Challenges and Actions to Low Carbon Technologies Transfer. October 11th, 2016 Shuichi OZAWA Ministry of the Environment, Japan (MOEJ)

Transcription

1 Challenges and Actions to Low Carbon Technologies Transfer October 11th, 2016 Shuichi OZAWA Ministry of the Environment, Japan (MOEJ)

2 Challenges Towards Deployment of Low-Carbon Technologies at overseas Challenges MOEJ s Actions: 1. Definition of Leading Low Carbon Technologies 2. Initial Cost for Leading Low Carbon Technologies (technologies with securing quality on not only initial performance but operation and maintenance) 3. Mismatch of Needs and Costs of technologies 4. Effective Formation of Low Carbon Projects 1. L2-tech List 2. JCM(Model Project and ADB Trust Fund) 3. Innovation of Technologies for Developing Countries 4. City-to-City Collaboration (JCM Feasibility Studies) Establishment of Low-cost Business Model 1

3 1. L2-Tech List

4 What is L2-Tech L2-Tech refers to Leading Low-carbon Technologies, which represents leading element technologies reducing energy consumption or carbon dioxide emissions of equipment and instruments to which they are applied. They are supposed to be most effective for reducing energyoriginated CO2 emissions. Leading : That the element technology incorporated in the equipment or instruments, etc. is leading. That the combination or incorporation of the element technology(ies) is leading, even though it (they) may not be novel per se. That the efficiency has been dramatically improved in a short period. Low-carbon : Technology that has the maximum L2-Tech Standard efficiency in the equipment or instruments, etc.. 3

5 L2-Tech Standard as persuing the Best L2-Tech Standard = Commercialized Best efficient equipment No incentive for improvement Continuous incentive L Co. T Co. E Co. C Co. H Co. L Co. T Co. E Co. C Co. H Co. Image of the Standard Clearing Type (Fixed standard, passive) Image of the Pursuit of Best Type (Fluid standard (L 2 Tech Standard, proactive) Note: Standard is updated twice a year 4

6 Technologies in the L2-Tech List Industry and commercial Industry (sectorspecific manufacturing equipment etc.) Transportation Residential Energy conversion Waste treatment and recycling Air conditioning, heat sources, etc. Industries include iron and steel, chemical, paper and pulp manufacturing, petrochemical, automobile manufacturing, construction machinery, agricultural instruments (for cultivation), agriculture (horticultural facility) Automobiles (passenger cars, commercial vehicles, heavy vehicles), two-wheeled vehicles, railways, shipping, aircraft Domestic electrical appliances, water heaters, window glass, etc. Renewable energy, natural gas-fired power plants, etc. General wastes treatment, industrial wastes treatment, material recycling, sewage treatment, sewage sludge treatment, etc. 5

7 Structure of information on technologies and products in L2-Tech L2-Tech List is the list of equipment and instruments regarded as important for CO2 reduction by MOE L2-Tech Certified Product List is the list of products of L2-Tech List presenting highest CO2 reduction efficiency in the year Equipment and instruments that contribute to lowcarbonization (worldwide) High L2-Tech List Select important ones CO2 reduction Level Includes equipment and instruments superior in CO2 reduction for attaining target of 80% reduction by 2050 Standard evaluation is settable Settable Disable Standard evaluation Low L2-Tech Standard List High Indicates highest performance of superior products commercialized as L2-Tech Standard Products certified by MOE as presenting highest CO2 reduction efficiency L2-Tech Certified Product List Certify products used in equipment and instruments A B C G H I CO2 reduction Level Low 6

8 Example of L2-tech list : Co-generation 7

9 Example:L2-Tech of L2-tech level standard of co-generation level : Co-generation system Generation efficiency Gas engine Fuel cell Co-generation unit Gas turbine Gas engine type Generation efficiency % ~10kW kW~100kW kW~500kW kW~1000kW kW~3000kW kW~ 49.5 Gas turbine type Generation efficiency % ~3000kW kW~5000kW kW~7000kW kW~10000kW kW ~ 40.9 Generation capacity Fuel cell type Generation efficiency[%] 42.0% 8

10 Advantages of L2-Tech certification brings in products were certified in Summer 2015, and 1,377 in Winter 2015 Approach to users of L2-Tech products Expected users behavior Equipment Gas heat pump L2-Tech product XYZ123A-4 Offer informat ion Awareness Increase public awareness MOEJ make L2-Tech List and disseminate it Ensure producer reliability Appeal performance certified by MOE. Interest Strength en support Support for introduction and sales of L2-Tech products Possibility of support Subsidy from revenueof CO2 tax Support for technology development Introduction 9

