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JTCA Future CDM Workshop 2005.12.3 Montreal Canada Outline of “Study to Promote CDM in Transport Sector to Resolve Global Warming Problem” & “Bio-diesel Fuel CDM Project” Ryo Masutomo Japan Transport Cooperation Association (JTCA) 1 JTCA Introduction of JTCA (Japan Transport Cooperation Association) Semi-governmental Organization under Ministry of Land, Infrastructure and Transport (MLIT), Japan Promote the International Cooperation in Transport Sector 25 Regular Members and 33 Supporting Member Firms from Many sectors Environmental Issue is one of the most Important fields to support Japan Foreign Countries MLMLIITT GovGoveerrnnmementnt JaJapapann JTJTCACA PrPriivvateate SSeectorctor Cooperation In the Member Firms Member Firms transport UnUniviveerrsitysity ((JJWWAA,, AlAlmmeec,c, PCI,PCI, ….)….) sector 2 InternationalInternational CCooperationooperation byby JTCAJTCA (1993-(1993-22002002)) JTCA ContentsContents Part I: Outline of Study to Promote CDM in Transport Sector (2003-MarchMarch 2002005)5) • BackgBackground • OutlineOutline of Study past 3 years Part II: Outline of Transport BDF-CDMBDF-CDM (April 2005-Dec.-Dec. 2005) • OutlineOutline of Project • NewNew Methodology • ApplicabilityApplicability for Other Area Part III: Next Step (Dec. 2005-)-) • OOththeerr Transport CDM 3 JTCA HistoryHistory ofof TransportTransport CDMCDM StudyStudy byby MLIT,JTCAMLIT,JTCA 20022002 Preparation of Study 2003/3 2003/3 Study to Promote •Field Driving Test (16,000 km) CDM in Transport •Bangkok Driving Cycle by speed & car Sector to Resolve Global Warming •Emission Test (120 Vehicle) Problem” •Emission Factor by speed & car by MLIT,Japan •Estimation of BKK CO2 Emission 2004/32004/3 (March 2003 --MaMarchrch 2005) •Classify Transport CDM candidate •Select BDF-CDM as model case PART - I •Emission Factor by Palm & Coconut •Initial Project Plan of Transport BDF-CDM 2005/32005/3 •Detail F/S of Transport BDF-CDM PART - II •New Methodology & Tentative PDD •Final PDD PART - III •Study on BRT CDM 2006/32006/3 4 JTCA PartPart II OutlineOutline ofof “Study to Promote CDM in Transport Sector to Resolve Global Warming Problem” EntrustedEntrusted byby MMLLIT,IT, JapanJapan (March 20020033--March 2005) 5 JTCA Background 1 Importance of Transport CDM GHG emission from transport sector is over 20 % in Japan, more in Asian Countries About 90 % of it emitted from vehicle Is increasing rapidly in Asia Increasing of CO2 emission from Transport Sector Industries Transport Home 6 JTCA Background 2 Difficulties of Transport CDM Transport CDM project is difficult Because • Many CO2 emission sources are moving • Complicatedness of Urban Transport System • It makes the Baseline Scenario difficult • Lack of Basic Transport Data • Low Cost Effectiveness for CO2 Credit • Lack of Good sample of Transport CDM 7 JTCA Background 3 How does Transport CDM promote? => To prepare Driving data (cycle) and emission factor Common basic data and method for calculation Baseline scenario by scientific method Accurate calculation method of GHG reduction Good sample of Transport CDM Project 8 JTCA Flow Chart of Study Collect actual traffic data in Bangkok Develop Bangkok Driving Cycle & Emission Factor Develop Method of GHG Emission Estimation Identify and Promote of Feasibile Transport CDM Project Promotion of CDM in Transport Sector Effectiveness Reduction of GHGs Improvement of Urban Air Increase of Investment chance 9 JTCA Results of Study 1. Bangkok Driving Cycle 2. Emission Factors of Various Vehicles in Bangkok 3. Estimate CO2 Emission from Transport Sector in Bangkok 4. Preliminary Classification of Transport CDM project candidate 5. Identify Feasible Pilot CDM Project Sample CDM 10 JTCA How to use the outcome of Study Example of Using Emission Emission Factors Reduction Case 1. Improvement of CO2 Increase of Emission Vehicle Speed Traffic Flow Factor Emission Case 2. Improvement of Reduction Emission by Usual car Hybrid vehicle CO2 Emission Factor Hi-breed car 11 NatureNature ofof TransportTransport SectorSector CDMCDM ProjectsProjects CertainCertain TechnolTechnoloogicalgical OptiOptionsons EVEV CNGCNG BiodieselBiodiesel CNGCNG carscars Buses Buses BiodieselBiodiesel CNGCNG Buses Buses LPGLPG EthanolEthanol TaxisTaxis TaxisTaxis carscars carscars LPGLPG Ethanol BiodieselBiodiesel CNGCNG Ethanol HybrHybridid Trucks Trucks TaxisTaxis Taxis Trucks Trucks Taxis carscars Impact to EVEV CarCar VehicVehicllee Private vehicles SharShariingng I/MI/M Impact to Public or commercial PlaPlattee NuNumbemberr PaParkrk aanndd policy vehicles BRTBRT policy RideRide LRTLRT FuelFuel PrPriceice RoadRoad BusBus ExclusiveExclusive incrincreasingeasing Railway PricPricinging lanelane Railway IInnterstersectionection ImprImprovingoving UncertainUncertain