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Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Draft Market Readiness Proposal
1
Country: Thailand Responsible agency: Thailand Greenhouse Gas Management Organization (TGO) Ministry of Natural Resources and Environment Date of submission: October 2013
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Outline
Overview
- MRP Objectives and Focus
- MRP Development Process
Market Readiness Proposal
1. The Big Picture: Policy Context (Building Block 1)
2. The Proposed Components (Building Block2, 3 and 4) 2.1) A vision toward Mandatory ETS
2.2) Energy Performance Certificate Scheme (EPC)
2.3) Low Carbon City Program (LCC)
2.4) Low Carbon City Fund (LCC Fund)
3. Organization, Communication, Consultation and Engagement (Building Block 5)
4. Summary of Schedule and Budget (Building Block 6)
2
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Overview
3
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
MRP Objectives and Focus
General Objective: To prepare readiness on market-based mechanisms in Thailand.
Specific Objectives:
1. To design and initially implement a domestic market mechanism to reduce energy consumption and GHG emissions in energy sector with a view to transform to emission trading scheme in the future.
2. To promote and support municipalities and local communities to implement GHG mitigation actions while achieving sustainable development and low carbon society goals through domestic market mechanism.
3. To prepare the infrastructure for market mechanism including database, MRV system, registry system, institutional and regulatory framework.
4
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
MRP Development Process
5
Task Team
Project management and coordination
Thailand Greenhouse gas management Organization (TGO)
Study and conceptual design of Energy Performance Certificate scheme
ICF Incorporated LLC
Study and conceptual design of Low Carbon City program
Factor CO2 + Asian Institute of Technology + ICLEI South-East Asia
Development of Thailand Market Readiness Proposal
Energy for Environment Foundation (E for E)
Project review Mr. Lex De Jonge
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Data collection
& Feasibility
Study*
Draft Conceptual
design of EPC and LCC*
Consultation with related ministries , private sectors and
local municipalities*
Grant agreement
signing
Draft MRP development
Informal presentation
at PA6
Sep 2012–Feb 2013 Jan - Mar 2013 Sep 2012 – Feb 2013 Mar 2013 Mar - May 2013 May 2013
Consultation with local municipalities in 3 regions (Northern,
Southern & Northeastern)*
Country visit Presentation of
draft MRP at PA7
Submission of Draft MRP to Secretariat
Consultation with related ministries and
the private sector*
May - Sep 2013 June – Aug 2013 Oct 2013 Aug 2013 Sep 2013
MRP Development Process
Draft MRP Development
Approval by the
Cabinet
Jan 2013
Remark * Data collection & feasibility study, draft conceptual design of EPC ad LCC, and all consultations were funded by Thai government. • PAT scheme training was organized to build capacity to all key stakeholders in February 2013.
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
7
MRP Development Process During the draft MRP development, TGO organized the stakeholder consultation meeting with related Ministries, local municipalities and private sector more than 20 times to have an engagement from key stakeholders for successful implementation. - Ministry of Energy - Federation of Thai Industries (F.T.I.), The Thai Chamber of Commerce (TCC) - Ministry of Finance - Local municipalities - PMR Steering Committee - Focus group
Thailand’s MRP
MOEN MOF
FTI Local municipality
Private sector
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Market Readiness Proposal
8
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Chapter 1. Big Picture: Policy Context
9
1. National Policies/Plans on Climate Change
2. National Appropriate Mitigation Actions (NAMAs) pledge
3. Historic and projected emissions trends and key drivers of the GHG emissions
4. Mitigation actions and its plan for their implementation
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
1.1 National Policies/Plans on Climate Change
10
Nat
ion
al P
olic
ies/
Pla
ns
on
C
limat
e C
han
ge a
nd
En
viro
nm
en
t
Spe
cifi
c P
lan
s
