URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 2017
Author Ministry of Works and Human Settlements, with technical support from Axel Michaelowa, Perspectives
Collaborators National Environment Commission Secretariat
Acknowledgements A series of stakeholder consultations have been conducted during the elaboration of this LEDS, engaging both public and private sector actors, as well as development partners and other key stakeholders. We would like to acknowledge the inputs and time of all these stakeholders.
Technical editor Rebecca Carman, UNDP
Design Stefan Peterson, Words by Design
Disclaimer The views expressed in this publication are those of the author(s) and do not necessarily represent those of the United Nations, including United Nations Development Programme (UNDP), or their Member States.
This Low Emission Development Strategy (LEDS) was prepared under the UNDP Low Emission Capacity Building (LECB) Programme, with funding from the European Commission (EC), the German Federal Ministry for the Environment Nature Conservation, Building and Nuclear Safety (BMUB), and the Australian Government. The LECB Programme is a country-driven initiative that promotes essential cooperation between relevant institutions, engaging the public sector and industry in a concerted effort to design and implement approaches to low emission development that are consistent with national development priorities. Bhutan is one of the 38 countries participating in the programme.
COVER PHOTO CREDIT: TRAVFI / SHUTTERSTOCK URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY
2017 2
TABLE OF CONTENTS
List of Figures______4
List of Tables______5
Abbreviations and Acronyms______6
Policy Brief______7
1 Introduction______9
1.1 Objectives of the LEDS______10
1.2 Status of urban and rural settlements in Bhutan with regards to GHG emissions______11
2 Relevant policies for the development of urban and rural settlements______13
3 Current GHG emission levels and baseline scenario for human settlements______16
3.1 Historical GHG emissions from the energy sector______18
3.2 Historical GHG emissions from the building sector______19
3.3 Historical GHG emissions from the transport sector______22
3.4 Historical GHG emissions from the waste sector______22
3.5 How to account for emission reductions in electricity consumption______22
3.6 How to account for emission reductions in fuelwood consumption______23
3.7 Baseline energy and emission projections until 2030______23
3.7.1 Assumptions and baseline for the residential buildings sector______24
3.7.2 Assumptions and baseline for the transport sector______26
3.7.3 Assumptions and baseline for the solid waste sector______27
3.7.4 Assumptions and baseline for wastewater management______28
4 Mitigation potential in urban and rural settlements in Bhutan______29
4.1 Mitigation measures and mitigation potential in buildings______29
4.1.1 Green buildings and sustainable construction standards (building codes)______29
4.1.2 Fuel switch from biomass and LPG thermal energy to electricity______31
4.2 Mitigation measures and mitigation potential in transport______32
4.2.1 Electric/hybrid vehicles (replacing petrol/diesel cars)______32
4.2.2 Public mass transit______35 URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 3
4.3 Mitigation measures and mitigation potential in waste management______34
4.3.1 Solid waste management______34
4.3.2 Wastewater treatment______35
4.4 Estimation of the abatement costs______35
4.5 Evaluation of sustainable development co-benefits______36
4.6 Characteristics of rural vs. urban measures______37
4.7 Prioritization of mitigation measures______38
5 Strategic policies and measures to promote mitigation measures______40
5.1 Addressing the financial barrier______40
5.2 Addressing technological and capacity barriers______41
5.3 Addressing institutional barriers______42
6 Institutional structure for implementation of strategic measures to mobilize mitigation interventions______43
6.1 Institutional responsibilities______43
6.2 Institutional activities and timeframes for mobilization of mitigation under the LEDS______44
7 Conclusions and recommendations______46
8 References______49
Annex 1: Roles and responsibilities of existing institutions/agencies______51
Annex 2: Implementation plan for measures in human settlements LEDS______54 4
LIST OF TABLES AND FIGURES
List of figures
FIGURE 1: Generic structural hierarchy of Bhutan’s mitigation strategies and actions______10
FIGURE 2: Priority sectors in cities regarding greenhouse gas emissions______10
FIGURE 3: Energy Consumption in 2014 - Sectoral Break-up and Fuel Mix______12
FIGURE 4: Historical GHG emission development______16
FIGURE 5: Electricity consumption in Bhutan, 2014______17
FIGURE 6: Number of vehicles in Bhutan______18
FIGURE 7: Building typologies in Bhutan______18
FIGURE 8: Electricity consumption of buildings sub-sectors (in GWh)______19
FIGURE 9: Energy consumption mix and fuel mix for residential and commercial buildings, 2014_____ 20
FIGURE 10: Transport energy consumption mix and fuel mix for 2014______22
FIGURE 11: GHG emissions by sectors______22
FIGURE 12: Population and number of households, by district, 2017-30______24
FIGURE 13: Baseline emissions from heating/cooling in residential buildings until 2030 in Bhutan____ 24
FIGURE 14: Baseline fuelwood consumption until 2030 in Bhutan______25
FIGURE 15: Baseline emission from fuelwood consumption until 2030 in Bhutan______25
FIGURE 16: Baseline number of light vehicles until 2030 in Bhutan______26
FIGURE 17: Baseline emissions of light vehicles until 2030 in Bhutan______26
FIGURE 18: Baseline treated solid waste tuntil 2030 in Bhutan______27
FIGURE 19: Baseline emissions iof treated solid waste until 2030 in Bhutan______27
FIGURE 20: Baseline households connected to sewage systems until 2030 in Bhutan______28
FIGURE 21: Baseline emissions from wastewater treatment until 2030 in Bhutan______28
FIGURE 22: Generic mitigation actions in cities / human settlements______29
FIGURE 23: Emission reduction through reduced energy demand for cooling in lowland districts_____ 30
FIGURE 24: Emission reduction through reduced energy demand for heating in highland districts____ 31 URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 5
FIGURE 25: Emission reduction through replacement of woodfuel with electricity in Bhutan______31
FIGURE 26: Emission reduction through introduction of electric vehicles in Bhutan______32
FIGURE 27: Emission reduction through introduction of electric buses in Bhutan______33
FIGURE 28: Amount of solid waste treated in 2030______34
FIGURE 29: Emission reduction from solid waste management in Bhutan______35
FIGURE 30: Prioritization of mitigation measures______38
FIGURE 31: Overall emissions baseline of human settlements in Bhutan until 2030______46
FIGURE 32: Overall mitigation potential from human settlements in Bhutan until 2030______48
List of tables
TABLE 1: Prioritization of mitigation measures for human settlements in Bhutan______7
TABLE 2: Sectoral policies and strategies for sustainable development of urban and rural settlements___ 14
TABLE 3: Energy types used in residential and commercial buildings, 2014______19
TABLE 4: Transport sector fuel types______21
TABLE 5: Fuel-wise breakup of number of vehicles in Bhutan, 2013-16______21
TABLE 6: Grid emission factors for India______23
TABLE 7: Baseline projection of carbon emissions from energy related and non-energy related
emissions (kt CO2e)______23
TABLE 8: Overview of abatement cost estimations______36
TABLE 9: Selected co-benefits for prioritization of mitigation measures in human settlements______37
TABLE 10: Prioritization approach______39
TABLE 11: Prioritization of mitigation measures for human settlements in Bhutan______40 6
ABBREVIATIONS AND ACRONYMS
AAED Alternate Energy Division NAMA Nationally Appropriate Mitigation BAU Business as Usual Action CDM Clean Development Mechanism NCB National Council of Bhutan CDM EB Clean Development Mechanism NDC Nationally Determined Contributions Executive Board NEC National Environment Commission CER Certified Emission Reduction NGO Non-Governmental Organization CSMI Cottage, small and medium industries NKRA National Key Result Area DRE Department of Renewable Energy NSB National Statistics Bureau EDP Economic Development Policy Nu Bhutanese Ngultrum EE&C Energy Efficiency and Conservation PA Paris Agreement EF Emission Factor PCD Planning and Coordination Division EUR Euro PFC Perfluorocarbons FYP Five Year Plan PoA Programme of Activities GCF Green Climate Fund QA Quality Assurance GHG Greenhouse Gas QC Quality Control GDP Gross Domestic Product R&DD Research and Development Division GNH Gross National Happiness RDF Refuse Derived Fuel GNHC Gross National Happiness Commission RGoB Royal Government of Bhutan GWh Gigawatt hour RMA Royal Monetary Authority of Bhutan GWP Global Warming Potential SDG Sustainable Development Goals INDC Intended Nationally Determined SEA Strategic Environment Assessment Contribution SLCPs Short-Lived Climate Pollutants IPCC Intergovernmental Panel on Climate SWH Solar Water Heating
Change tCO2e Tonnes of carbon dioxide equivalent ISO International Organization for TERI The Energy and Resources Institute Standardization toe Tonnes of oil equivalent JCM Joint Crediting Mechanism tph Tons per hour KP Kyoto Protocol TSPM Total suspended particulate matter KPI Key Performance Indicators TVET Technical and Vocational Education and kWh Kilowatt hour Training LCD Low-Carbon Development TWG Technical Working Group LDC Least Developed Country UNDP United Nation Development LECB Low Emission Capacity Building Programme LEDS Low Emissions Development Strategy UNFCCC United Nation Framework Convention LPG Liquefied Petroleum Gas on Climate Change MoWHS Ministry of Works and Human Settlements MRV Measurement, Reporting and Verification MW Megawatt MWh Megawatt hour NAB National Assembly of Bhutan URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 7
POLICY BRIEF
The Royal Government of Bhutan (RGoB) is currently articulating its 12th Five Year Plan, which has the objective of a “Just, Harmonious and a Sustainable Society through Enhanced Decentralization”. Furthermore, since 2009, the RGoB has stated its determination to remain carbon neutral. These dual objectives are being challenged by a number of drivers, including a strong urbanization trend, growing population, and increasing wealth, which has led to higher demand for modern buildings, transportation services and consumer goods. Greenhouse gas (GHG) emissions from human settlements are expected to grow rapidly; mainly in the buildings, transport and waste management sectors.
Under the “business as usual” scenario, emissions are expected to increase from a range of 0.25-1.3 1 million tonnes of carbon dioxide equivalent (tCO2e) in 2018 to 0.5-2.0 million tCO2e in 2030 . About two- thirds of these emissions would come from the building sector, one-fifth from waste and the remainder from the transport sector.
This low emission development strategy (LEDS) prioritises 13 options to reduce GHG emissions based upon mitigation potential, costs, and sustainable development benefits (Table 1). Implementation of these measures could reduce emission by 15% from the baseline in 2030.
Table 1: Prioritization of mitigation measures for human settlements in Bhutan
Mitigation measure Rankings Recommended for rural (R) or urban (U) Mitigation Abatement cost Sustainable Overall areas potential (payback period) development benefits
Waste composting +++ +++ +++ 1 U + R
Energy efficient buildings +++ ++ +++ 2 U + R
Reduce, reuse and recycle ++ ++ +++ 3 U solid waste (3R)
Energy efficient street + ++ +++ 4 U lighting
Electric mass public ++ + +++ 4 U transport
Wastewater management + ++ +++ 4 U
Cable cars ++ + +++ 4 U
Energy efficient appliances ++ + ++ 5 U + R
Electric vehicles + + +++ 5 U
1 The volume of baseline emissions, as well as the mitigation potential for the different technical interventions proposed, strongly depends on the choice of emission factors in two contexts. The first one relates to the electricity grid, and the second one to the production of fuelwood. For electricity, theoretically either the (high) emissions intensity of the Indian electricity grid or the zero-emission of Bhutan’s hydroelectricity can be chosen. For fuelwood, the emission factor can either be its carbon content or zero, given that Bhutan’s sustainable forest policy makes fuelwood a renewable resource. 8
Mitigation measure Rankings Recommended for rural (R) or urban (U) Mitigation Abatement cost Sustainable Overall areas potential (payback period) development benefits
Solar PV + + +++ 5 U + R
Non-motorized transport + + +++ 5 U
Biofuels ++ + + 6 R
Landfill gas flaring + + + 7 U
Mobilization of these priority mitigation options will require policy and fiscal instruments that provide upfront financing for the incremental investment costs. However, the scarcity of domestic financial resources in Bhutan makes it imperative to also access foreign funds for implementation. Therefore, international public climate finance, as well as revenues from carbon market mechanisms, need to be harnessed. Moreover, government should act quickly to introduce efficiency standards for buildings, appliances and vehicles in order to accelerate no-regret mitigation options. URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 9
1 INTRODUCTION
The Kingdom of Bhutan is a landlocked country located in the Eastern Himalaya region. It shares borders with the Tibetan region of China in the north and India in the south, east and west. It has a total area of 38,394km2, which is mostly mountainous and heavily forested. Bhutan is classified as a least developed country (LDC), but has a goal to graduate to become a lower middle-income country by 2020. Guided by the philosophy of Gross National Happiness (GNH), Bhutan has always placed high priority on conservation and protection of natural heritage and ensuring sustainable socio- economic development. GNH is closely aligned with the concept of sustainable development, including equitable socio-economic development, preservation of culture, good governance and conservation of the environment. The 12th Five Year Plan, currently under preparation, has the objective of a “Just, Harmonious and a Sustainable Society through Enhanced Decentralization”.
In order to guide the country in its endeavour to protect the environment and transition to a sustainable low carbon development, the Royal Government of Bhutan (RGoB) has developed a number of low- emission development strategies (LEDS) for transport, industry, and energy efficiency, as well as Nationally Appropriate Mitigation Action (NAMAs) for waste, buildings, and transport. Collectively, these documents set out a pathway for climate-compatible development that reduces emissions below a business-as-usual scenario, while meeting economic and social development goals. They are the outcome of comprehensive, high-level and country specific processes.
Figure 1 illustrates the interplay between the different interventions. NAMAs are interventions that target specific sectors with carefully selected policy and project measures to reduce GHG emissions. They can be embedded in LEDS, which are broader strategies that address one or several sectors. LEDS also address risks, vulnerabilities and uncertainties associated with global climate change and the pressing development needs countries face as they pursue sustainable development. This overarching LEDS on human settlements has been prepared to ensure that the sectoral LEDS are complementing each other and aligning Bhutan’s low-carbon development actions. Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
1& Introduction' The*Kingdom*of*Bhutan*is*a*landlocked*country*located*in*the*Eastern*Himalaya*region.*It*shares*borders* with*the*Tibetan*region*of*China*in*the*north*and*India*in*the*south,*east*and*west.*It*has*a*total*area*of* 38,394km2,*which*is*mostly*mountainous*and*heavily*forested.*Bhutan*is*classified*as*a*least*developed* country*(LDC),*but*has*a*goal*to*graduate*to*become*a*lower*middleJincome*country*by*2020.*Guided*by* the*philosophy*of*Gross*National*Happiness*(GNH),*Bhutan*has*always*placed*high*priority*on*conservation* and*protection*of*natural*heritage*and*ensuring*sustainable*socioJeconomic*development.*GNH*is*closely* aligned*with*the*concept*of*sustainable*development,*including*equitable*socioJeconomic*development,* preservation*of*culture,*good*governance*and*conservation*of*the*environment.*The*12th*Five*Year*Plan,* currently*under*preparation,*has*the*objective*of*a*"Just,'Harmonious'and'a'Sustainable'Society'through' Enhanced'Decentralization”.* In*order*to*guide*the*country*in*its*endeavour*to*protect*the*environment*and*transition*to*a*sustainable* low* carbon* development,* the* Royal* Government* of* Bhutan* (RGoB)* has* developed* a* number* of* lowJ emission*development*strategies*(LEDS)*for*transport,*industry,*and*energy*efficiency,*as*well*as*Nationally* Appropriate*Mitigation*Action*(NAMAs)*for*waste,*buildings,*and*transport.*Collectively,*these*documents* 10 introduction set*out*a*pathway*for*climateJcompatible*development*that*reduces*emissions*below*a*businessJasJusual* scenario,*while*meeting*economic*and*social*development*goals.*They*are*the*outcome*of*comprehensive,* highJlevel*and*country*specific*processes.* * Figure 1: Generic structural hierarchy of Bhutan’s mitigation strategies and actions Figure*1:*Generic*structural*hierarchy*of*Bhutan’s*mitigation*strategies*and*actions*
* *
Figure*1*illustrates*the*interplay*between*the*different*interventions.'NAMAs'are'interventions'that'target' specific'sectors'with'carefully'selected'policy'and'project'measures'to'reduce'GHG'emissions.'They'can' 1.1 Objectivesbe' embedded' of the in' LEDS,' LEDS which' are' broader' strategies' that' address' one' or' several' sectors.* LEDS* also* address*risks,*vulnerabilities*and*uncertainties*associated*with*global*climate*change*and*the*pressing* development*needs*countries*face*as*they*pursue*sustainable*development.*This*overarching*LEDS*on* This document actshuman*settlements*has*been*prepared* as overarching frameworkto*ensure*that*the* for low-emissionsectoral*LEDS development*are*complementing*each*other* in rural and urban human settlementsand* aligning*Bhutan’s*lowin Bhutan. It aimsJcarbon*development*actions. at setting out the* main mitigation measures in sectors that are relevant for human settlements and seeks to integrate LEDS and NAMAs that are relevant in this
context. GHGs from human settlements are generatedPage*11* through three key sectors: buildings, transport and waste management. The building sector can be differentiated into residential and commercial/ institutional buildings. For transport, passenger and freight transport need to be distinguished. Direct GHG emissions are due to the use of fossil fuels in these three sectors, while in the waste sector methane emissions occur from decay of solid waste as well as from anaerobic processes in wastewater. But human settlements are not just emitters: buildings in Bhutan contain significant quantities of wood and sequester carbon, thus contributing to GHG mitigation.
This LEDS focuses on the following three sectors:
■■ Buildings (mainly energy for heating/cooling and cooking); ■■ Transport (mainly passenger transportation); and ■■ Waste (mainly municipal solid waste management).
Energy (power generation) has not been considered as Bhutan primarily relies upon hydropower, which does not generate significant emissions. Industries are located far away from settlements and are therefore also not considered in this overarching LEDS.
Figure 2: Priority sectors in cities in Bhutan for GHG emissions URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 11
A number of different policies, initiatives and studies exist for developing urban and rural settlements in Bhutan. The objective of this LEDS is to develop an emissions baseline for human settlements in Bhutan with a time horizon of 2030 and assessm the overall GHG mitigation potential in buildings, transport and waste for the period. Furthermore, the LEDS reviews and analyses the existing policy framework and identifies the most promising mitigation measures for human settlements. Subsequently, the mitigation measures were prioritised through close consultation with relevant stakeholders.
1.2 Status of urban and rural settlements in Bhutan with regards to GHG emissions
Bhutan is in a development phase of rapid transition from rural economy to urban society. In 2005, rural residents still constituted 69% of the total population. The average annual urban population growth rate has been around 4% since 2007, with the projection of 60% urbanization by 2020 (World Bank 2016). This trend has various social, economic and environmental impacts on the country, including generation of GHG emissions. For example, there are more than 44,000 vehicles in the capital city, Thimphu alone, and the total vehicle population in the country has grown from about 30,000 vehicles in 2005 to over 86,000 in 2017 (RSTA 2017).
Universal electrification has been achieved through a strong policy push, with more than 99.5% of Bhutan’s households connected to the grid (BPC 2016). This has led to a massive shift in household fuel use from wood, kerosene and Liquefied Petroleum Gas (LPG) for heating and cooking to electricity over the last decade, and is still ongoing in rural areas (DRE 2016). However, as fuelwood would be deemed to be almost a 100% renewable source as a result of Bhutan’s sustainable forest management practices, its replacement does not lead to GHG emissions reduction.
Electricity generation in Bhutan is 100% hydropower and thus emissions from electricity production are zero. As discussed in detail in LEDS for industrial sector (NEC, 2017) and below, this means that any activities reducing electricity use or increasing renewable electricity production do not generate mitigation benefits. Bhutan might therefore want to apply the higher emission factor of the Indian electricity grid, to which the bulk of Bhutan’s electricity production is exported, for calculating GHG emission reductions. On the other hand, if this approach is applied, replacing fossil fuel through electricity, e.g. in the context of replacing conventional vehicles by electric vehicles, becomes less attractive or even generates emissions increases.
Due to the mountainous nature of Bhutan, transport infrastructure is costly and difficult to maintain. The first roads were built only 60 years ago, and railways are absent. This means that all land transport is currently done with motor vehicles, which use fossil fuel. Even within settlements, providing a good road network is challenging due to steep mountainsides and lack of space. Fuel use is high due to steep gradients and low speeds which lead to inefficient motor use.
In 2014, the building sector consumed 270kt oil equivalent(toe), or 41.6% of the total energy consumed in Bhutan. Transport was responsible for 121 ktoe, or 18.6%of energy consumption (see Figure 3). Almost all the revenue earned from exporting electricity is spent on transport fuel import from India (DRE 2016).
ENERGY BALANCE AND FUEL MIX
ENERGY BALANCE AND FUEL MIX
Integration*of*low*emission*strategies*in*5. ENERGY BALANCEurban*and*rural*settlements*in*Bhutan AND FUEL* MIX * Integration*of*low*emission*strategies*in*5. ENERGY BALANCEurban*and*rural*settlements*in*Bhutan AND FUEL* MIX has*been*around*4%*since*2007,*with*the*projection*of*60%*urbanization*by*2020*(World*Bank*2016).*This* * he country’s energy supply mix shows In 2014, Bhutan consumed 650,220 TOE of energy. trend*has*various*that theresocial,*economic* is still a largeand*environmental*impact dependence on The highests*on*the*country energy consumption,*including*generation*of* is observed in theGHG * thermal energy (72%) out of which petro- building sector (270,356 TOE) which comprises of emissionshas*been*around*4.*For*example,*the country’s%*since*2007here*are*more*than* energy,*with*the*projection*of*60 supply mix shows44,000*vehicles*in*the*capital*city,*Thimphu*alone In % 2014,*urbanization*by*2020*(W Bhutan consumed 650,220orld* B TOEank * of2016) energy.,*and*.*This* the* total*trend*has*vehicle*population*in*the*country*various*leumthat products theresocial,*economic* is still contribute a largeand*environmental*impact dependence 21%,has*grown*from*about*30,000 followed on The41.58% highests*on*the*country of the energy total*vehicles*in*20 consumption energy,*including*generation*of* consumed is05*to* observed over in the * in 8 country6 theGHG,000 ** in* 201emissions7*(RSTA*2017.*byFor*example,*t thermalthe).* industrial energy here*are*more*than*consumption (72%) out of whichof coal petro and44,000*vehicles*in*the*capital*city,*Thimphu*alone- buildingwhile the sector energy (270,356 consumption TOE) which in the comprises industry,*and* sector ofthe* itstotal* derivativesvehicle*population*in*the*country* whichleum forms products 15% contribute and biomass 21%,has*grown*from*about*30,000 (36%) followed in 41.58%was 37.22% of the of total *thevehicles*in*20 energytotal consumption consumed05*to* over in (241,972 the* 8 country6,000 TOE).* in* Universal*eTthe buildinglectrification*has*been* sector.by the The industrial remaining consumption sourceachieved*through*a*strong*policy*push,*with of of energy coal and is whileThe transport the energy sector consumption follows*more*than* after in the the 9 industry9.5 industry%*of* sectorBhutan’s sector * 2017*(RSTA*2017).* households*connected*to*the*grid*(BPC*fromits electricity derivatives contributing which forms to15% 28% and of biomass the 201aggregate (36%)6).*This*has*led*to*a*massive*shift*in*household*fuel*use* in waswith 37.22%18.64% ofshare the totalin the consumption energy consumption (241,972 TOE).(121,218 from* fuelUniversal*eTthe mix building (Figurelectrification*has*been* sector. 31). The remaining sourceachieved*through*a*strong*policy*push,*with of energy is TheTOE) transport with the sectorremaining follows*more*than* 2.56% after being the99.5 industry consumed%*of*Bhutan’s sector in ag*- wood,*kerosene*and*Liquefied*Petroleum*Gas*(LPG)*for*heating*and*cooking*to*electricity*over*the*last* households*connected*to*the*grid*(BPC*from electricity contributing to 28% of the 201aggregate6).*This*has*led*to*a*massive*shift*in*household*fuel*use* withriculture 18.64% and share other in auxiliary the energy sectors consumption (Figure (121,218 32). from* decade,*and*is*still*ongoing*in*rural*areas*(DRE*2016).*However,*as*fuelwood*would*be*deemed*to*be*almost* wood,*kerosene*and*fuel mix (Figure 31). Liquefied*Petroleum*Gas*(LPG)*for*heating*and*cooking*to*electricityTOE) with the remaining 2.56% being consumed*over*the*last* in ag- a*100%*renewable*source*as*a*result*of*Bhutan’s*sustainable*forest*management*practicesriculture and other auxiliary sectors (Figure,*its*replacement* 32). decade,*and*is*still*ongoing*in*rural*areas*(DRE*2016).*However,*as*fuelwood*would*be*deemed*to*be*almost* does*not*lead*to*Figure 31: TotalGHG*emissions*reduction.* Energy Supply and* Fuel Mix a*100%*renewable*source*as*a*result*of*Bhutan’s*sustainable*forest*management*practices,*its*replacement* Electricity*generation*in*Bhutan*is*100%*hydropowerdoes*not*lead*to*Figure 31: TotalGHG*emissions*reduction.* Energy Supply and* Fuel* and*thusMix *emissions*from*electricity*production*are* zeroE.*lectricity*generation*in*Bhutan*is*100%*hydropower As* discussed* in* detail* in* LEDS* for* industrial* sector*and*thus* (NEC,**emissions*from*electricity* 2017)* and* below,* this*production* means* that*are* any* activities*reducing*electricity*use*or*increasing*renewable*electricity*production*zero.* As* discussed* in* detail* in* LEDS* for* industrial* sector* (NEC,* 2017)* and* belowdo*,*not*generate*mitigation*this* means* that* any* benefits.*activities*reducing*electricity*use*or*increasing*renewable*electricity*production*Bhutan*might*therefore*want*to*apply*the*higher*emission*factor*of*the*Indian*elecdo*not*generate*mitigation*tricity*grid,*to* which*the*bulk*of*Bhutan’s*electricity*production*is*exportedbenefits.*Bhutan*might*therefore*want*to*apply*the*higher*emission*factor*of*the*Indian*elec,*for*calculating*GHG*emission*reductionstricity*grid,*to*.*On* the*other*hand,*iwhich*the*bulk*of*Bhutan’s*electricity*production*is*exportedf*this*approach*is*applied,*replacing*fossil*fuel*through*electricity,*for*calculating*GHG*emission*reductions,*e.g.*in*the*context*of*.*On* replacing*conventional*the*other*hand,*if*this*approach*is*applied,*vehicles*by*electric*vehiclesreplacing*fossil*fuel*through*electricity,*becomes*less*attractive*or*even*generates*emissions*,*e.g.*in*the*context*of* increasesreplacing*conventional*.* vehicles*by*electric*vehicles,*becomes*less*attractive*or*even*generates*emissions* increases.* Due*to*the*mountainous*nature*of*Bhutan,*transport*infrastructure*is*costly*and*difficult*to*maintain.*The* first*roDue*to*the*mountainous*nature*of*Bhutanads*were*built*only*60*years*ago,*and*railways*are*absent.*This*means*that*all*,*transport*infrastructure*is*costly*and*difficult*to*maintain.*The*land*transport*is* currently*first*rodone*ads*were*built*only*60*years*ago,*and*railways*are*absent.*This*means*that*all*with*motor*vehicles,*which*use*fossil*fuel.*Even*within*settlements,*providing*a*good*road*land*transport*is* network*is*challenging*due*to*steep*mountainsides*andcurrently*done*with*motor*vehicles,*which*use*fossil*fuel.*Even*within*settlements,*providing*a*good*road**lack*of*space.*Fuel*use*is*high*due*to*steep*gradients* network*is*challenging*due*to*steep*mountainsides*and*lack*of*space.*Fuel*use*is*high*due*to*steep*gradients* and*low*speeds*which*lead*to*inefficient*motor*use.* 12 and*low*speeds*which*lead*to*inefficient*motor*use.introduction * In*2014,*the*building*sector*consumed*270kt*oil*equivalent(toe),*or*41.6%*of*the*total*energy*consumed*in* In*2014,*the*building*sector*consumed*270kt*oil*equivalent(toe),*or*41.6%*of*the*total*energy*consumed*in* Bhutan.*Transport*was*responsible*for*121*ktoe,*or*18.6%of*energy*consumption*(see*Figure*3).*Almost*all* BhutanFigure.*T 3:ransport* Energy consumptionwas*responsible*for*121* in 2014, by sectorktoe,*or and fuel*18.6% mix of*energy*consumption*(see*Figure*3).*Almost*all* the*revenue*earned*from*exporting*electricity*is*spent*on*transport*fuel*import*from*India*(DRE*2016).* Figurethe*revenue*earned*from*exporting*electricity*is*spent*on*FigureSOURCE: DRE32: (2016)32: Energy Energy Consumption Consumption inin 20142014 - Sectoraltransport* Break-up Break-upfuel*import*from and and *FIndia* uelFuel (DRE*2016).Mix Mix *
16,674 16,674
180,092180,092
241,972 241,972
* * Figure'3:Energy'consumption'in'2014,'by'sector''and'fuel'mix' Figure'3:Energy'consumption'in'2014,'by'sector'48 |BHUTAN'and' ENERGYfuel'm ixDATA' DIRECTORY 2015 48 |BHUTAN ENERGY DATA DIRECTORY 2015 Source:*DRE*(2016)* Source:*DRE*(2016)* * *
Page*13* Page*13* URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 13
RELEVANT POLICIES FOR THE 2 DEVELOPMENT OF URBAN AND RURAL SETTLEMENTS
This section outlines key legislation and policies that can contribute to sustainable development of urban and rural settlements.