11 2. JCM Model Project/ ADB Trust Fund

12 Basic Concept of JCM Leading low carbon technologies and mitigation projects JAPAN Partner Country Used to achieve Japan s emission reduction target GHG emission reductions/ removals Credits Operation and management by the Joint Committee 11

13 JCM in Japan s INDC The amount of emission reductions and removals acquired by Japan under the JCM will be appropriately counted as Japan s reduction in accordance with the Paris Agreement. Accumulated emission reductions or removals by FY 2030 through governmental JCM programs to be undertaken within the government s annual budget are estimated to be ranging from 50 to 100 million t-co2. 12

14 JCM Partner Countries 16 partner countries (as of May 2016) Mongolia Jan. 8, 2013 (Ulaanbaatar) Bangladesh Mar. 19, 2013 (Dhaka) Ethiopia May 27, 2013 (Addis Ababa) Kenya Jun. 12,2013 (Nairobi) Maldives Jun. 29, 2013 (Okinawa) Viet Nam Jul. 2, 2013 (Hanoi) Lao PDR Aug. 7, 2013 (Vientiane) Indonesia Aug. 26, 2013 (Jakarta) Costa Rica Dec. 9, 2013 (Tokyo) Palau Jan. 13, 2014 (Ngerulmud) Cambodia Apr. 11, 2014 (Phnom Penh) Mexico Jul. 25, 2014 (Mexico City) Saudi Arabia May 13, 2015 Chile May 26, 2015 (Santiago) Myanmar Sep. 16, 2015 (Nay Pyi Taw) Thailand Nov. 19, 2015 (Tokyo) 13

15 JCM Model Projects by MOE Government of Japan Finance part of an investment cost (less than half) MRV and deliver at least half of JCM credits International consortiums (which include Japanese entities) 14

16 Examples of JCM Model Projects Indonesia Vietnam Vietnam Waste heat recovery in the Cement plant Mongolia Palau Eco-driving with digital tachograph High efficient transformers in power distribution Indonesia High efficient boiler for heating Solar PV installation on the building roof top Gas Engine Co-generation system at the automobile assembly plant 15

17 JCM Financing programs by MOEJ (FY2013/2014/2015) as of July 15, 2016 Thailand: Energy Saving at Convenience Store Solar PV on Factory Rooftop Upgrading Air-saving Loom Centrifugal Chiller & Compressor Co-Generation in Motorcycle Factory Centrifugal Chiller in Tire Factory Air Conditioning System & Chiller Refrigeration System Ion Exchange Membrane Electrolyzer Chilled Water Supply System LED Lighting to Sales Stores Waste Heat Recovery in Cement Plant Co-generation System Refrigerator and Evaporator Solar PV and EMS in Paint Factory 3.4MW Solar PV Bangladesh: Centrifugal Chiller Loom at Weaving Factory PV-diesel Hybrid System 50MW Solar PV Power Plant Centrifugal Chiller Air-conditioning system Myanmar: Waste to Energy Plant Brewing Systems to Beer Factory Once-through Boiler in Instant Noodle Factory Saudi Arabia: Electorolyzer in Chlorine Production Plant Mongolia: Heat Only Boiler (HOB) 10MW Solar PV Laos: REDD+ through controlling slush-and-burn Palau: Solar PV for Commercial Facilities Solar PV for School Solar PV for Commercial Facilities Ⅱ 2.1MW Solar PV in Farm 8.3MW Solar PV in Farm Viet Nam: Digital Tachographs Amorphous transformers Air-conditioning in Hotel Air-conditioning in Lens Factory Container Formation Facility Electric Furnace Solar PV in Shopping Mall Amorphous transformers 2 Air-conditioning Control System Electricity Kiln Waste Heat Recovery in Cement Plant Water Pumps Energy saving Equipment in Lens Factory Amorphous transformers 3 Energy Saving Equipment in Wire Production Factory Mexico: 4.8MW Power Generation with Methane Gas Recovery System Costa Rica: 5MW Solar PV Chiller and Exhaust Heat Recovery System Ethiopia: Biomass CHP Plant Kenya: Solar Diesel Abatement Projects 6MW Hydropower Generation Solar PV at Salt Factory Maldives: Solar Power on School Rooftop Smart Micro-Grid System Malaysia: Solar PV Model project in FY 2013 (3 countries, 7 projects) Model project in FY 2014 (7 countries, 14 projects) ADB project in FY 2014 (1 country, 1 project) Model project in FY 2015 (10 countries, 34 projects) Model project in FY 2016 (9 countries, 28 projects) REDD+ Model Project (2 countries, 2 projects) Total 15 partner countries, 85 projects The underlined projects have been registered as the JCM projects (13 projects) these projects account for 2 registered JCM projects respectively, as they re operating in different sites Cambodia: LED Street Lighting Solar PV & Centrifugal Chiller 0.2MW Solar PV at International School 0.8MW Solar PV at International School Indonesia: Centrifugal Chiller at Textile Factory Energy Saving at Convenience Store Refrigerants to Cold Chain Industry Double Bundle-type Heat Pump Centrifugal Chiller at Textile Factory 2 Waste Heat Recovery in Cement Industry Solar Power Hybrid System Regenerative Burners Centrifugal Chiller at Textile Factory 3 Old Corrugated Cartons Process Upgrading to Air-saving Loom Centrifugal Chiller in Shopping Mall Smart LED Street Lighting System Once-through Boiler System in Film Factory Gas Co-generation System Once-through Boiler in Golf Ball Factory Solar PV in Jakabaring Sport City REDD+ through controlling slush-and burn 10MW Hydro Power Plant Looms in Weaving Mill LED Lighting to Sales Stores Industrial Wastewater Treatment System Air-conditioning Utility System in Airport 16

