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Vietnam Blended Learning Program

The World Bank in Vietnam Vietnam Development Information Center

Project: Project: Training Program on Renewable Energy Potential Training Program on Renewable Energy Potential and Carbon Offset opportunities for Agriculture and Carbon Offset opportunities for Agriculture

and Forestry Development in Vietnamand Forestry Development in Vietnam

Proposed by: Proposed by:

Institute of Energy Science (Vietnam)Institute of Energy Science (Vietnam)UQ SMART (Australia)UQ SMART (Australia)

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Overview

1. Energy supply and demand trends in Vietnam

2. Review of Technical Needs Assessment for Climate Change Mitigation and Adaptation in Vietnam

3. Carbon Finance & the Clean Development Mechanism

4. CDM Projects in Vietnam

i. Overviewii. Vietnam CDM Project Case studiesii. Vietnam CDM Project Case studiesiii. Barriers to CDM projects in Vietnam

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E l d d d t d i Vi t Energy supply and demand trends in Vietnam

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Energy sources

EIA, 2010.

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Installed capacity 11,340 MW

At 2005Ref: World Bank

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Greenhouse Emissions

Adapted from: UNFCC Country Emission Profiles, 2000

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Review of Technical Needs Assessment for Climate Change Mitigation and Adaptation

in Vietnam

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http://unfccc.int/ttclear/sunsetcms/storage/contents/stored-file-20130327170620878/TechnologyNeedsAssessment-Mitigation_Vietnam.pdf

http://unfccc.int/ttclear/sunsetcms/storage/p // / / / g /contents/stored-file-20130327170654615/TechnologyNeedsAssessment-Adaptation_Vietnam.pdf

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Technology Needs Assessment for Climate Change and Adaptation

Mitigation technologies

identified for priority sectors

(UNEP, GEP, AiT, June, 2012)

Energy Agriculture Land use and change

and forestryand forestry

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Technology Needs Assessment for Climate Change and Adaptation,

Adaptation technologies

identified for priority sectors (UNEP, GEP, AiT, June, 2012)

Agriculture Land Use, Land Use Change

and Forestry (LULUCF) Coastal zone management Coastal zone management Water resources

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Suggested Mitigation Technologies - Energy

Wind power Wind power

Energy efficiency (compact fluoro lights)

Large scale heat and power (cogeneration)

Bus rapid transitp

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Suggested Mitigation Technologies -Agriculture

Biogas (anaerobic digestion) Biogas (anaerobic digestion)

Nutrition improvement through fodder supplements

Wet and dry irrigation in certain rice growth stages

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Mitigation Technologies – Land use, Land use change & Forestry

Sustainable forest management Sustainable forest management

Afforestation and reforestation

Rehabilitation of mangrove

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1414

Suggested Adaptation Technologies –Agriculture

Plant/genetic breeding Plant/genetic breeding

Rice to upland grain

Triple to double cropping and shrimp/fish/rice poultry crop

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Adaptation Technologies – Coastal Zone Management

Sea dyke Sea-dyke

Coastal wetland rehabilitation

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Potential Mitigation Projects

Project ideas cited for international supportProject ideas cited for international support (potential CDM projects):

Financial support and subsidies for wind power

Bio-fuel/cogeneration

Bio-energy in livestock sector (reduce burning and produce methane)

Afforestation on sandy land at South Central coasty

Reforestation and protection of mangrove forests.

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Potential Adaptation Projects

Project ideas cited for international support j pp(and potential CDM projects):

Building a conversion model to change rice crops into fruit tree cropscrops into fruit-tree crops

Financial support and subsidies for wind power

Developing high-quality timber trees for plantation economyplantation economy.

