Progress on the Development of a Voluntary Carbon Market in Thailand

Transcription

1 4 th Workshop on Enhancing the Regional Distribution of CDM Projects in Asia and the Pacific Opportunities for CDM and carbon markets post-2012 SESSION 5: Emerging International Markets and Mechanisms 5 September ADB Headquarters, Manila, the Philippines Progress on the Development of a Voluntary Carbon Market in Thailand Thailand Greenhouse Gas Management Organization (Public Organization) Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)

2 Content 1. Domestic Voluntary Carbon Market in Thailand 2. Thailand Voluntary Emission Reduction Program (T-VER) 3. Thailand Voluntary Emission Trading Scheme (Thailand V-ETS) Thailand Greenhouse Gas Management Organization (Public Organization) 2

3 Objectives of Establishing VCM 1. Support voluntary GHG reduction activities 2. Encourage private companies, who attempt to reduce their GHG emissions, implement costeffective GHG reduction activities 3. Learn how to manage domestic emission trading scheme / carbon offsetting program Thailand Greenhouse Gas Management Organization (Public Organization) 3

4 Structure of Voluntary Carbon Market in Thailand Voluntary Emissions Reduction Projects (VER) Thailand Voluntary Emissions Reduction Program (T-VER) Thailand Voluntary Emissions Trading Scheme (Thailand V-ETS) Type: Project-based Eligibility: Emissions Reduction Projects, Pre-registered CDM MRV: International standards (VCS, GS, etc.) Carbon Credit: VERs Registry: Standard Owners Buyers: International buyers Status: Existing Type: Project-based Eligibility: energy efficiency, etc. MRV: Domestic Carbon Credit: TVERs Registry: T-VER Buyers: Government / CSR companies / Brokers Status: launch in Oct 2013 Type: Cap-and- Trade Target: Industrial sector MRV: ISO / / Carbon Credit: Allowances Registry: ETS Buyers: Entities / Traders Status: launch in Oct 2014 Thailand Greenhouse Gas Management Organization (Public Organization)

5 Development of Infrastructure for VCM Registry System Incentives Subsidies Tax MRV System Measurement Validation Reporting Verification Thai VCM Buyers Organizations in public / private sectors Carbon Offsetting Program Industries Thailand Greenhouse Gas Management Organization (Public Organization) 5

6 Thailand Voluntary Emissions Reduction Program (T-VER) Thailand Greenhouse Gas Management Organization (Public Organization) (TGO) 6

7 Action Plan for T-VER Development 2012 Learn and develop MRV system (KVER/JVER) 2011 Develop T-VER general guidelines Develop MRV system T-VER methodologies Implement pilot project on EE in buildings. Develop registry system. Revise MRV system Develop more methodologies. Develop registry system. Launch T-VER Thailand Greenhouse Gas Management Organization (Public Organization) 7

8 Characteristics of T-VER GHG reduction projects Baseline-and-credit Size of project No limitation Can be bundled Carbon Credit TVERs (Thailand Verified Emission Reductions) Gas coverage CO 2, CH 4, N 2 O Crediting period 7 years for non-forestry project / 20 years for forestry project Co-benefit assessment checklist and additionality (under development) Thailand Greenhouse Gas Management Organization (Public Organization) 8

9 T-VER: Eligible Projects (1) Types of Project Energy Efficiency Alternative Energy Renewable Energy Potential list Efficiency improvement on electricity consumption and/or generation Efficiency improvement on heat consumption and/or generation GHG emissions reduction from utilization of Biodiesel GHG emissions reduction from utilization of Ethanol Electricity generation from renewable resources Heat generation from renewable resources 2 2 Thailand Greenhouse Gas Management Organization (Public Organization) 9

