Uy Kamal Deputy Director, Ministry of Environment Cambodia

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1 Fourth workshop on enhancing the regional distribution of CDM projects in Asia and the Pacific Opportunities for CDM and carbon markets post September 2013 ADB Headquarters, Manila, the Philippines S B U Kamal Deput Director, Ministr of Environment Cambodia

2 This Standardized Baseline (SB) is made available for Cambodia through cooperation and assistance of the Market Mechanism Group, Institute for Global Environmental Strategies of Japan.

3 Cambodia is abundant with small and medium scale rice mille that are unable to appl for CDM due to technical and financial barriers. It is expected that SB can helps in: Reducing transaction cost Enhancing transparenc, objectivit and predictabilit Facilitating access to CDM Scaling up the abatement of GHG emissions

4 Barriers PoAs Standardized baselines Long process in project registration and CER issuance Project development for small scale projects Transaction cost (e.g. registration fee, variation and verification fee, data collections) Additionalit demonstration -Not required an approval of DNA and consideration b EB for inclusion of CPAs -Scale up b aggregation of CPAs makes cost effective and access to finance -No registration fee for additional CPAs -DOE check onl the eligibilit criteria for additional CPAs -Time for each steps will be reduced in the registration process -Transaction cost will be reduced b reducing demonstration and check items - -Not required Baseline identification - -Not required Emission reductions calculation - -Available of approved baseline emission factor -

5 Background Information on SB DNA submitting this form: Cambodia (MoE) Developer of the standardized baseline: IGES Part or Parties to which the standardized baseline applies: Cambodia Sector to which the proposed standardized baseline applies: Rice mill sector

6 The final report was submitted to EB b MoE on 25 Sept The second Submission (after comment from CDM team) was on 7- Jun. 2013

7 SB development activit was started in late 2011 Cambodia, according to the statistic, has about 27,000 rice millers entire the countr ranging from the small moving unit to large installment. Not available data for SBs => Sampling surve

8 Required data for the establishment of the SB: - Status of use of fuel(energ source) and technolog for operating a rice mill factor - Parameter for the rice mill sector s emission factor; Qt. of fuel consumption, Qt. of rice production, tpe of fuel (energ source), CO 2 emission factor/net calorific value b fuel(ipcc) The required specific data was collected base on a set of questionnaire from 92 rice millers.

9

10 Technolog 1: Power Driven b diesel engine Rice mill factor Diesel Diesel engine Power Rice mill machines Power Dnamo Electricit Appliances Lighting Generator t1, t1, DC m ( DD t1, MR MR MR CO2, diesel ) 10 3 Where: t1, t1, DC t1, = t-CO 2 /t-rice Emission Factor of Technolog 1 in ear (t-co2/t-rice) Emission Factor of rice mill m adopting Technolog 1 in ear (t-co2/t-rice) Quantit of diesel consumption in rice mill m in ear (l) DD Densit of diesel ( kg/l (International Energ Agenc et al, 2004)) CO2,diesel MR CO 2 emission factor of diesel (3.2 kg-co 2 per kg of diesel, AMS-I.B.) Quantit of milled rice production in rice mill m in ear (t) M Rice mill adopting Technolog 1 Y The relevant ear N Number of rice mills adopting Technolog 1

11 Technolog 2: Electricit Supplied from Rural Electricit Entrepreneur Rice mill factor Electricit Rice mill machines Appliances Lighting t 2, t 2, m ( EC t 2, MR MR MR Electricit REE ) Where: t2, EC REE MR t2, = t-co 2 /t-rice CO 2 emission Factor of Technolog 2 in ear (t-co2/t-rice) Quantit of electricit consumption, supplied b a grid to a rice mill m in ear (MWh) Emission Factor of REE (Rural Electricit Entrepreneur) (0.8t-CO 2 /MWh) Quantit of milled rice production in rice mill m in ear (t) M Rice mill adopting Technolog 2 Y The relevant ear N Number of rice mills adopting Technolog 2