Overarching policy documents include:
i) The Constitution of the Kingdom of Bhutan 2008 enshrines Gross National Happiness (GNH) as a principle of state policy, where it spells out the duties and rights of the parliament, the government, and the people to safeguard and enhance environment. Among other duties, the constitution requires government to secure ecologically balanced sustainable development while promoting justifiable economic and social development and ensure a safe and healthy environment. The constitution also mandates people to contribute towards protection of the natural environment and prevention of all forms of ecological degradation including noise and visual and physical pollution through the adoption and implementation of environmentally friendly practices and policies.
ii) The National Environment Protection Act (NEPA) 2007 establishes the legal requirement to ensure that development pursuits should take place within the limit of environmental sustainability.
iii) The Economic Development Policy (EDP) 2016 promotes a “green and self-reliant economy”. It identifies number of areas of economic opportunities, based on unique selling points, with the aim of creating employment opportunities.
iv) Carbon Neutral Declaration 2009. In December 2009, the Kingdom of Bhutan made a commitment to remain carbon neutral by ensuring that the emissions of GHGs do not exceed the sequestration capacity of the country’s forests. Bhutan committed to use soft power to mobilize resources for pursuing a development pathway that is in line with the overall development philosophy of GNH. 14 Relevant policies for the development of urban and rural settlements
v) National Strategy and Action Plan for Low Carbon Development 2012: This strategy defines an emissions baseline until 2040 and discusses mitigation options for all sectors of the Bhutanese economy.
vi) Intended Nationally Determined Contribution (INDC), 2015: Bhutan re-iterated the resolve to remain carbon-neutral and to undertake mitigation actions between 2020 and 2030, conditional on the provision of international support. Key mitigation areas include green buildings and smart cities, low carbon transport and sustainable waste management.
In addition, there are number of specific building, transport and waste sector-related policies and strategies (Table 2):
Table 2: Sectoral policies and strategies for sustainable development of urban and rural settlements
Policy / strategy / Target Description regulation area
Alternative Renewable Buildings, Aims to promote the following clean renewable energy technologies: solar (PV and Energy Policy 2013 transport, thermal), wind, bio-energy and geo-thermal, pico/micro/mini/small hydro, and waste waste to energy (WTE). The indicative targets for 2025 include: • electricity generation from solar (5 MW), • Wind (5 MW), • Biomass (5 MW); • Energy generation from biomass energy system (3 MW equivalent), • Solar thermal system (3 MW equivalent) and • Fossil fuel energy in transport sector (1000 kilo litres of oil equivalent) to be replaced by 111 GWh of electricity; 20% of state owned and 10% of private vehicle fleet to be encouraged to run on clean and green fuels by 2025.
Bhutan Green Building Buildings The Guidelines have been developed to motivate regulations, standards and projects Design Guidelines, 2013 to minimize negative impacts of buildings and encourage practices for green and sustainable construction.
Guidelines for Planning and Buildings, The document presents a guiding framework for the development of human Development of Human waste settlements by mainstreaming environment, climate change and poverty. The Settlements in Urban and recommendations are based on eco-friendly technologies, conservation, and resilience Rural Areas of Bhutan to against environmental hazards. minimise environmental impacts, 2013
National Energy Efficiency Buildings, The Policy aims at creating the framework to promote, govern and monitor energy and Conservation Policy transport efficiency and conservation activities. It also sets out energy savings targets in (draft), 2016 building, appliances, industry and transport sectors. Finally, it specifies institutional responsibilities.
Energy Efficiency Roadmap Buildings A 10-year roadmap for EE measures to be implemented by various agencies to enhance 2030, 2017 productivity and implement the INDC. The roadmap is mainly focused on buildings, industries and appliances.
Bhutan Green Transport and Transport Policy to promote electric vehicles as part of RGoB’s efforts to curb the dependency on Electric Vehicle Initiative fossil fuels and simultaneously address environmental issues by imposing heavy tariffs (EVI), 2014 on conventional vehicles, which are the major consumers of petroleum (DRE 2016). Shift from use of fossil fuel to clean hydro-power generated electricity is encouraged through implementation of tax exemption on electric vehicles. URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 15
Policy / strategy / Target Description regulation area
Low Emission Development Transport This LEDS describes the key initiatives with the potential to reduce GHG emissions from Strategy for the Transport the transport sector, as articulated in Bhutan’s NDC. Sector, 2017
Bhutan Transport 2040: Transport Incorporates all existing transport-related plans, policies, initiatives, and actions in Integrated Strategic Vision, Bhutan to create a long-term, integrated and comprehensive transport strategy for the 2013 next three decades. The overall vision is “to provide the entire population with a safe, reliable, affordable, convenient, cost-effective and environment-friendly transport system in support of strategies for socio-economic development”.
Waste Prevention and Waste This Regulation establishes procedures to implement the 2009 Waste Prevention and Management Regulation, Management Act by identifying roles and areas of implementation of the Implementing 2012 and Amendment 2016 Agencies for establishing a sound waste management system, including monitoring procedures at every organization level, through efficient collection, segregation, treatment, storage, transportation, reduction, reuse, recycling and safe disposal of solid, liquid and gaseous wastes. The regulation assigns costs in proportion to the waste volume generated from the point source or by degree of their hazardousness by levying fees, charges and fines for non-compliance and controls/ prohibits illegal dumping or releasing of waste into the environment.
Waste Prevention and Waste The purpose of the Act is to protect and sustain human health through protection of the Management Act, 2009 environment by: a) reducing the generation of waste at source; b) promoting the segregation, reuse and recycling of wastes; c) disposal of waste in an environmentally sound manner; and d) effective functioning and coordination among implementing agencies.
National Strategy Action Waste Bhutan wants to attain Zero Waste through maximizing resource recovery in the long Plan – Integrated Solid run by applying a 4 Rs strategy (reduce at source, reuse, recycle, and responsibility). Waste Management, 2006 Citizens are to participate in waste segregation and resource conservation to achieve and update 2014 maximum processing and landfill diversion. Realistic fees are to be levied from waste generators for waste collection, transfer, treatment and disposal. Public Private Partnerships are to serve as key vehicles for waste management. Extended Producers’ Responsibility for all non-recyclable products is to be introduced.
A number of other national policies with high relevance for human settlements are currently under elaboration and due for finalisation in late 2017 or early 2018. They include the National Hygiene and Sanitation Policy, Human Settlement Policy, National Construction Industry Policy and Spatial Planning Act. The need for a National Construction Act has also been prioritized.
A number of international donors have financed specific projects that can contribute to GHG mitigation in the human settlements sector. Most of these have taken place in Thimphu. Some of the ongoing initiatives include upgrading the city bus system, introducing electric and hybrid vehicles, upgrading the municipal solid waste management system, and building a composting plant and a new wastewater treatment plant.
Three NAMAs have been developed for the transport, waste management and buildings sectors for funding support. This LEDS took into account the NAMAs to create alignment with the envisaged measures. 16 Current GHG emission levels and baseline scenario for settlements
CURRENT GHG EMISSION LEVELS 3 AND BASELINE SCENARIO FOR SETTLEMENTS
Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
* By the end of 2013, Bhutan’s total GHG emissions reached 2.2 million tCO2e, an increase of 45% compared to the 1999 level (NEC 2016). Figure 4 shows the emission trend from 1999 to 2013. 3 Current'GHG'emission'levels'and'baseline'scenario'for'settlements' & Figure 4: By*the*end*of*2013,*Bhutan’s*total*GHG*Historical GHG emission developmentemissions*reached*2.2*million*tCO in Bhutan 2e,*an*increase*of*45%*compared* to*the*1999*level*(NEC*2016).*Figure*4'shows*the*emission*trend*from*1999*to*2013.** SOURCE: NEC (2016)
Total'GHG'emissions'(kt'CO2e) 3000
2500
2000
1500
1000
500
0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Year * As noted earlier, various sourcesFigure' of4:'Historical'GHG'emission'development GHG emissions are created within'in'Bhutan human' settlements, including direct
and indirect emissions. For electricity and Source:*wood NECfuel*(2016) use, *two scenarios are applied under this study: As*noted*earlier,*various*sources*of*GHG*emissions*are*created*within*human*settlements,*including*direct* ■■ SCENARIOand*indirect*emissions 1: Indian.* For*electricity*and*wood*fuel*usegrid emission factor for electricity,*two*scenarios*are and carbon*applied*under*this*study content in fuelwood:* AssumingScenario'1: any'Indian'grid'emission'factor'for'electricity'and'carbon'content'in'fuelwood electricity not consumed in Bhutan can be exported to' India, the emission reduction attributedAssuming* to any* the electricity* human not* settlements consumed* in* Bhutan*sector can*is the be* exported*Indian grid to* India,* emission the* emission* factor reduction* (see Chapter 3.5 for furtherattributed*to*the* details). Moreover,human*settleme assumingnts*sector* thatis*the*Indian*grid*emission*factor fuelwood not used for*(see*Chapter* the settlements3.5*for*further* sector would be availabledetails). *toMoreover,*a serve asssuming* a carbonthat* sinkfuelwood or used*not*used*for*the*settlements*s by the industry sectorector*would*be*available*to* in Bhutan (e.g. production of domesticserve*as*a*carbon*sink*or*used*by*the*industry*sector*in*Bhutan*(e.g.*production*of*domestic*charcoal) charcoal), the related emission reduction potential could be attributed,* the*to the settlement related*emission*reduction*potential*could*be*attributed*to*the*settlement*sector*(see*Chapter*3.6*for* sectorfurther*details) (see Chapter.* 3.6 for further details). ■ ■ SCENARIOScenario'2:' Zero'emission'factor'for'electricity'grid'and'fuelwood2: Zero emission factor for electricity grid 'and fuelwood Electricity produced in Bhutan is deemed to generate zero emissions, as well as biomass used for Electricity*produced*in*Bhutan*is*deemed*to*generate*zero*emissions,*as*well*as*biomass*used*for*fuelwood.* fuelwood. For*both*scenarios,*baseline*emissions*of*methane*are*treated*alike.*Degradation*of*bioJdegradable*waste* fractions*in*landfills*results*in*the*generation*and*release*of*methane.*Methane*has*a*Global*Warming*
Potential*(GWP100)*of*25*compared*to*carbon*dioxide*(GWP100*of*1).** GHG* emissions* not* included* under* the* scope* of* this* study* are* industrial* gases* (hydroJfluorocarbon* compounds)* resulting* from* the* release* of* refrigerants* from* refrigerant* equipment* or* release* of* foam* blowing*agents.*
Page*17* URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 17
For both scenarios, baseline emissions of methane are treated alike. Degradation of bio-degradable waste fractions in landfills results in the generation and release of methane. Methane has a Global
Warming Potential (GWP100) of 25 compared to carbon dioxide (GWP100 of 1).
GHG emissions not included under the scope of this study are industrial gases (hydro-fluorocarbon compounds) resulting from the release of refrigerants from refrigerant equipment or release of foam blowing agents.
Integration*of*low*emission*strategies*in*3.1Integration*of*low*emission*strategies*in* Historical GHG emissionsurban*and*rural*settlements*in*Bhutan fromurban*and*rural*settlements*in*Bhutan the energy sector * * * * Biomass continues to serve as the primary energy resource for Bhutan in the form of fuelwood, biogas 3.1and& 3.1 briquettes,Historical& Historical amounting'GHG'e'GHG'missions' to 234emissions' ktoefrom'the (36%).Thisfrom'the'energy is followed'energy'sector by 'electricity,sector' ' ' ' amounting to 180 ktoe (28%). Over the last decade, electricity consumption of an average Bhutanese has increased almost Biomass*continueBiomass*continues*to*serve*as*the*ps*to*serve*as*the*primary*energy*resource*for*rimary*energy*resource*for*BhutanBhutan*in*the*form*of*fuelwood,*biogas*and**in*the*form*of*fuelwood,*biogas*and* three times while annual fuelwood consumption has tapered off slightly. The majority of electricity briquettesbriquettes,*amounting*to*234,*amounting*to*234*ktoe*(36%).*ktoeThis*is*followed*by*electricity*(36%).This*is*followed*by*electricity,*amounting*to*180,*amounting*to*180*ktoe*(28%)*ktoe.*Over**(28%).*Over* is consumed by the industrial sector (83%), followed by by households (11%) and commercial and the*last*decade,*electricity*consumption*of*an*average*Bhutanese*has*increased*almost*three*the*last*decade,*electricity*consumption*of*an*average*Bhutanese*has*increased*almost*three*times*while*times*while* institutional buildings (6%) (Figure 5). During 2000-2013, emissions from the energy sector almost annual*an fuelwood*nual* fuelwood* consumption* consumption* has* tapered* has* tapered* off* slightly. off* slightly.* The* majority** The* majority* of* electricity* of* electricity* is* consumed* is* consumed* by* the* by* the* tripled from 0.27 million tCO2e to 0.79 million tCO e (DRE 2016). industrial*sector*(83%),*followed*by*industrial*sector*(83%),*followed*by*by*housby*eholdshous*eholds(11%)*2 *and(11%)**commercial*and*commercial*and*institutional*buildingsand*institutional*buildings*(6%)* *(6%)*
(Figure*5).Figure(Figure*5).*During*2000 5: Electricity*During*2000J 2013,*emissions*from*the*energy*sector*consumptionJ2013,*emissions*from*the*energy*sector* in Bhutan in 2014 almost*tripledalmost*tripled*from*0.27*million*tCO*from*0.27*million*tCO2e*to* 2e*to* 0.79*million*tSOURCE:0.79*million*t DRECO (2016),2e*(DRE*2016) REFERRINGCO2e*(DRE*2016) TO BPC.* POWER DATA.* HANDBOOK 2014
Electricity consumers, Electricity consumption, by user category numbers by user category share
* *
Figure'5Figure':Electricity'5:Electricity'consumption'consumption'in'Bhutan'in'in'Bhutan'in'2014' 2014' Comment'[RC3]:'Comment'[RC3]:'Stefan:*Please*revise*the*titles*of*the*pie*Stefan:*Please*revise*the*titles*of*the*pie* Passenger transportation in Bhutan is dominated by taxis that consume 2.25 million l petrol and 3.9 charts*to*be:charts*to*be:* * million l diesel annually. However, fuel use from freight transport exceeds that of passenger transport, * * Source:*Source:*DRE*(2016DRE*),*referring*to*(2016),*referring*to*BPC*Power*Data*Handbook*2014BPC*Power*Data*Handbook*2014* * Electricity*consumers,*by*user*category*numbersElectricity*consumers,*by*user*category*numbers* * with trucks consuming 4.9 million l and buses 4.3 million l (Ernst and Young 2015). Bhutan’s urban public Electricity*consumption,*by*user*category*shareElectricity*consumption,*by*user*category*share* * Passenger*ttransportPassenger*transportation* systemsransportation* arein*Bhutan* still developingin*Bhutan*is*dominated*by*is*dominated*by* to meet taxis*increasingthat*consume*taxis* demandthat*consume* 2.25*and customermillion*2.25*million*l*petrol*and*3.9*million* expectationsl*petrol*and*3.9*million* for higher l*diesel*qualityl*diesel*annually ofannually .service.*However,*f.* However,*fIn 2015,uel*use*from*f theuel*use*from*f Thimphureight*transport*exceeds* cityreight*transport*exceeds* bus service fleet that*of*passenger*transport,*withof 32 busesthat*of*passenger*transport,*with had 1 million rides (MOIC*trucks* 2015).*trucks* consuming*However,consuming*4.9*million* a World4.9*million*l*and*buses*4.3* Bank studyl*and*buses*4.3* estimatedmillion* thatmillion*l*(Ernst*and*Young taxisl*( accountErnst*and*Young for*2015 roughly).**2015Bhutan’s 28%).* Bhutan’sof* tripsurban*public*transport* per*urban*public*transport* day in Thimphu systems*are*still*developing*to*meet*increasing*demand*and*customer*expectations*for*handsystems*are*still*developing*to*meet*increasing*demand*and*customer*expectations*for*h bus services for only 6% of such trips (GNHC 2016). igher*quality*of*igher*quality*of* service.*service.*In*2015,*the*Thimphu*city*bus*service*fleet*of*32*buses*In*2015,*the*Thimphu*city*bus*service*fleet*of*32*buses*had*1*million*rideshad*1*million*rides*(MOIC*2015).**(MOIC*2015).*However,*However,* a*World*Bank*study*estimated*that*taxis*account*for*roughly*28%*of*trips*per*day*in*Thimphu*and*bus*Vehiclea*World*Bank*study*estimated*that*taxis*account*for*roughly*28%*of*trips*per*day*in*Thimphu*and*bus* numbers in Bhutan stabilized in the mid-2010s due to a temporary vehicle import ban (see services*for*Figureservices*for*only* 6), but6%*ofonly* have*such6%*of increased*tri*suchps*(GNHC*2016)* trisignificantlyps*(GNHC*2016).* since. *then, reaching over 86,000 vehicles in early 2017 (RSTA 2017). Vehicle*numbers*in*Bhutan*stabilized*in*the*Vehicle*numbers*in*Bhutan*stabilized*in*the*midJ2010smid*Jdue*to*a*temporary*vehicle*import*ban*2010s*due*to*a*temporary*vehicle*import*ban*(see*Figure*(see*Figure*
6),*but*have*increased*significantly*since*then6),*but*have*increased*significantly*since*then,*reaching*over*86,000*,*reaching*over*86,000*vehicles*vehicles*in*early*2017in*early*2017*(RSTA*2017).***(RSTA*2017).*** *
Page*18Page** 18* 18 Current GHG emission levels and baseline scenario for settlements
Figure 6: NumberIntegration*of*low*emission*strategies*in* of vehicles in Bhutan, 2001-2016urban*and*rural*settlements*in*Bhutan* SOURCE: MINISTRY* OF INFORMATION AND COMMUNICATION (2016)
90000
80000
70000 Bhutan Building Energy Efficiency Study
60000
50000
40000 Bhutan Building Energy Efficiency Study
30000Chapter 2: Building sector in Bhutan 20000 Chapter 2: Building sector in Bhutan 10000
The Building Sector0 in Bhutan is well known for its traditional architecture and extensive 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 The Building Sector in Bhutan is well known for its traditional architecture and extensive use of wood for construction. This chapter introduces the Building Sector, with deep focus use of wood for construction. This chapterTotal*vehicle*number introduces the Building Sector, with deep focus on typology of buildings,on typology ofconstruction buildings, construction techniques, techniques, use use ofof modernmodern and and traditional traditional materials materials* and other parametersand other parametersof building of buildingorientation orientation and *and form,form, andand identifies identifies the impact the ofimpact of urbanization and increased electrification on the energy performance of Building Sector in urbanization and increased electrificationFigure'6:'Number'of'vehicles'in'Bhutan on the energy performance,'2001=16' of Building Sector in 3.2 HistoricalBhutan. GHG emissions from the building sector Bhutan. Source:*Ministry*of*Information*and*Communication*(2016)* 2.1 Types of buildings in Bhutan 3.2 Historical'GHG'emissions'from'the'building'sector' Traditional Bhutanese&The types architecture, of buildings whichmay be identifieduses local based building on category materials, of use, is building highly constructionvalued (Figure 7). 2.1Building Types regulations of buildings therefore in encourage Bhutan use of traditional and local materials. In the construction of Traditional*Bhutanese*architecturetechnology or materials used.,* which*This varies*uses *fromlocal*building*materials one region to other ,*is*highly*valued*(depending on the Figure*type 7).*Building* rural houses, timber is used extensively, while urban and sub‐urban housing stock is dominated by The types regulations*of buildingsof climatictherefore* m zoneayencourage* thebe particularidentifieduse*of*traditional region based falls under. *onand*local category Buildings*materials.* may of broadlyuse,In*the*construction*of*rural*houses buildingbe categorized construction ,* reinforced‐concretetimber*is*used*extensively frame buildings,*while (with*urban*and*subJurban*housing*stock*is* infill walls) of up to six floors. dominated*by*reinforcedJconcrete*(DRE 2015) based on type of use as: technology frame*buildings*(with*infill*walls)* or materials used. This variesof*up*to* six*fromfloors one.*(DRE*2015) region* to other depending on the type Figure 2.1: Building typologies in Bhutan of Figureclimatic 7:Building zone typologies the particular in Bhutan region falls under. Buildings may broadly be categorized SOURCE: DRE (2015) based on type of use as:
Figure 2.1: Building typologies in Bhutan `
Residential building Commercial building Institutional building (Single ownership (Private office buildings, (Government buildings, bungalow type, apartment shops, hotels, academic institutions, type, quarters, etc.) restaurants, etc.) hospitals, etc.) * The buildings were carefullyFigure' observed7:Building'typologies'in'Bhutan during energy audit, which' revealed that there exists difference in type of construction ` of buildings in urban and rural areas. The urban buildings are Source:*DRE*(2015)* of a larger scale, and use of modern construction materials like glass and steel is widely seen, ResidentialThe*main*whereasenergy*consumption* building the rural structuresendCommercial Jadhereuses*in*the*residential*sector*are*cooking,*space*heating,*lighting,* to use of buildinglocal traditional materialsInstitutional and are generally building of a as* (Single ownership (Private office buildings, (Government buildings, well* as*smaller entertainment,* scale. In cold*rural storage,*areas, the etc. traditional* In* the* Sanon KhemJresidential* housessegment are prevalent,* energy* andis* a mainly* range of used* for* bungalow type, apartment shops, hotels, academic institutions, supplying*electricity*tovariations (especially*either* withcommercial*activities respect to building materials)*(such*as*shops*and*hotels can be observed. )The*or* urbaninstitution and al*activitiessub * type,(such*hospitals,*schools,* quarters, etc.) monasteries,*government*offirestaurants, etc.)ces,*and*municipal*services hospitals,).* etc.) urban housing stock is dominated by reinforced concrete (RCC) frame buildings (with infill‐ walls) up to 6 storeys high. A common feature of all types of construction in Bhutan is the The buildings were carefully observed during energy‐ audit, which revealed that there exists arrangement of an attic that is mostly left open. The light roof construction (mainly made of difference in type of construction of buildings in urban and rural areas. The urban buildings are timber, in few cases made of steel tubes, orPage* CGI)19 rests* upon posts made of timber, masonry or of a larger scale,RCC. and Common use of features modern of a constructionlarge percentage materialsof vernacular like building glass typologies and steel are sloping is widely seen, roofs (because of high probability of heavy snowfall), open attics (for storage and air circulation whereas the ruralpurposes), structures and large adhere openings to inuse exterior of local walls, traditionalespecially upper materials floors (to allow and for are natural generally of a smaller scale. Inlighting). rural areas, the traditional Sa Khem houses are prevalent and a range of variations (especially with respect to building materials) can be observed. The urban and sub 24 urban housing stock is dominated by reinforced concrete (RCC) frame buildings (with infill‐ walls) up to 6 storeys high. A common feature of‐ all types of construction in Bhutan is the arrangement of an attic that is mostly left open. The light roof construction (mainly made of timber, in few cases made of steel tubes, or CGI) rests upon posts made of timber, masonry or RCC. Common features of a large percentage of vernacular building typologies are sloping roofs (because of high probability of heavy snowfall), open attics (for storage and air circulation purposes), and large openings in exterior walls, especially upper floors (to allow for natural lighting).