11th National Economic and Social Development Plan (NESDP) 2012-2016
Ministry of Natural Resources and Environment (MONRE)
National Environment Quality Management Plan 2012-2016
Thailand Climate Change Master Plan 2013-2050
Ministry of Energy Ministry of Transport
Ministry of Industry
Ministry of Agriculture and Cooperatives
Energy Efficiency Development Plan
2011-2030
Alternative Energy Development Plan
2012-2021 National transport
Master Plan 2011-2015
National Industrial
Development Master Plan 2012-2031
Strategic Plan on Climate
Change in the Agricultural
Sector
Power Development Plan (PDP2010 : Revision 3)
2012 – 2030
National Agricultural
Development Plan
2012-2016
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Institutional Arrangement
11
Prime Minister (Chairman)
National Committee on Climate Change Policy (NCCC)
National Environment Board
Technical Sub-committee Negotiation Sub-committee NAMA Sub-committee
Ministry of Natural Resources and Environment (Secretariat)
Office of Natural Resources and
Environmental Policy and Planning (ONEP)
Thailand Greenhouse Gas Management
Organization (Public Organization) (TGO)
Government Agencies Private Agencies Public Agencies Other Stakeholders
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Thailand Greenhouse gas management Organization (TGO)
12
Established in 2007, TGO is a key organization working on climate change in Thailand act as the technical arm for National Committee on Climate Change Policy (NCCC) and co-assistance secretariat to NCCC.
TGO’s missions:
Serving as a focal point for the Kyoto mechanism (CDM-DNA)
Promoting CDM and Voluntary crediting mechanisms (VCS, GS, etc)
Promoting carbon markets
Enhancing the capacity building on GHG management
Serving as the National Information clearing house of greenhouse gas
TGO’s Members of the Board of Directors comprise of
Director Generals from Ministry of Natural Resources and Environment, Ministry of Energy, and Ministry of Transport
Honorary Advisors (Energy, Industry, Science & Technology, Forestry, F.T.I.)
Advisors to the Board of Directors (Legal, etc)
Under this PMR program;
Thai cabinet has approved TGO to participate in this PMR on 15th January 2013.
Memorandum of Understanding (MoU) was signed between Ministry of Energy and TGO to provide a mutual agreement in cooperating and implementing the Energy Performance Certificate Scheme (EPC) together.
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
1.2 NAMAs pledge
The NAMA pledge is undergoing for approval by the NCCC and then by the cabinet.
Thailand NAMA will focus on the energy sector.
13
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
1.3 Historic GHG emissions and Key Emitters
Net GHG emission from the year 2000 to 2009 has been increased from 229 M tCO2e to 331.4 M tCO2e (Increase at 3.9% per year).
14
The Energy sector is the largest emitter ~ 70% share , followed by agriculture, industrial process, LULUCF and waste management.
In Energy Sector, energy industries and transport are key drivers, totaling account for almost 70%, of the total emissions.
Source: TGO & JGSEE (2012)
Source: TGO & JGSEE (2012)
Thailand’s GHG emissions in 2000 Thailand’s GHG emissions in 2000-2009
Source: TGO & JGSEE (2012)
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Projected GHG emissions trends
15
Future emission projection in the BAU scenario, 2012 – 2050 (M tCO2e)
BAU scenario: considering the annual growth of GDP and population at 4.22% and 0.12% for the period of
2012 – 2050 Total GHG emission in 2050 under BAU: 1,331 M tCO2e (A) Energy sector contributes about 76% of total emissions Upon implementation of policies officially launched including PDP, EEDP and AEDP, total GHG emissions will
be reduced to 883.5 M tCO2e. (B)
Source: TGO & JGSEE (2012)
(A)
(B)
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
1.4 Mitigation action and its plan for their implementation
16
Energy Sector
The 20-Year Energy Efficiency Development Plan (EEDP), targeting a 25 percent energy intensity (in term of GDP) reduction by 2030.
The 10-Year Alternative Energy Development Plan (AEDP), with alternative energy comprising 25 percent of total energy consumption in 2021.
Agriculture and Forestry Sector
Encouraging local authorities to enhance carbon sinks through forestation and sustainable forest resource management.
