enhancing market readiness in thailand...2017/10/27 · enhancing market readiness in thailand...

Enhancing market readiness in

ThailandEnhancing Market Readiness in Thailand

Thailand Greenhouse Gas Management Organization (Public Organization)

1

THAILAND

Enhancing Market Readiness in Thailand

Thailand’s GHG Emissions

BUR

- -Thailand Greenhouse Gas Management Organization (Public Organization): | TGO

Source: Thailand’s first BUR, 2015

2015


Overview of Thailand’s Policies on Climate ChangeOverview of Thailand’s Policies on Climate Change

Climate Change

National

Policy

Framework

Ministry of Natural Resources and Environment

National

National Plans

on

Environment

The 12th National

Economic and Social

Development Plan

2017-2021

20-Year

National

Strategic Plan

2017-2036

Government Policy of

the Prime Minister

General Prayut Chan-o-cha

- NAMA

- NDC

- -

Climate Change

Master Plan

2015 – 2050

National

Sectoral

Plans

• Energy Efficiency Plan

2015- 2036

• Alternative Energy

Development Plan 2015-

2036

• Power Development Plan

• Thailand Smart Grid

Development Master Plan

2015-2036

Sustainable

Transport System

and Mitigation of

Climate Change

Impacts Master

Plan

2013-2030

National Industrial

Development

Master Plan

2012- 2031

Ministry of Energy Ministry of

Transport

Ministry of Industry

National

Environmental Quality

Management Plan

2017-2021

Environment

& Climate

Change

Agricultural Climate

Change Strategy and

Action Plan

Ministry of

Agriculture and Cooperative


Thailand’s (I)NDC

“ On Thailand’s part, we

reaffirm our commitment

under the INDCs to

reducing our greenhouse

gas emissions between


Statement by H.E. General Prayut Chan-o-cha (Ret.)

Prime Minister of the Kingdom of Thailand

at General Debate 70th Session of the United Nations General

Assembly in New York, 29 September 2015

gas emissions between

20 and 25* percent

by the year 2030”

Thailand communicated its INDC to the

UNFCCC on October 1st, 2015.

*Subject to adequate and enhanced access to technology development and transfer, financial resources and capacity building support

through a balanced and ambitious global agreement under the UNFCCC.


Projected Thailand GHG emissions in BAU scenario

� The baseline emission is

projected from BAU scenario

from reference year 2005 in

the absence of major climate

change policies which is 555

MtCO2e. 300,000

400,000

500,000

600,000

GH

G e

mis

sio

ns

(Kt-

CO

2e

)

279307

336

414

479

555

Thailand’s NDC


Source: NDC Roadmap, Office of Natural Resources and Environmental Policy and Planning

(ONEP)

� The assumptions align

with social and economic

development direction.

� The projected Thai GDP

growth during 2014-2036

expected to grow on the

average of 3.94 percent

annually and population

growth rate (data of 2014) is

0.03 percent annually.

2005 2010 2015 2020 2025 2030

Waste 12,878 13,011 14,489 16,135 17,968 20,010

Agriculture 46,294 52,316 57,554 63,316 69,656 76,630

IPPU 19,565 21,408 23,737 26,304 29,148 32,360

Energy 194,681 214,019 254,209 301,947 358,650 426,000

-

100,000

200,000

GH

G e

mis

sio

ns

(Kt


Thailand’s NDC

Thailand recognizes the important role of market-based

mechanisms to enhance the cost effectiveness of mitigation

actions, and therefore will continue to explore the potentials of

bilateral, regional and international market mechanisms as well as

various approaches.

�


The time frame of NDC implementation is 2021-2030.

Coverage: Economy-wide (Inclusion of land use, land-use change

and forestry will be decided later)

�

�

NDC


NDC Roadmap


Source: ONEP, 2017


NDC Roadmap

�� The NDC roadmap covers three sectors including

energy and transport, waste and IPPU.

� The plans to meet mitigation

in NDC covers;

� Power Development Plan, 2015-

2036

� Thailand Smart Grid Development

Master Plan, 2015-2036

� Energy Efficiency Plan, 2015-2036

� Alternative Energy Development

Plan, 2015-2036

� Master Plan for Sustainable

Transport System and Mitigation of


Source: ONEP, 2017

Transport System and Mitigation of

Climate Change Impacts, 2013-

2030

� National Industrial Development

Master Plan, 2012-2031

� Waste Management Master

Plan, 2016 – 2021

� Environmental Quality

Management Plan, 2017 – 2021

� Montreal Protocol Implementation

� RAC NAMA Project


Mitigation Potential under the NDC roadmap

NDC Roadmap

Energy and Transport Sectors Reduction Potential

---- MtCO2e ----

113� Renewable energy in households

� Increase energy efficiency in households

� Renewable energy generation

� Promote biofuels

� Increase energy efficiency in buildings

Measures;


� Increase power generation efficiency

� Increase energy efficiency in transport

� Renewable energy in industry

� Increase industrial energy efficiency

Waste SectorReduction Potential

---- MtCO2e ----

2

� Solid waste management

� Industrial wastewater management

� Municipal wastewater management

Measures;

IPPU Reduction Potential

---- MtCO2e ----

0.6

� Clinker substitution

� Replacement of refrigerants

Measures;


