Thailand's GHG mitigation plan

Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)
Thailand's GHG Mitigation Plan
and Role of Carbon Market
Sarun Pravitrangul
Carbon Business Office
“The Role of Renewable Energy and Energy Efficiency in Climate Change and its
relevance to Construction and Hospitality Industry”
ITCC Convention Hall, 9 June 2016

Thailand Greenhouse Gas Management Organization (Public Organization) (TGO)2
Climate Change
• Global Temperatures
have broken the
records many times
during the last year
• Every months of
2016 are the hottest
on the record and by
the largest margin
ever
Source : Hawkins (2016)

Global Greenhouse Gases Emission
Data excerpted from the World Resource Institute
Total emission of 2012 are 44,815.54 MtCO2e
Rank Country
Total GHG Emissions*
(MtCO₂e) Total (%)
1 China 10,975.50 24%
2 United States 6,235.10 14%
3 European Union (28) 4,399.15 10%
4 European Union (15) 3,519.99 8%
5 India 3,013.77 7%
6 Russian Federation 2,322.22 5%
23 Thailand 375.70 0.8%
* Total GHG Emissions in 2012 Excluding LULUCF Source: World Resource Institute (2016)

Atmospheric CO2 Concentration
April 2016: 404.08 ppm
April 2015: 400.72 ppm
Last updated: June 6, 2016
Source : US National Oceanic and
Atmospheric Administration (2016)
• If the global target is to limit global
temperature increase to 2°C over the pre-
industrial period, CO2 concentration level
has to be kept below 450 PPM
Source : IPCC (2007)

UNFCCC & the Kyoto Protocol
United Nations
Framework Convention
on Climate Change
(UNFCCC) entry into force in 1994
Kyoto Protocol
(Legally binding protocol)
Entry into force in 2005
Annex I Parties
(developed country)
41 countries
Non-Annex I Parties
(developing country)
155 countries
Non-Annex I Parties
Without binding targets
Annex I Parties
With binding targets : reduce GHG
5% of 1990 by 2012
in first commitment period

Pre-2012 Pre-2020 Post-2020
A New Agreement under the UNFCCC
Developed
countries
Developing
countries
UNFCCC &
the Kyoto Protocol
(Voluntary basis)
• Supported
• CDM
• Nationally Appropriate Mitigation
Actions in the context of sustainable
development (Voluntary)
• Enabled and supported by
Technology, Finance & Capacity Building
• In a “Measurable, Reportable &
Verifiable (MRV)” manner
• GHG Reporting : Biennial Update
Report (BUR) + ICA
• Economy-wide Emission Reduction
Targets
• GHG Reporting : Biennial Report
• International Assessment & Review
(IAR)
2012 2020
UNFCCC &
the Kyoto Protocol
Commitment
KP’s 1st Commitment
Period 2008 – 2012
Paris
Agreement
To be applicable
to all Parties
from 2020
(Adopted by the Conference
of the Parties (COP)
at its 21st session
in 2015,
in Paris)
Kyoto Protocol (KP)
2nd Commitment Period

Paris Agreement
• Aims to strengthen the global response to the threat of
climate change, in the context of sustainable development and
efforts to eradicate poverty, including by:
(a) Holding the increase in the global average temperature to
well below 2°C above pre-industrial levels and to pursue
efforts to limit the temperature increase to 1.5 °C above
pre-industrial levels, recognizing that this would significantly
reduce the risks and impacts of climate change;
(b) Increasing the ability to adapt to the adverse impacts of
climate change and foster climate resilience and low
greenhouse gas emissions development, in a manner that
does not threaten food production;
(c) Making finance flows consistent with a pathway towards
low GHG emissions and climate resilient development.