Allocating national budget to establish an information center and satellite systems to track forest cover, land use, and land-use change.
Waste Sector
Promoting electricity generation from waste.
Promoting the “Clean and Green City” initiatives, providing technical assistance to local governments.
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Initiatives to promote the domestic carbon market
Existing initiative instruments
1. Thailand Carbon Offsetting Program (T-COP): a carbon offsetting program, launched in August 2013, aiming to use contributions from participants for supporting domestic GHG emission reduction activities, especially for projects under the T-VER program.
2. Thailand Voluntary Emission Reduction Program (T-VER): a domestic GHG crediting mechanism (project-based), using methodologies which derived from CDM and J-VER methodologies. The T-VER program will be officially launched by the end of 2013.
Proposed initiative instruments under the PMR
1. Energy Performance Certificate Scheme (EPC): a voluntary target-and-trade scheme aiming to achieve energy efficiency in energy-intensive factories & buildings and to build core market readiness components in order to be a foundation for establishing the future ETS.
2. Low Carbon City Program (LCC): a GHG crediting mechanism which will be a part of T-VER program, aiming to achieve GHG emission reductions implemented by municipalities and local communities.
17
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
The relationship among EPC, LCC, T-VER and T-COP
18
T-VER
T-COP
Remark:
• T-VER = Thailand Voluntary Emission Reduction Program
• TVERs = Carbon credits generated under T-VER program
• T-COP = Thailand Carbon Offsetting Program
• LCC = Low Carbon City Program
• LCC-TVERs = Carbon credits generated under LCC program
(using T-VER process)
• EPC = Energy Performance Certificate Scheme
• PMR = Partnership for Market Readiness
LCC
Fund
$
TVERs
EPC
$
Voluntary
Buyers
Philanthropists
LCC-TVERs
$ LCC $
LCC-TVERs
PMR program
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Chapter 2. The Proposed Components
Chapter 2.1: A vision toward Mandatory ETS
Chapter 2.2: Energy Performance Certificate Scheme (EPC)
Chapter 2.3: Low Carbon City Program (LCC)
Chapter 2.4: Low Carbon City Fund (LCC Fund)
19
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.1 A vision toward mandatory ETS
In recent years there has been a lack of clarity on new market mechanisms or various approaches under UNFCCC, domestic carbon market becomes an important instrument to reduce GHG emissions in Developing countries.
Mandatory ETS is one of the cost-effective tools for reducing GHG emissions.
Thailand is interested in exploring the possibility of developing a Mandatory ETS.
Based on above, Thailand is establishing the voluntary market-based instruments:
The voluntary market-based instruments are designed to align with national priorities.
These instruments are expected to help Thailand fill in existing policy and implementation gaps in the current national priorities of EE, RE and Low Carbon Society Plans.
Finally, the instruments will also be the foundation for establishing the future emission trading scheme in Thailand.
20
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Policy Mapping
21
The 11th National Economic and Social Development Plan (NESDP)
2012-2016 To redirect the country to a low-carbon and environmentally friendly economy
The 20-Year Energy Efficiency Development Plan (EEDP)
2011-2030
To promote the reduction of energy intensity by 25% in 2030 compared
with that in 2010 (23.5% of final energy
consumption in 2030 or 38,200 ktoe)
The 10-Year Alternative Energy Development Plan (AEDP)
2012-2021
To promote the increase of RE share to 25% of final energy consumption in
2021 (Equivalent to 25,000 ktoe/yr in 2021)
Energy sector : the key driver of economic development & the largest GHG emitter.
Country Strategy (Prime Minister Yingluck Shinawatra)
To move toward Green Growth economy and low carbon society
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
The 11th National Economic and Social Development Plan (NESDP) 2012-2016
Low Carbon Society Plan
Aims at shifting the development paradigm and redirects the country to low carbon and environmentally friendly economy and society.
The plan emphasizes restructuring country’s production and consumption behavior in order to prepare for a transition toward a low-carbon and environmentally friendly economy. Development of eco-cities is considered important.