10 T-VER: Eligible Projects (2) Types of Project Waste Management Transportation Management Potential list Emissions reduction through landfill management Emissions reduction through fertilization of organic waste Waste to energy (RDF) Methane Capture from Wastewater Fuel switching in vehicles Emissions reduction through nonmotorized transportation Fuel switching in transportation system Energy saving vehicles Thailand Greenhouse Gas Management Organization (Public Organization) 10 1

11 T-VER: Eligible Projects (3) Types of Project Forestry and Green Area Agriculture Others Potential list Carbon capture through public parks and urban forests Vertical gardening Sustainable Forestation Agro-forestry Good fertilization practice in agricultural land Low carbon rice production from management of agricultural practices. Any type of project/activities approved by TGO 1 1 Thailand Greenhouse Gas Management Organization (Public Organization) 11

12 Link btw. CDM and T-VER Eligible project GHG reduction project starts after T-VER Program. GHG reduction project starts before T-VER Program, but not before Registered or validated CDM projects can apply for T-VER registration: Allow to use CDM methodologies Require to use T-VER s templates (PDD, monitoring, validation, verification) Validate and verify in accordance with T-VER s validation and verification guidelines. Thailand Greenhouse Gas Management Organization (Public Organization) 12

13 Procedures of T-VER project Develop PDD Validation Registration TVERs Issuance Verification Monitoring Thailand Greenhouse Gas Management Organization (Public Organization) 13

14 T-VER Manuals and Guidelines Monitoring and Reporting Guideline (MRG) and Validation and Verification Guideline (VVG) (ISO and simplify from CDM) Guidance for completing the monitoring report Templates for PDD, monitoring report, validation report, and verification report Thailand Greenhouse Gas Management Organization (Public Organization) 14

15 T-VER Scheme Framework TGO Board Methodology Sub-committee GHG Reduction Sub-committee 1 ~ 4 Registration Process 1 ~ 4 Certification Process 1 ~ 2 VVB Registration Process Methodology Technical WG Submit application, PDD, reports, evidencs 2 Submit application, 2 reports Inform PD Inform PD 4 Secretariat (TGO) 4 Approve registration Issue TVERs Project Developer (PD) Thailand Greenhouse Gas Management Organization (Public Organization) 3 3 Submit PDD for validation Approve VVB registration 1 Validation/ Verification Body (VVB) Submit monitoring report for verification Submit application

16 October 2013 Launch T-VER demonstration projects To test the approved methodologies, MRG, VVG, and templates, T-VER general guideline, co-benefit checklist, etc. At least 5 T-VER methodologies will be tested Energy Efficiency improvement on electricity consumption Renewable electricity generation Methane capture from anaerobic wastewater treatment for utilization or flaring Sustainable Forestation Good fertilization practices on agricultural land Thailand Greenhouse Gas Management Organization (Public Organization) 16

17 Thailand Voluntary Emissions Trading Scheme (Thailand V-ETS) Thailand Greenhouse Gas Management Organization (Public Organization) (TGO) 17

18 Action Plan for Thailand V-ETS Research Studies on calculation methodologi es for GHG emissions from industries Research Studies to Identify target industries and capsetting Identificati on of institutional framework / operating rules/ model for Thailand V- ETS / incentives Pilot project to develop MRV system for TVETS General guideline Institutional Framework Target setting Revised MRV system Launch Thailand V- ETS Thailand Greenhouse Gas Management Organization (Public Organization)

19 1. Incentives 5. Numbers of VVBs Key Success Factors 2. Transparent and standardized reporting system 4. Accreditation system for VVBs (ISO 14065) 3. Industry s knowledge on GHG calculation & reporting Thailand Greenhouse Gas Management Organization (Public Organization) 19

20 Thank You for Your Attention Carbon Business Office Thailand Greenhouse Gas Management Organization (Public Organization) The Government Complex, Building B, 9 th Floor, 120 Chaengwattana Road, Laksi, Bangkok Tel Fax sumon@tgo.or.th carbonmarket.tgo.or.th Thailand Greenhouse Gas Management Organization (Public Organization) 20