Article 6 of the Paris Agreement
National Actions
Implementation of
Nationally Determined Contribution (NDC)
Pursuing Voluntary Cooperation
Art.6.1
• To allow for higher ambition in
mitigation & adaptation
• To promote sustainable development &
environmental integrity
Art.6.7-6.8 Define a Framework
for non-market approaches
• Assist in the implementation of NDC
- In the context of sustainable
development & poverty eradication
- In a coordinated and effective
manner through Mitigation,
Adaptation, Finance, Technology
Transfer and Capacity-building, as
appropriate
• Aim to :
- Promote mitigation & adaptation
ambition
- Enhance public & private sector
participation in the implementation
of NDCs
- Enable opportunities for
coordination across instruments and
relevant institutional arrangements
Art.6.2-6.3 Engage on a voluntary
basis in Cooperative Approaches
• Involve the use of Internationally
transferred mitigation outcomes
(ITMOs) towards NDCs
• Promote sustainable development
• Ensure environmental integrity &
transparency including in governance
• Apply robust accounting to ensure
avoidance of double counting
• Consistent with guidance adopted by
the CMA
Art.6.4-6.6 Establish a Mechanism to
contribute the mitigation & support
sustainable development
• Aim to :
- Promote mitigation & foster
sustainable development
- Incentivize & facilitate participation
in mitigation by public & private
entities
- Result in reductions that can also be
used by another Party to fulfill its
NDC (Double Counting to be
avoided)
- Deliver an overall mitigation in
global emissions
• Ensure a share of proceeds to meet
the costs of adaptation

Thailand’s Emission Reduction Pledges
“Thailand will endeavor, on a voluntary basis, to reduce its GHG
emissions in the range of 7 to 20 percent below the Business as
Usual (BAU) in energy and transportation sectors in 2020, subject to
the level of international support provided […]”
“Thailand intends to reduce its greenhouse gas emissions by 20
percent from the projected business-as-usual (BAU) level by 2030.
The level of contribution could increase up to 25 percent, subject to
adequate and enhanced [support] through a balanced and ambitious global
agreement […]”
 Nationally Appropriate Mitigation Action (NAMA)
 Intended Nationally Determined Contributions (INDC)
RE EE Bio-fuels Transport
Inclusion of LULUCF will be decided later
Coverage:
Coverage: Economy-wide
Pre-2020
Post-2020

Nationally Appropriate Mitigation Action (NAMA)
NAMAs pledge :
Thailand will endeavor, on a voluntary basis, to reduce its GHG emissions
in the range of 7 to 20 % below the Business As Usual (BAU)
in energy and transportation sectors in 2020…
Potential Emission Reduction Plans:
 AEDP, EEDP, and PDP by Ministry of Energy
 Environmentally Sustainable Transport System by
Ministry of Transport
Reduction Measures:
 Renewable Energy: Biomass, Biogas, Hydro, Solar, Wind, Waste-to-Energy
 Energy Efficiency: EE improvement in Industries, Buildings, Transport
 Bio-fuels and alternative energy sources
 Environmentally Sustainable Transport System
RE EE Bio-fuels TransportCoverage:

Thailand INDCs (Post 2020)
“Thailand intends to reduce its greenhouse gas
emissions by 20% from the projected business-as-
usual (BAU) level by 2030. The level of contribution
could increase up to 25%, subject to adequate and
enhanced [support] through a balanced and
ambitious global agreement […]”
Role of market mechanism: “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 […]”
Inclusion of LULUCF will be decided laterCoverage: Economy-wide

Thailand Projected BAU
and Emission Reduction Pathways
200
300
400
500
600
2010 2015 2020 2025 2030
GreenhouseGasEmission(MtCO2e)
Year
555 MtCO2e
343 MtCO2e
445 MtCO2e
ThailandNAMAs- INDCs Target
367 MtCO2e
2013
404 MtCO2e
428 MtCO2e
243 MtCO2e
251 MtCO2e
NAMAs 7- 20%
2020 BAU: Energy and Transportation
INDCs: 20 - 25%
2030 BAU: Economy-Wide
24
MtCO2e
110
MtCO2e
226 MtCO2e
293 MtCO2e
415 MtCO2e
NAMAs Tracking
14 MtCO2e
354 MtCO2e
Source: TGO

Thailand Emission Reduction Options
GHG Mitigation
Market
International
CDM under Kyoto
Protocol
Emission
Reduction from
other Standards
Emission Trading
Domestic
Project Based
Thailand Voluntary
Emission Reductions
(T-VER)
Area Based
Thailand Voluntary
Emission Trading
Scheme
(Thailand V-ETS)
Non-market
Technology
Tax / Carbon Fund
Other Incentives
Rules and
Regulations
Others

How does ETS Work?