22
Challenges to achieve Low Carbon Society in NESDP 2012-2016 Lack of criteria in defining a Low Carbon City Public and community understanding in low carbon
society Difficulties in initiating GHG emission reduction projects
in public sector and/or municipalities and local communities
Lack of GHG abatement potentials and costs data in municipalities and local communities
Capacities of municipalities and local communalities to reduce GHG emissions
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
The 20-Year Energy Efficiency Development Plan (EEDP) 2011-2030
23
Challenges to achieve EEDP’s target: Only 5.2% of the target achieved (2012) Mandatory target on energy performance has
not been in place Lack of continuous MRV for energy saving Lack of energy database management system for
converting from energy data to GHG emission data
EEDP Target: Despite various EE measures implemented by the Government, the energy intensity of the country has not improved significantly .
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
The 10-Year Alternative Energy Development Plan (AEDP) 2012-2021
24
Challenges to achieve AEDP’s target:
Only 10.6% of the target achieved (2012) Regulatory restriction prevents some RE
development Public and community acceptance and
understanding Transmission constraint
The progress of RE development in Thailand is largely on track especially in power sector.
Electricity from RE Supplying to the Grid 1992-2012 as of Dec 2012
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Existing policies gap analysis and potential solutions
Existing implementation gaps & barriers
Potential solutions Proposed Program
• The existing performance is still lower than the targets
Need new market-mechanisms to accelerate and ensure the achievement of the EEDP and AEDP targets
EPC and LCC
• Mandatory target on energy performance has not been in place
Testing the target setting methodology EPC
• Lack of energy database management system for converting from energy data to GHG emission data
Energy & GHG database management system
EPC
• Lack of continuous MRV on energy saving
A robust MRV system EPC
• Limited data and information with regards to climate change & GHG emissions
Systematic data and information collection
EPC and LCC
• Lack of public and community understanding and capabilities for implementing GHG emission reductions
Enhance capacity building and provide technical assistance for municipalities and local communities
LCC
• Lack of data in GHG abatement potentials and costs in municipalities and local communities
Update data and develop local GHG abatement potentials and costs
LCC
25
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
EPC & LCC toward the future domestic carbon market
26
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Development Plan for the EPC, LCC and ETS
27
Development Plan of the EPC & ETS
Development Plan of the LCC
LCC preparation
Funding/Support will come from National and/or International budgets
Required financial & technical support from PMR Funding
2014 2015 2016 2017 2018 2019 2020 …. 2024 2025 2026 2027 2028 2029 2030
LCC Implementation
EPC Preparation EPC demonstration ETS preparation ETS Compliance
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
Proposed Activities and Budget for preparing an ETS legal framework
28
Objective:
To move toward an establishment and operation of mandatory emission trading scheme (ETS), Thailand need a proper legal framework to provide institutional safeguards for emission trading and ensure a fair, open and equitable market.
Proposed Activities:
Study the legislative practices in overseas emission trading schemes (e.g. EU ETS, China ETS, Korea ETS, etc.).
Research the legal nature of the legislative package for establishing the ETS.
Propose the basis legal system required for establishing ETS in Thailand.
Estimated Budget: 0.20 Million USD
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.2 Conceptual Design of Energy Performance Certificate Scheme (EPC)
29
Grants Technical Assistance:
Energy audit, MRV, etc.
