JOINT CREDITING MECHANISM (JCM) IN VIETNAM

Transcription

1 JCM Open Seminar -Toward facilitating the JCM implementation- Tokyo, March 19, 2015 JOINT CREDITING MECHANISM (JCM) IN VIETNAM Le Ngọc Tuan Department of Meteorology, Hydrology and Climate Change Ministry of Natural Resources and Environment

2 CONTENTS 1. Joint crediting mechanism (JCM) 2. JCM in Vietnam 3. Advantages and disadvantages for implementing JCM in Vietnam 4. Promoting JCM

3 Joint crediting mechanism (JCM) Japan is an Annex I Party to the Kyoto Protocol, responsible for reducing the GHG emissions, but decided not to participate in the second commitment period of the Protocol; Japan created and proposed the Join Crediting Mechanism (JCM).

4 Joint crediting mechanism (JCM) Promoting transfer of Japan s low-carbon technologies, products with appropriate systems, services, and infrastructure to move towards sustainable growth in developing countries; Contributing to quantitative GHG emission reduction in developing countries and GHG emission commitments in developed countries (Japan); Contributing to UNFCCC ultimate goals for global GHG emission reduction.

5 Joint crediting mechanism (JCM) JCM starts as a non-tradable credit type mechanism Japan and its partner countries will continue to discuss on the transition to a tradable credit type mechanism at the earliest possible timing. JCM aims at concrete contribution to assisting adaptation effort for developing countries once JCM is converted into a tradable credit type mechanism. JCM is valid until a possible coming into effect of a new agreement under UNFCCC.

6 Joint crediting mechanism (JCM) GoJ Funding for demonstration and model projects MEOJ: 50% of investment costs for technology; METI and NEDO: 100% of investment costs for technology; purchase of technology after three years at a normal discount rate; New leapfrog development enabling program by MOEJ Japan Fund for the JCM (JFJCM ADB trust fund): To provide financial incentives for the adoption of the advanced lowcarbon technologies that are too expensive for the ADBfinanced projects Fund for expansion of low-carbon technologies: To finance JCM projects which have better efficiency of reducing GHG emission in collaboration with other projects supported by JICA or other Japanese entities.

7 Joint crediting mechanism (JCM) Japanese fund for JCM is channeled through: Ministry of Environment Japan (MOEJ): US$36 m ( ), US$72 m ( ); Ministry of Economy, Trade and Industry (METI) (via NEDO): US$61 m for FY2014;

8 Joint crediting mechanism (JCM) JFJCM: JPY 4.2 bn for FY2014 Fund for expansion of low-carbon technologies: JPY 1.8 bn for FY2014; grant for an individual project not exceed 10% of project cost.

9 Joint crediting mechanism (JCM) Criteria for selecting demonstration and model projects GHG emission reduction from fuel combustion; installation starts after grant approval and completes within 03 years (METI) Demonstration projects for effects of Japan s technologies/products installed and operated in the projects, in which GHG emission reductions are MRVed during the implementation of projects. Project participants must include parties from Japan and a host country. Only Japanese enterprises are eligible for registering demonstration and model projects.

10 Joint crediting mechanism (JCM) Energy industries Energy distribution; Energy demand; Agriculture Waste handling and disposal; Afforestation and reforestation; Chemical industry; Manufacturing industries; Construction; Mining/Mineral production; Metal production Fugitive emissions from fuels Fugitive emissions from production and consumption of halocarbons and sulphur hexafluoride; Solvents use; Others. Transport;

11 Joint crediting mechanism (JCM) Mongolia Bangladesh Ethiopia Kenya Maldives Vietnam 08/01/ /3/ /5/ /6/ /6/ /7/2013 (Ulaanbaatar) (Dhaka) (Addis Ababa) (Nairobi) (Okinawa) (Hanoi) Lao PDR Aug. 7, 2013 (Vientiane) Laos PDR 7,/8/2013 (Vientiane) Indonesia 26/8/2013 (Jakarta) Costa Rica 09/12/2013 (Tokyo) Palau 13/01/2014 (Ngerulmud) Cambodia 11/4/2014 (Phnom Penh) Mexico 25/7/2014 (Mexico City)

