO2 Remark

POWER GENERATION

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

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GHG mitigation options in energy sector

OptionGHG reduction

potentials, MtCO2/yr

Costs, US$/tCO2 Remark

BRICK Replacement of manual brick kiln 0.98 -14.39 VGGS, 2012CEMENT

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

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GHG mitigation options in energy sector

OptionGHG 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

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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, 20123R3G for rice 7.570 -291.64 VGGS, 2012Compost 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, 2012Biochar for peanut 0.013 -194.61 VGGS, 2012Biochar for sugar cane 0.024 -181.59 VGGS, 2012Compost for sugarcane 0.037 -167.26 VGGS, 2012Biochar for cassava 0.005 -163.72 VGGS, 2012

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GHG mitigation options in agriculture sector

OptionGHG 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, 2012Biochar for soybean 0.011 -6.24 VGGS, 2012

Compost for maize 0.014 -2.17 VGGS, 2012Biogas for livestock 1.460 4.62 VGGS, 2012Compost for soybean 0.010 8.88 VGGS, 2012Biochar for maize 0.280 61.31 VGGS, 2012AWD/SRI for rice 1.47 76.29 VGGS, 2012 and

Initial BUR, 2014

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GHG mitigation options in LULUCF sector

OptionGHG 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

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Thank you for your attention!