Progress on the Development of Voluntary Carbon Market in

Progress on the Development of Voluntary Carbon Market in

Thailand

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

Thailand

Sumon Sumetchoengprachya

Carbon Business Office

1

Content

1. Voluntary Carbon Market in Thailand

2. Thailand Voluntary Emission Reduction Program (T-VER)

3. Thailand Voluntary Emission Trading


3. Thailand Voluntary Emission Trading Scheme (Thailand V-ETS)

2

Objectives of Establishing VCM

1. Support voluntary GHG reduction activities

2. Encourage private companies who attempt to


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

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

3

Voluntary Emission Reduction Projects

(VER)

Type: Project-based

Eligibility: Emission Reduction Projects,

Thailand Voluntary Emission Reduction Program (T-VER)

Type: Project-based

Eligibility: energy efficiency, etc.

Thailand Voluntary Emission Trading

Scheme (TVETS)

Type: Cap-and-Trade

Target: Industrial

Structure of Voluntary Carbon Market in Thailand


Reduction Projects, Pre-registered CDM

MRV: International standards (VCS, GS, etc.)

Carbon Credit: VERs

Registry: Standard Owners

Buyers: International buyers

Status: Existing

efficiency, etc.

MRV: Domestic

Carbon Credit: TVERs

Registry: T-VER

Buyers: Government / CSR companies / Brokers

Status: launch in Oct 2013

Target: Industrial sector

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

Carbon Credit: Allowances

Registry: ETS

Buyers: Entities / Traders

Status: launch in Oct 2014

Cap-and-Trade vs Project-based

Cap-and-Trade

Project-based

Off

set

CE

Rs

VE

Rs

TVERs T-VER


5

TVETS

Project-based (Baseline-and-credit System)

Baseline Emissions (BE)(Business-as-usual: BAU)

GHG Emissions (tC

O2e)

ER = BE - PE


6

Project Emissions(PE)G

HG Emissions (tC

O

TimeProject end

Carbon credits

Development of Infrastructure for VCM

Registry System

Incentives

• Subsidies

• Tax


Thai VCM

MRV System

• Measurement

• Validation

• Reporting

• Verification

Buyers

• Organizations in public / private sectors

• Carbon Offsetting Program

• Industries

7

Thailand Voluntary Emission Reduction Program (T-VER)

Thailand Greenhouse Gas Management Organization (Public Organization) (TGO) 8

Roadmap for T-VER

• Learn and develop MRV

• Develop T-VER general guideline

2012• Revise MRV system


• Learn and develop MRV system (KVER/JVER)

2011

general guideline

• Develop MRV system

• Develop registry system

• Revise MRV system

• Develop registry system

• Launch T-VER

2013

9

Characteristics of T-VER (1)

• GHG reduction projects

– Baseline-and-credit

• Size of projects

– No limitation


– No limitation

– Can be bundled

• Carbon Credits

– TVERs (Thailand Verified Emission Reductions)

• Gas coverage

– CO2, CH4, N2O

10

Characteristics of T-VER (2)

• Crediting period

– 7 years for non-forestry projects / 20 years for forestry projects

– The crediting period takes into effect from the starting date of a project and/or not more than one year prior to


date of a project and/or not more than one year prior to submission for T-VER registration

• Starting date

– The first date of recording data on GHG emission, as indicated in methodology

• Assessment tools for co-benefit and additionality(under development)

11

T-VER: Eligible Projects (1)

Types of Project

Potential list

Energy Efficiency

Efficiency improvement on electricity consumption and/or generation

Efficiency improvement on heat consumption


Efficiency improvement on heat consumption and/or generation

Alternative Energy

GHG emission reduction from utilization of Bio-diesel

GHG emission reduction from utilization of Ethanol

Renewable Energy

Electricity generation from renewable resources

Heat generation from renewable resources 12


Types of Project Potential list

Solid Waste Management

Emission reduction through landfill management

Emission reduction through fertilize organic waste


Waste to energy (RDF)

Transportation Management

Fuel switching in vehicle

Emission reduction through non-motorized transportation

Fuel switching in transportation system

Energy saving vehicle

13


Types of Project

Potential list

Forestry and Green Area

Carbon capture through public parks and urban forests

Vertical gardens

Forest conservation (A/R, REDD+)


