Voluntary Emission Trading SchemeVoluntary Emission ... · 6 March 2013 @ Fukoku Seimei Building, Tokyo Voluntary Emission Trading SchemeVoluntary Emission Trading Scheme (TVETS)

Emissions Trading Seminar “Emerging Carbon Markets in Asia and the Way Forward”

6 March 2013 @ Fukoku Seimei Building, Tokyo

Voluntary Emission Trading SchemeVoluntary Emission Trading SchemeVoluntary Emission Trading Scheme Voluntary Emission Trading Scheme (TVETS) and (TVETS) and

Voluntary Emission Reduction ProgramVoluntary Emission Reduction ProgramVoluntary Emission Reduction Program Voluntary Emission Reduction Program (T(T--VER) in Thailand VER) in Thailand

P i L h bPongvipa LohsomboonCarbon Business Office

Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)

Content

• Voluntary Carbon Market in Thailandy• Thailand Voluntary Emission Trading Scheme

(Thailand V-ETS / TVETS)( )• Thailand Voluntary Emission Reduction Program (T-VER)

Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)2

Objectives of Establishing VCM in Thailand

1. Support voluntary GHGs reduction activities

2 Encourage private companies who attempt to2. Encourage private companies, who attempt to reduce their GHG emissions, implement cost-effective GHGs reduction activities

3 Learn how to manage domestic emission trading3. Learn how to manage domestic emission trading scheme / carbon offsetting program


Structure of Voluntary Carbon Market in Thailand

Voluntary Emission Reduction Projects

Thailand Voluntary Emission Reduction

Thailand Voluntary Emission Trading

S hReduction Projects (VER)

Emission Reduction Program (T-VER) Scheme

(Thailand V-ETS)

Type: Project-based

Eligibility: Emission Reduction Projects,

Type: Project-based

Eligibility: energy efficiency, etc.

Type: Cap-and-Trade

Target: Industrial j ,Pre-registered CDM

MRV: International standards (VCS, GS,

e c e cy, etc

MRV: Domestic

Carbon Credit: TVERs

a get dust asector

MRV: ISO 14064-1 / 14064-3 / 14065

etc.)

Carbon Credit: VERs

Registry: Standard

TVERs

Registry: T-VER

Buyers: Government / CSR companies /

Carbon Credit: Allowances

Registry: ETSRegistry: Standard Owners

Buyers: International buyers

CSR companies / Brokers

Status: launch in Oct 2013

g y

Buyers: Entities / Traders

Status: launch in Oct


y

Status: Existing

2013 Status: launch in Oct 2014

Development of Infrastructure for VCM

Incentives

Registry System• Subsidies• Tax exemption

MRV S t BMRV System

• Measurement• Validation

Buyers• Organizations

in public / i

Thai VCM

• Reporting• Verification

private sectors• Industries• Carbon

Off ttiVCM Offsetting Program


Thailand Voluntary Emission Trading SchemeTrading Scheme (Thailand V-ETS)


Roadmap for Thailand V-ETS

2010• Research

Studies on

2011• Research

Studies to

2012• Identify

institutional

2013• Pilot project

to develop

2014• Institutional

Frameworkcalculation methodologies for GHG emissions from

Studies to Identify target industries and cap-

framework / operating rules/ model for Thailand V

pMRV system for TVETS

• General guideline

• Target setting

• Revised MRV system

from industries

and cap-setting

Thailand V-ETS / incentives

• Launch Thailand V-ETS


Thailand V-ETS Characteristics

• Emission Trading Scheme– Cap and trade systemp y

• Target group– Allow firms to enter the carbon market

voluntarily without identifying target industries

Target setting (% of emission reduction)

and Cap settingindustries.

• Carbon credit– Allowances

• Gas coverage• Gas coverage– Energy related CO2

• Determination of Reduction TargetsAbsolute reduction target

Allowances allocation

– Absolute reduction target• Determination of Emission Baselines

– Include both Scope 1 and Scope 2 (Further discuss with participants on how Allowances trading( u t e d scuss t pa t c pa ts o oto avoid double counting)

• Allocation of allowances– Grandfathering in trial phase and further

onside this iss e late on

Allowances trading


consider this issue later on

Progress on MRV development

• Pilot Project for MRV Development j p• MRV System: ISO 14064-1, ISO 14064-3• Target sector: 7 industrial plants (Petrochemical Food• Target sector: 7 industrial plants (Petrochemical, Food

processing, Electronics, Automobile) • Project period: Oct 2012 – Oct 2013• Project period: Oct 2012 – Oct 2013• Expected Outputs

Templates for Monitoring report Verification Report– Templates for Monitoring report, Verification Report– Monitoring and Reporting Guideline (MRG)– Verification Guideline (VG)( )


Dissemination of Knowledgeand Consultation with Industriesa d Co su tat o t dust es

Concerns/comments from industriesYear 2012 from industries

• Is it necessary to adopt ETS?• Incentives for participants

Year 2012• 15 May 2012

– Steel, Cement, Glass industries p p(subsidy/tax exemption)

• Early action rewardAll ti th d

• 3 July 2012– Thai Chamber of Commerce

• 20 July 2012• Allocation method

(grandfathering/benchmarking) • Structure of steering committee

y– Petrochemical, Plastic, Power,

Refinery industries @ Rayongprovince g

and all institutional framework• Most of industries don’t

understand ETS and cannot

• 10 August 2012– Textile, Pulp and Paper, Non-

metal industries understand ETS and cannot differentiate between project-based and site-based

