IES MACC

Th W ld B k i Vi Vi t D l t I f ti C t

Vietnam Blended Learning Program

The World Bank in Vietnam Vietnam Development Information Center

CARBON ABATEMENT CARBON ABATEMENT PROJECT APPRAISAL EXERCISEPROJECT APPRAISAL EXERCISEPROJECT APPRAISAL EXERCISEPROJECT APPRAISAL EXERCISE

Proposed by: Proposed by:

Institute of Energy Science (Vietnam)Institute of Energy Science (Vietnam)UQ SMART UQ SMART –– The University of Queensland (Australia)The University of Queensland (Australia)

ScheduleSchedule

I d i P j A i l & MACC Introduction to Project Appraisal & MACCs Case Study Case Study: Redland City Council Carbon Abatement Project Appraisal Exercise

Introduction to Project Appraisal & MACCs

WHAT ARE MARGINAL ABATEMENT COST CURVES(MACCS)?

“A MACC is an economic decision making tool, designed to assist managers to identify, rank and prioritise the implementation of GHG abatement projects. Projects are ranked from lowest (most desirable) to highest cost per

tonne of CO2-e reduced”

A MACC presents three visual indicators:

• The cost per tonne CO2-e abatement for a project

• The volume of abatement that the project can deliver (annually or over project life) at that cost per tonne CO2-e abatement

• The given point at which it becomes cheaper to purchase carbon offsets or permits

i.e. where abatement is no longer competitive with offsets.

MACCS

HOW TO READ A MACCHOW TO READ A MACC

Projects that present net savings are located Projects that present net savings are located below the horizontal axis, and should be prioritised for implementation.

B f d b h By contrast, projects found above the horizontal axis have a net cost to implement per tonne of CO2-e reduce.

A MACC may be considered as part of a pre-feasibility assessment of potential GHG abatement projects.

MACCS

BACKGROUNDBACKGROUND

In the past, MACCs have mainly been focused at the macroeconomic

level…

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MACCS

KG

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BACKGROUND

MACCS

BACKGROUND

I h MACC h l b f d In the past, MACCs have mainly been focused at the macroeconomic level…

…but this is not very valuable to a business, l MACC fl h i i l unless a MACC reflects the organisational

or facility level.

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACC

The steps are summarised as follows: p

1. Identify potential abatement projects

2 Conduct high level technical / risk pre feasibility analysis of each project2. Conduct high-level technical / risk pre-feasibility analysis of each project

3. Gather financial and GHG information on each project

4. Determine NPV and net emissions savings (NES) for each project

5. Develop the MACC (you will do this).

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACC

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACC

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACCE.G. T-5 RETROFIT

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACC

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACC

E.G. T-5 RETROFIT

HOW TO BUILD A MACC

MACCS

HOW TO BUILD A MACC

C St d R dl d Cit C ilCase Study: Redland City Council

MACCS

CASE STUDYCASE STUDY

Development of a comprehensivecarbon inventory + organisation

specific MACC for a large local council in Queensland.

CASE STUDY – CARBON FOOTPRINT (OVERVIEW)

MACCS

CASE STUDY – CARBON FOOTPRINT (OVERVIEW)

CASE STUDY – CARBON FOOTPRINT (DETAIL)

MACCS

CASE STUDY – CARBON FOOTPRINT (DETAIL)

CASE STUDY –TARGETS / OBJECTIVES

MACCS

CASE STUDY –TARGETS / OBJECTIVES

Corporate emissions reduction targets set:- based on 1998 levels- 25% by 2020- 50% by 2030-75% by 2050y

Objective:Model to determine out how does this translate intoannual emissions reduction targets?

CASE STUDY –TARGETS / OBJECTIVES

MACCS

CASE STUDY –TARGETS / OBJECTIVES

Used carbon footprint and modelling to figure out what they need to achieve, now to plan how to do it most cost effectively...

CASE STUDY – APPROACH

MACCS

CASE STUDY – APPROACH

2 MACCs created for purposes of legibility2 MACCs created for purposes of legibility- efficiency measures- fuel switching measures

• Two years of intensive eco-efficiency program meant theyneeded to look hard and outside the box for additional savings

• Data availability issues and typical people barriers.

• Electronic framework created for ongoing updating. g g p g

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CASE STUDY – FINDINGS

MACCS

Large scale solar, on-site wind, natural gas cogeneration, LED lighting and hybrid vehicles remain cost prohibitive technologies for now...

CASE STUDY – FINDINGS

Economics of solar and LED projects constantly changing…

Projects are hampered by cheap electricity rates and short asset life cycles

A large portion of ‘low hanging fruit’ has been ‘picked’ likely a consequence of A large portion of low hanging fruit has been picked , likely a consequence of achieving impressive reductions in recent years

Reductions getting harder to find and cheap ‘no regrets’ projects and their contribution are increasingly small.

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CASE STUDY – FINDINGS

MACCS

CASE STUDY – FINDINGS

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CASE STUDY – FINDINGS

MACCS

CASE STUDY – FINDINGS

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C b Ab t t Carbon Abatement Project Appraisal Exercise

CARBON FOOTPRINT EXERCISE

CARBON FOOTPRINT EXERCISE

CARBON FOOTPRINT EXERCISE

CARBON FOOTPRINT EXERCISE

CARBON FOOTPRINT EXERCISE

Important notes!

CARBON FOOTPRINT EXERCISE

Answer the following QuestionsAnswer the following Questions

1. What are your company’s Scope 1 and Scope 2 emissions in t/CO2e

2. Have any activities been excluded?

3. What is your company’s ‘carbon intensity’ in tCo2-e/$000?

CARBON FOOTPRINT EXERCISE

PRESENTATIONS

Viện Khoa học năng lượng (Việt Nam)Viện Khoa học năng lượng (Việt Nam)UQ SMART UQ SMART –– The University of Queensland (Australia)The University of Queensland (Australia)