Green AreaForest conservation (A/R, REDD+)

Agro-forestry

Agriculture

Best practice on using fertilizers in agricultural areas

Low carbon rice from management of agricultural practice

OthersAny type of project/activities approved by TGO

14

Procedures of T-VER project

Develop PDD

Develop PDD

ValidationValidation RegistrationRegistration


MonitoringMonitoringVerificationVerificationTVERs

IssuanceTVERs

Issuance

15

T-VER Scheme Framework

GHG ReductionSub-committee

3

3

Issue TVERs

TGO Board

Approveregistration 2

Approve VVB registration

Methodology Sub-committee

Methodology Technical WG


2Submit application, monitoring reports

Submit application, PDD, evidences 2

SecretariatSecretariat(TGO)

Project Developer(PD)

3

2

Inform PDInform PD 4

4

1

verification reports

validation report

Issue TVERs

Validation/Verification Body

(VVB)

Submit application12

1

Submit monitoring report for verification

Submit PDD forvalidation

~ Registration Process

~

Certification Process

~

VVB Registration Process

1 4

1 4

1 2

Technical Working Groups onMethodology Development

• Currently, there are 2 TWGs;

– TWG on Energy, Industry, Transportation, and Waste Management Sector

– TWG on Agriculture and Forestry Sector


17

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

• Goals: Develop MRV system

• Scope of work:

– Develop PDD templates and methodologies for T-VER (J-VER, CDM, etc.)

– Develop MRV guidelines that can be integrated or in line


– Develop MRV guidelines that can be integrated or in line with the Measurement and Verification (M&V) guideline on energy audit in buildings.

– Trial MRV to be conducted with 11 participating buildings and shorter monitoring period (1/2 yr)

• Target sector: 11 pilot buildings

• Project period: Nov 2011 – Oct 2012

18

Thailand Voluntary Emission Trading Scheme

(TVETS)


(TVETS)

19

TVETS Characteristics (1)

• Emissions Trading Scheme

– Cap and trade system

• Target group

– Allow firms to enter the carbon market voluntarily

Target setting (% of emission reduction) and Cap

setting


carbon market voluntarilywithout identifying target industries.

• Carbon credits

– Allowances

• Gas coverage

– Energy related CO2

20

Allowance allocation

Allowance trading

TVETS Characteristics (2)

• Determination of Reduction Targets

– Absolute reduction target

• Determination of Emission Baselines

– Include both Scope 1 and Scope 2 (Further discussion with participants on how to avoid double counting)


with participants on how to avoid double counting)

• Allocation of allowances

– Grandfathering in trial phase

21

Roadmap for TVETS

2010• Identify calculation

2011• Identify target

2012• Identify institutional

2013• Develop MRV

2014•Revise MRV


calculation methodologies for GHG emissions from industries

target industries

• cap-setting

institutional framework / operating rules/ model for Thailand V-ETS

• Propose incentives

MRV system for TVETS

MRV system

• Launch Thailand V-ETS

22

Dissemination of Knowledge and Consultation with Industries

• 15 May 2012 : Steel, Cement, Glass industries

• 3 July 2012 : Thai Chamber of Commerce

• 20 July 2012 : Petrochemical, Plastic, Power,


• 20 July 2012 : Petrochemical, Plastic, Power, Refinery industries @ Rayong province

• 10 August 2012 : Textile, Pulp and Paper, Non-metal industries

• 22 November 2012 : Pulp and Paper Industrial Association

23

Key Success

1. Incentives

2. Transparent and

standardized reporting system

5. Number of VVBs


24

Success Factors

3. Industry knowledge on GHG

calculation & reporting

4. Accreditation system for VVBs (ISO 14065)

Thank You for Your Attention

Carbon Business Office

Thailand Greenhouse Gas Management Organization (Public Organization)


The Government Complex, Building B, 9th Floor,

120 Chaengwattana Road, Laksi, Bangkok 10210

Tel. 02 141 9833 Fax. 02 143 8403

[email protected]

www.tgo.or.th, carbonmarket.tgo.or.th25

Documents

Progress on the Development of Voluntary Carbon Market in