Da Nang Climate Change Mitigation for Buildings (DaCliMB) project. 13 may 2014

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Da Nang Climate Change Mitigation for Buildings (DaCliMB) project Technical assistance for the Implementation of the Climate Change Action Plan in the City of Danang Focus on households and commercial buildings 13 may 2014 Client: Climate Change Coordination Office (CCCO) Head of CCCO : Dr Dinh Quang Cuong

PRESENTATION OF THE PROJECT Objectives, Work plan

WORK PLAN Phase 1: GHG emissions and energy assessment October 2013 March 2014 Phase 2: Identification of mitigation targets and pilot projects April July 2014 Phase 3: Methodology for replication July - September 2014 Data collection of official data Energy audit surveys of households and commercial buildings Analysis of results Identification of key sectors and energy saving/low GHG potential Benchmarking of energy efficiency projects for buildings and households in other cities similar to Danang Identification of mitigation / energy efficiency targets in two sectors Formulation of roadmap to achieve targets Formulation of priority mitigation projects Methodology for replication in other provinces/cities Phase 1 report Phase 2 report Phase 3 report 3

ORGANIZATION SET-UP NTP-RCC Steering Committee AFD Da Nang PPC Da Nang CCCO Consultant Team France Asconit Project Coordinator Vietnam Local Working Group: DOC, EVN, DISED, DOIT, DOST, DONRE, DSO Established by Da Nang Climate Change Steering Committee (Decision 129/QĐ-BCĐ) 4

PRESENTATION OF PHASE 1 RESULTS Energy consumption & GhG emissions Households and commercial buildings

DATA COMPILATION Primary Sources Ex: Electricity consumption 2005-2012, Urban Planning Strategies Ex: Urban Master Plan, DN Socio-economic Development Plan Results of other studies/ Projects Ex: DACRISS, ADB Project, APEC Lowcarbon study, etc. DaCliMB survey 250 households 6

INTRODUCTION GhG Emissions - Da Nang city 6 000 Residential 5 000 4 000 Wastewater Solide waste Residential tco2e 3 000 36% Commercial / institutionnal Transportation 2 000 Manufacturing industries Commercial 1 000 24% - 2010 2020 2030 Source: APEC 2013 Building sectors = a key sector in terms of GhG emissions By 2030, 36% of the total of GhG emissions of the Province 7

EXAMPLES OF RESULTS (RESIDENTIAL SECTOR) 1 600 1 400 + 28% 1 200 Final Energy consumption (GWh) 1 000 800 600 400 x 2 200-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 x 2 Hoa Vang Lien Chieu Cam Le Ngu Hanh Son Son Tra Thanh Khe Hai Chau Electricity consumption: x 2 between 2007 and 2013 (EVN) By 2020, x 2 compared to 2013 8

EXAMPLES OF RESULTS (RESIDENTIAL SECTOR) Electrical consumption (kwh/hh/year) 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 - Hai Chau Thanh Khe Son Tra Ngu Hanh Son Cam Le Lien Chieu X 2 Hoa Vang Da Nang Total 2008 2014 Electricity consumption: 5 000 Other energy consumption: Final energy consumption (kwh/year/hh) 4 500 4 000 3 500 3 000 2 500 2 000 1 500 1 000 500 - Cẩm Lệ Ha i Châu Liên Chiểu Ngũ Hành Sơn Sơn Tra Thanh Khê Wood LPG Coal Electricity 9

EXAMPLES OF RESULTS (RESIDENTIAL SECTOR) 10

EXAMPLES OF RESULTS (SERVICE SECTOR) 800 700 + 31% 600 Final Energy consumption (GWh) 500 400 300 200 x 2,5 100-2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Cultural & Sports Restaurants Hospitals Offices Commerces Admin Buildings Schools Hotels x 4,5 Electricity consumption: x 4,5 between 2007 and 2013 (EVN) By 2020, x 2,5 compared to 2013 Hotels + Commerces = 70% of the sector 11

EXAMPLES OF RESULTS (SERVICE SECTOR) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% Oils products LPG Electricity Energy consumption in hotels: 0% Complex 2 stars 3 stars 4 stars Electricity uses in hotels: Average electricity consumption 60 000 400 50 000 350 Uses 4 stars 3 stars 2 stars Complex Lighting 26% 13% 17% 23% Air 53% 47% 46% 48% conditioning Water 17% 27% 12% 12% heating Other 4% 13% 17% 17% Electrical Consumption (MWh) 40 000 30 000 20 000 10 000 300 250 200 150 100 50 N hotels - 2006 2007 2008 2009 2010 2011 2012 2013-12

EXAMPLES OF RESULTS (SERVICE SECTOR) 13

EXAMPLES OF RESULTS (GhG EMISSIONS) Goal to reduce GhG Emissions in 2025: -20% Consistency with National Green Growth Strategy (-2% / year) How to achieve this goal in building sectors? The potencial of mitigation is much higher when the project is in the design phase 14

CONCLUSION NEXT STEPS AND OPPORTUNITIES

CONTEXT AND PERSPECTIVES Current Weaknesses Low electricity tariff Limited capacities of EE office (central level) Lack of awareness at local level Dichotomy between legal framework and actual application Expected evolution 2013: Decision of the PM to increase tarif +22% by 2015 PMR: Partnership for Market Readiness (ADB- WB) Numerous top-down EE projects: Da Nang pilot city Strategies and Action Plans by sector/ province 16

NEXT STEPS Identification of mitigation / energy efficiency targets Formulation of roadmap to achieve targets Formulation of priority mitigation projects 17

EXAMPLES OF PROJECT OPPORTUNITIES Audit campaigns EE in new buildings Targets: public buildings, affordable housing (public or private) Large «eco-village» / «smart city» Project Target: according to the Master Plan Improve EE in existing building Retrofitting Target: administrative housing Environmental certification Targets: new administration center, hotels Capacity Building Target: DOC, Architects, etc. Implementation of QCVN 09:2013 (EEBC) Technical Assistance Target: EE project in parallel Raising Awareness Projects 18

FINANCING OPPORTUNITIES AFD in Da Nang DaCliMB DDIF Public funding i.e. for audits Phase 2: Project identification Funding Tool Other donors JICA WB-ADB Proposal for Market Readiness Other AFD funding tools: FEXTE: Technical Expertise Tool MHB Credit Line: for affordable housing Opportunity for Decentralized cooperation with a French coastal city 19

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