24 URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 19
The main energy consumption end-uses in the residential sector are cooking, space heating, lighting, as well as entertainment, cold storage, etc. In the non-residential segment, energy is mainly used for supplying electricity to either commercial activities (such as shops and hotels) or institutional activities (such hospitals, schools, monasteries, government offices, and municipal services).
In 2014, energy consumption in the building sector amounted to 213 ktoe for residential buildings Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* (households) and 56 ktoe for commercial and institutional buildings, of which 243 ktoe was thermal * energy and 27 ktoe electricity (Figure 8).
In*Figure 2014,* 8: energy* Electricity consumption* consumption in* of the* buildings building* sub-sectors sector* amount (in GWh)ed* to* 213* ktoe* for* residential* buildings* (households)*and*56*ktoe*for*commercial*and*institutional*buildings,*of*which*243*ktoe*was*thermal*energy* SOURCE: DRE (2016) and*27*ktoe*electricity*(Figure*8).*
* In residential buildings,Figure'8 the:Electricity' consumptionconsumption' of electricityof'buildings'sub has increased=sectors by'(in'GWh) 10.1% per' year between 2005 and 2014, while biomass and kerosene consumption has decreased by 1% and 6.9% p.a. respectively. Source:*DRE*(2016)* Liquefied Petroleum Gas (LPG) use grew by 6.9% (DRE 2016, see also Table3). In commercial buildings, In*rforesidential the same*building period,s,*the*consumption*of*electricity*has*increased*by*10.1%* electricity use grew by 8.4% and biomass by 5.5%, whileper*year*between2005*and* kerosene use fell by 9.9% 2014per,*while year.*biomass*and*kerosene*consumption*has*decreased*by*1%*and*6.9%*p.a.*respectively.*Liquefied* Petroleum*Gas*(LPG)*use*grew*by*6.9%*(DRE*2016,*see*also*Table3).*In*commercial*buildings,*for*the*same* period,*Tableelectricity*use*grew*by*8.4% 3: Energy types used in residential*and*biomass*by*5.5% and commercial ,buildings,*while*kerosene*use*fell*by*9.9%* 2014 per*year.* SOURCE: DRE (2016) Table3:'Energy'types'used'in'residential'and'commercial'buildings,'2014'
' ' ResidentialResidential' CommercialCommercial'
Feul Fuel* UnitsUnits* 2005* 2005 20142014* 20052005' 2014 2014'
Electricity*Electricity* GWh'GWh* 89* 89 211*211 51 51* 107 107*
Kerosene*Kerosene* kl* kl 6,442*6,442* 3,4023,402* 5,8285,828* * 2,271 2,271*
Biomass*Biomass* t* t 543,503*543,503* 494,831494,831* 74,06574,065* 119,838* 119,838* Liquefied*Petroleum*Gas** t* 3,522** 6,348* 950** 681* Liquefied Petroleum Gas t 3,522 6,348 950 681 Source:*DRE*(2016)*
In*2014,*the*fuel*composition*in*In 2014, the fuel compositionthe* in residential*sector*is*dominated*by*biomass*(87%)*and*electricity*(8%).*the residential sector is dominated by biomass (87%) and electricity Despite*access*to*electricity,*b(8%). Despite access to electricity,iomass*in*the*form*of*firewood,*briquettes*and*biogas*are*still* biomass in the form of firewood, briquettes and biogasprevailing are still*for* cooking*and*heating*in*the*rural*areas.*prevailing for cooking and heating inThe the*high*dependence*of*rural*areas* rural areas. The high dependenceon*biomass*is*based*on*the* of rural areas on biomass is affordability*and*easy*accessibility*of*biomassbased on the affordability and easy accessibility*given*the*socio of biomassJeconomic given*an thed*geographical*conditions* socio-economic and geographicalof*the* rural*conditions population* of the (DRE* rural 2016).* populationFuelwood* (DRE usage* 2016).has Fuelwood* fallen* from* usage 91%* has in* fallen 2005* from to* 87%* 91% in*in 20142005. *toIn* 87% the* in commercial*sector,*values*are*surprisingly*similar*2014. In the commercial sector, values are surprisingly(see*Figure* similar9).* (see Figure 9). a)! Residential*
Page*20* ENERGY BALANCE AND FUEL MIX ENERGY BALANCE AND FUEL MIX
The fuel consumption in the country is dominated 60% of the total energy in the sector. The heavy in- The fuel consumption in the country is dominated 60% of the total energy in the sector. The heavy in- by biomass (fuelwood, biogas and briquettes) – dustries also have a diverse fuel consumption mix, by biomass (fuelwood, biogas and briquettes) – dustries also have a diverse fuel consumption mix, amounting to 234,369 TOE (36%). This is followed while the medium and CSI are mainly dependant on ENERGY BALANCE AND FUEL MIX amounting to 234,369 TOE (36%). This is followed while the mediumENERGY and BALANCE CSI are AND mainly FUEL MIXdependant on by electricity at 28% - amounting to 180,092 TOE. electricity as the main fuel. The fuel consumption split by electricity at 28% - amounting to 180,092 TOE. electricity as the main fuel. The fuel consumption split Other than biomass and electricity, other major shows that the major source of energy is electricity Other than biomass and electricity, other major shows that the major source of energy is electricity sources include coal (97,567 TOE) constituting (57%) and coal (40%) making these the two most sources include coal (97,567 TOE) constituting (57%) and coal (40%) making these the two most The fuel consumption in the country is dominated 15%60% of of thethe total energy fuel mix in the along sector. with The diesel heavy whichin- Theconsumed fuel consumption fuel in the in thesector country (Figure is dominated 33). 60% of the total energy in the sector. The heavy in- 15% of the total fuel mix along with diesel which consumed fuel in the sector (Figure 33). by biomass (fuelwood, biogas and briquettes) – amountsdustries alsoto 102,107 have a diverseTOE (16%). fuel consumption Other important mix, by biomass (fuelwood, biogas and briquettes) – dustries also have a diverse fuel consumption mix, amounts to 102,107 TOE (16%). Other important amounting to 234,369 TOE (36%). This is followed sourceswhile the of medium energy and include CSI are petrol,mainly dependant kerosene on and amountingIn 2014, to the 234,369 fuel composition TOE (36%). Thisin residential is followed sector while is the medium and CSI are mainly dependant on sources of energy include petrol, kerosene and In 2014, the fuel composition in residential sector is by electricity at 28% - amounting to 180,092 TOE. LPGelectricity – together as the mainconstituting fuel. The fuelaround consumption 5% of the split fuel by dominatedelectricity at by28% biomass - amounting (87%) to 180,092and electricity TOE. (8%).electricity as the main fuel. The fuel consumption split Other than biomass and electricity, other major LPG shows– together that the constituting major source around of energy 5% isof electricity the fuel dominatedOther than by biomass biomass and (87%) electricity, and electricity other major (8%). shows that the major source of energy is electricity mix. Given the aggregate consumption of ener- Biomass in the form of firewood, briquettes and bi- sources include coal (97,567 TOE) constituting mix. (57%) Given and the coal aggregate (40%) making consumption these the twoof ener most- Biomasssources includein the form coal of (97,567 firewood, TOE) briquettes constituting and bi- (57%) and coal (40%) making these the two most gy, the per-capita consumption of energy has in- ogas are still the ideal choice for cooking and heat- 15% of the total fuel mix along with diesel which gy, theconsumed per-capita fuel in consumption the sector (Figure of energy33). has in- ogas15% areof the still total the fuelideal mix choice along forwith cooking diesel whichand heat - consumed fuel in the sector (Figure 33). creased to 0.87 TOE in 2014 from 0.63 TOE per ing in the rural areas. Particularly in the residential amounts to 102,107 TOE (16%). Other important creased to 0.87 TOE in 2014 from 0.63 TOE per ingamounts in the torural 102,107 areas. TOE Particularly (16%). Other in the important residential sources of energy include petrol, kerosene and capitaIn 2014, consumption the fuel composition of energy in residentialin 2005. sector is sourcesbuilding of energy sector, include fuelwood petrol, usages kerosene have and reducedIn 2014, the fuel composition in residential sector is capita consumption of energy in 2005. building sector, fuelwood usages have reduced LPG – together constituting around 5% of the fuel dominated by biomass (87%) and electricity (8%). LPGfrom – together 91% in constituting2005 to 87% around in 2014 5% of(Figure the fuel 34). dominated by biomass (87%) and electricity (8%). from 91% in 2005 to 87% in 2014 (Figure 34). mix. Given the aggregate consumption of ener- TheBiomass Industry in Sectorthe form has of firewood,the most briquettesdiverse fuel and mix. bi- For mix. Given the aggregate consumption of ener- Biomass in the form of firewood, briquettes and bi- The Industry Sector has the most diverse fuel mix. For gy, the per-capita consumption of energy has in- theogas Industry are still Sector, the ideal the choice high for voltage cooking industries and heat- are gy,Increasing the per-capita electricity consumption access of energyand LPG has has in- substiogas- are still the ideal choice for cooking and heat- the Industry Sector, the high voltage industries are Increasing electricity access and LPG has substi- creased to 0.87 TOE in 2014 from 0.63 TOE per theing major in the consumersrural areas. Particularly of energy, inconsuming the residential around creasedtuted tofuelwood 0.87 TOE usage in 2014 in heating from 0.63 and TOE cooking, per buting in the rural areas. Particularly in the residential capita consumption of energy in 2005. the majorbuilding consumers sector, fuelwood of energy, usages consuming have reduced around tutedcapita fuelwood consumption usage of energy in heating in 2005. and cooking, but building sector, fuelwood usages have reduced from 91% in 2005 to 87% in 2014 (Figure 34). from 91% in 2005 to 87% in 2014 (Figure 34). The Industry Sector has the most diverse fuel mix. For The Industry Sector has the most diverse fuel mix. For the Industry Sector, the high voltage industries are FigureIncreasing 33: electricity Industry access Energy and LPG Consumptionhas substi- the Split Industry and Sector, Fuel the Mix high voltagefor 2 014 industries are Increasing electricity access and LPG has substi- the major consumers of energy, consuming around Figuretuted 33: fuelwood Industry usage in Energy heating and Consumption cooking, but Splitthe major and consumers Fuel Mix of energy, for 2 consuming014 around tuted fuelwood usage in heating and cooking, but
Figure 33: Industry Energy Consumption Split and Fuel Mix for 2014 Figure 33: Industry Energy Consumption Split and Fuel Mix for 2014
ENERGY BALANCE AND FUEL MIX ENERGY BALANCE AND FUEL MIX 20 Current GHG emission levels and baseline scenario for settlements ENERGY BALANCE AND FUEL MIX ENERGY BALANCE AND FUEL MIX the impact observed is not significantly high as the mains almost the same without much change as the impact observed is not significantly high as the mains almost the same without much change as Figure 9:rural Energy households consumption are still mix highly and fuel dependent mix for residential on fuel- andcompared commercial to buildings,2005. Majority 2014 of the sectoral fuel mix rural households are still highly dependent on fuel- compared to 2005. Majority of the sectoral fuel mix wood. This is due to the easy accessibility, low cost is dominated by diesel at 81%, followed by petrol the impact observed is not significantly high asSOURCE: the wood. DRE (2016)mains This is almost due to the the same easy without accessibility, much change low cost as isthe dominated impact observed by diesel is not at significantly 81%, followed high as by the petrol mains almost the same without much change as Integration*of*low*emission*strategies*in*and behavioural stagnancy in favour of urban*and*rural*settlements*in*Bhutan fuelwood at 16%. These two fuels *are the major contributors rural households are still highly dependent on fuelIntegration*of*low*emission*strategies*in*- and behaviouralcompared to 2005. stagnancy Majority in of favour the sectoral of urban*and*rural*settlements*in*Bhutan fuelwood fuel mix atrural 16%. households These two are fuelsstill highly *are thedependent major contributorson fuel- compared to 2005. Majority of the sectoral fuel mix usage in rural areas. to the fuel mix in the transport sector amounting wood. This is due to the easy accessibility, lowa) cost usageResidential* is indominated rural areas. by diesel at 81%, followed by petrol towood. the This fuel is mix due into the easy transport accessibility, sector low amounting cost is dominated by diesel at 81%, followed by petrol and behavioural stagnancy in favour of fuelwood* Figureat 16%. These34: Residential two fuels are the Energy major contributors Consumption and118,197 behavioural Split TOE and stagnancy in Fuel the year Mix in favour 2014. for of2014 Other fuelwood than petrolat 16%. These two fuels are the major contributors Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*BhutanFigure 34: Residential* Energy ConsumptionIntegration*of*low*emission*strategies*in*118,197 Split TOE and in Fuel the year Mix 2014. for 2014 Otherurban*and*rural*settlements*in*Bhutan than petrol * usage in rural areas. Theto themain fuel energy mix in use the in transport the Institutional sector amounting and Com - usageand in diesel rural areas.run vehicles, the aviation segment in theto the fuel mix in the transport sector amounting * The main energy use in the Institutional and Com- * and diesel run vehicles, the aviation segment in the Figure 34: Residential Energy Consumptionmercial118,197 Split segmentTOE and in Fuel the of year Mix Building 2014. for 2014 Other Sector than is petrol heating Figuretransport 34: sectorResidential consumes Energy ATF, also Consumption known as 118,197jet Split TOE and in Fuel the year Mix 2014. for 2014 Other than petrol mercial segment of Building Sector is heating transport sector consumes ATF, also known as jet The main energy use in the Institutional and Com- andand cooking, diesel run makingvehicles, upthe aviation more than segment 95% in the of the Thekerosene, main energy amounting use in the to Institutional 3,016 TOE and (Figure Com- 26). and diesel run vehicles, the aviation segment in the and cooking, making up more than 95% of the kerosene, amounting to 3,016 TOE (Figure 26). mercial segment of Building Sector is heating totaltransport energy sector use consumesin the segment. ATF, also This known segment as jet is mercial segment of Building Sector is heating transport sector consumes ATF, also known as jet total energy use in the segment. This segment is and cooking, making up more than 95% of the dominatedkerosene, amounting by the biomass, to 3,016 particularlyTOE (Figure 26). fuelwood, andIntroduction cooking, making of electric up more vehicles than 95% has of been the a prokerosene,- amounting to 3,016 TOE (Figure 26). total energy use in the segment. This segment is dominated by the biomass, particularly fuelwood, Introductiontotal energy use of electricin the segment. vehicles This has segment been ais pro- which comprises of 44,652 TOE (78%). Electricity gressive move for the country. With the potential dominated by the biomass, particularly fuelwood, whichIntroduction comprises ofof electric44,652 vehicles TOE (78%). has been Electricity a pro- gressivedominated move by the for biomass, the country. particularly With fuelwood, the potential Introduction of electric vehicles has been a pro- use has grown by a CAGR of 8.4% over the last to reduce the dependency on fossil fuels for trans- which comprises of 44,652 TOE (78%). Electricity use hasgressive grown move by fora CAGR the country. of 8.4% With over the potentialthe last towhich reduce comprises the dependency of 44,652 TOE on fossil(78%). fuels Electricity for trans - gressive move for the country. With the potential decade from 52 GWh in 2005 to 107 GWh in 2014 port, the introduction of electric vehicles in 2014 use has grown by a CAGR of 8.4% over the last decadeto reducefrom 52 the GWh dependency in 2005 on to fossil 107 fuelsGWh for in trans2014- port,use has the grown introduction by a CAGR of electric of 8.4% vehiclesover the last in 2014 to reduce the dependency on fossil fuels for trans- decade from 52 GWh in 2005 to 107 GWh in 2014 whereasport, the other introduction fuel components of electric vehiclesare Kerosene in 2014 and decadehas ledfrom to 52 electricity GWh in 2005 being to included107 GWh inin the2014 transport port, the introduction of electric vehicles in 2014 whereas other fuel components are Kerosene and has led to electricity being included in the transport whereas other fuel components are Kerosene and LPGhas amountingled to electricity to 1,465 being includedTOE and in the1,593 transport TOE re- whereassector other fuel fuelmix. components The sectoral are consumptionKerosene and of fuelshas led to electricity being included in the transport LPG amounting to 1,465 TOE and 1,593 TOE re- sector fuel mix. The sectoral consumption of fuels LPG amounting to 1,465 TOE and 1,593 TOE re- spectivelysector fuel (Figure mix. The 35). sectoral consumption of fuels LPGis amountingdepicted in to figure 1,465 36.TOE and 1,593 TOE re- sector fuel mix. The sectoral consumption of fuels spectively (Figure 35). is depicted in figure 36. spectively (Figure 35). Theis depicted composition in figure of 36. transport sector fuel mix re- spectively (Figure 35). is depicted in figure 36. The composition of transport sector fuel mix re- The composition of transport sector fuel mix re- The composition of transport sector fuel mix re-
* * * Figure 35: Institutional & Commercialb) CommercialEnergyFigure Consumption 35: Institutional Split and& Commercial Fuel Mix EnergyFigure 35:Consumption Institutional Split& Commercial and Fuel Energy Mix* Consumption Split and Fuel Mix Figure 35: Institutional & Commercialb)*Commercial Energy Consumption* Split and Fuel Mix Comment'[RC4]:'Stefan:*Please*flip*the*pie*charts*below*so*that* for 2014 b)*Commercialfor 2014* forComment'[RC4]:' 2014 Stefan:*Please*flip*the*pie*charts*below*so*that*b)*Commercial* Comment'[RC4]:'Stefan:*Please*flip*the*pie*charts*below*so*that*Comment'[RC4]:'Stefan:*Please*flip*the*pie*charts*below*so*that* for 2014 49 |BHUTAN ENERGY DATA DIRECTORYb)*Commercial 2015 * 49 |BHUTAN ENERGY DATA DIRECTORY 2015 49 |BHUTANfuel*mix*is*first*and*consumption*mix*second*(to*mirror*pie*charts* ENERGY DATA DIRECTORY 2015 fuel*mix*is*first*and*consumption*mix*second*(to*mirror*pie*charts* 49 |BHUTAN ENERGY DATA DIRECTORY 2015 fuel*mix*is*first*and*consumption*mix*second*(to*mirror*pie*charts*fuel*mix*is*first*and*consumption*mix*second*(to*mirror*pie*charts* above)* above)* above)* above)*
* * Figure'9:Energy'consumption'mix'and'fuel'mix'for'residential'and'commercial'buildings,'2014' Figure'9:Energy'consumption'mix'and'fuel'mix'for'residential'and'commercial'buildings,* '2014' Figure 36: Transport Energy Consumption Split and Fuel Mix for 2014 Figure 36: Transport Energy Consumption* Split and Fuel Mix for 2014 Figure'9:Energy'consumption'mix'and'fuel'mix'for'residential'and'commercial'buildings,'2014' Source:*DRE*FigureFigure'(2016)*9 36::Energy' Transportconsumption' Energymix'and' Consumptionfuel'mix'for'residential'and'commercial'buildings, Split and Fuel Mix for 2014Source:*'2014' DRE*(2016)* Figure 36: Transport Energy Consumption Split and Fuel Mix for 2014 The*choice*of*building*material*has*a*strong*impact*on*theThe choice *emissions*intensity*of*a*building.*Unfortunately,*of building material has a strong impactSource:* on theDRE*The*choice*of*building*material*has*a*strong*impact*on*the emissions(2016)* intensity of a building. *emissions*intensity*of*a*building.*Unfortunately,* Source:*DRE*(2016)* current* Bhutanese* buildings* use* lowJenergyUnfortunately,Jefficiency* materials current,* such* Bhutanese as* weak* insulation,* buildingsand* useenergy* low-energy-efficiencycurrent* Bhutanese* materials, buildings* use*such low asJenergy weak insulation,Jefficiency* materials,* such* as* weak* insulation,* and* energy* The*choice*of*building*material*has*a*strong*impact*on*the*emissions*intensity*of*a*building.*Unfortunately,* technologies,* such* as* biomass* stoves* for* heating*andThe*choice*of*building*material*has*a*strong*impact*on*the energy and* cooking* technologies, purposes. such* In* Bhutan’s* as biomasshighland* stovesdistricts for heating* techn*emissions*intensity*of*a*building.*Unfortunately,* andologies,* cooking such* as*purposes. biomass* stoves*In Bhutan’s for* heating* and* cooking* purposes.* In* Bhutan’s* highland* districts* current* Bhutanese* buildings* use* lowJenergyJefficiency* materials,* such* as* weak* insulation,* and* energy* where*night*temperatures*fall*below*0°C*in*winterhighlandcurrent*,*heat*loss*from*the*building*envelope*was*observed*to* districts Bhutanese* where buildings* night temperatures use* lowJenergy fallJ efficiency*below 0°Cwhere* materialsin winter,night*temperatures*,* heat such* loss as* weak* fromfall* below*0°Cthe insulation,* building*in*winterand* energy*,*heat*loss*from*the*building*envelope*was*observed*to* technologies,* such* as* biomass* stoves* for* heating* and* cooking* purposes.* In* Bhutan’s* highland* districts* be*in*the*range*of*40%*to*70%*(DRE*2015),*depending*on*the*type*of*building*and*materialenvelopetechnologies,* was observed such* as* to biomass* be in the stoves* ranges*used for* of.* heating*Heat*loss*40% to 70% and*be*in*the*range*of*40%*to*70% (DRE cooking* 2015), purpose dependings.* In* Bhutan’s* on*(DRE*2015) the typehighland*,*depending*on*the*type*of*building*and*material of buildingdistricts * s*used.*Heat*loss* through*the*walls*is*the*highest,*in*the*range*of*40%*to*70%*of*the*total*heat*losswhere*night*temperatures*,*followed*by*air*infiltration*fall*below*0°C*in*winter,*through*heat*loss*from*the*building*envelope*was*observed*to*the*walls*is*the*highest,*in*the*range*of*40%*to*70%*of*the*total*heat*loss,*followed*by*air*infiltration* andwhere* materialsnight*temperatures* used. Heat loss fall*throughbelow*0°C the walls*in*winter is the,* heat*loss*from*the*building*envelope*was*observed*to*highest, in the range of 40% to 70% of the total loss*through*windows*and*the*roof*(DRE*2015).**The*wall*heat*loss*was*lowest*for*be*in*the*range*of*40%*to*70%traditional**(DRE*2015)rammed*earth*,*depending*on*the*type*of*building*and*materialloss*through*windows*and*the*roof*(DRE*2015).*s*used*The*wall*heat*loss*was*lowest*for*.*Heat*loss* traditional*rammed*earth* heatbe*in*the*range*of*40%*to*70% loss, followed by air infiltration*(DRE*2015) loss through,*depending*on*the*type*of*building*and*material windows and the roof (DRE 2015). The swall*used heat.*Heat*loss* loss buildings*and*highest*for*brick*walls.*In*most*buildings*in*Bhutan,through*the*wall*even*modern*bus*is*the*highestildings*in*the*capital,,*in*the*range*of*40%*to*70%*of*the*total*heat*loss* buildings*and*highest*for*brick*wall,*followed*by*air*infiltration*s.*In*most*buildings*in*Bhutan,*even*modern*buildings*in*the*capital,* wasthrough* lowestthe* for walltraditionals*is*the*highest rammed,*in*the*range earth buildings*of*40%*to*70%*of*the*total*heat*loss and highest for brick walls. In ,*mostfollowed*by*air*infiltration* buildings in single*glazed*windows*with*wooden*frames*are*used.*This*leads*to*heat*loss*in*the*range*of*20*to*25%.loss*through*windows*and*the*roof*(DRE*2015).** *The*wall*heat*loss*was*lowest*for*single*glazed*windows*with*wooden*frames*aretraditional*rammed*earth**used.*This*leads*to*heat*loss*in*the*range*of*20*to*25%.* Bhutan,loss*through*windows*and* even modern buildingsthe* inroof the*(DRE*2015).* capital, single*The*wall*heat*loss*was*lowest*for* glazed windows with woodentraditional* frames arerammed*earth* used. This Buildings*in*lowland*districts*with*high*summer*temperaturesbuildings*and*highest*for*brick*wall*currently*suffer*from*significant*s.*In*most*buildings*in*Bhutan,heat*gain* Buildings*in*lowland**even*modern*budistricts*with*high*summer*temperaturesildings*in*the*capital,* *currently*suffer*from*significant*heat*gain* leadsbuildings* to heatand*highest*for*brick*wall loss in the range of 20 tos 25%..*In*most*buildings*in*Bhutan,*even*modern*buildings*in*the*capital,* through*the*building*envelope,*which*increases*cooling*loadssingle*glazed*windows*with*wooden*frames*are.*Over*95%*of*buildings*in*the*lowlands*have**used.*This*leads*to*heat*loss*in*the*range*of*20*to*25%.through*the*building*envelope,*which*increases*cooling*loads* .*Over*95%*of*buildings*in*the*lowlands*have* single*glazed*windows*with*wooden*frames*are*used.*This*leads*to*heat*loss*in*the*range*of*20*to*25%.* walls*without*insulation,*and*single*glazed*windows*with*wooden*and*aluminium*frames50 |BHUTAN ENERGY DATA DIRECTORY.*Rammed*earth* 2015 walls*without*insulation,*and*single*glazed*windows*with*wooden*and*aluminium*frames50 |BHUTAN ENERGY DATA DIRECTORY.*Rammed*earth* 2015 BuildingsBuilding in lowlands*in*lowland* districtsdistricts* with highwith*high*summer*temperatures summer temperatures currently*currently* suffersuffer*from* from significantsignificant* heatheat*gain gain * construction*is*generally*absent.*Heat*gain*through*wallBuildings*is*the*highests*in*lowland*,*followed*by*air*infiltration*through*districts*with*high*summer*temperaturesconstruction*is*generally*absent.**currently*suffer*from*Heat*significant*gain*through*wallheat*gains*is*the*highest* ,*followed*by*air*infiltration*through* throughthrough* the buildingthe*building*enve envelope,lope which,*which*increases*cooling*loads increases cooling loads. Over.*Over*95%*of*buildings*in*the*lowlands*have* 95% of buildings in the lowlands the*roof,*windows*and*floor.* through*the*building*envelope,*which*increases*cooling*loadsthe*roof,.*Over*95%*of*buildings*in*the*lowlands*have**windows*and*floor.* have wallswalls*without*insulation without insulation,,*and*single*glazed*windows*with*wooden*and*aluminium*frames and single glazed windows with wooden and aluminium frames..*Rammed*earth* Rammed walls*without*insulation,*and*single*glazed*windows*with*wooden*and*aluminium*frames50 |BHUTAN ENERGY DATA.*Rammed*earth* DIRECTORY 2015 earth construction*is*generally*absent.*construction is generally absent.Heat* Heatgain gain*through*wall through wallss*is*the*highest is the50 |BHUTAN highest,,*followed*by*air*infiltration*through* ENERGY followed DATA by DIRECTORYair infiltration 2015 construction*is*generally*absent.*Heat*gain*through*walls*is*the*highest,*followed*by*air*infiltration*through* throughthe* theroof, roof,*windows*and*floor. windows and floor.* the*roof,*windows*and*floor.*