Develop agro-forestry model in Ninh Thuan and Binh Thuan region

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Carbon Finance & the Clean Development Mechanism

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Potential Carbon Finance Bodies

UNFCC Carbon Development Mechanism

https://cdm.unfccc.int/about/index.html

World Bank Carbon Finance

http://carbonfinance.org

European Investment Bank & Carbon Finance

http://eib.org (EUR 150 million assigned Oct 2012)

UNFCC Green Climate Fund UNFCC Green Climate Fund

http://gcfund.net/home.html

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Potential For CDM and VCS Carbon Offset Projects in Vietnam

Significant hydropower resources

3000 km of windswept coast

300 hot-stream sources ranging from 30-148°C g g(geothermal power)

Great potential for solar

Agriculture residues for energy usageRef: Nguyen et al 2010Ref: Nguyen et al, 2010

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Biomass and other small hydro suggested as

Potential For CDM and VCS Carbon Offset Projects in Vietnam

Biomass and other small hydro suggested as cost-effective at 2 $/tCO2

Wind energy would be economical at 3 $/tCO2(Nguyen and Ha-Duong, 2009a, 2009b, cited by Nguyen et al, 2010)

Energy efficiency projects e.g. power generators, industrial boilers, domestic

Biomass and biogas recovery

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Barriers to Carbon Offset Projects

Regulatory (structures process delays process) Regulatory (structures, process delays, process)

Bureaucracy

Tariff uncertainty

Access to information e.g. electricity sector data

Local capacity Ref: Nguyen et al, 2010

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CDM Projects in Asia, Dec 2012

• Total 7 218 projects• Total 7,218 projects

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CER Price, May 2013

Currently 20 euro cents Currently 20 euro cents

Too low to support CDM projects

Projects that have higher Projects that have higherenvironmental credentialscommand higher price on voluntary market

Carbon financing (non–market) key to low-emissions projects in the short-medium term

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CDM Projects in Vietnam

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Vietnam CDM Projects, Dec 2012

233 projects registered E t d i i d ti f 123 913 250 tCO2 Expected emission reduction of 123,913,250 tCO2e

Hydro (213), methane avoidance (24), biomass energy (19), land fill gas (7)

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CDM Project Case Studies

A VASB Bi P j t M k D ltA. VASB Biogas Project, Mekong Delta

B. Fuel conversion (biomass), Textile Manufacturer, Ho Chi Minh

C Dak Psi 5 Hydropower ProjectC. Dak Psi 5 Hydropower Project

D. Chi Khe Hydropower Project

E. Muong Hum 32 MW Hydropower Project

F Methane Recovery & Biogas UtilisationF. Methane Recovery & Biogas Utilisation

G. Cao Phong Reforestation Project

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CDM Project Case Studies

CDM P j t S h PCDM Project Search Page:

https://cdm.unfccc.int/Projects/projsearch.html

Refer to Project ID# for each case study.

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A) VASB Biogas, Mekong Delta

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A) VASB Biogas, Mekong Delta

Installation of 917 VACB reactors (total 3.32 MW thermal)

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Mekong Delta contributes 50% of total rice

A) VASB Biogas, Mekong Delta

gproduction and 50% of aquaculture

Project ID# 6132

Project supports 917 farm households

T t l i i d ti f 1 045 tCO2/ Total emission reduction of 1,045 tCO2/yr as biogas replaces use of fossil fuel/wood

Other benefits forest conservation & improving livelihoods

reductionof fertiliser use

odour reduction

Capital cost – US$144,150

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B) Ho Chi Minh Textiles Manufacturer

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B) Ho Chi Minh Textiles Manufacturer

Small Scale Renewable CDM

Project ID# 6598

Boiler Fuel Conversion from fuel oil to biomass (rice husk briquettes)(rice husk briquettes)

15.4 MW thermal

Capital Cost: 13.3 billion VND

CO2 reduction:

24,040 tCO2/year

168,280 tCO2 (7 yrs)

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C) Dak Psi 5 Hydropower Project

http://cdm.unfccc.int/Projects/DB/TUEV-RHEIN1301992418.38/view

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C) Dak Psi 5 Hydropower Project