Overview of Thailand’s Policies on Climate ChangeOverview of Thailand’s Policies on Climate Change

Climate Change

National

Policy

Framework

Ministry of Natural Resources and Environment

National

National Plans

on

Environment

The 12th National

Economic and Social

Development Plan

2017-2021

20-Year

National

Strategic Plan

2017-2036

Government Policy of

the Prime Minister

General Prayut Chan-o-cha

- -

Climate Change

Master Plan

2015 – 2050

National

Sectoral

Plans

• Energy Efficiency Plan

2015- 2036

• Alternative Energy

Development Plan 2015-

2036

• Power Development Plan

• Thailand Smart Grid

Development Master Plan

2015-2036

Sustainable

Transport System

and Mitigation of

Climate Change

Impacts Master

Plan

2013-2030

National Industrial

Development

Master Plan

2012- 2031

Ministry of Energy Ministry of

Transport

Ministry of Industry

National

Environmental Quality

Management Plan

2017-2021

Environment

& Climate

Change

Agricultural Climate

Change Strategy and

Action Plan

Ministry of

Agriculture and Cooperative


National Policies and Plans on Carbon Pricing

• The 12th NESDP (2017-2021) focuses on development

of GHG mitigation mechanisms/measures to reduce

GHG emissions in all sectors, promoting the

establishment of financial mechanisms to support

climate change implementation which will be benefit

to both public and private sector such as market-


to both public and private sector such as market-

based mechanisms and carbon tax and the revision of

law/legislation and city infrastructure development to

move towards the environmentally friendly and low

carbon city


National Policies and Plans on Carbon Pricing

Activities which will be implemented for low carbon

development mechanism:

Thailand’s Climate Change Master Plan (2015-2050) focuses on the development of climate

change implementation supporting mechanism

1) Climate change adaptation supporting mechanism

2) Low carbon development mechanism

3) Relevant agencies driving mechanism.

Adaptation to GHG mitigation

The study of cost effectiveness on different GHG

mitigation measures including carbon tax, financial and

tax incentives, carbon fund establishment and carbon


Adaptation to climate change consequences

Capacity Building

GHG mitigation and low carbon development

tax incentives, carbon fund establishment and carbon

market development which can link with international

market, cap-and-trade system, technology-based

standard setting etc.

Development of GHG mitigation mechanisms/

measures/ instruments to reduce GHG emissions in

the country effectively.

Promotion of low carbon and green investment in the

industrial sector by offers a range of incentives.


Market Mechanisms in Thailand

T-VER

Expected Certified Emission Reduction

7.41 MtCO2e/year

154 CDM Projects Registered at CDM EB

Biomass 16.13 %

Biogas 57.15 %

Others 26.72 %

CDM

RE

EE

Forestry and

Agriculture

Waste

OtherExpected GHG reductions

2.118

80 T-VER projects registered at TGO


7.41 MtCO2e/year Others 26.72 %

---- MtCO2e/y ----

2.118AS of September 2017

AS of September 2017

PMRThailand

V-ETS

Component 1: Preparation of key market

components of Energy Performance

Certificate scheme (EPC)

Component 2: Development of Local

Greenhouse Gas Abatement Plans and a

study on pricing mechanism for Low

Carbon City program (LCC)

Component 3: Policy recommendation

on legal framework to establish the

Emission Trading Scheme (ETS)

Implementation phase 2016-2019

AS of September 2017


Joint Crediting Mechanism JCM

Signing ceremony on November 19, 2015


The MoC was signed by

General Surasak Kanjanarat, Minister of Natural Resources and Environment, Thailand

and

H.E. Ms. Tamayo Marukawa, Minister of the Environment, Japan


JCM Model Projects

Project type Number of projectsGHG reduction

(tCO2/y)

Energy demand 17 72,691

Energy industries 6 27,179

23 99,870

Number of project categorized by technology


5

4

4

3

2

1

1

1

1

12

11 1

Number of project categorized by technology

solar power

air conditioning

chiller

refrigerator

co-generation

waste heat recovery

heat pump

boiler

air-saving loom

ion exchange membrane

lighting

biomass

electric vehicle

hybrid RTG


Ongoing Study under PMR

“Impact of carbon pricing instruments on national economy and contribution to NDC”

Key questions and issues expected to be answered from the study:

- Is emissions trading or carbon tax a more cost-effective mitigation instrument

compared to current policies and measures in the identified sectors that

contribute to the achievement of Thailand’s NDC mitigation goal?


- If ETS and carbon tax has a key role to play, what is the most appropriate

instrument or its combination for the achievement of Thailand’s NDC mitigation

goals? How can/should such instrument or its combination be coordinated with

other national and sectoral policies to effectively contribute to the NDC mitigation

target?

- What are the possible advantages and negative impacts of different design of

instruments on specific sectors and on different type of enterprise within specific

sectors? How to mitigate or remove such negative impacts?


FOR MORE INFORMATION

Thailand Greenhouse Gas Management Organization (Public Organization) | TGO

The Government Complex, Building B, 9th Floor,

120 Chaengwattana Road, Laksi, Bangkok 10210, THAILAND

Tel. +66 2141 9841 – 9

Fax. +66 2143 8404

Email [email protected]


enhancing market readiness in thailand...2017/10/27 · enhancing market readiness in thailand...

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