Page*21* Page*21*
Page*21* Page*21* ENERGYENERGY BALANCE BALANCE AND ANDFUEL FUEL MIX MIX
the impactthe impact observed observed is not is significantly not significantly high highas the as the mainsmains almost almost the same the same without without much much change change as as rural ruralhouseholds households are still are highlystill highly dependent dependent on fuel on- fuel- comparedcompared to 2005. to 2005. Majority Majority of the of sectoral the sectoral fuel mixfuel mix wood.wood. This Thisis due is todue the to easy the easy accessibility, accessibility, low cost low cost is dominatedis dominated by diesel by diesel at 81%, at 81%, followed followed by petrol by petrol and and behavioural behavioural stagnancy stagnancy in favour in favour of fuelwood of fuelwood at 16%.at 16%. These These two fuelstwo fuels are the are major the major contributors contributors usageusage in rural in ruralareas. areas. to theto fuel the fuelmix in mix the in transport the transport sector sector amounting amounting 118,197118,197 TOE TOE in the in year the year 2014. 2014. Other Other than than petrol petrol The mainThe main energy energy use inuse the in Institutional the Institutional and Comand Com- - and dieseland diesel run vehicles, run vehicles, URBANthe aviation the aviationAND segment RURAL segment in SETTLEMENTS the in the IN BHUTAN: 21 mercialmercial segment segment of Building of Building Sector Sector is heating is heating transporttransport sector sector consumes consumes AATF, LOW ATF,also EMISSION alsoknown known as DEVELOPMENT jet as jet STRATEGY and and cooking, cooking, making making up more up more than than 95% 95% of the of the kerosene,kerosene, amounting amounting to 3,016 to 3,016 TOE TOE(Figure (Figure 26). 26). total totalenergy energy use inuse the in segment.the segment. This Thissegment segment is is dominateddominated3.3 by Historical the by biomass, the biomass, particularly GHG particularly emissions fuelwood, fuelwood, IntroductionfromIntroduction the of transport electric of electric vehicles vehicles sector has hasbeen been a pro a- pro- whichwhich comprises comprises of 44,652 of 44,652 TOE TOE(78%). (78%). Electricity Electricity gressivegressive move move for the for country. the country. With With the potential the potential Integration*of*low*emission*strategies*in*useIntegration*of*low*emission*strategies*in* hasuse grownhas grown by a byCAGR a CAGR of 8.4% of 8.4% overurban*and*rural*settlements*in*Bhutan overtheurban*and*rural*settlements*in*Bhutan lastthe last to reduceto reduce the dependency the dependency* on* fossil on fossil fuels fuels for trans for trans- - decadedecadeThe from transport from52 GWh 52 GWh in sector 2005 in 2005 to is 107 one to GWh107 of GWhthe in 2014 major in 2014 consumers port, port, the introduction the of introductionenergy of in electric Bhutan of electric vehicles and vehicles almost in 2014 in 2014all the energy used * whereas* whereasin otherthe othersector fuel componentsfuel is componentsderived are from Keroseneare importedKerosene and and fossil has fuels. ledhas to led An electricity to analysis electricity being of being includedvehicle included intypes the in transport the in Bhutantransport conducted by LPG LPGamountingthe amounting Department to 1,465 to 1,465 TOEof Renewable TOEand 1,593and 1,593 TOE Energy TOEre- re(2016)- sector showssector fuel mix.fuel that mix.The diesel Thesectoral sectoraland consumption petrol consumption are ofthe fuels ofmain fuels fuels used in road spectively3.3spectively&3.3Historical'GHG' &(FigureHistorical'GHG' (Figure 35). 35). emissions'emissions'from'the'from'the'transport'is depictedtransport'is depicted insector figure insector figure '36. '36.' ' The The compositiontransport, composition ofalong transport of transportwith sector some sector fuel minor fuelmix amount remix- re- of electricity. In comparison to 2005, the fuel consumption in The*tTransport*sector*is*one*of*the*major*consumers*of*energy*in*Bhutan*and*almost*all*the*energy*used*in*he*ttheransport*sector*is*one*of*the*major*consumers*of*energy*in*Bhutan*and*almost*all*the*energy*used*in* transport Sector has increased by a factor of two for all fuel types (see Table4). The composition of the*sector*is*derived*from*importhe*sector*is*derived*from*imported*fossil*fuels.*ted*fossil*fuels.*An*analysis*of*vehicle*typesAn*analysis*of*vehicle*types*in*Bhutan*conducted*in*Bhutan*conducted*by*the**by*the* transport sector fuel mix remains almost the same as compared to 2005 (see Table4). Department*of*Renewable*Energy*(2016)*FigureDepartment*of*Renewable*Energy*(2016)*Figure 35: 35:Institutional Institutional & Commercial & Commercialshows*that*diesel*and*petrol*are*the*main*fuels*used*in*road*shows*that*diesel*and*petrol*are*the*main*fuels*used*in*road* Energy Energy Consumption Consumption Split Split and and Fuel Fuel Mix Mix transportfortransport 2014for, *2014along*with*some*minor*amount*of*electricity.*,*along*with*some*minor*amount*of*electricity.*In*comparison*to*2005,*the*In*comparison*to*2005,*the*fuel*consumption*in*fuel*consumption*in* the*tthe*transport*Sector*has*increased*by*Tableransport*Sector*has*increased*by* 4: Transport sector fuel typesa*factor*of*two*a*factor*of*two*for*all*fuel*typesfor*all*fuel*types*(see**(see*TableTable4).*The*composition*of*4).*The*composition*of* transport*sector*fuel*mix*remains*almost*the*same*as*compared*to*2005transport*sector*fuel*mix*remains*almost*the*same*as*compared*to*2005SOURCE: DRE (2016) *(see**(Tablesee*Table4).* 4).* Fuel TableTable4:'Transport'Units4:'Transport'sector'2005sector'fuel'typesfuel2014'types' ' Annual growth (%) Fuel*Fuel* UnitsUnits* * 20052005* * 20142014* * Annual'growth'(%)Annual'growth'(%)* * Petrol kl 13,879 24,129 6.3% Petrol*Petrol** * kl* kl* 13,87913,879* * 24,12924,129* * 6.3%6.3%* *
Diesel*Diesel** Diesel* kl* kl* kl 48,70248,70248,702* 110,281* 110,281110,281* * 9.5%9.5%9.5%* * Aviation*Turbine*Fuel*Aviation*Turbine*Fuel*Aviation Turbine* * Fuelkl * kl* kl 1,1451,1451*,145*3,5463,5463*,546* 13.4%13.4%13.* 4%*
Electricity*Electricity*Electricity* * GWh'GWh'* GWh* 0 0* 0* 0.1 0.1* 0.1* NA NA* NA* Source:*Source:*DRE*DRE*(2016(2016)* )* Figure 10: Transport energy consumption mix and fuel mix, 2014 * Figure* Figure 36: 36:Transport Transport Energy Energy Consumption Consumption Split Split and and Fuel Fuel Mix Mix for 2014for 2014 SOURCE: DRE (2016)
* * The fuel-wiseFigure' breakdownFigure'10:Transport'10:Transport' of vehiclesenergy'energy'c onsumption'forc theonsumption' lastmix four'and'mix years'fand'uel' ismfuel' ixshown,'m2014ix,'2014 'in Table' 52. 50 |BHUTAN50 |BHUTAN ENERGY ENERGY DATA DATA DIRECTORY DIRECTORY 2015 2015 Table 5: Number of vehicles in Bhutan,Source:'Source:' by DRE'fuelDRE'( type,2016(2016) 2013-17' )' * * SOURCE: RSTA STATISTICS 2017, UNDP/RGOB (2016) REFERRING TO RSTA STATISTICS The*fuelThe*fuelJwise*breakdown*of*vehicles*for*the*last*four*years*is*shown*in*Jwise*breakdown*of*vehicles*for*the*last*four*years*is*shown*in*TableTable5.2* 5.2* Year Diesel Petrol Electric * * Vehicles HeavyTableTable5 :'Number'of'vehicles'in'Bhutan,'5:'MediumNumber'of'vehicles'in'Bhutan,' Work by'fuel'type,'by'fuel'type,'Light2013 2013=17' =Two17' Light vehicle vehicle (Power tiller, tractor vehicle wheelers vehicle & earth moving YearYear& & DieselDiesel& & PetrolPetrol& & Electric&Electric& 2014 8,474 1,392 3,715 23,016 9,988VehiclesVehicles&23,017& 0
2015 8,610 1,489 4,184 25,598 10,563 25,599 75 ************************************************************************************************************************* * 2016 9,480 1,605 4,960 29,251 9,641 29,251 109 2Based*on*2Based*on*the*assumption*that*50%*of*light*vehicles*and*two*wheelerthe*assumption*that*50%*of*light*vehicles*and*two*wheelers*are*petrol*run*engins*are*petrol*run*engines,*and*the*res,*and*the*remaining*are*emaining*are* dieseldieselJrun.2017J*run.* 9,688 1,630 5,122 30,014 9,726 30,014 111
Page*Page*22* 22* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
Heavy& Medium& Work& Light& Two& Light& & vehicle& vehicle& (Power!tiller,! vehicle& wheelers& vehicle& tractor!&!earth! moving! equipment)!
2013! 8,544! 1,347! 3,498! 22,393! 9,750! 22,394! 0! Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* * 2014! 8,474* ! 1,392! 3,715! 23,016! 9,988! 23,017! 0! 3.5& How'to'account'for'emission'reductions'in'electricity'consumption' Heavy& Medium& Work& Light& Two& Light& & Given*that*electricity*in*Bhutan*is*primarily*produced*by*hydropower,*the*grid*emission*factor*is*zero.*Only* 2015! 8,610! vehicle1,489&! vehicle& 4,184(Power!tiller,!! 25vehicle,598& ! wheelers10,563& vehicle! & 25,599! 75! tractor!&!earth! during*some*winter*months,*electricity*imports*from*India*are*observed.*Under*a*GHG*inventory*approach* moving! equipment)! within*the*boundary*of*Bhutan,*however,*such*emissions*resulting*from*power*generation*in*India*would* 2016! 9,480! 1,605! 4,960! 29,251! 9,641! 29,251! 109! not* be* accounted.* Similarly,* electricity* exports* from* hydropower* to* India* would* not* be* accounted* as* 2013! 8,544! 1,347! 3,498! 22,393! 9,750! 22,394! 0! emission*reductions.*Accordingly,*all*measures*related*to*reducing*electricity*consumption*or*leading*to* electricity*generation*under*the*LEDS*would*not*result*in*accountable*emission*reductions.*However,*as* 2017! 9,6882014! ! 1,6308,474! ! 1,392! 5,122!3,715! 30,01423,016! ! 9,9889,726! ! 23,017! 30,0014! ! 111! any*excess*in*electricity*generation*as*a*result*of*savings*or*additional*generation*will*be*exported*to*India,* 22 Current GHG emission levels and baseline scenario for settlements the*Indian*grid*emission*factor*should*be*applied*to*calculate*total*mitigation*potential.*This*has*already* Source:*2015RSTA*statistics*2017,*! 8,610! 1,489UNDP! /RGoB4,184!*(201625,598)*referring*to*RSTA*statistics! 10,563! 25,599! 75! * been*done*for*Bhutan’s*hydropower*projects*under*the*CDM*(Ogino*and*Hamanaka*2010).*Under*the*Paris* Agreement,* so* far* no* regulation* exists* for* how* such* a* situation* is* to* be* accounted* for.* The* values* 2016! 9,480! 1,605! 4,960! 29,251! 9,641! 29,251! 109! Figure*11'shows*emissions*by*sector.* determined*for*the*Indian*grid*(operating*(OM),*build*(BM)*and*combined*margin*(CM)*emission*factors)* Figure 11 shows emissions by sector. 2017! 9,688! 1,630! 5,122! 30,014! 9,726! 30,014! 111! under*the*CDM*approach*are*shown*in*Table*6.*
* Table'6:Grid'emission'factors'for'India' Figure 11: GHG emissions,Source:* byRSTA*statistics*2017,* sector, 1999-2013UNDP/RGoB*(2016)*referring*to*RSTA*statistics* 1200 SOURCE:Figure* NEC (2016)11'shows*emissions*by*sector.* GHG'emission'by'sector * * Source:*Bhawan*and*Puram*(2016)* 1200 1000 GHG'emission'by'sector 3.6& How'to'account'for'emission'reductions'in'fuelwood'consumption' 1000 Fuelwood* in* Bhutan* can* be* deemed* 100%* renewable,* hence* the* emission* factor* is* zero.* Almost* no*
800 Energy emissions*from*fuelwood*consumption*under*the*GHG*inventory*approach*exists,*but*nearly*60*ktCO2e* 800 Energy from*biomass*combustion*were*“noted”*in*2000,*i.e.*they*were*not*formally*part*of*the*national*inventory.* e)
e) The*accounting*for*the*assessment*of*mitigation*options*would*suggest*that*replacement*of*fuelwood*does* 2 2 Industrial*ProcessIndustrial*Process 600 600 not*generate*mitigation*benefits.*However,*saved*fuelwood*can*be*used*for*domestic*charcoal*production* serving* as* reductant* in* the* heavy* industry* sector,* provided* that* local* dust* emissions* from* charcoal* kt'(CO 3 kt'(CO Agriculture combustion* are* mitigated* (see* the* related* discussion* in* Cleaner* Production* assessment* report ).* 400 Agriculture Generally,* double* counting* needs* to* be* avoided.* In* addition,* the* mitigation* potential* of* fuelwood* 400 Waste replacement*will*decline*over*time.*With*regards*to*fuelwood*harvesting,*proper*account*of*biodiversity* 200 Waste protection*needs*to*be*done;*harvest*in*old*growth*forests*should*be*limited*to*common*species.*
200 0 3.7& Baseline'energy'and'emission'projections'until'2030' 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 The*approach*followed*under*Bhutan’s*National*Strategy*and*Action*Plan*for*Low*Carbon*Development* Year * (NEC*2012)*assumes*that*an*increase*in*GDP*triggers*an*increase*in*GHG*emissions.*The*approach*taken*by* 0 NEC*(2012)*to*project*the*GHG*emissions*for*the*period*2005*to*2040*distinguishes*between*energyJrelated* 1999 2000 2001 2002 2003 2004 Figure'2005 112006:'GHG'emission2007 2008s,'by'2009sector2010,'19992011=2013' 2012 2013 emissions* and* processJrelated* emissions.* Within* the* energyJrelated* emissions,* industries* and* road* transportation*dominate*the*emissions*trend.* 3.4 Historical GHG emissionsYear Source:*fromNEC the*(2016) waste* sector * Table'7:'Baseline'projection'of'carbon'emissions'from'energy'related'and'non=energy'related'emissions' 3.4 Historical'GHG'emissions'from'the'waste'sector' (kt'CO2e)' During the& periodFigure' 2000-2013,11:'GHG'emission emissions froms ,waste'by'sector management,'1999= 2013more than' tripled from 0.047 to 0.16 millionDuring*the*period*2000 tCO2e (DRE 2016).J 2013,*emissions*from*waste*management*This is due to a significant increase inmore*than*tripled waste quantities,*from*0.047*to*0.16* as well as emissions- intensivemillion* wastetCO2e* management(DRE*2016).*This*is*due*to*a*significant*increase*in*waste*quantities methods. So while emissions remain low in absolute,*as*well*as*emissions numbers, aJ ************************************************************* intensive*waste*management*methods.*So*while*Source:*NECemissio*(2016)ns**remain*low*in*absolute*numbers,*a*continued* continued growth in line with rising affluence and urbanization would eventually bring them to a level 3*Department*of*Industry,*Ministry*of*Economic*Affairs*(2017):*Cleaner*production*and*greenhouse*gas*mitigation*in* wheregrowth*in*line*with*rising*affluenc they become a major componente*and*urbanization* of the nationalwould*eventually*bring*them*to*a*level*where*they* emissions inventory. the*industrial*sector*in*Bhutan,*Thimphu* become*a*major*component*of*the*national*emissions*inventory.* 3.4& Historical'GHG'emissions'from'the'waste'sector' Page*24* During*the*period*2000J2013,*emissions*from*waste*management*more*than*tripled*from*0.047*to*0.16* 3.5 How to account for emission reductions in electricity consumption million*tCO2e*(DRE*2016).*This*is*due*to*a*significant*increase*in*waste*quantities,*as*well*as*emissionsJ intensive*waste*management*methods.*So*while*emissions*remain*low*in*absolute*numbers,*a*continued* Given that electricity in Bhutan is primarily producedPage*23* by hydropower, the grid emission factor is zero. growth*in*line*with*rising*affluencOnly during some wintere*and months,*urbanization* electricity importswould*eventually*bring*them*to*a*level*where*they* from India are observed. Under a GHG inventory become*a*major*component*of*the*national*emissions*inventory.approach within the boundary of Bhutan, however, such emissions* resulting from power generation in India would not be accounted. Similarly, electricity exports from hydropower to India would not be accounted as emission reductions. Accordingly, all measures related to reducing electricity consumption or leading to electricity generation under the LEDS would not result in accountable emission reductions. However, as any excess in electricity generation as a result of savings or additional generation will be exported to India, the Indian grid emission factor should be applied to calculate total mitigation potential. This has already been done for Bhutan’s hydropower projects under the CDM (Ogino and Hamanaka 2010). Under the Paris Agreement,Page*23 so* far no regulation exists for how such a situation is to be accounted for. The values determined for the Indian grid (operating (OM), build (BM) and combined margin (CM) emission factors) under the CDM approach are shown in Table 6. Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
3.5& How'to'account'for'emission'reductions'in'electricity'consumption' Given*that*electricity*in*Bhutan*is*primarily*produced*by*hydropower,*the*grid*emission*factor*is*zero.*Only* during*some*winter*months,*electricity*imports*from*India*are*observed.*Under*a*GHG*inventory*approach* within*the*boundary*of*Bhutan,*however,*such*emissions*resulting*from*power*generation*in*India*would* not* be* accounted.* Similarly,* electricity* exports* from* hydropower* to* India* would* not* be* accounted* as* emission*reductions.*Accordingly,*all*measures*related*to*reducing*electricity*consumption*or*leading*to* electricity*generation*under*the*LEDS*would*not*result*in*accountable*emission*reductions.*However,*as* any*excess*in*electricity*generation*as*a*result*of*savings*or*additional*generation*will*be*exported*to*India,* URBAN AND RURAL SETTLEMENTS IN BHUTAN: the*Indian*grid*emission*factor*should*be*applied*to*calculate*total*mitigation*potential.*This*has*already* A LOW EMISSION DEVELOPMENT STRATEGY 23 been*done*for*Bhutan’s*hydropower*projects*under*the*CDM*(Ogino*and*Hamanaka*2010).*Under*the*Paris* Agreement,* so* far* no* regulation* exists* for* how* such* a* situation* is* to* be* accounted* for.* The* values* determined*for*the*Indian*grid*(operating*(OM),*build*(BM)*and*combined*margin*(CM)*emission*factors)* under*the*CDM*approach*are*shownTable 6:*in Grid*Table emission*6.* factors for India SOURCE: BHAWAN AND PURAM (2016) Table'6:Grid'emission'factors'for'India'
* Source:*Bhawan*and*Puram*(2016)*
3.6& How'to'account'for'3.6 emission'How toreductions'in' accountfuelwood for emission'consumption reductions' in fuelwood consumption Fuelwood* in* Bhutan* can* be* deemed* 100%* renewable,* hence* the* emission* factor* is* zero.* Almost* no* emissions*from*fuelwood*consumption*under*Fuelwood in Bhutanthe*GHG*inventory*approach can be deemed *100%exists,*but*nearly*60*ktCO renewable, hence2e* the emission factor is zero. Almost no from*biomass*combustion*were*emissions“noted”*in*2000 from, *i.e.*they*were*not*formally*part*of*the*national*inventoryfuelwood consumption under the GHG inventory.* approach exists, but nearly 60 The*accounting*for*the*assessment*of*mitigation*optionsktCO e from biomass*would*suggest*that* combustion werereplacement*of*fuelwood*do “noted” in 2000, i.e.es *they were not formally part of the national not*generate*mitigation*benefits.*However,*2 saved*fuelwood*can*be*used*for*domestic*charcoal*production* serving* as* reductant* in* the*inventory. heavy* industry* The sector accounting,* provided* for that* the local* assessment dust* emissions* of from*mitigation charcoal* options would suggest that replacement of combustion* are* mitigated*fuelwood (see* the* related* doesdiscussion* not generate in* Cleaner* mitigationProduction benefits.* assessment* However, report3).* saved fuelwood can be used for domestic Generally,* double* counting*charcoal needs* to* be*production avoided.* In* serving addition,* as the* reductant mitigation* potential*in the heavy of* fuelwood* industry sector, provided that local dust emissions replacement*will*decline*over*time.*With*regards*to*fuelwood*harvesting,*proper*account*of*biodiversity* protection*needs*to*be*done;*harvest*in*old*growth*forests*should*be*limited*to*common*species.from charcoal combustion are mitigated (see the related* discussion in Cleaner Production assessment report3). Generally, double counting needs to be avoided. In addition, the mitigation potential of 3.7& Baseline'energy'and'fuelwoodemission replacement'projections' willuntil' decline2030 over' time. With regards to fuelwood harvesting, proper account of The*approach*followed*under*Bhutbiodiversityan’s*National*Strategy*and*Action*Plan*for*Low*Carbon*Development* protection needs to be done; harvest in old growth forests should be limited to common (NEC*2012)*assumes*that*an*increase*in*GDP*triggers*an*increase*in*GHG*emissions.*The*approach*taken*by* species. NEC*(2012)*to*project*the*GHG*emissions*for*the*period*2005*to*2040*distinguishes*between*energyJrelated* emissions* and* processJrelated* emissions.* Within* the* energyJrelated* emissions,* industries* and* road* transportation*dominate*the*emissions*trend.* Table'7:'Baseline'projection'of'carbon'emissions'from'energy'related'3.7 Baseline energy andand'non emission=energy'related'emissions' projections until 2030 (kt'CO2e)' The approach followed under Bhutan’s National Strategy and Action Plan for Low Carbon Development
************************************************************(NEC* 2012) assumes that an increase in GDP triggers an increase in GHG emissions. The approach taken
3*Department*of*Industry,*Ministry*of*Economic*Affairs*(2017by NEC (2012) to project):*Cleaner*production*and*greenhouse*gas*mitigation*in* the GHG emissions for the period 2005 to 2040 distinguishes between energy- the*industrial*sector*in*Bhutan,*Thimphurelated* emissions and process-related emissions. Within the energy-related emissions, industries and road transportationPage* 24dominate* the emissions trend.