Benefits of ETS
• Achieve emission reduction target with lower costs
• Better reflection on carbon price during economic
fluctuation
• Promote emission reduction initiatives and
sustainable business by exploring the least cost
option for emission reduction
• Proven to be effective for dealing with GHG
emission reduction
• Possible linking between carbon markets from
several countries

Disadvantages of ETS
Source: Jasaon Lee, Global Green Growth Institute (2014)
• Fluctuation of carbon credit price
– Credit price can change occasionally  same as interest
rates, foreign exchanges, etc.
– Volatility of carbon price  can be solved by using some
kind of safety valves such as price collar, MSR, etc.
• Others
– Trigger relocation of production  relocations are decided
based on many reasons such as local tax rate, wages,
energy prices, etc.
– Reduce comparative advantage of the firm  ETS is a
flexible policy and can be tailored to fit a country’s
circumstances

Carbon Pricing Around the World
Source: State and Trends of Carbon Pricing
2015 - World Bank (2015)

Voluntary Carbon Market in Thailand
Foreign VERs
Type: Project-based
Eligibility: GHG
reduction project, Pre-
registered CDM
MRV: Foreign standards
(VCS, GS, etc.)
Credit: VERs
Registry: Standard
Owners
Buyer: Foreign/Thai
Status: Active
T-VER
Type: Project-based
Eligibility: energy
efficiency, etc.
MRV: ISO 14064-2 /
14064-3 / 14065 / CDM
/ J-VER / KVER
Credit: TVERs
Registry: T-VER
Buyer: Government /
Company CSR / Brokers
Status: Active (Oct 14)
Thailand V-ETS
Type: Cap-and-Trade
Target: Industries
MRV: ISO 14064-1 /
14064-3 / 14065
Credit: Allowances
Registry: ETS
Buyers: Participants/
Traders
Status: Pilot Phase
(since 2015) for MRV
testing
18

Thailand Voluntary Emission
Reduction Program: T-VER

T-VER Eligibility Criteria
 CDM projects that has been registered can be converted to T-VER:
- It can continue using CDM methodologies
- It shall use T-VER templates (PDD, Monitoring, Validation, Verification forms)
- It shall follow T-VER validation and verification guidelines
 Crediting period
(1) The project which has not started
– 7 years for normal project, 20 years for forestry project
– The crediting period shall be started no later than 1 year after submitting the project
registration documents
(2) The project which has been implemented
– 7 years for normal project, 20 years for forestry project
– The crediting period can be started 1 year before the date when project owner
completely submits project registration documents to TGO.
 Additionality and Co-benefits:
– Assess the Additionality and Co-benefits criteria by using TGO’s guideline.

T-VER Approved Methodologies and
Registered projects
Approved Methodologies
- Energy Efficiency (EE): 7
- Renewable Energy (RE): 5
- Waste Management (WM): 7
- Forestry and Green Area (FOR): 3
- Agriculture (AGR): 2
There are 27 registered projects which are expected to
reduce GHG 845,502 tCO2e
Project type No. of project
RE, EE, WM, and transport 20
FOR and AGR 7
Total 27

Thailand Voluntary Emission Trading Scheme
(Thailand V-ETS)

GHG Emission from Industrial Sectors in 2011
*Data excluded indirect GHG emission from electricity usage
Source: GHG information Center, TGO (2014)

T-VETS Participants
 Target Industries:
Electricity Generation, Petrochemical, Cement, Pulp and
Paper, Iron and Steel, and other energy-intensive sectors
 Implementation Period:
 Phase 1 (testing MRV systems): 2015-2017
 Phase 2 (testing registry and trading systems): 2018-2020
 GHG Coverage: CO2
 Base Year: 2012-2013
 GHG reporting scope: scope 1 and 2

T-VETS Pilot Projects
 Objectives
– To test the MRV systems
– To gather information for designing ETS (Cap setting and allowance
allocation)
 Participating Industries
– Year 1 (FY2558): Electricity Generation, Petrochemical
– Year 2 (FY2559): Petrochemical, Cement, Pulp and Paper, Iron and Steel
 Piloting period
– Nov 2014 – Sep 2017
 Outcomes
– MRV Guidelines, Modalities, and Procedures for each sector
– Recommendations for every target industries

T-VETS Operational Boundary

Thank you
Thailand Greenhouse Gas Management Organization (Public Organization)
120 Building B, 9th Floor, The Government Complex,
Chaeng Wattana Road, Laksi, Bangkok. 10210 Tel. 02 141 9829 Fax 02 143 8403
http://www.tgo.or.th or http://carbonmarket.tgo.or.th
27

Thailand's GHG mitigation plan

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