18 ADB Trust Fund (JFJCM) MOEJ supports incremental cost of advanced low-carbon technologies for GHG emission reduction through contribution to ADB Trust Fund (JFJCM) MOEJ ADB JFJCM OCR/ADF* JCM Credits Grant (Max USD10MM) Loan/Grant *OCR: Ordinary Capital Resources, ADF: Asian Development Fund ADB projects in DMCs (which have signed bilateral documents for JCM with Japan) MRV 17

19 1 st Project adopted by JFJCM Use of Proceeds Location (Atolls and Islands) ADB Grant USD 38MM PV POISED Phase 1 5 islands Maldives ADB-administered Strategic Climate Fund (CIF SREP) USD 12MM Khurendhoo Goidhoo Buruni USD 50MM Vilingili European Investment Bank Islamic Development Bank USD 10MM Grid Diesel Addu After Phase 2 Total 160 islands Improvement of energy efficiency and reduction of energy-derived CO2 emission in Addu JFJCM (Japan Fund for JCM) USD 5MM EMS *POISED: Preparing Outer Islands for Sustainable Energy Development Lithium-ion Battery Addu Addu has a population of over 23,000 inhabitants, the second largest habited island in Maldives. 18

20 3. Innovation of Technologies for Developing Countries

21 Subsidy program for innovation of low carbon technologies for developing countries Background, Objectives - Excellent low carbon technology is in high demand in developing countries and essential to strengthening global climate change countermeasures. - However such technology may not be appropriate to be introduced in the market of developing countries due to the difference of environmental regulations and systems, cultural practices and restriction of energy resources. - The program aims to fundamentally improve technologies in order to meet the requirement of developing countries, and realize low carbon society, promote International expansion of technology, as well as reduce CO 2 emission. - The innovation process in the program will lead to technology development in Japan and dissemination its technologies in other regions. Subsidy Scheme Target: Private organization (subsidy:1/2~2/3 of whole project budget) Implementation period: Maximum 3 years Other developing countries MOEJ Support Example of the technologies Japanese Company Summary of subsidy program This program provides subsidies to private organizations for fundamental improvement of low carbon technologies in order to meet various requirements of the developing countries, such as environmental regulations and system, cultural practices and restriction of energy resources. Expected impact - Scale-up utilization of the Joint Crediting Mechanisms (JCM) - Diffuse appropriate low carbon technology in developing countries - Strengthen global competitiveness of excellent low carbon technologies For image only Building sector Infrastructure sector Consumer equipment sector Energy sector Low carbon technology at office and household Internal reflow Developing countries Fundamental improvement of excellent low carbon technology Low carbon technology at transport infrastructure system Water infrastructure technology Waste management technology Innovation Development of low carbon technology / demonstration Low carbon technology for air conditioning and refrigerator system Heat pump technology Market deployment and dissemination Renewable energy, cogeneration technology Independent / distributed low carbon energy system 20

22 EV bus in Cat Ba Island, Hai Phong, Vietnam Support the development of a sightseeing EV bus suitable for mountainous topography and high temperature and humidity Core technologies: Battery charge from PV with unique charging control, auto-body with aluminum alloy, CIGS PV favorable for cloudy climate STEP1 (2015) Introduction of 1 demo EV bus for further improvement STEP2 (2016) Introduction of 10 EV bus and PV at a local bus company Future(2017-) Introduction of 60 EV bus to accommodate increasing Transport demand. Cost is covered by admission fees. CIGS Flexible PV Charge Battery Station Revolving Replacement Copyright 2016 Google eco-friendly transport system with renewable energy in Cat Ba island, registered as UNESCO biosphere reserve 21