Table 7: Baseline projection of carbon emissions from energy related and non-energy related emissions (kt CO2e) SOURCE: NEC (2012)
2005 2010 2020 2030 2040 Energy related emission (kt CO2e) 357 468 905 906 885 Energy intensive industries 62 69 221 189 159 Other industries 70 91 154 180 208 Domestic aviation - - 2 2 2 Road transport 177 228 376 361 348 Tertiary sector 18 35 56 60 60 Residential sector 28 42 91 106 98 Agriculture and forestry 2 3 5 8 11 Non-energy related emission (kt CO2e) 1.454 1.764 3.492 3.678 3.837 Industrial processes 243 465 1.947 1.947 1.947 Livestock 567 567 567 567 567 Crop 550 603 734 811 903 Urban municipal solid waste 94 130 246 353 422 TOTAL (kt CO2e) 1.811 2.232 4.398 4.585 4.723 Population 634.982 695.822 809.397 886.523 964.838 Tons CO2e per capita 2,9 3,2 5,4 5,2 4,9 Figure 1: Baseline projection of carbon emissions from energy related and non-energy related 3 Department of Industry, Ministry of Economic Affairs (2017): Cleaner production and greenhouse gas mitigation in the industrial sector in Bhutan, Thimphu emissions (kt CO2e). Note: International aviation is not included in the numbers.
Alternative energy scenarios An overview of the results of the three modelled scenarios for energy related carbon emissions is presented in Figure 2 below. No scenarios were designed for the non-energy related emissions.
Baseline EE scenario 1.000 1.000
800 800
600 600
400 400
200 200
- - 2005 2010 2020 2030 2040 2005 2010 2020 2030 2040
FEC (ktoe) Emission (kt CO2e) FEC (ktoe) Emission (kt CO2e)
RE scenario RE and EE scenario 1.000 1.000
800 800
600 600
400 400
200 200
- - 2005 2010 2020 2030 2040 2005 2010 2020 2030 2040
FEC (ktoe) Emission (kt CO2e) FEC (ktoe) Emission (kt CO2e)
Figure 2: Development in final energy consumption (ktoe) and energy related carbon emissions (kt CO2e) of the four modelled energy scenarios 2005-2040. EE = energy efficiency; RE = renewable energy. Note: Non-energy related emissions are not included.
10 | A national strategy and action plan for low carbon development, Final report - 31-01-2012
Integration*of*low*emission*strategies*in*Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutanurban*and*rural*settlements*in*Bhutan* * * *
2005 2010 20052020 20102030 20202040 2030 2040 Energy related emissionEnergy (kt related CO2e) emission (kt 357 CO2e) 468 357 905 468 906 905 885 906 885 Energy intensive industriesEnergy intensive industries 62 69 62221 69189 221 159 189 159 Other industries Other industries 70 91 70154 91180 154 208 180 208 Domestic aviation Domestic aviation - - - 2 - 2 2 2 2 2 Road transport Road transport 177 228 177 376 228 361 376 348 361 348 Tertiary sector Tertiary sector 18 35 18 56 35 60 56 60 60 60 Residential sector Residential sector 28 42 28 91 42106 91 98 106 98 Agriculture and forestryAgriculture and forestry 2 3 2 5 3 8 511 8 11 Non-energy relatedNon-energy emission (kt related CO2e) emission 1.454 (kt CO2e) 1.764 1.454 3.492 1.764 3.678 3.492 3.837 3.678 3.837 IndustrialIntegration*of*low*emission*strategies*in* processesIntegration*of*low*emission*strategies*in*Industrial processes urban*and*rural*settlements*in*Bhutan urban*and*rural*settlements*in*Bhutan 243 465 1.947243 * * 1.947465 1.947 1.947 1.947 1.947 Livestock Livestock 567 567 567 567 567 567 567 567 567 567 * * Crop Crop 550 603 550 734 603 811 734 903 811 903 Urban municipal solid wasteUrban municipal solid waste 942005 2005 2010 1302010 2020 2020 942462030 2030 130 20403532040 246 422 353 422 EnergyEnergy related related emission emission (kt CO2e) (kt CO2e) 357 357 468 468 905 905 906 906 885 885 TOTAL (kt CO2e) TOTALEnergyEnergy (kt intensive intensiveCO2e) industries industries 1.811 62 2.232 62 69 69 1.811 4.398221 221 189 2.232 189 4.585 159 159 4.398 4.723 4.585 4.723 Population PopulationOtherOther industries industries 634.982 70 695.822 70 91 634.982 91 809.397 154 154 695.822 180 886.523 180 208 208 809.397 964.838 886.523 964.838 DomesticDomestic aviation aviation - - - - 2 2 2 2 2 2 Tons CO2e per capitaTons CO2e per capita 2,9 3,2 2,9 5,4 3,2 5,2 5,4 4,9 5,2 4,9 RoadRoad transport transport 177 177 228 228 376 376 361 361 348 348 * * Figure 1: Baseline projectionFigureTertiary 1Tertiary : of sectorBaseline carbon sector projection emissions offrom carbon energy 18 18 emissions related 35 35 from 56and 56 non energy 60 - energy 60 related 60 related 60 and non-energy related ResidentialResidential sector sector 28 28 42 42 91 91 106 106 98 98 emissions (kt CO2e). emissionsNote:Agriculture InternationalAgriculture (kt and COforestryand forestry2Source:*NEC*(2012)e). aviationNote: International is not included 2 Source:*NEC*(2012) 2 aviation * 3 in 3the is numbers. 5 not 5 included 8 8 * in11 the 11 numbers. Non-energyNon-energy related related emission emission (kt CO2e) (kt CO2e) 1.454 1.454 1.764 1.764 3.492 3.492 3.678 3.678 3.837 3.837 IndustrialIndustrial processes processes 243 243 465 465 1.947 1.947 1.947 1.947 1.947 1.947 !AlternativeAssumptions' energy!Alternativeand'baseline'Assumptions'Livestock scenariosLivestock energy for'and'baseline'the' scenariosresidential'buildings'sector 567 567 for' 567 567 the' 567 residential'buildings'sector 567 567 567 567 567 CropCrop 550 550 603 603 734 734 811 811 903 903 24 AnCurrent overview GHG emissionof theAn resultsoverviewUrban levelsUrban municipal municipal of and solid theof solidwaste baselinethe wastethree results modelled scenario of 94 the 94 forscenarios t 130hree 130settlements modelled 246 246 for 353 energy 353 scenarios 422 related422 for energy related It*is*estimate3.7.1d*forIt*is**population*to*grow*by*3%*per*year*from*2016*levels*(NSB*2016),*reaching*a*total*of*1.13*estimate3.7.1d*forTOTALTOTAL*population*to*grow*by*3%*per*year*from*2016*levels*(NSB*2016),*reaching*a*total*of*1.13* (kt CO2e) (kt CO2e) 1.811 1.811 2.232 2.232 4.398 4.398 4.585 4.585 4.723 4.723 ! ! carbon emissionscarbon isPopulation presentedPopulation emissions in Figure is presented 2 below. 634.982 634.982 in 695.822 NoFigure 695.822 scenarios 809.397 809.3972 below. 886.523 886.523were No964.838 964.838designed scenarios were designed million*in*2030.*The*amillion*in*2030.*The*average*number*of*persons*per*household*is*assumed*to*be*4.6.TonsTons CO2e CO2e perverage*number*of*persons*per*household*is*assumed*to*be*4.6. capitaper capita 2,9 2,9 3,2 3,2 5,4 5,4 5,2 5,2 4,9 4,9*Figure*12*shows**Fthe*igure*12*shows*the* * * for the non-energyFigure relatedFigure 1: Baseline 1non: Baseline emissions. projection-energy projection of carbon ofrelated carbon emissions emissions from from energy energy related related and andnon -nonenergy-energy related related population*split*between*lowland*and*highland*districts3.7.1population* Assumptionssplit*between*lowland*and*highland*districtsfor andthe baseline for the residential*over*time emissions. buildings,*based*on*the* *sectorover*time2013*share*of*people*living*,*based*on*the*2013*share*of*people*living* emissionsemissions (kt CO (kt2 e).CO Note:2e). Note: International InternationalSource:*NEC*(2012) aviationSource:*NEC*(2012) aviation is not is includednot included* in* the in numbers.the numbers. in*corresponding* It is in*estimatedDzongkhagscorresponding* for population *(MoLHRDzongkhags*2013 to grow).*** (byMoLHR 3% per*2013 year )from.** 2016 levels (NSB 2016), reaching a total of !AlternativeAssumptions'!AlternativeAssumptions' energy energyand'baseline' scenariosand'baseline' scenarios for' for'the'the'residential'buildings'sectorresidential'buildings'sector 1.13 million in 2030.Baseline The average numberBaseline of persons per householdEE scenario is assumed toEE be scenario 4.6. Figure 12 * It*is*It*is*estimateestimated*forAn overviewd*forAn*population*to*grow*by*3%*per*year*from*2016*levels*(NSB*2016),*reaching*a*total*of*1.13* overview*population*to*grow*by*3%*per*year*from*2016*levels*(NSB*2016),*reaching*a*total*of*1.13* of the of theresults results of the of thethree three modelled modelled scenarios scenarios for forenergy energy related related shows* the population3.7.13.7.1 split between lowland and highland districts over time,! ! based on the 2013 share 1.000 million*in*2030.*The*amillion*in*2030.*The*acarbon1.000carbon emissionsverage*number*of*persons*per*household*is*assumed*to*be*4.6. emissionsverage*number*of*persons*per*household*is*assumed*to*be*4.6. is presented is presented in Figure in1.000 Figure 2 below. 2 below. No scenariosNo scenarios1.000 were were designed designed*Figure*Figure *12 **show12*shows*the*s*the* of people population*livingpopulation* in split*between*lowland*and*highland*districtscorrespondingforsplit*between*lowland*and*highland*districts thefor thenon non-energy-energy Dzongkhags related related emissions. emissions. (MoLHR *over*time*over*time 2013).,*based*on*the* ,*based*on*the*2013*share*of*people*living*2013*share*of*people*living* 800 800 800 800 Population*(lowland*districts)in*corresponding*in*corresponding*Population*(lowland*districts) DzongkhagsDzongkhags*(MoLHR*(MoLHR*2013*2013).** ).** Population*(highland*districts)Population*(highland*districts) Figure600 12: Population* * and600 number ofBaseline households,Baseline by600 district, 2017-30EE scenarioEE scenario600 800,000 800,000 1.0001.000 1.0001.000 500,000 500,000 400 400800 800 400 800 800 400 600,000 600,000Population*(lowland*districts)Population*(lowland*districts) 400,000Population*(highland*districts)Population*(highland*districts)400,000 200 200600 600 200 600 300,000600 200 300,000 400,000 400,000800,000800,000 500,000500,000 no. 400 400 400no.* 400 no. 200,000400,000400,000 no.* - 600,000600,000 - 200,000 200- 200 200 200300,000 300,000 - 200,000 200,000400,000400,000 2005 no. 2010no. 2020 20052030 20102040 2020 2030 100,0002005no.* 200,0002040no.* 200,0002010 2020 100,00020052030 20102040 2020 2030 2040 200,000200,000- - - - 0 2005200520102010202020202030203020402040 100,0002005100,0002005020102010202020202030203020402040 FEC (ktoe) 0 Emission (kt CO2e) FEC (ktoe) Emission (kt CO2e)0 0 0 FEC (ktoe) Emission (kt CO2e) 0 0 FEC (ktoe) Emission (kt CO2e) FEC (ktoe)FEC (ktoe)EmissionEmission (kt CO2e) (kt CO2e) FEC (ktoe)FEC (ktoe)EmissionEmission (kt CO2e) (kt CO2e) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2017 2018 2017 2019 2018 2020 2019 2021 2020 2022 2021 2023 2022 2024 2023 2025 2024 2026 2025 2027 2026 2028 2027 2029 2028 2030 2029 2030 2017 2018 2017 2019 2018 2020 2019 2021 2020 2022 2021 2023 2022 2024 2023 2025 2024 2026 2025 2027 2026 2028 2027 2029 2028 2030 2029 2030 RE scenario RE scenarioRE REscenario scenario RERE andandRE andEE EEscenario EE scenario RE and EE scenario Population*(lowland*districts)Population*(lowland*districts) Population*(highland*districts)Population*(highland*districts) Population*(lowland*districts)1.0001.000 1.0001.000 Population*(highland*districts) 1.000 1.000 Population*(lowland*districts)1.000 1.000 Population*(highland*districts) 800 Number*of*households800 Number*of*households 800 800 Number*of*householdsNumber*of*households Number*of*households Number*of*households * * 800 800600 600 Number*of*households 800 600 600 800 Number*of*households Figure'Figure'12:'12Population'and'number'of'households:'Population'and'number'of'households,'by'district,'2017,'by'district,'2017=30'=30' 400 400 400 400 * * 600 600 600 600 The baseline emissions200 for 200 residential buildings due200 to 200 energy demand for cooling in lowland districts Figure'The*baseline*emissions*for*residential*buildingsThe*baseline*emissions*for*residential*buildings12:'Population'and'number'of'households*due*to*energy*demand*for*cooling*due*to*energy*demand*for*cooling,'by'district,'2017*in*lowland*districts*are**in*lowland*districts*are*=30' - Figure'- 12:'Population'and'number'of'households- - ,'by'district,'2017=30' are400 estimated estimated*estimated* at approximatelyat*approxat*400approx imatelyimately *400400*ktCO*400*ktCO ktCO2/a2/a*and*are*expected*to*gro2/a*and*are*expected*to*gro and400 are expectedw*to*almost*800*ktCO tow*to*almost*800*ktCO grow400 to almost2/a *8002by*2030/a*by*2030 ktCO2/a.*In*.*In* by 2030. 2005200520102010202020202030203020402040 2005200520102010202020202030203020402040 In highlandhighland*district districts,highland*district thes,*the*baseline*emission s,baseline*the*baseline*emission emission*from*energy*for*heating* from*energy*for*heatingfrom energy for*are*projected*to*double*as*well*until*2030,* heating*are*projected*to*double*as*well*until*2030,* are projected to double as well 200 200 FEC (ktoe)FEC (ktoe)EmissionEmission (kt CO2e) (kt CO2e) 200 FEC (ktoe)FEC (ktoe)Emission200Emission (kt CO2e) (kt CO2e) The*baseline*emissions*for*residential*buildingsuntilThe*baseline*emissions*for*residential*buildings 2030,from*approx fromfrom*approx approximatelyimatelyimately*150*ktCO*150*ktCO 1502/a*in*2017*to*more*than*300*ktCO 2ktCO2/a/a*in*2017*to*more*than*300*ktCO*due*to*energy*demand*for*cooling in 2017 to more*due*to*energy*demand*for*cooling 2than/a*in*2030.*2/a*in*2030.* 300 In*sumktCO2/aIn*sum,*the*, *inin*lowland*districts*are*the*total* 2030.total* baseline*baseline* In sum, the*in*lowland*districts*are* total FigureFigure 2: Development 2: Development in final in final energy energy consumption consumption (ktoe) (ktoe) and andenergy energy related related carbon carbon emissions emissions - emissionemissions*for*the*sector*amount*to*550*ktCOs*for*the*sector*amount*to*550*ktCO- 2/a*in*2017*and*will*increase*to*approx2/a*in*2017*and*will*increase*to*approx- - imatelyimately*1,100*ktCO*1,100*ktCO2/a*2/a* estimated*at*baselineapproxestimated* imatelyemissionsat**400*ktCO forapprox(kt CO (ktthe2 e)CO of 2sectore) theimately of2 four/a*and*are*expected*to*grothe fourmodelled amount modelled*400*ktCO energy energyto scenarios 550 scenarios2 /a*and*are*expected*to*groktCO2/a 2005 2005-2040.-2040. EE in = EE2017energy =w*to*almost*800*ktCO energy efficiency; and efficiency; will RE = RE increase = w*to*almost*800*ktCO to approximately2/a*by*2030 .*In* 2/a*by*2030.*In* 2005in*2030.*in*2030.**2010* renewablerenewable2020 energy.2005 energy.2030 Note: Note: 2010Non2040 -Nonenergy-energy2020 related related emissio2030 emissions are2005ns2040 notare included.not2010 included. 2020 20052030 20102040 2020 2030 2040 highland*district1,100s,highland*district* the*baseline*emissionktCO2/a in 2030.s, *the*baseline*emission*from*energy*for*heating*from*energy*for*heating*are*projected*to*double*as*well*until*2030,**are*projected*to*double*as*well*until*2030,* Integration*of*low*emission*strategies*in** FEC* (ktoe) Emission (ktFEC CO2e) (ktoe) urban*and*rural*settlements*in*BhutanEmission (kt CO2e) FEC (ktoe) Emission* (ktFEC CO2e) (ktoe) Emission (kt CO2e) from*approximatelyfrom*approx*150*ktCOimately210/a*in*2017*to*more*than*300*ktCO | 10 A national| A *national150*ktCO strategy strategy and actionand2 action/a*in*2017*to*more*than*300*ktCO plan planfor low for carbon low carbon development development, Final2, /a*in*2030.*Final report report - 31- 01- 31-2012-01-2012 In*sum 2/a*in*2030.*,*the*total* In*sumbaseline*,*the*total* baseline* * FigureFigure 213:: Development Baseline emissionsFigure in final 2: Developmentfrom energy heating/cooling consumption in final energy (ktoe)in residential andconsumption energy buildings related (ktoe) until carbon and 2030 energy emissions in Bhutan related carbon emissions emissions*for*the*sector*amount*to*550*ktCOemissions*for*the*sector*amount*to*550*ktCO2/a*in*2017*and*will*increase*to*approx2/a*in*2017*and*will*increase*to*approximately*1,100*ktCOimately2/a* *1,100*ktCO2/a* (kt CO2e) of the four (ktmodelled CO2e) of energy the four scenarios modelled 2005 energy-2040. scenarios EE = energy 2005 efficiency;-2040. EE RE= energy = efficiency; RE = in*2030.** renewablein*2030.* energy.* Note:renewable Non-energy energy. related Note:Baseline*emissions*(lowland) emissioNon-energyPage*nsPage* are25 *related25 not* included. emissio ns are not included. * * 900,000 800,000 10 | A national strategy10 and | 700,000 A action national plan strategy for low and carbon action development plan for low, Final carbon report development - 31-01-2012, Final report - 31-01-2012 600,000 500,000 400,000 tCO2/a tCO2/a 300,000 200,000 Page*25* Page*25* 100,000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Baseline*CO2*emissionsBaseline CO2 emissions
Baseline*emissions*(highland)
350,000 300,000 250,000 200,000 tCO2/a tCO2/a 150,000 100,000 50,000 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Baseline*CO2*emissions Baseline*CO2*emissionsBaseline CO2 emissions * Figure'13:'Baseline'emissions'from'heating/cooling'in'residential'buildings'until'2030'in'Bhutan'
*
The*amount*of*baseline*fuelwood*consumed*for*cooking*in*households*is*assumed*to*further*decrease*due* to*continued*shift*to*electricity*and*LPG*as*fuels*for*cooking.*The*current*amount*is*estimated*at*approx.* 270,000*tonnes/a*in*2017,*falling*to*around*240,000*tonnes/a*in*2030*(Figure*14).**
Page*26* URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 25
The amount of baseline fuelwood consumed for cooking in households is assumed to further decrease Integration*of*low*emission*strategies*in*due to continued shift to electricityurban*and*rural*settlements*in*Bhutan and LPG as fuels for cooking. The current* amount is estimated at * approx. 270,000 tonnes/a in 2017, falling to around 240,000 tonnes/a in 2030 (Figure 14). Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* Figure* 14: Amount of baseline fuelwood consumption until 2030 in Bhutan Amount*of*baseline*fuelwood consumed*for*cooking*
300,000 Integration*of*low*emission*strategies*in*Amount*of*baseline*fuelwoodurban*and*rural*settlements*in*Bhutanconsumed*for*cooking** * 250,000300,000 250,000 200,000 200,000Amount*of*baseline*fuelwood consumed*for*cooking* 150,000 300,000 ton/a 150,000 ton/a 100,000250,000 100,000 200,000 50,00050,000 150,000 0 ton/a 0 100,000
50,000 Amount*of*baseline*fuelwood consumed*for*cooking* Amount*of*baseline*fuelwood consumed*for*cooking* 0 * Figure'14:'Amount'of'baseline'fuelwood'consumption'until'2030'in'Bhutan' *
The*resulting*baseline*emissFigure'14:'Amount'of'baseline'fuelwood'consuions*from*cooking*with*firewood*(see*discussion*on*emission*famption'until'2030'in'Bhutanctor*in*Section*' Amount*of*baseline*fuelwood consumed*for*cooking* 3.6*on*How*to*account*for*emission*reductions*in*fuelwood*consumption)*are*illustrated*in*Figure*15.* The*resulting*baseline*emissThe resulting baselineion emissionss*from*cooking*with*firewood*( from cooking with firewoodsee*discussion*on*emission*fa (see discussion on* emissionctor*in*Section* factor in 3.6*on*How*to*account*for*Section* 3.6 onFigure' Howemission* 14to:' accountAmount'of'baseline'fuelwood'consureductions*in* for emissionfuelwood reductions*consumptionmption in fuelwood'until'2030'in'Bhutan)*are*illustrated*in* consumption)' areFigure* illustrated15.* in Figure 15. The*resulting*baseline*emissions*from*cooking*with*firewood*(see*discussion*on*emission*factor*in*Section* * Baseline*CO2*emissions 3.6*on*How*to*account*for*emission*reductions*in*fuelwood*consumption)*are*illustrated*in*Figure*15.* Figure 15: Baseline600,000 emission from fuelwood consumption until 2030 in Bhutan * Baseline*CO2*emissions 500,000 600,000 400,000 Baseline*CO2*emissions 600,000 500,000300,000 tCO2/a 500,000 400,000200,000 400,000 300,000100,000
tCO2/a 300,000 0 200,000tCO2/a 200,000 100,000 100,000 Baseline*CO2*emissions * 0 0 Figure'15:'Baseline'emission'from'fuelwood'consumption'until'2030'in'Bhutan'
* Baseline*CO2*emissionsBaseline CO emissions Baseline*CO2*emissions2 ! Assumptions'and'baseline'for'the'transport'sector * * Figure'15:'Baseline'emission'from'fuelwood'consumption'until'2030'in'Bhutan' Currently*3.7.2 the* increase* in* ownership* of* vehicles* in* Bhutan* is* extremely*! high* and* can* be* explained* by* Figure'15:'Baseline'emission'from'fuelwood'consumption'until'2030'in'Bhutan' *satisfying* “suppressed* demand”;* in* the* long* run* vehicle* numbers* will* likely* be* aligned* with* the* GDP* * increase.*But*this*will*only*occur*once*urbanization*begins*to*slow*down.*A*6%*increase*per*year*until*2030* from*2017*values*(RSTA*2017)*! Assumptions'and'baseline'is*therefore*applied*for*light*vehicles/carsfor'the'transport'sector ,*which*leads*to*about*125,000* Csuch*vehicles*in*2030urrently*! 3.7.2Assumptions' the* increase*.*In*the*baselinein* ownershipand'baseline',**of*a*small*shift*towards*electricity*is*envisioned*for*light*duty*vehicles vehicles*for'the'in* Bhutan*transport'sectoris* extremely*! high* and* can* be* explained* by*.* satisfying* “suppressed* demand”;* in* the* long* run* vehicle* numbers* will* likely* be* aligned* with* the* GDP* Currently*3.7.2increase the* increase*.*But*this*will*only*occur*once*urbanization*in* ownership* of* vehicles*Page*in*begins Bhutan*27**to*slow*down.*is* extremely*A*6%*increase*per*year*until*2030*! high* and* can* be* explained* by* satisfying*from*2017*values*(RSTA*2017)* “suppressed* demand”;* in*is*therefore* the* long*applied*for*light*vehicles/cars run* vehicle* numbers* will*,*which*leads*to likely* be* aligned**about*125 with*,000* the* GDP* increase.*such*vehicles*in*2030But*this*will*only*occur*once*urbanization*.*In*the*baseline,*a*small*shift*towards*electricity*is*envisioned*for*light*duty*vehiclesbegins*to*slow*down.*A*6%*increase*per*year*until*2030*.* from*2017*values*(RSTA*2017)*is*therefore*applied*for*light*vehicles/carsPage*27* ,*which*leads*to*about*125,000* such*vehicles*in*2030.*In*the*baseline,*a*small*shift*towards*electricity*is*envisioned*for*light*duty*vehicles.*
Page*27* 26 Current GHG emission levels and baseline scenario for settlements
3.7.2 Assumptions and baseline for the transport sector Currently the increase in ownership of vehicles in Bhutan is extremely high and can be explained by satisfying “suppressed demand”; in the long run vehicle numbers will likely be aligned with the GDP increase.Integration*of*low*emission*strategies*in* But this will only occur once urbanizationurban*and*rural*settlements*in*Bhutan begins to slow down. A 6%* increase per year until 2030Integration*of*low*emission*strategies*in** from 2017 values (RSTA 2017) is thereforeurban*and*rural*settlements*in*Bhutan applied for light vehicles/cars,* which leads to about 125,000* such vehicles in 2030. In the baseline, a small shift towards electricity is envisioned for light duty vehicles.The*numb The ernumber*of*electric*vehicles*is*assumed*to* of electric vehicles is assumedalso*increase* to also increaseby*6%/year by, resulting*in*6%/year,resulting240*electric* in 240cars*in* electric carsThe*2030.* in numb2030.* er *of*electric*vehicles*is*assumed*to*also*increase*by*6%/year,resulting*in*240*electric*cars*in* 2030.** * Figure* 16: Baseline number of light vehicles until 2030 in Bhutan SOURCE: EXPERT ELABORATION BASED ON DATA FROM NECNumber of light vehicles / cars (2012) Number of light vehicles / cars 140,000 140,000120,000 120,000100,000 100,000 80,000
no. 80,000 60,000 no. 60,000 40,000 40,000 20,000 20,000 0 0