S ll S l R bl CDM Small Scale Renewable CDM

Project ID# 4656

Hydropower - 10 MW power plant, 2 x 5 MW each on Dak Psi stream at Dak Psi, Western Highlands

Annual electricity output: 43,720 MWh

Project Supporters: Duc Thanh Gia Lai Joint Stock Company/ Investment & Trade Consultancy Co. Ltd/ RWE Power Aktiengesellschaft

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3636

C) Dak Psi 5 Hydropower Project

Capital cost: US$ 9.6 million

CO2 reduction:

23 719 tCO2/year 23,719 tCO2/year

166,033 tCO2 (7 yrs)

Carbon breakeven price: $11/tCO2

Risk Level: Low

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D) Chi Khe Hydropower Project

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D) Chi Khe Hydropower Project

Large Scale Renewable CDM 2011Large Scale Renewable CDM, 2011

Project ID# 4520

41 MW Hydropower located on Ca River in Chi Khe commune Nghe An provincecommune, Nghe An province,

Annual elec output: 191,290 MWh

Project Supporters: Agrita - Nghe Tinh Energy Joint Stock Co /Energy and Environment ConsultancyStock Co. /Energy and Environment Consultancy Joint Stock Co./ South Pole Carbon Asset Management Ltd.

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D) Chi Khe Hydropower Project

CO2 reduction:

91,939 tCO2/year

643 572 tCO2 (7 yrs) 643,572 tCO2 (7 yrs)

Carbon breakeven price: unknown

Risk Level: Medium due to carbon price, regulatory issuesregulatory issues

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E) Muong Hum 32 MW Hydropower Project

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E) Muong Hum 32 MW Hydropower Project

Small Scale Renewable CDM Small Scale Renewable CDM

Project ID# 4949

Hydropower - 32MW hydropower plant with ill t th N i Ph t Ri i L C ispillway gates on the Ngoi Phat River in Lao Cai

Province in NW Vietnam

Annual elec output: 122 GWh

Project Supporters: Son Vu Energy Development Joint Stock Co. / Kyushu Electric Power Co., Inc.

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E) Muong Hum 32 MW Hydropower Project

Capital: US$ 25.5 million

CO2 reduction:

23 719 tCO2/year23,719 tCO2/year

166,033 tCO2 (7 yrs)

Carbon breakeven price: $15/tCO2

Risk Level: Medium due to carbon price

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4343

F) Methane Recovery & Biogas Utilisation

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F) Methane Recovery & Biogas Utilisation

Small Scale Waste/Energy CDMgy

Project ID# 2368

Waste water treatment with biogas recovery for starch processing (cassava) factory.

M th t Methane to fuel a dryer.

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4545

Project Supporters: Yen Binh Trading & Investment

F) Methane Recovery & Biogas Utilisation

j pp gCompany Ltd/ AES Carbon Exchange Ltd

Capital: US$ 2 million

CO2 reduction:

39,618 tCO2/year

277,329 tCO2 (7 yrs)

$ Carbon breakeven price: $14/tCO2

Risk Level: Low

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4646

G) Cao Phong Reforestation Project

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4747

G) Cao Phong Reforestation Project

Small Scale Agriculture/Reforestation

Project ID# 2363

365 ha of tree plantations on degraded grass and p g gshrub land in Xuan Phong and Bac Phongcommunes, Hoa Binh province

Project Supporters: Forest Development Fund

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4848

G) Cao Phong Reforestation Project

Capital: $2 348 million VND Capital: $2,348 million VND

CO2 reduction:

2,665 tCO2/year

42,645 tCO2 (15 yrs), ( y )

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4949

ViệnViện KhoaKhoa họchọc năngnăng lượnglượng ((ViệtViệt Nam)Nam)UQ SMART UQ SMART –– The University of Queensland (Australia)The University of Queensland (Australia)