23 4. City-to-City Collaboration and Establishment of Low-cost Business Model

24 City-to-City Collaboration as JCM Feasibility Studies The role of cities was articulated at COP21 and G7 environment ministers meeting It is necessary to establish low carbon societies (LCS) in developing and emerging countries in order to globally reduce GHG emission to achieve 2 degree target. City-to-city collaboration can realize continuous diffusion of advanced low carbon technologies as well as transfer of knowledge and know-how to foreign cities from Japanese municipalities with long-term support The Government of Japan emphasizes and supports the city-to-city collaboration Advanced low carbon technologies Transferred Japan s experience, knowledge and know-how Overcome of pollution and establishment of LCS Operation experiences of institutions and infrastructures Contribution to establishment of low carbon societies in JCM host countries Win-Win Relationship 23

25 Advantages of City-to-City Collaboration - Support project formation to realize low-carbon society based on City-to-City collaboration between a Japanese and a foreign municipality - Japanese cities, having overcome environmental challenges in the past, can provide their knowledge and technologies Cities in collaboration in (9 Japanese Cities with 17 partner cities) Yokohama city :Batam city (Indonesia) Bangalore city (India) Da Nang city (Vietnam), Bangkok city (Thailand) Kanagawa pref. :Siem reap province (Cambodia) Kitakyushu city :Phnom Penh city (Cambodia) Rayong (Thailand) Haiphong city (Vietnam) Iskandar (Malaysia) Surabaya city (Indonesia) Kawasaki city : Yangon city (Myanmar) Bandung (Indonesia) Fukushima city : Ayeyarwady (Myanmar) Sapporo city : Ulaanbaatar city (Mongolia) Osaka city : Ho Chi Minh city (Vietnam) Kyoto city : Vientiane city (Laos) Kobe city : Phu Quoc island (Vietnam) Achievements : the JCM Model Projects Process towards project formation Phase 1 Supporting Master Plan Development Phase 2 Project Finding Phase 3 Project Screening Phase 4 Feasibility Study JCM project formation Advantages of city to city collaboration -Japanese city with environmental experience support partner cities to establish master plan for low carbon development. -Local information is provided by partner city to conduct project findings effectively. -Partner city provides local knowledge and data to assess project potentials. -Permission procedures are facilitated, if necessary, by partner city -Resources for project implementation is arranged and provided by partner cities -Applying successful cases to other locations and/or cities Digital tachograph (Vietnam) Photovoltaics (Malaysia) Waste to Energy (Myanmar) City to City collaboration will facilitate low-carbon project formation efficiently. 24

26 FY2016 Feasibility studies with city-to-city collaboration Feasibility Study on JCM Project by City to City Collaboration 1. The study of high-efficiency heat pump installation projects for Energy-saving field and PV generation projects for RE* field in Mongolia (Ulaanbaatar City-Sapporo City/Hokkaido Prefecture) 2. The study of cogeneration and exhaust heat recovery projects for RE field in Vietnam (Hai Phong City-Kitakyushu City) 3. The study of PV generation projects for RE field and high-efficiency boiler installation projects for Energy-saving field in Myanmar (Yangon City-Kawasaki City) 4. The study of water treatment system installation and WtE projects for RE field in Myanmar (Pathein City-Fukushima City) 5. The study of biomass power generation projects and PV generation projects for RE field in Cambodia (Siem Reap State-Kanagawa Prefecture) 6. The study of WtE, cogeneration and exhaust heat recovery for RE field in Thailand (Rayong Province-Kitakyushu City) 7. The study of project formulation by assisting planning the action plan for the climate change strategy and projects for RE field and Energy-saving in Cambodia (Phnom Penh city-kitakyushu City) 8. The study of cogeneration projects for RE field and high-efficiency air conditioning system installation projects for Energy-saving field in Malaysia (Iskandar Development Region-Kitakyushu City) 9. The study of high-efficiency air conditioning system installation and heat desorption unit installation projects in Indonesia (Batam City-Yokohama City) *RE : Renewable Energy 25

27 Challenge to establishing low-cost matchmaking platform - For continuous formation of low-carbon projects, establishing cost-effective platform needs to be considered - MOEJ supports the formation of demonstrative matchmaking platform in India to promote BtB, BtF, and BtP relationship for low-carbon project development. Stakeholders from Supply Country Bilateral Matching Platform Stakeholders from Demand Country Policy Makers (Central/ Local Government Agencies) Policy Makers (Central/ Local Government Agencies) Businesses (Business associations, Business units, Multinational enterprises, etc.) Businesses (Business associations, business units, etc.) Funding Agencies (Banks, ESCOs, etc.) Funding Agencies (Banks, ESCOs, etc.) 26

28 Thank you for your attention!