12 Technolog 3: Power Driven b a dual mode engine and rice husk gasification Rice mill factor Diesel Power Rice mill machines Rice husk Gasifier sstem Gas Dual fuel mode engine Power Dnamo Appliances Lighting Generator Electricit t3, t3, DC m DD ( t3, MR MR CO2, diesel MR ) 10 3 Where: t3, t3, = t-co 2 /t-rice Emission Factor of Technolog 3 in ear (t-co2/t-rice) t3, Emission Factor of rice mill m adopting Technolog 3 in ear (t-co2/t-rice) DC Quantit of diesel consumption in rice mill m in ear (l) DD Densit of diesel ( kg/l (International Energ Agenc et al, 2004)) CO2,diesel CO 2 emission factor of diesel (3.2 kg-co 2 per kg of diesel, AMS-I.B.) MR Quantit of milled rice production in rice mill m in ear M Rice mill adopting Technolog 3 Y The relevant ear N Number of rice mills adopting Technolog 3

13 Technolog 4: Electricit generated b steam turbine with rice husk combustion Rice mill factor Rice husk Boiler Steam turbine Generator Electricit Rice mill machines Appliances Lighting Surplus steam Dring padd Emissions from this technolog are zero t-co 2 This technolog does not consume an fuel other than rice husk, a b-product of the milling process.

14 Energ generation technolog of rice mill sector in Cambodia Technolog 1 Technolog 2 Technolog 3 Technolog 4 Power-driven b a diesel engine Electricit supplied from REE Power-driven b a dual mode engine and rice husk gasification Electricit generated b steam turbine with combustion of rice husk High Carbon intensit Technolog %, t-CO2/t-rice Technolog 2 5%, 0.036t-CO2/t-rice Low Technolog 3 4.2%, t-CO2/t-rice Technolog 4 0%,0t-CO2/t-rice 0% 20% 40% 60% 80% 90% 100% % of rice produced Criteria for baseline Criteria for Additionalit

15 USD/t-rice Additionalit demonstration Cost comparison analsis in the first proposal Initial cost USD/t-rice Annual operating cost Technolog 1 Technolog 2 Technolog 3 Technolog 4 Baseline technolog Technolog < Technolog 1 Technolog 2 Technolog 3 Technolog 4 22 Additional Technolog Technolog 2,3,4 28 * Assumption: the mill of annual production 4,000t Cost comparison analsis was excluded finall, because Technolog 3 and 4 in this case can meet the criteria for automaticall additional. UP to 5 MW that emplo renewable energ as their primar technolog The geographic location of the project activit is in one of the LDCs Guidelines for demonstrating additionalit of microscale project activities

16 To be more conservative The PSB didn t include the measure of methane avoidance, which ma occur from deca of rice husks under anaerobic conditions. Level of aggregation: Cambodia Data were collected from the entire countr (in the sampling of the original submission, Kampong Thom was not included; the second round sampling covered Kampong Thom).Disaggregation according to annual rice production is proposed: Small-middle Semi-large Large 1000t >1000t 3000t >3000t Note: No standardized baselines are proposed rice mills with more than 3000 tons of annual rice production

17 To be more conservative Baseline Emission Factor Option 1: The baseline emission factor (tco2/t rice) is determined for small-middle mills ( 1000t) and semilarge mills (>1000t 3000t) separatel, at both 80 th and 90 th percentile: Small-middle Semi-large 1000t >1000t 3000t 80% %

18 To be more conservative Option 2: An alternative approach for baseline emission factor (tco2/t rice) was proposed for all mills, using a loglinear regression function between rice productions (t) and CO2 emissions (t). BE CO2, MR BL BL, MR DD MR CO2, diesel CO2, ( BE MR ) BL, Emission Factor of Baseline Technolog (Technolog 1) in ear (t-co2/t-rice) DC Quantit of diesel consumption in rice mill m in ear (l) DD Densit of diesel ( kg/l (International Energ Agenc et al, 2004)) CO2,diesel MR m CO 2 emission factor of diesel (3.2kg-CO 2 per kg of diesel, AMS-I.B.) Quantit of milled rice production in rice mill m in ear Rice mill adopting Baseline Technolog The relevant ear

19 The SB seems ver appropriate with Small-middle and Semi-large categories of rice mill, The above rice mills ma need to have special financial support in order to engage them with PoA and new technologies, Development of SB is basicall for CDM PoA, using it in other carbon credit mechanisms remains a question, Rice husk is a potential renewable energ that could help reducing production cost of milled rice, which is an important factor for improving competition of rice market of Cambodia.

20 THANK YOU! Cambodia s DNA Tel: (855-23) Fax: (855-23) ETAP@online.com.kh, cceap@online.com.kh

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