Number of light vehicles / cars Electric vehicles Number of light vehicles / cars Electric vehicles * * Figure'16:'Baseline'number'of'light'vehicles'until'2030'in'Bhutan'' Figure'16:'Baseline'number'of'light'vehicles'until'2030'in'Bhutan'' ADB and AusAid (2013, p.Source:* 5) estimatedExpert* elaboration*based*on*data*from*NEC*(2012)an increase in vehicle numbers to over 200,000* in 2030 based on RSTA data. Therefore, theSource:* estimateExpert used*elaboration*based*on*data*from*NEC*(2012) in this report is conservative. * ADB*and*AusAid*(2013,*p.*5)*estimated*an*increase*in*vehicle*numbers*to*over*200,000*in*2030*based*on* ADB*and*AusAid*(2013,*p.*5)*estimated*an*increase*in*vehicle*numbers*to*over*200,000*in*2030*based*on* RSTA*data.*Therefore,*the*estimate*used*in*this*report*is*conservative.** AnRSTA*data average .*Therefore,*the*annual car useestimate of 5,000*used*in*this*report* km/a is assumedis*conservative and fuel consumption.** of 9.0 l/100 km in 2018, An*average*annual*car*use*of*5,000*km/a*is*assumed*and*fuel*consumption*of*9.0*l/100*km*in*2018,*which* whichAn*average*annual*car*use*of*5 goes down by 0.8% per, 000*kmyear to/a 2030*is*assumed* (Figureand*fuel*consumption*of*9.0* 17). l/100*km*in*2018,*which* goes*down*by*0.8%*per*year*to*2030*(Figure*17).* goes*down*by*0.8%*per*year*to*2030*(Figure*17).* Figure 17: Baseline emissions of light vehicles until 2030 in Bhutan Baseline emissions light vehicles Baseline emissions light vehicles 140,000 140,000 120,000 120,000 100,000
100,000
80,000 80,000
tCO2/a 60,000
tCO2/a 60,000 40,000 40,000 20,000 20,000 0 0 2018201920202021202220232024202520262027202820292030 2018201920202021202220232024202520262027202820292030 Baseline emissions light vehicles Baseline emissions light vehicles * * Figure'Figure'1717:'Baseline'emissions:'Baseline'emissions'of''of'light'vehicles'light'vehicles'until'2030'in'Bhutanuntil'2030'in'Bhutan' '
Page*Page*2828* * URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 27
3.7.3 Assumptions and baseline for the solid waste sector
In theIntegration*of*low*emission*strategies*in* baseline for the solid waste sector,urban*and*rural*settlements*in*Bhutan it is assumed that currently* 99% of the total waste (ca. 126,000 t/a, assuming* a daily waste quantity per capita of 0.45 kg/cap/day as valid for Phuentsholing) is landfilled on controlled landfills without landfill gas capture. It is further assumed that approximately 10% is ! Assumptions'and'baseline'for'the'solid'waste'sector currently recycled (glass, paper, cardboard, metals). The per capita waste volume is expected to increase to 0.75In* kg/cap/day the* baseline*3.7.3 for* by the* 2030,solid* which waste* sector is a typical,* it* is* assumed* value that*for acurrently* middle-income! 99%* of* the* country total* waste* (Figure (ca.* 18). In addition, 126,000*t/a,*assuming*a*daily*waste*quantity*per*capita*of*0.45*kg/cap/day*as*valid*for*Phuentsholing)*is* a populationlandfilled*on*controlled*landfills*without* growth of 3% per annumlandfill* is takengas*captur intoe.*It*is*further*assume consideration.d*that*approximately Recycling rates *1of0%* non-organic and organicis*currently*recycled*(glass,*paper,*cardboard,*metals). waste fractions are expected to increase*The*per*capita*waste*volume* to 20% and 10% by is*expected*to*2030, respectively.increase* to*0.75*kg/cap/day*by*2030,*which*is*a*typical*value*for*a*middleJincome*country*(Figure*18).*In*addition,* a*population*growth*of*3%*per*annum*is*taken*into*consideration.*Recycling*rates*of*nonJorganic*and* Figureorganic* 18: Baselinewaste*fractions* estimateare*expected*to* of treatedincrease*to*20%* solid waste untiland*10%* 2030by*2030, in Bhutan*respectively.* SOURCE: EXPERT ELABORATION, USING IFEU (2009) *
t/a 350000 300000
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0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year '
Figure'18:'Baseline'estimate'of'treated'solid'waste'until'2030'in'Bhutan'
Source:*Expert*elaboration,*using*IFEU*(2009)* * Figure 19: Baseline emissions in the solid waste sector until 2030 in Bhutan Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* SOURCE: EXPERT ELABORATION, USING IFEU (2009) *
tCO2e 400000
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0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year '
Figure'19:'Baseline'emissions'in'the'solid'waste'sector'until'2030'in'Bhutan'
Source:*Expert*elaboration,*using*IFEU*(2009)*
3.7.4& Assumptions'and'baseline'for'wastewater'management' In*the*past,*most*Bhutanese*households*have*used*septic*pits*or*tanks*or*put*their*wastewater*in*the* nearest*stream.*Sewage*systems*have*now*been*introduced*and*are*being*expanded*in*the*urban*centres.* As*per*the*11th*Five*Year*Plan*(GNHC*2013b),*30%*of*households*were*to*be*connected*to*sewerage*systems* by*the*end*of*the*plan*period*(June*2018).*It*is*assumed*that*this*trend*continues*and*by*2030*80%*of* households*are*connected*to*a*sewage*system,*which*leads*to*an*anaerobic*wastewater*treatment*plant* (Figure*20).*
*
Page*30* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
tCO2e 400000
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0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 28 Current GHG emission levels and baseline scenario for settlements Year '
Figure'19:'Baseline'emissions'in'the'solid'waste'sector'until'2030'in'Bhutan' 3.7.4 Assumptions and baseline for wastewater management In the past, most Bhutanese householdsSource:*Expert have*elaboration used septic,*using*IFEU* pits (or2009 tanks)* or put their wastewater in the nearest stream. 3.7.4Sewage& Assumptions'and'baseline'for' systems have now beenw introducedastewater'management and are being' expanded in the urban centres. AsIn*the*past per the, *11thmost*Bhutanese*households*have*used*septic*pits*or*tanks*or*put*their*wastewater*in*the* Five Year Plan (GNHC 2013b), 30% of households were to be connected to sewerage nearest*streamsystems by. *theSewage*systems*have* end of the plannow* periodbeen*introduced*and*are*being*expanded*in*the*urban*centres.* (June 2018). It is assumed that this trend continues and th by 2030 80%As*per*the*11 of households*Five*Year*Plan*(GNHC* are connected2013b),*30%*of*households*were*to*be*connected*to*sewerage*systems* to a sewage system, which leads to an anaerobic wastewater by*the*end*of*the*plan*period*(June*2018).*It*is*assumed*that*this*trend*continues*and*by*2030*80%*of* treatmenthouseholds*are*connected*to*a*sewage*system,*which*leads*to*an*anaerobic*wastewater*tre plant (Figure 20). atment*plant* (Figure*20).* Figure 20: Baseline of households connected to sewage systems until 2030 in Bhutan
Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* * * Figure'20:'Baseline'of'households'connected'to'sewage'systems'until'2030'in'Bhutan' Page*30* The volume of baseline emissions from the wastewater treatment plants then develops as per the The* volume* of* baseline* emissions* from* the* wastewater* treatment* plants* then* develops* as* per* the* anaerobic wastewater treatment coverage (Figure 21). anaerobic*wastewater*treatment*coverage*(Figure*21).* *Figure 21: Baseline emissions from wastewater treatment until 2030 in Bhutan
Baseline*emissions
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0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Baseline*emissions * Figure'21:'Baseline'emissions'from'wastewater'treatment'until'2030'in'Bhutan'
4& Mitigation'potential'in'urban'and'rural'settlements'in'Bhutan' The*mitigation*potential*described*in*this*chapter*is*calculated*based*on*a*review*of*the*current*situation* of*urban*and*rural*settlements*in*Bhutan,*differentiated*by*the*subJsectors*of*buildings,*transport*and* waste*(Figure*22).*This*takes*into*account*a*review*of*existing*literature.*The*assessment*of*mitigation* potential*is*used*as*a*key*criterion*for*the*prioritization*of*the*available*mitigation*measures*(mainly*energy* use*for*for*heating/cooling*and*cooking,*passenger*transport,*and*municipal*solid*waste*management*and* wastewater*treatment)*and*therefore*also*used*as*starting*point*to*define*policy*measures*to*mobilize* implementation*of*the*selected*mitigation*measures.*The*prioritised*measures*are*elaborated*below.*
* * Figure'22:'Generic'mitigation'actions'in'cities'/'human'settlements'
4.1& Mitigation'measures'and'mitigation'potential'in'buildings'
! Green'buildings'and'sustainable'construction'standards'(building'codes)
Green*building*construction*4.1.1 focusing*on*efficient*energy*usage*can*help*to*reduce*energy*consumption*! (thermal* and* electricity* demand)* for* space* heating* and* cooling* through* enhanced* building* insulation.* Energy*efficiency*interventions*for*districts*having*high*heating*load,*i.e.*located*in*high*altitudes*(more* than*2000*metres)*should*focus*on*reducing*the*heating*load*of*the*building.*Measures*in*districts*in*lower* altitudes*(less*than*1000*metres)*should*focus*on*reducing*the*cooling*load*of*the*building.*In*addition,* concrete*measures*should*be*identified*for*both*retrofit*and*new*building*constructions*(DRE*2015).*
Page*31* URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 29
MITIGATION POTENTIAL 4 IN URBAN AND RURAL SETTLEMENTS IN BHUTAN
The mitigation potential described in this chapter is calculated based on a review of the current situation of urban and rural settlements in Bhutan, differentiated by the sub-sectors of buildings, transport and waste (Figure 22). This takes into account a review of existing literature. The assessment of mitigation potential is used as a key criterion for the prioritization of the available mitigation measures (mainly energy use for for heating/cooling and cooking, passenger transport, and municipal solid waste management and wastewater treatment) and therefore also used as starting point to define policy measures to mobilize implementation of the selected mitigation measures. The prioritised measures are elaborated below.
Figure 22: Generic mitigation actions in cities / human settlements
4.1 Mitigation measures and mitigation potential in buildings
4.1.1 Green buildings and sustainable construction standards (building codes) Green building construction focusing on efficient energy usage can help to reduce energy consumption (thermal and electricity demand) for space heating and cooling through enhanced building insulation. Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
4.1& Mitigation'measures'and'mitigation'potential'in'buildings'
30 Mitigation! potentialGreen'buildings'and'sustainable'construction'standards in urban and rural settlements in Bhutan '(building'codes)
Green*building*construction*4.1.1 focusing*on*efficient*energy*usage*can*help*to*reduce*energy*consumption*! (thermal* and* electricity* demand)* for* space* heating* and* cooling* through* enhanced* building* insulation.* Energy efficiency interventions for districts having high heating load, i.e. located in high altitudes (more Energy*efficiency*interventions*for*districts*having*high*heating*load,*i.e.*located*in*high*altitudes*(more* than 2000 metres) should focus on reducing the heating load of the building. Measures in districts in than*2000*lower altitudesmetres)*should*focus*on*reducing*the*heating*load*of*the* (less than 1000 metres) should focus on reducingbuilding the cooling.*Measures*in load of *thedistricts*in*lower* building. In altitudes*(less*than*1000*addition, concrete measuresmetres )*should*foshould be identifiedcus*on*reducing*t for bothhe*cooling*load*of*the*building. retrofit and new building constructions*In*addition ,(DRE* concrete*measures*2015). should*be*identified*for*both*retrofit*and*new*building*constructions*(DRE*2015).* Reducing* heating* and* cooling* demand,* respectively,* will* help* to* reduce* the* specific* energy* demand* (kWh/mReducing2a*of*thermal*energy*or*electricity).* heating and cooling demand, respectively,Energy*efficien willcy help*standards* to reducein*the* theform*of*a*maximal*energy* specific energy demand demand*(kWh/m2a (kWh/m of 2thermala)* could* energy be* introduced* or electricity). to* encourage* Energy efficiency investments* standards in* energy* in the efficient* form of building a maximals.* The* energy Bhutan*Green*Building*Guidelinesdemand (kWh/m2a) could be introduced*provide*information,*recommendations,*and*guidance*to*incorporate* to encourage investments in energy efficient buildings. The sustainable*green*principles*andBhutan Green Building Guidelines*approaches* provide– information,*mainly*for*new*design*and*construction*(MoWHS*2013) recommendations, and guidance to incorporate.* The*implementation*and*introduction*of*standards*in*corresponding*building*codes*will*trigger*technical*sustainable green principles and approaches – mainly for new design and construction (MoWHS intervention2013). Thes*such*as: implementation* and introduction of standards in corresponding building codes will trigger technical interventions such as: •! For*existing*buildings:*refurbishment*of*windows*with*double/triple*glazed*windows,*enhanced* ■■ wall*insulation,*For existing buildings:or*replacement*of*lighting*with*LEDs* refurbishment of windows withcould*be*suitable. double/triple glazed* windows, enhanced • ! For*nwallew*construction insulation, or replacement:*urban*planning*aspects*could*be* of lighting with LEDs couldfactored*in be suitable.,*for*instance,*location*close*to* ■■ public*infrastructure*and*public*transport*facilities.*In*addition,*For new construction: urban planning aspects could be factoredbuildings in, for *instance,could*use*a*passive*solar* location close to design*to*harvest*solar*gains*by*having*public infrastructure and public transportthe*main* facilities.window*front In addition,*oriented*southwards buildings could use* in*areas*with*a passive solar heating*demand.*As*design to harvest solarwit gainsh*existing*building by having thes ,main* new* windowdouble/triple*glazed*windows,* front oriented southwardsenhanced* in areaswall* with insulation,*heating demand.and*replacement*of* As with existingcurrent* buildings,lighting*with*LEDs* new double/triplewill*further*reduce*the*energy*demand glazed windows, enhanced wall * in*new*constructioninsulation, and replacement.*Where*possible of current,*the*i lightingntegration*of*renewable*energies,*e.g.*solar* with LEDs will further reduce the energyroo ftop*demandPV,* solar*in newheat* construction. pumps* and* WhereSolar* possible, Water* Heating* the integration (SWH)* could* of renewable be* used* energies, to* generate* e.g.required* solar rooftop energy* PV, locally.solar heat*Bhu tan*has*adequate*pumps and Solar Watersolar*potential Heating ,(SWH)*with*annual*average*values*of*global*horizontal*solar* could be used to generate required energy locally. 2 radiation*ranging*from*4.0*to*5.5Bhutan has adequate solar potential,*kWh/m withJday*(4.0*to*5.5*p annual averageeak*sun*hours*per*day) values of global horizontal*(MoEA*2008 solar radiation).** ranging from 4.0 to 5.5 kWh/m2-day (4.0 to 5.5 peak sun hours per day) (MoEA 2008). * Figure 23: Emission reduction through reduced energy demand for cooling in lowland districts Emission*reduction*estimation*for*buildings
2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
CO2*reduction*potential*(new*buildings) CO2*reduction*potential CO2 CO2 * Figure'23:'Emission'reduction'through'reduced'energy'demand'for'cooling'in'lowland'districts'
Page*32* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan*
* URBAN AND RURAL SETTLEMENTS IN BHUTAN: Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*BhutanA LOW EMISSION* DEVELOPMENT STRATEGY 31 * * Figure 24: Emission reduction through reduced energy demand for heating in highland districts *
CO2 CO2 * * Figure'Figure'2424:'Emission'reduction'through'reduced'energy'demand'for':'Emission'reduction'through'reduced'energy'demand'for'heatingheating'in'highland'in'highland'districts' 'districts' The use of sustainably harvested wood products as construction material for buildings can be seen as The*The*use*of*use*of*a carbonsustainablsustainabl sink andyy**harvested* thus promotionwood*products*as*construction*material*for*buildings*can*be*seen*as*a*wood*products*as*construction*material*for*buildings*can*be*seen*as*a* of this type of construction can be seen as an additional mitigation carbon*carbon* sinkmeasure. sink* and** and* thus*In thus* addition, promotion* earth, of*stone, of*this*this* and type* type* locally of* construction* of* manufacturedconstruction* can* bricks be* can* seen* will be* as*indirectly seen* an* additional as* contribute an* additional* mitigation* to emission* mitigation* measure.*In*addition,*earth,*stone,*and*locally*manufactured*bricks*will*indirectly*contribute*to*emission* measure.reduction*In*addition,*earth,*stone,*and* by reducing demand for long-distancelocally*manufactured*bricks*will*indirectly*contribute*t transportation of construction materials. Locally-o*emission* reduction*manufacturedby* reducing construction* demand* for*materials longJdistance* will further transportation* help in emission of* construction* reduction as the materials.* primaryL sourceocallyJ of reduction* by* reducing* demand* for* longJdistance* transportation* of* construction* materials.* LocallyJ manufactured*electricity construction* in Bhutan is materials* hydropower. will* further* help* in* emission* reduction* as* the* primary* source* of* manufactured*electricity*in*Bhutan*is*hydropower. construction* materials*** will* further* help* in* emission* reduction* as* the* primary* source* of* electricity*4.1.2in*Bhutan*is*hydropower. Fuel switch from biomass** and LPG thermal energy to electricity 4.1.2& Fuel'switch'from'biomass'and'LPG'thermal'energy'to'electricity' Replacing biomass (wood) and LPG for heating and cooking purposes with electricity, e.g. electric Replacing4.1.2stoves,*biomass& willFuel'switch' reduce*(wood) overall*and*LPG*for*from GHG'biomass'and'LPG emissionsheating*and* of householdscooking'thermal'energy'to'electricity*purposes*with* using theseelectricity energy fuels.,*e.g.*electric*s However,' thetoves emission,* Replacingwill* reduce*reduction*biomass overall* potential*(wood)GHG* *emissions*dueand*LPG*for* to the of*fuel households*heating*and* switch to electricity using*cooking these* depends*purposes*with* energy* on fuelthe schoice.* Howeverelectricity of the,* the*grid,*e.g.*electric*s emission*emission toves,* reduction*potential*due*to*the*fuel*switch*to*electricity*depends*on*the*choice*of*the*grid*emission*factor* will* reduce*factor overall* (see sectionGHG* 3.5).emissions* of* households* using* these* energy* fuels.* However,* the* emission* (see*section*3.5).* reduction*potential*due*to*the*fuel*switch*to*electricity*depends*on*the*choice*of*the*grid*emission*factor* Figure 25: Emission reduction through replacement of woodfuel with electricity in Bhutan (see*section*3.5).*
* Figure'25:'Emission'reduction'through'replacement'of'woodfuel'with'electricity'in'Bhutan'
* Page*33* Figure'25:'Emission'reduction'through'replacement'of'woodfuel'with'electricity'in'Bhutan'
Page*33* 32 Mitigation potential in urban and rural settlements in Bhutan
Although not covered under the detailed assessment due to their currently limited potential, further potential mitigation actions could comprise:
■■ District heating system for space heating based on waste heat recovery; ■■ Solar for tap water heating and supporting the heating systems; ■■ Energy demand-side management by promoting energy efficiency in appliances, e.g. energy efficiency standards for (imported) electricity appliances, including labelling; ■■ Biogas plants in rural areas, e.g. small scale domestic biogas usage, for electricity production, cooking/heating purposes and/or LPG replacement.
4.2 Mitigation measures and mitigation potential in transport
4.2.1 Electric/hybrid vehicles (replacing petrol/diesel cars) While there are substantial emissions from conventional vehicles, electric vehicles are emission-free, provided the electricity is generated from renewable energies – see Chapter3.5. Introduction of electric vehicles in the transport sector in Bhutan has started, albeit on a small basis. Development of supportive infrastructure (e.g. charging stations) can revolutionize the domestic economy, with a possibility of substitution of petrol/diesel vehicles for electric ones consequently reducing the burden on government budget.
To further promote the use of electric vehicles, the following pilot activities and incentives could be implemented:
■■ Electric vehicle fleet for institutional cars and taxis. There are more than 4,200 taxis in Bhutan, which could be replaced by electric vehicles over time. ■■ Install required infrastructure, e.g. charging stations. ■■ Introduction of energy efficiency/fuel standards for conventional diesel/petrol-fueled cars and trucks, e.g. maximum fuel consumption or CO2 emissions per kilometer. ■■ If a replacement rate of 2% per year is assumed until 2030, approximately 24,000 electric cars can replace conventional cars. As a result, ca. 3,500 tCO2 (Indian GEF) or 26,600 tCO2 (Bhutan GEF) can beIntegration*of*low*emission*strategies*in* mitigated until 2030. urban*and*rural*settlements*in*Bhutan* * Figure 26: Emission reduction through introduction of electric vehicles in Bhutan Emission reductions
140,000 120,000
100,000 80,000 60,000 tCO2/a 40,000 20,000 0 2018201920202021202220232024202520262027202820292030
Baseline emissions light vehicles
Overall emission trend (Indian Grid for electric cars)
Overall emission trend (Bhutan Grid for electric cars) * Figure'26:'Emission'reduction'through'introduction'of'electric'vehicles'in'Bhutan'
4.2.2& Public'mass'transit' As*with*electric*vehicles,*electricity*driven*public*mass*rapid*transport*could*be*promoted*and*improved,* including*electrical*busJtrolley*and*battery*buses*for*bus*operators*(e.g.,*Bhutan*Post*which*runs*the*city* bus*service*in*Thimphu*city),*Tourism*Council*of*Bhutan,*private*bus*operators*and*tourist*agencies.*The* NAMA,*Enhancing*Sustainable*LowJEmission*Transport*in*Bhutan,*proposes*operation*of*an*electric*bus* line*between*Paro*airport*and*Thimphu.*The*bus*rapid*transit*system*can*reduce*the*number*of*trips*by* car*and*taxi,*resulting*in*reduced*fuel*consumption*for*mobility.*Additionally,*the*use*of*electric*busses*will* additionally*reduce*emissions*through*a*fuel*switch*from*fossil*fuels*to*electricity*(if*electricity*is*from* renewable*energies).* Autonomous* electric* buses4* could* be* introduced* with* an* energy* storage* device* (either* a* battery* or* a* flywheel)*located*onJboard.*Alternatively,*nonJautonomous*electric*buses*that*are*powered*by*electric* wires*or*power*lines*located*outside*the*bus*–*either*overhead*or*located*within*the*roads*on*which*the* bus*travels*–*could*be*used.** * If*10*electric*buses*are*newly*introduced*per*year*until*2030,*approximately*182,500*trips*by*conventional*
cars/taxis*could*be*avoided.*As*a*result,*ca.*16,000*tCO2*(Indian*GEF)*or*18,400*tCO2*(Bhutan*GEF)*can*be* mitigated*until*2030.* *
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4For*the*transport*NAMA,*viable*autonomous*electric*battery*powered*bus*options*are*proposed*(UNDP/RGoB*2016)*
Page*35* URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 33
4.2.2 Public mass transit As with electric vehicles, electricity driven public mass rapid transport could be promoted and improved, including electrical bus-trolley and battery buses for bus operators (e.g., Bhutan Post which runs the city bus service in Thimphu city), Tourism Council of Bhutan, private bus operators and tourist agencies. The NAMA, Enhancing Sustainable Low-Emission Transport in Bhutan, proposes operation of an electric bus line between Paro airport and Thimphu. The bus rapid transit system can reduce the number of trips by car and taxi, resulting in reduced fuel consumption for mobility. Additionally, the use of electric buses will additionally reduce emissions through a fuel switch from fossil fuels to electricity (if electricity is from renewable energies).