$$$
Surplus: Floor price guarantee
Shortage: No penalty
PMR $$$
ENCON Fund
Others
$$$ $$$
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.2 Conceptual Design of Energy Performance Certificate Scheme (EPC)
30
Component Tentative Description
Conceptual framework
• Voluntary target-and-trade scheme
• Intensity target setting not absolute target setting
• Performance-based incentive
• No penalty if the targets not met
Scope and Coverage
• Designated Factories and Buildings (DF&Bs)
- 7 Industrial sectors (Food & Beverage, Cement, Ceramic, Paper, Iron & Steel ,
Petro-Chemical and Thermal power plants)
- 4 Types of commercial buildings (Office, Hotel, Hospital and Department store)
Target setting methodology
• Based on Specific Energy Consumption (SEC) with the base year 2010
• Each participants will receive its own SEC target according to an approved
methodology
Allocation of allowance
• EPC is the allowance-based unit
• Allocation methodology will be studied during 2014-2015
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.2 Conceptual Design of Energy Performance Certificate Scheme (EPC)
31
Component Tentative Description
MRV
• MRV will be developed to ensure the transparency, accuracy, consistency,
confidentiality, and impartiality
• EPC participants monitor its own energy data and submit the energy
management report to DEDE
• The report will be verified by the third party, accredited by DEDE
Registry system • The EPC registry system will be established
Institutional Arrangement
• DEDE will be the scheme advisor and accreditation body for verifiers
• TGO will be the scheme administrator
Incentives for participants
• From PMR: Support for MRV (technical assistance, energy audit and MRV
support)
• From ENCON fund and/or other funds: The surplus of allowances (only from
over-performers) are guaranteed to buy back by the sink fund (under
discussion)
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.2 Development Plan for the EPC Scheme
32
Emission Trading Scheme will be built on a basis of EPC
EPC Preparation phase EPC demonstration
phase ETS preparation phase ETS Compliance period
2014 2015 2016 2017 2018 2019 2020 2021 .… 2025 2026 2027 2028 2029 2030
Energy Performance Certificate Scheme (EPC)
Duration: 3 years (2017-2019)
Character: Voluntary
Units of Allowance: toe
Incentives: Financial support & technical assistance
Linkage: No linkage
Emission Trading Scheme (ETS)
Duration: 5 years (2026– 2030)
Character: Legally binding scheme
Incentives: No subsidy or any other incentives
Units of Allowance: tCO2
Use of offset: carbon credits from LCC program is allowed
Linkage: potential link to other ETS scheme(s)
Under PMR program
Need further study and additional support to
move to ETS
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.2 Proposed Activities and Budget for EPC
EPC Preparation phase (2014-2016)
Objective: This phase would focus on preparing core components for demonstrating EPC scheme
Activity Areas:
• Identify and bridge the data gaps, data compilation & analysis
• Develop methodology and procedures for target setting and allowance allocation
• Establish MRV, registry systems and develop detail operational guidelines of EPC scheme
• Study on performance-based incentives
• Outreach activities and media campaign to invite participation in the EPC demonstration
• Capacity building and stakeholder consultations
Estimated Budget: 2.36 Million USD
33
EPC Demonstration phase (2017-2019) Objective: This phase would focus on launching the scheme on a demonstration basis where the design framework of the EPC scheme will be tested. Activity Areas: • Technical and financial support on MRV • Assessment of the efficiency of the
demonstration study • Outreach activities and media campaign
to propagate the success of EPC Estimated Budget: 1.69 Million USD
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.3 Conceptual Design of Low Carbon City Program (LCC)
34
Grants Technical Assistance:
Assessment of Local GHG abatement, PDD
development, etc.