TraTrafffificc MMaananaggeemmeentnt //IInnfrafraststrruuctctureure OOppttiiononss By Dr. Atsushi Fukuda, Nihon University JTCA International Seminar on “Study to Promote CDM in Transport Sector to Resolve Global Warming Problem” in Bangkok March 15, 2005 13 JTCA PartPart IIII OutlineOutline ofof “Palm Methyl Ester - Biodiesel Fuel production and use for transportation in Thailand” (NM0142) (Study entrusted by MLIT, Japan) (April 2005-) 14 JTCA Identified Feasible Transport CDM Project is BDF-CDM in Last Study Basic Concept Chart at March 2005 Concept chart 15 JTCA Outline of Transport BDF-CDM at Now BDF Products: 300 ton/day, 100,000 ton/ year Raw Material: CPO 124,000 ton/year (FFB: 730,000 ton/year) Raw material CPO procure from Suratthani and neighboring 3 provinces Location of Plant: near Bangkok Amount of CO2 Reduction: 217,000 ton/year Initial Cost: 20 million US $ O & M Cost: 5.8 million US $/year Expected BDF Sales: 58 million US $/year Suratthani (Ex plant price at 20 baht) Port (Ex plant price at 20 baht) Raw Material Cost: 52.7 million US $/year CO2 Credit: 1.5 million US $/year (at 7 $/ton) IRR: 3 % (without CDM), 14% (with CDM) 16 JTCA Outline of Transport BDF-CDM Project(2b) Comparison the Project with other CDM BDF-CDM Project in Windmill CDM Project Thailand Essaouira, Morocco Project Cost: 58 million US $ CO2 Reduction: 156,000ton/year Project Cost: 20 million US $ CO2 Reduction: 217,000ton/year = 80 windmills (1MW) 17 JTCA Outline of Transport BDF-CDM Project3 Merit of the Project (300 ton/day) for Host Country < Merit of CDM for Host Country > 1) Additional income by GHGs* reduction credit CO2 Credit: 1.5 million US $/year (at 7 $/ton, 300ton/d) 2) Technical & Financial Assistance for the Project Implementation 3) Spread Knowledge of Energy Saving Method & Technique 4) Indirect Merit from Natural Disaster Reduction (Contribution for Countermeasure of Global Warming) < Merit of BDF-CDM Project for Host Country > 1) Increase of Palm Farmer’s Income 2) Promotion of Local Economy by Related Industries (Oil mill) Raw Material Cost: 52.7 million US $/year go to mill & farmer 3) Secure of National Security by Import Fossil Oil Reduction Light Oil Reduction: 58 million US $/year 4) Improvement of Air Pollution by BDF using Buses in the City => Most of Developing Countries can obtain Various Benefit 18 10 15 20 0 5 Energy industries (renewable - / 8 6 3 non-renewable sources) 1 Energy distribution M Sm C o e n t a h s Number ofapproved methodol l Number ofapproved methodol o l od S 3 31 l i d ol Energy demand c al at og e e As M y d 4 2 of 3 M Manufacturing industries e t e for eachsectoralscopes for eachsectoralscopes h t 0 od h November, 1 od Chemical industries ol ol og og i e i s Construction e s ht tp:/ 1 /cdm Transport .unfccc.in Mining/mineral production t/DO Metal production for Bio E/s for Bio No approved No approved Fugitive emissions from fuels 2 1 c opes (solid, oil and gas) 1 .ht Fugitive emissions from m production and consumption of d d l#4 iesel iesel og Solvent use og ies ies 10 CDMprojec CDMprojec 2 1 me Waste handling and disposal me th th Afforestation and reforestation odo odo 2 1 l Agriculture l o o g g y y t t JTCA Outline of New Methodology for the Project (1) - NaNameme of the new methodology: Baseline methodology “Baseline Methodology for Palm Methyl Ester or Coconut Methyl Ester Bio-diesel Fuel Production for Transportation using Life Cycle Assessment approach” Monitoring methodology “Monitoring Methodology for Palm Methyl Ester or Coconut Methyl Ester Bio-diesel Fuel Production for Transportation using Life Cycle Assessment approach” Draft PDD “Palm Methyl Ester-Biodiesel Fuel (PME-BDF) production and use for transportation in Thailand” - ReferencReference number on UNFCCC website NM0142 - SubmissionSubmission Submitted to the CDM EB on 3 October and now call for public inputs until 8 December (http://cdm.unfccc.int/methodologies/PAmethodologies/publicview.ht ml?OpenAll=1&cases=B) 20 JTCA Outline of New Methodology for the Project (2) The potential strengths of this new methodology Simplified, but transparent and conservative as well by… a) limiting raw materials only to palm oil or coconut oil b) specifying the formation and purpose of entity just for bio-diesel production c) applying Life Cycle Assessment approach to calculate GHG emissions d) monitoring project specific parameters to ensure precise calculation of project emissions 21 Outline of New Methodology for the Project (3) Emission Reductions Emission reductions (ERs) are calculated as: ERs = Baseline emissions - Project emissions - Leakage For Thailand project case, ERs = 295,643 - 37,973 - 39,915 = 217,755 tCO2e/yr Emission Reductions (tCO2/year) 350,000 300,000 250,000 Emission Reductions 200,000 217,755 Leakage 150,000