Autonomous electric buses4 could be introduced with an energy storage device (either a battery or a flywheel) located on-board. Alternatively, non-autonomous electric buses that are powered by electric wires or power lines located outside the bus – either overhead or located within the roads on which the bus travels – could be used.
If 10 electric buses are newly introduced per year until 2030, approximately 182,500 trips by Integration*of*low*emission*strategies*in*conventional cars/taxis could be avoided.urban*and*rural*settlements*in*Bhutan As a result, ca. 16,000 tCO2 (Indian* GEF) or 18,400 tCO2 (Bhutan GEF) can be mitigated until 2030. * Figure 27: Emission reduction through introduction of electric buses in Bhutan Emission reductions
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0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
CO2 emissions (Bhutan Grid)CO2 CO2 emissions (Indian Grid)CO2
CO2 emissions conventional carsCO2 '
Figure'27:'Emission'reduction'through'introduction'of'electric'buses'in'Bhutan'
Further*potential*mitigation*actions*Further potential mitigation actionsthat*are* thatnot* areassess*in not assess*detail*due*to* in detail the*duecurrently*limited*potential to the currently limited potential*and* the*lack*of*a*robust*basis*for*estimating*their*future*penetrationand the lack of a robust basis for estimating their future penetration*include:* include: •! ■D■emandDemand-sideJside* management* management of* individual of individual* modes* modes of* transport*of transportand* and promoti promotionon* of* ofnonJmotorized* non‐motorized transporttransport..* It* is* It difis difficultficult* to* calculate*to calculate the* the mitigation* mitigation benefit* benefit of* of non non-motorizedJmotorized* transport* transport in* inthe* the absence*of*regular*traffic*countsabsence of regular traffic counts;;* ■ •! Ropeway*networks,■ Ropeway networks,*e.g.*in*Thimphu,*Paro*and*Haa e.g. in Thimphu, Paro and Haa*(this*would*require*a*study* (this would require a study to*assess*to assess whichwhich* connections*would*be*attractiveconnections would be attractive*to*users*and*investo to users and investors);rs);* ■■ Railway connection to India (the transboundary character would make an estimate of emission •! Railway*connection*to*India*(the*transboundary*character*would*make*an*estimate*of*emission* reductions attributable to Bhutan rather complex). reductions*attributable*to*Bhutan*rather*complex).* 4 For the transport NAMA, viable autonomous electric battery powered bus options are proposed (UNDP/RGoB 2016) 4.3& Mitigation'measures'and'mitigation'potential'in'waste'management'
! Solid'waste'management
Application*of*the*34.3.1 R*waste*management*concept*(reduce,*reuse,*recycle)! *could*be*expanded*significantly* in* Bhutan,* where* recycling* is* currently* developing* as* a* practice.Composting* of* bioJdegradable* waste* fractions*can*be*done*in*many*sizes*and*is*highly*appropriate*to*small*and*mediumJsized*settlements,*such* as*those*in*Bhutan,*as*long*as*the*share*of*organic*waste*is*high*and*the*waste*can*reliably*be*segregated* at*the*source.*In*cold*highland*areas,*composting*may*be*hampered*by*the*low*temperatures,*while*it*will* work*very*well*in*moist*subJtropical*and*tropical*areas.* In* the* long* run,* production* of* alternative* fuels* (Refuse* Derived* Fuel,* RDF)* could* become* attractive,* especially*as*the*share*of*nonJorganic*components*in*waste*increases.*RDF*can*be*used,*for*example,*by* cement*plants*to*replace*fossil*fuels*such*as*coal.*However,*a*minimum*waste*volume*is*required*to*justify* an*RDF*production*plant*and*its*viability*would*need*to*be*assessed.*** If*large,*sanitary*landfills*are*used*for*waste*disposal,*landfill*gas*capture*and*burning*can*reduce*methane* emissions*from*anaerobic*processes*in*the*landfill.*No*Bhutanese*city*currently*has*a*landfill*large*enough* to*justify*such*an*investment,*although*Thimphu*could*reach*a*critical*size*in*the*timeframe*of*this*LEDS.*
Page*36* 34 Mitigation potential in urban and rural settlements in Bhutan
4.3 Mitigation measures and mitigation potential in waste management
4.3.1 Solid waste management Application of the 3R waste management concept (reduce, reuse, recycle) could be expanded significantly in Bhutan, where recycling is currently developing as a practice.Composting of bio- degradable waste fractions can be done in many sizes and is highly appropriate to small and medium- sized settlements, such as those in Bhutan, as long as the share of organic waste is high and the waste can reliably be segregated at the source. In cold highland areas, composting may be hampered by the low temperatures, while it will work very well in moist sub-tropical and tropical areas.
In the long run, production of alternative fuels (Refuse Derived Fuel, RDF) could become attractive, especially as the share of non-organic components in waste increases. RDF can be used, for example, by cement plants to replace fossil fuels such as coal. However, a minimum waste volume is required to justify an RDF production plant and its viability would need to be assessed.
If large, sanitary landfills are used for waste disposal, landfill gas capture and burning can reduce methane emissions from anaerobic processes in the landfill. No Bhutanese city currently has a landfill large enough to justify such an investment, although Thimphu could reach a critical size in the timeframe of this LEDS.
Under the mitigation scenario, the share of recycled non-organic material would increase to 50% in Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* 2030, with 75% of food and 50% of garden waste composted and inert material landfilled. *
FigureUnder 28:*the*mitigation*scenario,*the*share*o Amount of solid waste treated inf*recycled* 2030 nonJorganic*material*would*increase*to*50%*in*2030,* SOURCE:with* EXPERT75%*of*food*and*50%*of*garden*waste* CALCULATION, APPLYING IFEU (2009) composted*and*inert*material*landfilled.**
* Figure'28:'Amount'of'solid'waste'treated'in'2030'
Under the assumptions above, the net emission reduction would reach up to 195,500 tCO2e/a. Source:*Expert*calculation,*applying*IFEU*(2009)*
Under*the*assumptions*above,*the*net*emission*reduction*would*reach*up*to*195,500*tCO2e/a.**
tCO2e 400000 Baseline*scenario 350000 Mitigation*scenario 300000 Emission*reduction 250000
200000
150000
100000
50000
0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year '
Figure'29:'Emission'reduction'from'solid'waste'management'in'Bhutan'
Page*37* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
Under*the*mitigation*scenario,*the*share*of*recycled*nonJorganic*material*would*increase*to*50%*in*2030,* with*75%*of*food*and*50%*of*garden*waste*composted*and*inert*material*landfilled.**
URBAN AND RURAL SETTLEMENTS* IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 35 Figure'28:'Amount'of'solid'waste'treated'in'2030'
Figure 29: Emission reductionSource:* from Expert*csolid wastealculation management,*applying* in BhutanIFEU*(2009)* SOURCE: EXPERT CALCULATION, USING IFEU (2009) Under*the*assumptions*above,*the*net*emission*reduction*would*reach*up*to*195,500*tCO2e/a.**
tCO2e 400000 Baseline*scenario 350000 Mitigation*scenario 300000 Emission*reduction 250000
200000
150000
100000
50000
0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Year '
Figure'29:'Emission'reduction'from'solid'waste'management'in'Bhutan' 4.3.2 Wastewater treatment As discussed in the section 3.7.4., capture of methane from anaerobic treatment system as well as aerobic treatment of wastewater sludge can Page*eliminate37* the majority of methane emissions from wastewater treatment.
4.4 Estimation of the abatement costs
Generally, mitigation measures can be categorized into measures that have a significant investment or initial outlay and measures without such an upfront investment. Measures with significant investment can be differentiated further into measures with revenues, e.g. due to energy savings achieved, and measures that do not result in monetary revenues or savings. Due to the low electricity costs in Bhutan of 0.04-0.05 EUR/kWh, the revenues generated through electricity savings from energy efficiency measures are low. Hence, depending on the level of initial investment costs, the marginal abatement cost is higher than in other countries with high electricity prices.
The abatement costs in Table 7 are calculated based on a set of key measures proposed for Phuentsholing Thromde5.
5 The Phuentsoling pilot project information note can be found in a separate document. Please note that in general data from Phuentsholing appeared to be robust and was used as proxy if no national values have been available. 36 Mitigation potential in urban and rural settlements in Bhutan
Table 8: Overview of abatement cost estimations DATA SOURCE: IFEU (2009)
Measure Abatement cost in EUR/tCO26 (Nu/tCO2)7 Payback period (years)
Buildings in cooling load district
Energy efficiency measures in new ~17 (967) ~5 buildings
Efficient air conditioning > 112 (6,445) ~50
Transport
Cable car ~34 (1,934) ~11
Waste
Solid waste composting ~11 (645) ~4
Wastewater treatment ~112 (6,445) N/A
4.5 Evaluation of sustainable development co-benefits
Mitigation measures do not only result in a reduction of GHG emissions but often contribute to sustainable development. These contributions are referred to as co-benefits. Co-benefits can be evaluated based on a set of criteria and indicators as a way to provide a more complete analysis of a mitigation measure’s value. Under the visionary leadership of Their Majesties the Kings, development in Bhutan has always proceeded with people at the forefront, giving equal considerations to Bhutan’s rich cultural and natural heritage. The philosophy of Gross National Happiness (GNH) embodies a holistic approach to the development of the well-being of the people, especially in the pursuit of socio- economic development.
Since 1961, Bhutan has followed a regular five-year planning cycle that sets out the country’s development priorities and programmes for the upcoming period. GNH has been a guiding principle of this development process. In 2008, efforts were initiated to quantify Bhutan’s progress on maximizing happiness by introducing the GNH index. The index is defined by a set of variables that represent happiness of nine different domains: Psychological wellbeing, health, time use, education, cultural diversity and resilience, good governance, community vitality, ecological diversity & resilience and living standards (GNHC 2013b). Bhutan’s Five-Year Plans are focused around National Key Result Areas (NKRAs), which are specific target areas that include Key Performance Indicators (KPI). NKRAs are based on national priorities, analysis of the current development situation and stakeholder consultations. Moreover, they are aligned and contribute to one or more of the above mentioned GNH domains.
6 Applying exchange rates of EUR/USD of 0.8916 (average rate of 2017 until June) 7 Applying exchange rate of 64.4507 BTN/USD URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 37
Similarly, the Sustainable Development Goals (SDGs) are relevant in the context of mitigation co- benefits. While the NKRAs define the sustainable development priority areas at the national level, the 17 SDGs represent global goals of the international development agenda. Of the 17 SDGs, those related to Affordable and Clean Energy (SDG7), Decent Work and Economic growth (SDG8), Industry, Innovation and Infrastructure (SDG9), Sustainable Cities and Communities (SDDG11) and Climate Change (SDG13) are especially relevant for the Human Settlements LEDS. To identify the co-benefits that are most relevant for the Royal Government of Bhutan and its population, it is sensible to evaluate which co- benefits are reflected by the NKRAs. Screening the NKRAs of the 11thand the 12th five-year plans, a number of co-benefits can be considered aligned with the NKRAs and KPIs (and SDGs) and thus suitable for use in prioritizing mitigation measures (Table 9).
Table 9: Selected co-benefits for prioritization of mitigation measures in human settlements
No Selected co-benefit Aligned with NKRA/KPI Related SDGs
1 Supporting clean (12th 5YP) NKRA 5: Healthy Ecosystem Services Maintained/ SDG11, SDG13 development (reduction of air Ambient Air quality levels (PM10) pollution) (11th 5YP) NKRA 7: Carbon neutral/Green & climate resilient development/Ambient air quality sustained or reduced
2 Improved public services (12th 5YP) NKRA 9: Infrastructure, Communication & Public Service SDG9 Delivery Improved/ Gewogs connected by public transport (12th 5YP) NKRA 9: Infrastructure, Communication & Public Service Delivery Improved/Travel time in trucking hours along the national highway
3 Promotion of eco-efficient (12th 5YP) NKRA 9: Infrastructure, Communication & Public Service SDG9, SDG11, new technologies Delivery Improved/Electric Vehicle Penetration SDG13
4 Employment created (12th 5YP) NKRA 11: Productive & Gainful/ National SDG8 Unemployment Rate (11th 5YP) NKRA 4: Employment
5 Improved liveability of human (12th 5YP) NKRA 15: Liveability, Safety and Sustainability of SDG11 settlements Human Settlements Improved/ Waste Managed at National Level
4.6 Characteristics of rural vs. urban measures
Due to the rapid urbanization in Bhutan, the focus of low-emission development in settlements should lie on urban areas as this helps to prevent “lock-in” of high carbon urban infrastructure. Measures in cities should target primarily buildings and fixed transport infrastructure – through introduction of cable cars, electric vehicle charging stations and/or dedicated bus lanes – as here a lock-in is most difficult to reverse. Shifts in vehicle characteristics may be easier to implement but can be very costly. Unless waste incineration plants are already built, waste management approaches have less risk of lock in but should nonetheless be undertaken rapidly due to the high sustainable co-benefits. As consumption patterns change, e.g., air conditioning penetrates households in the lowlands, mitigation measures need to target the appliances where penetration is increasing significantly. Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
4.6& Characteristics'of'rural'vs.'urban'measures' 38 Mitigation potential in urban and rural settlements in Bhutan Due*to*the*rapid*urbanization*in*Bhutan,*the*focus*of*lowJemission*development*in*settlements*should*lie* on*urban*areas*as*this*helps*to*prevent*“lockJin”*of*high*carbon*urban*infrastructure.*Measures*in*cities* should*target*primarily*buildings*and*fixed*transport*infrMeasures in rural areas should focus on “no-regret”astructure* options–*through*introduction*of that are not made obsolete*cable*cars,* due to electric*vehicle*charging*stations*and/or*dedicated*bus*lanes*–*as*here*a*lockJin*is*most*difficult*to*reverse.* movement of people from villages to cities. For example, focus on replacement of less-efficient Shifts* in* vehicle* characteristics* may* be* easier* to* implement* but* can* be* very* costly.* Unless* waste* appliances instead of measures for buildings where long-term use remains uncertain. The replacement incineration*plants*are*already*built,*waste*management*approaches*have*less*risk*of*lock*in*but*should* of biomass or fossil fuels by electricity, which is now principally possible due to universal electrification, nonetheless* be* undertaken* rapidly* due* to* the* high* sustainable* coJbenefits.* As* consumption* patterns* change,*e.g.,is* cruciallyair*conditioning*penetrate dependent on thes*households*in*the*lowlands,*mitigation*measures*need*to*target* emission factors used for fuelwood and electricity. Use of biogas from the*appliances*livestockwhere* canpenetration* play an importantis*increasing role*significantly. with regard* to cooking and is technically not overly challenging. In the very long run, rural lifestyles will align with urban lifestyles in terms of energy types used and overall Measures*in*rural*areas*should*focus*on*“nolevel of energy consumption. DueJregret”*options*that*are*not*made*obsolete* to the dispersed nature of rural settlementsdue*to*movement* in Bhutan, however, the of*people*from*villages*totransport sector*cities.* will playFor*example, an increasingly*focus*on* importantreplacement*of* role andless beJefficient* responsibleappliances*instead*of* for a significant share of measures*for*ruralbuildings* emissions.where*longJterm*use*remains*uncertain.*The*replacement*of*biomass*or*fossil*fuels* by*electricity,*which*is*now*principally*possible*due*to*universal*electrification,*is*crucially*dependent*on* the*emission*factors*used*for*fuelwood*and*electricity.*Use*of*biogas*from*livestock*can*play*an*important* role*with*regard*to*cooking*and*is*technically*not*overly*challenging.*In*the*very*long*run,*rural*lifestyl4.7 Prioritization of mitigation measures es* will*align*with*urban*lifestyles*in*terms*of*energy*types*used*and*overall*level*of*energy*consumption.*Due* to* the* dispersed* nature* of* rural* settlements* in* Bhutan,* however,* the* transport* sector* will* play* an* Prioritization of mitigation measures is based on three key categories (i.e., mitigation potential, increasingly*important*role*and*be*responsible*for*a*significant*share*of*rural*emissions.* abatement costs (payback period) and sustainable development co-benefits) as visualized in Figure 30 4.7& Prioritization'of'mitigation'measuresbelow. ' Prioritization*of*mitigation*measures*is*based*on*three*key*categories*(i.e.,*mitigation*potential,*abatement* Figure 30: Prioritization of mitigation measures costs*(payback*period)*and*sustainable*development*coJbenefits)*as*visualized*in*Figure*30*below.** SOURCE: EXPERT ELABORATION *
Mitigation* potential Abatement* costs
CoJbenefits
Prioritized*mitigation*measures *
Figure'30:'Prioritization'of'mitigation'measures'
The*ranking*in*each*category*is*shown*in*Table*10.* The ranking in each category is shown in Table 10. Table'10:'Prioritization'approach' Table 10: Prioritization approach Prioritization' Description' +++*PrioritizationMitigation*measure*that*has*a*top*position*in*Description the*category*analysed.* ++* Mitigation*measure*that*has*a*medium*position*in*the*category*analysed.* +++ Mitigation measure that has a top position in the category analysed.
++ Mitigation measurePage* that has40 a* medium position in the category analysed.
+ Mitigation measure that has a low position in the category analysed. URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 39
The ranking of the different mitigation measures and the resulting prioritization as per the discussions with key Bhutanese stakeholders is shown in Table 11.
Table 11: Prioritization of mitigation measures for human settlements in Bhutan
Mitigation Ranking Recommended measure for rural or urban Mitigation Abatement costs Sustainable Overall ranking settlements potential development
Solid waste +++ +++ +++ 1 Urban + Rural composting
Buildings: +++ ++ +++ 2 Urban + Rural energy efficiency
Waste ++ ++ +++ 3 Urban management (3Rs)
Efficient + ++ +++ 4 Urban streetlighting
Public ++ + +++ 4 Urban transport
Wastewater + ++ +++ 4 Urban management
Cable cars ++ + +++ 4 Urban
Appliance ++ + ++ 5 Urban + Rural efficiency
Electric vehicles + + +++ 5 Urban
Solar PV + + +++ 5 Urban + Rural
Non-motorized + + +++ 5 Urban transport
Biofuels ++ + + 6 Rural
LFG flaring + + + 7 Urban 40 Strategic policies and measures to promote mitigation measuresthe industrial sector
STRATEGIC POLICIES AND 5 MEASURES TO PROMOTE MITIGATION MEASURES
To address the identified barriers that prevent implementation of mitigation measures in the human settlements sector, it is crucial to apply flexible strategic measures and policy instruments. The following section presents cross-sectoral and sub-sector specific policy instruments that can help deliver the prioritized mitigation options.
5.1 Addressing the financial barriers
The key barrier for all the identified mitigation measures is the additional investment cost for the low- carbon technology options. These investment costs accrue either to citizens (e.g., private building shells and appliances, private vehicles) or to administrations (public building shells and appliances, public lighting, public transport, waste management infrastructure, etc).
The budget for infrastructure at all administrative levels (central government, Thromde, gewog) is severely constrained. Thus, only measures with immediate benefits for citizens can be undertaken by the administrations, which will usually lead to the choice of the lowest investment cost option for a specific kind of public service. Even if mitigation measures have an attractive payback period, there are currently no domestic financing institutions that would be willing to provide third party financing, given that administrations cannot provide securities for loans.
The financing barrier can be addressed through various means, ranging from direct grants to concessional loans to loans at market rates, but with government guarantees. There is no “catch-all” solution. Tailor-made solutions are critical to ensure long-term sustainability of the mitigation options.
Ideally, international climate finance or revenues from market mechanisms are mobilized. Some international climate finance, for example, funding from the Green Climate Fund (GCF) or the NAMA Facility is allocated ex ante, but competition for this type of financing is very strong. Meanwhile, revenues from market mechanisms and “results based financing” will only accrue ex post, i.e., after a certain mitigation volume has been verified and certified. This type of financing will be proportional to the mitigation volume achieved and so it will not cover the additional upfront investment costs. Thus, URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 41
Bhutan should pursue a flexible financing strategy that addresses both upfront and ex post financing opportunities.
The most innovative mitigation options that exceed a threshold of 10,000 t CO2e emission reduction per year and can be mobilized within 1-2 years should be submitted for ex ante financing. If the financing volume is less than 20 million USD and German institutions can be actively brought in, the NAMA Facility would be the first choice. For a multi-sector activity with significant adaptation co-benefits and a volume of 50-250 million USD, the GCF would be a good opportunity. However, it should be noted that the RGoB needs to prioritize which activities to submit to these two funding windows taking all sectors of the economy into account. This is necessary as a country of Bhutan’s size will probably only get one project financed from each source. Given the advanced stage of mitigation projects in other sectors, it is unlikely that a human settlements proposal would be prioritised unless it becomes an all-encompassing framework (e.g., an urban NAMA).
As ex post financing is more likely to accrue than ex ante financing, the RGoB should develop a revolving fundthat would provide concessional or even zero interest loans to municipalities and private actors willing to engage in mitigation actions for buildings, transport and waste management. These loans would be paid back through the revenues from ex post financing as well as energy savings. Such a concept requires government money in the short term, and is contingent on forecast ex post financing revenues actually materializing. So, there is some risk for the government if the international carbon market under the Paris Agreement does not take off as expected, or if willingness to provide results- based financing is less than envisaged.
A least-risk approach would be for the government to provide guarantees for domestic loans at commercial rates, and direct Bhutanese banks to provide such loans for mitigation measures that have a payback period that allows the investor to pay back the loan at a profit. This would mean that, at minimum, “no regret” – i.e., profitable – mitigation options would be implemented.
Direct grants could also be provided for mitigation options whose co-benefits exceed the cost of the grant, e.g. in the context of solid waste and wastewater management. However given that grants can lead to a higher risk of technology failure, grants should only be given where it is clear that the technology can be well managed by the responsible entity. Grants could also be linked to a requirement to levy charges. This would ensure proper maintenance of the technology.
5.2 Addressing technological and capacity barriers
Most municipal administrations in Bhutan lack experience with advanced building, transport and waste management technologies. Pilot projects for high-efficiency residential buildings, electric vehicles and composting have encountered challenges in maintaining the technologies in the long run. It is thus crucial to ensure that the entities overseeing the specific technical intervention:
■■ understand the strengths and weaknesses of the technology; ■■ can maintain the technology for the envisaged technical lifetime; and ■■ can adjust the technology to changing conditions, if required. 42 Strategic policies and measures to promote mitigation measuresthe industrial sector
Any intervention aimed at public sector infrastructure needs to ensure that involved personnel is able to fulfil these three points. Dedicated capacity building is required, ideally with hands-on training on operation of the technology in a real-life setting.
If the technology is operated by third parties, as is the case for solid waste management in Thimphu, the administration needs to be able to assess whether the third party is fulfilling the terms of its contract. Generally, public-private partnerships are encouraged as these improve the effectiveness of public interventions and reduce government outlays, provided they are properly managed.
5.3 Addressing institutional barriers
Given the decentralization of Bhutanese government structures over the last decade, many different institutions are now involved in policy implementation. Central level government institutions have better access to international financing than Dzongkhags, Gewogs or Thromdes. But the 12thFive- Year Plan will provides budget directly to local administrations. Therefore, it will be important to have strengthened coordination mechanisms for the implementation of relevant policies and regulations. International financiers have demonstrated interest to be engaged in Thimphu, which exhibits the largest challenges of urbanization in the whole country. However, it will be important to ensure that policies encourage uptake of mitigation activities in human settlements across the country. Especially for diffuse measures such as improvement of energy efficiency in building shells, fuel efficiency of vehicles, and efficiency of appliances (lighting, cooling and heating), the central government needs to play a key role by deciding on and enforcing efficiency standards. It will be impossible for lower level government entities to decide on such standards on their own. URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 43
INSTITUTIONAL STRUCTURE FOR 6 IMPLEMENTATION OF STRATEGIC MITIGATION MEASURES
Given the complexity of institutional settings for local administrations in Bhutan, as defined in the Local Government Act of 2009 and the amendments made in 2014, responsibilities for mitigation strategies need to be clearly allocated for each level of government and differentiated as per the level of the intervention.
6.1 Institutional responsibilities
The Gross National Happiness Commission (GNHC), in collaboration with the Ministry of Finance (MOF), is responsible for mobilizing public international and bilateral climate finance for funding of NAMAs and specific mitigation activities. This will be undertaken throughout the duration of the LEDS, and be adjusted as per international developments. These may include changes of allocation of funding to specific finance vehicles, changes in the eligibility of Bhutan for certain forms of financing as Bhutan graduates from the category of Least Developed Countries, and changes in the rules of the international climate policy regime.