$
PMR $
1. Evaluation of GHG mitigation potentials
2. Identification of GHG mitigation activities
3. Evaluation of GHG emission reductions
4. Preparation of Project Design Document
5. Implementation of GHG emission reduction activities
6. Monitoring of GHG emission reduction
7. Verification of GHG emission reductions
8. Issuance of LCC-TVERs
un
de
r PM
R
LCC Program Cycle
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.3 Conceptual Design of Low Carbon City Program(LCC)
35
Component Tentative Description
Conceptual Framework
• A crediting mechanism using T-VER process and standard, focusing on
municipalities and local communities
Eligible Participants
• Thai municipalities (2,283 municipalities ) and local communities
• In pilot phase, 32 municipalities are targeted
GHG covered Carbon dioxide (CO2), Methane (CH4) and Nitrous oxide (N20)
Eligible Project Types
1. Energy efficiency
2. Renewable energy
3. Waste management
4. Transportation management (only bio-fuel is included in the pilot phase)
5. Forestry and Green area
6. Agriculture
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.3 Conceptual Design of Low Carbon City Program(LCC)
36
Component Tentative Description
Methodologies
• Using T-VER process and methodologies
• T-VER methodologies are derived from CDM and J-VER methodologies
• MRV system is developed in line with the ISO 14064-2 and 14064-3
Additionality • Micro scale& Small scale is automatically additional by default
• Large scale: The additionality will be demonstrated by payback period
Incentive • Carbon finance will be provided by the LCC Fund (see LCC Fund section)
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.3 Development Plan for the LCC Program
37
LCC Preparation phase LCC Implementation
2014 2015 2016 2017 2018 .… 2028 2029 2030
LCC preparation phase
Evaluation of GHG mitigation potential
Identification of GHG mitigation activity
Evaluation of GHG emission reduction
Project Design Document Preparation
LCC operating phase
Implementation of GHG mitigation activities
Monitoring of GHG emission reduction
Verification of GHG emission reduction
Issuance of LCC-TVER credits
Under the PMR program
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.3 Proposed Activities and Budget for LCC
38
LCC Preparation phase (2014-2016)
Objective: This phase would focus on preparing core components for implementing the LCC
Activity Areas:
• Develop the local GHG abatement plan and Project Design Document for selected municipalities and communities
• Study on the LCC-TVERs price
• Capacity building and technical support
Estimated Budget: 3.08 Million USD
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.4 Conceptual Design of Low Carbon City Fund (LCC Fund)
39
Study the design of the LCC fund, admin & legal requirement, etc
PMR $
$
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.4 Conceptual Design of Low Carbon City Fund (LCC Fund)
40
Component Tentative Description
Conceptual Framework
• To become the one-stop service for buyers and sellers of LCC-TVERs generated
from LCC program
• To deliver carbon finance and technical support to local municipality and
community
• To provide voluntarily GHG offsetting opportunities
• To provide confidence and credit guarantee to financial institutions
• To increase market liquidity of the LCC-TVERs
Core Activities
• Providing technical support
• Project identification & screening
• Supporting to create an investment & financing structure
• Identifying sources of debt financing
• Providing carbon finance
• Organization and co-organization of events
• Promotion, outreach and business development to promote LCC program
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.4 Conceptual Design of Low Carbon City Fund (LCC Fund)
41
Component Tentative Description
Potential sources of Fund
• Voluntary Buyers
1.Thailand Carbon Offsetting Program (T-COP)
2.Other voluntary buyers
• Philanthropists (e.g. existing CSR supporters)
Carbon Pricing Mechanism
• The prices of the LCC-TVERs will be determined based on marginal
abatement cost of GHG emission reduction technologies
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.4 Development Plan for the LCC Fund
42
LCC Fund Preparation LCC Fund Operation
2014 2015 2016 2017 2018 .… 2028 2029 2030
LCC Fund preparation
Study to assess and to propose a final structure
Study of pricing methodology for providing carbon finance to LCC projects
Study on the administrative and legal arrangement
Promotion, outreach and business development to promote LCC program
LCC Fund Operation
Providing technical support
Project identification & screening
Supporting to create an investment & financing structure
Identifying sources of debt financing
Providing carbon finance
Organization and co-organization of events
Promotion, outreach and business development to
promote LCC program
Under the PMR program
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
2.4 Proposed Activities and Budget for LCC Fund Preparation Phase
LCC Fund preparation phase (2014-2016)
Objective: This phase would focus on the detail assessment for establishing LCC fund to support the implementation of LCC program
Proposed Activities:
• Study on fund structure (admin & legal)
• Study on potential sources of fund
• Outreach activities and media campaign
Estimated budget: 0.55 Million USD
43
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
44
1. Consultation during the MRP development
2. Organization of Thailand’ PMR
3. Communication, consultation and engagement
4. Proposed activities and budget
Chapter 3. Organization, Communication, Consultation and Engagement
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
3.1 Consultation during the MRP development
During the draft MRP development, TGO organized the stakeholder consultation meetings with several parties such as:
Discussions with DEDE, Ministry of Energy
Conceptual design of EPC scheme, scope and coverage, target setting, trading concept and MRV process, etc.