12 JCM in Vietnam 7/2013: MOU on Low-carbon growth between Vietnam and Japan 9/2013: 1 st meeting of the Joint Committee in Hanoi, approving JCM Guidance for the Implementation for the JCM and Rules of Procedure for JC;

13 JCM in Vietnam 02/2014: 2 nd meeting of the JC in Tokyo, Japan, several technical guidelines for implementing the JCM approved; several model projects for FY2014 selected; JCM Secretariat submitting to the JC application forms of TPE candidates; 09/2014: Presenting project methodologies; 01/2015: 3 rd meeting of the JC, three methodologies approved; Developing Vietnam s JCM website; Developing manuals for implementing JCM.

14 JCM in Vietnam 1. METI/NEDO-sponsored projects: FY2013: Highly Efficient Coal Power Plants Water purification/sludge reduction Energy recovery using organic waste Wind-Power generation Energy saving by inverter air conditioner optimum operation at public hospitals Energy saving by BEMS optimum operation at Hotel.

15 JCM in Vietnam 1. METI/NEDO-sponsored projects FY2014: Energy Efficiency Technologies for Integrated steel works Low-carbon technology for new community development in Vietnam Energy saving by introducing FRP ships and highefficiency engines Energy saving by inverter air conditioner optimum operation at public hospitals (from 2013) Energy saving by BEMS optimum operation at Hotel (from 2013).

16 JCM in Vietnam 2. MOEJ-sponsored projects: FY2013: Anaerobic digestion of organic waste for cogeneration at market Eco-driving by Utilizing Digital Tachograph System FY2014: Introduction of Energy-from-Waste Project in Ho Chi Minh City Saving energy by introducing optimum pumps 40MW hydropower plant in Lao Cai Recovery and utilization of biogas from treating mixture of waste and sludge Bagasse-based co-generation of power plant

17 2. MOEJ-sponsored Cooperation projects FY2014: Feasibility study on ecoisland between Kien Giang prov. And Kobe City; Building action plan for green growth in Hai Phong City in cooperation with Kitakyushu City; Low-carbon growth cooperation between HCMC and Osaka City. JCM in Vietnam

18 JCM in Vietnam 60+ demo, model projects and feasiblity studies since 2010; Three approved methodologies (2015): AM001 Transportation energy efficiency activities by installing digital tachograph systems AM002 AM003 Introduction of room air conditioners equipped with inverters Improving the energy efficiency of commercial buildings by utilization of high efficiency equipment

19 Advantages and disadvantages for JCM in Vietnam 1. Advantages International Support for mitigation actions in developing countries; Developing countries will have to cut down on GHG emissions; Difficulties for CDM carbon credit trading

20 Advantages and disadvantages for JCM in Vietnam National Policies for restructuring the economy towards green growth; GHG emission reduction activities prioritized; Vietnam s experience in implementing CDM projects; NAMA model projects and feasibility studies.

21 Advantages and disadvantages for JCM in Vietnam Opportunities from JCM Financial and technical support from Japan; Converting into low-carbon technologies; Restructuring the economy towards sustainble development and green growth; Environmental projection; GHG emission reduction; Increasing competitiveness of domestic enterprises and the country.

22 Advantages and disadvantages for JCM in Vietnam 2. Difficulties JCM relatively new and therefore, unfamiliar; Unproven JCM technical guidelines; Mechanism for distributing credits still unclear, esp. after converted into tradable credit type. Lack of information for Vietnam s enterprises.

23 Promoting JCM Cooperating with Japanese counterparts to review and strengthen the project procedures and financial mechanism; Developing JCM Circular in Vietnam guiding the project cycle and procedures; Forming technical advisory board for JCM; Organizing JCM introduction workshops to government agencies and business sector; Building a Vietnamese JCM website; developing and publishing JCM manuals.

24 Thank you! Vietnam JCM Secretariat Department of Meteorology, Hydrology and Climate Change Ministry of Natural Resources and Environment 10 Ton That Thuyet, Hanoi, Vietnam