The National Environment Commission (NEC) is responsible for design of all NAMAs and coordinates with the responsible line ministry regarding the introduction of policy instruments that aim at mobilization of mitigation under each NAMA. If required by law, NEC submits proposals to the Cabinet or the National Assembly. The NEC also serves as the entity to provide letters of approval to activities that want to generate credits under the Paris market mechanisms.
The Ministry of Works and Human Settlements (MoWHS) coordinates the implementation of cross- Thromde programmes for mitigation measures in the Thromdes under its oversight (i.e., Thimphu, Phuentsholing, Gelephu and Samdrup Jongkhar), such as solid waste management under the proposed NAMA. Similarly, the Department of Local Government in the Ministry of Home and Cultural Affairs coordinates with the Dzongkhags regarding the implementation of mitigation measures. Gewogs take the responsibility for activities that take place exclusively in that Gewog. Likewise, Thromdes are responsible for activities that take place exclusively in that Thromde. 44 Institutional structure for implementation of strategic mitigation measures
The Department of Renewable Energy (DRE) under the Ministry of Economic Affairs (MoEA) is mandated for planning, coordination and implementation of energy related policies and programmes, acting as the central coordination agency and the focal point of RGoB on all matters related to renewable energy development and energy efficiency initiatives.
The Ministry of Information and Communication coordinates transport-related activities, with Bhutan Post being responsible for activities linked to city bus systems. Over time, the final responsibility for operating city bus systems should transition to Thromdes.
For more detailed information on roles and responsibilities, please refer to Annex 1.
6.2 Institutional activities andtimeframes for mobilization of mitigation under the LEDS
The LEDS for urban and rural settlements is an overarching framework. Other strategies such as the LEDS for the transport sector and for energy efficiency, as well as NAMAs for waste and buildings, form a part of the implementation actions of the framework. Some of the institutional activities and the corresponding timelines are described below. An illustrative work plan is attached in Annex 2. Within one year, the following activities will be undertaken:
■■ NEC provides guidance on mitigation actions in human settlements in Bhutan, which can be utilized by line ministries and local administrations. ■■ MoWHS will make a survey for prioritizing mitigation actions in the Thromdes under its supervision, while the Ministry of Home Affairs coordinates a survey in all Dzongkhags to identify and prioritize mitigation actions outside the large Thromdes. ■■ The GNHC prioritizes sources of international and bilateral climate finance and selects specific activities for proposals to those climate finance institutions.
After three years, an evaluation of volumes of international/bilateral climate finance mobilized will be made by GNHC and NEC. Such an evaluation will be repeated every three years.
Within four years, the Cabinet will introduce efficiency standards for buildings, air conditioners and vehicles of all categories and direct the relevant line ministries to enforce these standards. These standards are to be updated every five years.
Within five years the following activities have been achieved:
All Thromdes under the supervision of MoWHS, and other Thromdes that reach similar degrees of urbanization, will: ■■ levy a fee to cover the operational costs of solid waste segregation and composting and methane collection from sewage; ■■ fully segregate waste at the household level and recycle the non-organic fractions or process into RDF; ■■ collect methane from anaerobic sewage treatment ponds and flare it; ■■ routinely procure appliances of the highest Indian BEE star rating; URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 45
■■ operate a city bus system and encourage mass transit; and ■■ have a linked system of footpaths that is separate from the road space used by vehicles.
Every five years, a new prioritization of mitigation options will be undertaken.
Within ten years, all public administrations that operate vehicle fleets will procure new vehicles that do not directly use fossil fuel for a significant share of their energy need. 46 Conclusions and recommendations
CONCLUSIONS AND 7 RECOMMENDATIONS
GHG emissions from human settlements in Bhutan are increasing rapidly and becoming significant. These emissions accrue primarily in the three sectors: buildings, transport and waste management. While a number of high-level policy documents exist that could mobilize GHG mitigation, international support is important to increase the momentum for these actions. In this context, a number of NAMAs have been developed for the three sectors, but their implementation is contingent on international climate finance, which has not yet been mobilized.
This LEDS for the first time undertakes a detailed sub-sectoral assessment for a GHG emissions baseline for human settlements for the period until 2030. Two baseline scenarios have been developed – one applying the Indian grid emission factor for electricity and the carbon content of fuelwood, the other one applying a Bhutanese zero emission factor for electricity and fuelwood. The difference between these scenarios reaches a factor of three (Figure 31). Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* Figure 31: Overall* emissions baseline of human settlements in Bhutan until 2030
Baseline scenario 1 (tCO e): Baseline emissions using Indian grid Emission Factor Baseline*emissions*from*settlements*at*Indian*grid*EF*and*full*2 fuelwood*EF 2,500,000
2,000,000
1,500,000
1,000,000
500,000
0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Buildings*lowlands Buildings*highlands Cooking Light*vehicles Solid*waste Wastewater *
*
Baseline*scenario*2*(tCO2e):*Baseline*emissions*using*Bhutanese*grid*emission*factor*
Baseline*emissions*from*settlements*at*Bhutanese*grid*EF*and* zero*wood*EF
600,000
500,000
400,000
300,000
200,000
100,000
0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Light*vehicles Solid*waste Wastewater '
Figure'31:'Overall'emissions'baseline'of'human'settlements'in'Bhutan'until'2030'
Page*46* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* *
Baseline*emissions*from*settlements*at*Indian*grid*EF*and*full* fuelwood*EF
2,500,000
2,000,000
1,500,000
1,000,000
500,000
0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Buildings*lowlands Buildings*highlands Cooking Light*vehicles Solid*waste Wastewater *
* URBAN AND RURAL SETTLEMENTS IN BHUTAN: Baseline*scenario*2*(tCO e):*Baseline*emissions*using*Bhutanese*grid*emission*factor* 2 A LOW EMISSION DEVELOPMENT STRATEGY 47
Baseline scenario 2 (tCO e): Baseline emissions using Bhutanese grid emission factor Baseline*emissions*from*settlements*at*Bhutanese*grid*EF*and*2 zero*wood*EF
600,000
500,000
400,000
300,000
Integration*of*low*emission*strategies*in*200,000 urban*and*rural*settlements*in*Bhutan*
* 100,000
0 A*detailed*assessment*of*the*mitigation*potential*during*th2018 2019 2020 2021 2022 2023 2024e*timeframe*2025 2026 20182027 2028J30*finds*a*high*potential*for*2029 2030 the*solid*waste*sector.*The*mitigation*potential*in*the*buildings*and*transport*sectorLight*vehicles Solid*waste Wastewater s*depends*on*the* Integration*of*low*emission*strategies*in*urban*and*rural*settlements*in*Bhutan* ' electricity*grid*and*fuelwood*emission*factors*used.*In*both*scenarios,*the*potential*is*approximately*four* * Figure'31:'Overall'emissions'baseline'of'human'settlements'in'Bhutan'until'2030' times*lower*than*the*potential*of*the*waste*sector.*Improvement*of*efficiency*of*electric*appliances*in* A detailed assessment of the mitigation potential during the timeframe 2018-30 finds a high potential A*detailed*assessment*of*the*mitigation*potential*during*the*timeframe*2018J30*finds*a*high*potential*for* buildings* would*for not* the generate*solid waste mitigation*sector. The mitigationbenefits* potentialin* the* first*in the scenario,* buildings and while transport* replacement* sectors depends of* fuelwood* on the*solid*waste*sector.*The*mitigation*potential*in*the*buildings*and*transport*sectors*depends*on*the* through*electric*cooking*would*have*athe electricity grid and fuelwoodn*initially emission*high factors,*but*later*decliningPage* used.46* In both scenarios,,*potential.* the potential* is approximately electricity*grid*and*fuelwood*emission*factors*used.*In*both*scenarios,*the*potential*is*approximately*four* four times lower than the potential of the waste sector. Improvement of efficiency of electric appliances times*lower*than*the*potential*of*the*waste*sector.*Improvement*of*efficiency*of*electric*appliances*in* Mitigation*scenario*1*(tCOin buildings would2e):*Indian*grid*emission*factor*for*electricity*and*carbon*content*in*fuelwood not generate mitigation benefits in the first scenario, while replacement of fuelwood * buildings* would* not* generate* mitigation* benefits* in* the* first* scenario,* while* replacement* of* fuelwood* through electric cooking would have an initially high, but later declining, potential. through*electric*cooking*would*have*an*initially*high,*but*later*declining,*potential.**
Mitigation*Figure 32:scenario*1*(tCO Overall mitigation2e):* potentialIndian*grid*emission*factor*for*electricity*and*carbon*content*in*fuelwood from human settlements in Bhutan until 2030 *
Mitigation scenario 1 (tCO2e): Indian grid emission factor for electricity and carbon content in fuelwood
*
Mitigation*scenario*2*(tCO2e):*Zero*emission*factor*for*both*the*electricity*grid*and*fuelwood* *
Mitigation*scenario*2*(tCO2e):*Zero*emission*factor*for*both*the*electricity*grid*and*fuelwood*
Page*47*
Page*47* 48 ConclusionsIntegration*of*low*emission*strategies*in* and recommendations urban*and*rural*settlements*in*Bhutan* *
Mitigation scenario 2 (tCO2e): Zero emission factor for both the electricity grid and fuelwood Mitigation*in*settlements*at*Bhutanese*grid*EF*and*zero* fuelwood*EF
250,000
200,000
150,000
100,000
tCO2e 50,000
0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
New*efficient*buildings*lowlands Refurbishment*buildings*lowlands
New*efficient*buildings*highlands Refurbishement*buildings*highlands
Electric*vehicles*(Bhutan*grid) Electric*buses**(Bhutan*grid)
Composting Methane*flaring*wastewater *
Figure'32:'Overall'mitigation'potential'from'human'settlements'in'Bhutan'until'2030'
Given*the*NAMAs*and*project*ideas*for*mitigation*in*the*human*settlements*sector*that*are*already*in* Givenplace the,*strong*coordination*of*the*climate*finance*outreach*by*the* NAMAs and project ideas for mitigation in the human settlementsRGoB*and*engagement*of*all*levels*o sector that are already in f* place,government* strong coordinationis*crucial*to*successfully*mobilize*financing.* of the climate finance outreach* by the RGoB and engagement of all levels of government is crucial to successfully mobilize financing. * '
Page*48* URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 49
8 REFERENCES
ADB, AusAid (2013): Bhutan Transport 2040 Integrated Strategic Vision, Thimphu
Bhawan, Sewa; Puram, R.K. (2016): CO2 Baseline Database for the Indian Power Sector, Central Electricity Authority, New Delhi
Bhutan Power Corporation (2017): Annual Report 2016, Thimphu
Department of Renewable Energy (2016): Bhutan Energy Data Directory 2015, Ministry of Economic Affairs, Royal Government of Bhutan, Thimphu
Department of Renewable Energy (2015): Bhutan Building Energy Efficiency Study, Part 1 (Main Report), Royal Government of Bhutan, Thimphu
Ernst and Young (2015): Bhutan Building Energy Efficiency Study; Draft report, Thimphu
Gross National Happiness Commission (2017): Economic Development Policy of the Kingdom of Bhutan, Royal Government of Bhutan, Thimphu
Gross National Happiness Commission (2016): Enhancing Sustainable Low Emission Urban Transport System, NAMA Support Project Proposal to the NAMA Facility;Royal Government of Bhutan, Thimphu
Gross National Happiness Commission (2013a): Bhutan Green Building Design Guidelines; The Engineering Adaptation & Risk Reduction Division Department of Engineering Services, Ministry of Works and Human Settlement, Thimphu
Gross National Happiness Commission (2013b): Eleventh Five Year Plan Document 2013 – 2018; Royal Government of Bhutan, Thimphu
Institut für Energie- und Umweltforschung Heidelberg (IFEU) (2009): Tool for calculating greenhouse gases (GHG) in Solid Waste Management (SWM); BMUB, GIZ, KfW, Heidelberg
Ministry of Economic Affairs (2017a): Low emission development strategy for the industrial sector in Bhutan, Thimphu
Ministry of Economic Affairs (2017b): Cleaner production and greenhouse gas mitigation in the industrial sector in Bhutan, Thimphu
Ministry of Economic Affairs (2008): Bhutan – Annual global horizontal solar radiation; Royal Government of Bhutan, Thimphu 50 References
Ministry of Information and Communications (2015): Intelligent Transport Systems (ITS) Feasibility Study and Preparation of a Comprehensive ITS action plan for Thimphu City, Thimphu
Ministry of Information and Communications (2016): Annual Info-Comm and Transport Statistical Bulletin, Thimphu
Ministry of Labour and Human Resources (2013): Bhutan Labour Market Information System,http://www.molhr.gov. bt/blmis/nlf_001_01.php
Ministry of Works and Human Settlement (2013): Guidelines for planning and development of human settlements in urban and rural areas of Bhutan to minimise environmental impacts; Department of Human Settlements, Thimphu
National Assembly of Bhutan (2007): National Environment Protection Act; Thimphu
National Council of Bhutan (2008): The Constitution of the Kingdom of Bhutan; Thimphu
National Environment Commission (2016): Bhutan State of the Environment Report; Royal Government of Bhutan, Thimphu
National Environment Commission (2015): Kingdom of Bhutan: Intended Nationally Determined Contribution, Royal Government of Bhutan, Thimphu
National Environment Commission (2013): Technology Need Assessment and Technology Action Plans for Climate Change Mitigation; Royal Government of Bhutan, Thimphu
National Environment Commission (2012): National Strategy and Action Plan for Low Carbon Development; Royal Government of Bhutan, Thimphu
National Environment Commission (2011): Second National Communication to the UNFCCC; Royal Government of Bhutan, Thimphu
National Statistics Bureau (2016): Statistical Year Book 2016; Royal Government of Bhutan, Thimphu
Ogino, Kaoru; Hamanaka, Shintaro (2011): Case story on cross-border power export from Dagachhu hydropower development; Green Power Development Project, Asian Development Bank, Manila
Om Pradhan, Lyonpo (2012): Bhutan – The Roar of the Thunder Dragon; K Media, Thimphu
Phuentsholing Thromde Local Government (2012): Eleventh Five Year Plan (July 2013 – June 2018), Royal Government of Bhutan, Thimphu
Road Safety and Transport Authority (2017): Vehicle statistics, http://www.rsta.gov.bt/rstaweb/load. html?id=82&field_cons=MENU (accessed April 27, 2017)
Royal Government of Bhutan (2013): Alternative Renewable Energy Policy 2013; Thimphu
Royal Government of Bhutan (2009): Declaration of the Kingdom of Bhutan ‐ the Land of Gross National Happiness to Save our Planet; Thimphu
Ministry of Information and Communications (2016): Bhutan - Low emission development strategy for the transport sector, 2016
United Nations Development Programme / Royal Government of Bhutan (2016): NAMA for enhancing the urban transport system in Bhutan; Royal Government of Bhutan, UNDP Low Emission Capacity Building (LECB) Programme, May 2016
World Bank (2016): Bhutan Country Snapshot, http://documents.worldbank.org/curated/en/196691468013837110/ pdf/916250WP0Bhuta00Box385333B00PUBLIC0.pdf (accessed 2 June 2017) URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 51
ANNEX 1 ROLES AND RESPONSIBILITIES OF EXISTING INSTITUTIONS/AGENCIES RELEVANT TO HUMAN SETTLEMENTS
Energy activities in Bhutan are mainly planned and coordinated by two ministries: the Ministry of Agriculture and Forests and the Ministry of Economic Affairs, with the former focusing on the administration of biomass and planning and designing policy for utilization and maintenance of forest resources and the latter being responsible for policy formulation, planning, coordination and implementation of both conventional and renewable energy generation, consumption and exports, as well as import of fossil fuel.
Ministry of Economic Affairs (MoEA) The Ministry of Economic Affairs (MoEA) has a mandate to set economic development agenda of the country. As the custodian of EDP 2010 and FDI policy of 2010, the ministry promotes a “green and self- reliant economy”. The Department of Renewable Energy (DRE) under the Ministry is mandated to plan, coordinate and implement energy-related policies and programmes. DRE was established in December 2011 to serve as the central coordination agency and the focal point of RGoB on all matters related to renewable energy development and energy efficiency initiatives in the country.
Divisions under the DRE:
Alternate Energy Division (AED): AED carries out implementation of the policy regulations related to renewable energy. The division is responsible for investigation, identification, design and planning of systems covering solar, wind, bio fuels, fuel cells, geothermal and small hydropower plants. AED also implements pilot/demonstration renewable energy projects and manages the tendering of all reconnaissance, pre-feasibility, feasibility and DPR studies for such projects. The division serves as the focal point for renewable energy.
Planning and Coordination Division (PCD): PCD is involved in formulation of policies and regulations for renewable energy and energy efficiency and conservation, and responsible for planning and coordination of programmes and initiatives on renewable energy and energy efficiency. PCD is also mandated to administer and implement subsidy programmes and initiatives on renewable energy and energy efficiency and conservation. Techno-economic clearances and technical sanctions for renewable energy projects are routed through this division. The division is also responsible for energy data collection and analysis. 52 Annex 1
Research and Development Division (R&DD): R&DD carries out applied research and development in renewable energy and energy efficiency technologies. The division promotes renewable energy and energy efficiency and is also tasked with analyzing market opportunities and risks for energy systems. The division is to develop testing and certification procedures and testing facilities, including the development of minimum energy performance standards and labelling design for equipment and appliances. R&DD promotes the use of energy efficient processes, equipment, devices and systems, and carries out promotion of innovative financing of energy efficiency projects and preparation of educational contents on efficient use of energy and energy conservation.
Ministry of Works and Human Settlement (MoWHS) The Ministry formulates policies and develops plans related to physical infrastructures and human settlements. It develops and implements related acts/regulations/standards, is engaged in capacity building of technical human resources, and sets policies to promote appropriate construction. Finally, the Ministry promotes research and development that would serve to maintain a synergy between technology, environment and traditional values and develops plans and policies for proper human settlement through growth centers. The MOWHS has three main technical Departments: the Department of Roads, the Department of Engineering Services and Department of Human Settlement.
Ministry of Labour and Human Resource (MoLHR) The Ministry is in charge of developing skills sets for economic development to ensure gainful employment for all Bhutanese. Under the Department of Human Resources, the Ministry has eight technical and vocational education training (TVET) institutes, offering number of specialized technical skill development courses. These institutes are spread all over the country, reflecting the need for balanced regional development.
Ministry of Finance The Ministry is mandated to formulate and implement dynamic fiscal policies and sound financial management through maximization of resource generation, efficient allocation, prudent expenditure and debt management, and proper accountability of public resources. The Ministry aims to steer and sustain a robust economy through a dynamic fiscal policy and strong culture of fiscal discipline.
Ministry of Agriculture and Forests (MAF) The Ministry has a mandate to enhance rural livelihoods and therefore pursues a number of activities that will improve economic returns for rural agro-based enterprises. This includes application of production boosting technologies, mechanization of farming, reduction of post–harvest losses, reduction of losses incurred by pest and diseases, application of information and communication technology, and improvement of vital farm infrastructure and production inputs.
National Environment Commission (NEC) The NEC is a high level multi-sectoral body, chaired by the Hon’ble Prime Minister, and with representatives from various ministries, NGOs and the private sector. It is responsible for coordinating all the matters relating to the protection, conservation and improvement of the natural environment. One of the core functions of the NEC is to ensure that socio-economic development activities are planned and executed with minimum adverse impact to the environment and human health. NEC also has a mandate to coordinate climate actions across various sectors, including waste. URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 53
Gross National Happiness Commission (GNHC) GNHC is charged with promoting coherence and collaboration during formulation and implementation of all government policies, irrespective of their origin, including reaching out to stakeholders. This is to ensure that GNH is mainstreamed into the planning, policy making and implementation process by evaluating relevance to the GNH principles of: i. Developing a dynamic economy as the foundation for a vibrant democracy; ii. Harmonious Living – in harmony with tradition and nature; iii. Effective and good governance; and iv. Our people: investing in the nation’s greatest asset.
Ministry of Information and Communication (MOIC) The Ministry is the apex body responsible for all policies and regulations relevant to the development of the transport sector in Bhutan.
The Road Safety and Transport Authority (RSTA) was established in 1997 by consolidating all motor vehicle-related activities, such as vehicle registration, driver licensing, road worthiness testing, vehicle emissions, passenger transport service regulation, traffic regulations, road safety, etc. under one organization. The Authority is mandated to implement road safety strategies and to develop, promote and administer road safety education and training programs. RSTA responsibilities also involve improving the efficiency and effectiveness of transport passenger facilities and networks to meet the needs of the community. 54 annex2 ANNEX 2 IMPLEMENTATION PLAN FOR MEASURES IN HUMAN SETTLEMENTS LEDS
Focus area 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Overarching NEC provides guidance on mitigation actions for human GHNC & NEC evaluate Reprioritize mitigation LEDS framework settlements, which can be used by line ministries and local volumes of international/ options (every 5 years) administrations. bilateral climate finance mobilized (every 3 years) MoWHS makes survey for prioritising mitigation actions in the Thromdes under its supervision. MoHA coordinates survey in all Dzongkhags to identify and prioritise mitigation actions outside the major Thromdes. GNHC prioritises sources of internatioanl and bilateral climate finance and selects specific proposals for those funding sources. Buildings Introduce efficiency standards for buildings, air conditioners, and vehicles of all categories. Cabinet directs the relevant line ministries to enforce these standards. Initiate EE building code (study and awareness raising on EE building standards). Routinely procure appliances of the highest Indian BEE star rating. Implement EE upgrades (installion of LED lighting in residential, institutional and commer- cial buildings). Develop EE building code of practice , build capacity of relevant stakeholders, awareness raising and roll out of EE standards. Implement EE building standards. Certify EE buildings. Waste Levy waste fee to cover operational costs of waste segregation and compositing, as well as methane collection from sewage (all Thromdes). Capacity building, awareness raising and outreach. Implementation of NAMA at selected sites. Fully segregate waste at household level and recycle the non-organic fractions or process them into RDF. Collect and flare methane from anaerobic sewage treament ponds. Undertake feasibiltiy study on Set up RDF plant if seen as viable. RDF production. Monitoring and reporting. Transport Introduce electric buses. Operate a city bus system: infrastructure development, renovation of existing bus stops and terminals, and development of new bus stops. Introduce new fleet and reduce headway (time between buses) to 10 minutes. Introduce a linked system of footpaths that is separate from the road space used by vehicles. Installation of quick EV chargers for Thimphu-Paro-Phuentsoling route. Expansion of quick-charging stations: total of 150 to be installed in Bhutan. Introduce EVs within government fleet, police cars, and public transport. Expansion of EVs within government fleet, police cars, and public transport. Undertake feasibility study on cable car Develop cable car system if suitable location identified in Further expansion of cable car systems. systems. feasibility study. URBAN AND RURAL SETTLEMENTS IN BHUTAN: A LOW EMISSION DEVELOPMENT STRATEGY 55
Focus area 2017 2018 2019 2020 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Overarching NEC provides guidance on mitigation actions for human GHNC & NEC evaluate Reprioritize mitigation LEDS framework settlements, which can be used by line ministries and local volumes of international/ options (every 5 years) administrations. bilateral climate finance mobilized (every 3 years) MoWHS makes survey for prioritising mitigation actions in the Thromdes under its supervision. MoHA coordinates survey in all Dzongkhags to identify and prioritise mitigation actions outside the major Thromdes. GNHC prioritises sources of internatioanl and bilateral climate finance and selects specific proposals for those funding sources. Buildings Introduce efficiency standards for buildings, air conditioners, and vehicles of all categories. Cabinet directs the relevant line ministries to enforce these standards. Initiate EE building code (study and awareness raising on EE building standards). Routinely procure appliances of the highest Indian BEE star rating. Implement EE upgrades (installion of LED lighting in residential, institutional and commer- cial buildings). Develop EE building code of practice , build capacity of relevant stakeholders, awareness raising and roll out of EE standards. Implement EE building standards. Certify EE buildings. Waste Levy waste fee to cover operational costs of waste segregation and compositing, as well as methane collection from sewage (all Thromdes). Capacity building, awareness raising and outreach. Implementation of NAMA at selected sites. Fully segregate waste at household level and recycle the non-organic fractions or process them into RDF. Collect and flare methane from anaerobic sewage treament ponds. Undertake feasibiltiy study on Set up RDF plant if seen as viable. RDF production. Monitoring and reporting. Transport Introduce electric buses. Operate a city bus system: infrastructure development, renovation of existing bus stops and terminals, and development of new bus stops. Introduce new fleet and reduce headway (time between buses) to 10 minutes. Introduce a linked system of footpaths that is separate from the road space used by vehicles. Installation of quick EV chargers for Thimphu-Paro-Phuentsoling route. Expansion of quick-charging stations: total of 150 to be installed in Bhutan. Introduce EVs within government fleet, police cars, and public transport. Expansion of EVs within government fleet, police cars, and public transport. Undertake feasibility study on cable car Develop cable car system if suitable location identified in Further expansion of cable car systems. systems. feasibility study. Ministry of Works and Human Settlements Royal Government of Bhutan P.O. Box 791 Thimphu, Bhutan