Discussion with Industry Associations
Conceptual design of EPC scheme, technical support (in identifying energy saving potential, energy efficient technology and technology providers) and incentives
Discussion with Ministry of Finance
Financial support and incentive
Discussion with Municipalities and National Municipal League of Thailand (NMT)
Conceptual design of LCC program, benefit and incentive from participating in LCC program, etc.
Consultation with Indian experts on PAT Scheme
Lesson learnt and experiences of PAT scheme in India
45
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
3.2 Organization of Thailand’s PMR
46
PMR Steering Committee
• Participants: Officials from 14 key agencies • Role: To provide recommendations on market development and monitor the PMR program
EPC Working Group
• Chaired by DEDE • Participants: Gov. agencies,
Representative from DF&Bs, Representative from Energy auditors, Representative from ESCO, Business Associations
• Role: To provide recommendations on scheme design, technical issues, MRV system
LCC Working Group
• Chaired by TGO • Participants: Gov. agencies,
Representatives from municipalities & communities, NGOs, Universities
• Role: To provide recommendations on LCC program and LCC fund
Project Management Unit (PMU)
• Chaired by TGO • Role: In charge for overall
organization, management, and daily operation as well as to coordinate with other relevant stakeholders, Ministries and agencies
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
3.3 Communication, Consultation and Engagement
47
It is essential to build the political and technical consensus on both the EPC scheme and the LCC program. This project will include specific activities to ensure proper communication, consultation and engagement with stakeholders. Communication 1. Identification of target audiences and what to communicate. 2. Development of materials such as brochures, booklets for communication. 3. Communication through media, a website, social networks, etc.
Consultation and Engagement 1. Direct interview with key stakeholders to get feedback on their perception of the project,
the main barriers, and the alternatives to overcome these barriers.
2. Consultation workshops will be held to review the design of the EPC scheme and the LCC program as well as the type and level of incentives. The consultation workshops also aim to increase awareness and engagement among stakeholders. A series of workshops will be conducted by TGO.
Thailand’s Draft Market Readiness Proposal (MRP) Version 2.0 : 7th October 2013
3.4 Proposed Activities and Budget
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Objective: To support the operation of PMU office, the budgets required for both administration cost and capacity building for the staff. To build the political and technical consensus on both the EPC scheme and the LCC program as well as to increase awareness and engagement among stakeholders, a proper communication, consultation and engagement with stakeholders are needed Proposed Activities: • Project management • Capacity building for PMU and key stakeholders • Direct interview & Consultation workshops for EPC and LCC Estimated budget: 3.75 Million USD
Chapter 4. Summary of Schedule and Budget
Proposed Programs Objectives & Main Activities Total Required
Budgets (Million USD)
1. Required Budget from 2014-2016 (Preparation Phase) 6.19
1.1 ETS preparation To study the legislative practices in overseas ETS and to research the legal nature of the legislative package for establishing the ETS and present the basis legal system required for establishing ETS in Thailand.
0.20
1.2 EPC preparation This phase would focus on preparing core components for demonstrating EPC scheme.
2.36
1.3 LCC preparation This phase would focus on preparing core components for implementing the LCC program.
3.08
1.4 LCC Fund preparation
This phase would focus on the detail assessment for establishing LCC fund to support the implementation of LCC program.
0.55
2. Required Budget from 2017-2019 (Implementation phase) 1.69
2.1 EPC Demonstration This phase would focus on launching the scheme on a demonstration basis where the design framework of the EPC scheme will be tested.
1.69
3. Required Budget for Organization, Consultation and Engagement Activities during the PMR project
3.75
Total Required Budget during the PMR project 11.63
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ขอบคุณค่ะ KOB-KOON-KA
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