• 22 November 2012– Pulp and Paper Industrial

Association


Thailand Voluntary EmissionThailand Voluntary Emission Reduction Program (T-VER)


Roadmap for T-VER

20122012• Literature

Review• Develop MRV

• Develop T-VER general guideline

• Revised MRV systemDevelop MRV

system (KVER/JVER)

• Develop MRV system

• Develop registry

y• Completed

registry system• Launch T-VER

2011system Launch T VER

20132011 2013


Characteristics of T-VER

• GHG reduction projectsB li d dit– Baseline-and-credit

• Size of project– No limitation

Can be bundled– Can be bundled• Carbon Credit

– TVERs (Thailand Verified Emission Reductions)• Gas coverage• Gas coverage

– CO2, CH4, N2O• Crediting period

7 years for non forestry project / 20 years for forestry project– 7 years for non-forestry project / 20 years for forestry project – The crediting period takes into effect from the starting date of a project and/or

not more than one year prior to submission for T-VER registration• Starting datea g da

– The first date of recording data on GHG emission, as indicated in methodology• Assessment tools for co-benefit and additionality

– under development


p

T-VER: Eligible Projects

Types of Project Potential list

Energy EfficiencyEfficiency improvement on electricity consumption and/or generation

Efficienc imp o ement on heat cons mption and/o gene ationEfficiency improvement on heat consumption and/or generation

Alternative EnergyGHG emission reduction from utilization of Bio-diesel

GHG emission reduction from utilization of Ethanol

El t i it ti f blRenewable Energy

Electricity generation from renewable resources

Heat generation from renewable resources

Solid Waste Management

Emission reduction through landfill management

Emission reduction through fertilize organic wasteSolid Waste Management Emission reduction through fertilize organic waste

Waste to energy (RDF)

Fuel switching in vehicle

Emission reduction through non-motorized transportationTransportation Management

Emission reduction through non motorized transportation

Fuel switching in transportation system

Energy saving vehicle

Carbon capture through public parks and urban forest

Forestry and Green Area

p g p p

Vertical gardening

Forest conservation (A/R, REDD+)

Agro-forestry


AgricultureGood practice on using fertilizers in agricultural areas

Low carbon rice from management of agricultural practice

Others Any type of project/activities approved by TGO

Set up Procedure of the T-VER project

Develop Develop ValidationValidation RegistrationRegistrationpPDD

pPDD ValidationValidation RegistrationRegistration

MonitoringMonitoringVerificationVerificationTVERs Issuance

TVERs IssuanceIssuanceIssuance


Set up T-VER Scheme Framework

TGO Boardh d l

GHG ReductionSub-committee

Methodology Sub-committee

3

3

Issue TVERs

Approveregistration 2 Approve

VVB registration

Methodology Technical WG

Secretariat(TGO)

3Issue TVERs

2Submit application, monitoring reports

Submit application, PDD, evidences 2

( )

2verification reports

validation report

Validation/

Submit application12

~ Registration Process

1 4

2monitoring reportsInform PDInform PD 4

4

Validation/Verification Body

(VVB)1Submit PDD for

validation~

Certification Process 1 4

1 2


Project Developer(PD)

1 Submit monitoring report for verification

~

VVB Registration Process1 2

Progress on MRV development (1)

• Pilot Project for Increasing Energy Efficiency and Reducing GHG in Building Sector

• MRV System: ISO14064-2, ISO14064-3T t t 11 il t b ildi• Target sector: 11 pilot buildings

• Project period: Nov 2011 – Oct 2012• Outputs• Outputs

– Templates for PDD, Monitoring report, Validation and Verification Report– Monitoring and Reporting Guideline (MRG)– Validation and Verification Guideline (VVG)– 9 T‐VER Methodologies

Lighting system (approved by TGO’s Methodology Development Sub‐committee)g g y ( pp y gy p )

Air conditioning, Chiller replacement, VSD for pump and fan, Free flow, Cooling pad, Ball cleaning system, voltage regulator, UPS replacement


Progress on MRV development (2)

• Established Technical Working Groups on Methodology g p gyDevelopment– TWG 1 : Energy, Industry, Transportation, and Waste Management

SectorSector– TWG 2 : Agriculture and Forestry Sector

• Methodologies will first be submitted to working group (WG) before approved by the Methodology Sub-committee

• TGO collaborates with Chiangmai University on modifying and simplifying CDM methodologies and then compareand simplifying CDM methodologies and then compare results from using both methodologies and decide which ones to use in T-VER

• In the next fiscal year, TGO will do a test run with additional 5 pilot projects (hydro, biogas, reforestation, etc)


Next Step

1. Incentives

2. Transparent and standardize

reporting5. Numbers of

VVBs

What next ?

reporting system

VVBs

next ?

3. Industry’s knowledge on GHG

calculation & reporting

4. Accreditation system for VVBs

(ISO 14065)


p g( )

Thank you for your attention

Thailand Greenhouse Gas Management Organization (Public Organization)Government Complex, Building B, 9th Floor, 120 Chaengwattana Road, Bangkok 10210


Tel. 02 141 9835 Fax 02 143 8403 www.tgo.or.th

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Voluntary Emission Trading SchemeVoluntary Emission ... · 6 March 2013 @ Fukoku Seimei Building, Tokyo Voluntary Emission Trading SchemeVoluntary Emission Trading Scheme (TVETS)