Draft Market Readiness Proposal 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) 1 Version 2.0 : 7 th 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) Thailand’s Draft Market Readiness Proposal (MRP) 2 Version 2.0 : 7 th October 2013
Overview Thailand’s Draft Market Readiness Proposal (MRP) 3 Version 2.0 : 7 th October 2013
MRP Objectives and Focus General Objective: To prepare readiness on market-based mechanisms in Thailand. Specific Objectives: To design and initially implement a domestic market mechanism to reduce energy 1. consumption and GHG emissions in energy sector with a view to transform to emission trading scheme in the future. To promote and support municipalities and local communities to implement GHG 2. mitigation actions while achieving sustainable development and low carbon society goals through domestic market mechanism. To prepare the infrastructure for market mechanism including database, MRV 3. system, registry system, institutional and regulatory framework. Thailand’s Draft Market Readiness Proposal (MRP) 4 Version 2.0 : 7 th October 2013
MRP Development Process Task Team Project management and Thailand Greenhouse gas management Organization (TGO) coordination Study and conceptual design ICF Incorporated LLC of Energy Performance Certificate scheme Study and conceptual design Factor CO 2 + Asian Institute of Technology + ICLEI South- East Asia of Low Carbon City program Development of Thailand Energy for Environment Foundation (E for E) Market Readiness Proposal Project review Mr. Lex De Jonge Thailand’s Draft Market Readiness Proposal (MRP) 5 Version 2.0 : 7 th October 2013
MRP Development Process Data Draft Consultation with Grant Informal collection Approval related ministries , Draft MRP Conceptual presentation & agreement by the development design of EPC private sectors and at PA6 signing Cabinet Feasibility and LCC* local municipalities* Study* Jan 2013 Sep 2012 – Feb 2013 Sep 2012 – Feb 2013 Jan - Mar 2013 Mar 2013 Mar - May 2013 May 2013 Draft MRP Development Consultation with local Submission of municipalities in 3 Consultation with Presentation of Country visit Draft MRP to related ministries and regions (Northern, draft MRP at PA7 Secretariat the private sector* Southern & Northeastern)* Oct 2013 Sep 2013 May - Sep 2013 Aug 2013 June – Aug 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 : 7 th October 2013
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 - Focus group - PMR Steering Committee Private sector Local FTI municipality Thailand’s MRP MOEN MOF Thailand’s Draft Market Readiness Proposal (MRP) 7 Version 2.0 : 7 th October 2013
Market Readiness Proposal Thailand’s Draft Market Readiness Proposal (MRP) 8 Version 2.0 : 7 th October 2013
Chapter 1. Big Picture: Policy Context 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) 9 Version 2.0 : 7 th October 2013
1.1 National Policies/Plans on Climate Change National Policies/Plans on 11 th National Economic and Social Development Plan (NESDP) Climate Change and 2012-2016 Environment Ministry of Natural Resources and Environment (MONRE) Thailand Climate Change Master Plan National Environment Quality 2013-2050 Management Plan 2012-2016 Ministry of Energy Ministry of Ministry of Ministry of Agriculture Transport Industry and Cooperatives Specific Plans Energy Efficiency Alternative Energy Development Plan Development Plan National National Strategic Plan 2011-2030 2012-2021 National Agricultural Industrial on Climate transport Development Development Change in the Power Development Plan Master Plan Plan Master Plan Agricultural (PDP2010 : Revision 3) 2011-2015 2012-2016 2012-2031 Sector 2012 – 2030 Thailand’s Draft Market Readiness Proposal (MRP) 10 Version 2.0 : 7 th October 2013
Institutional Arrangement Prime Minister (Chairman) National Committee on Climate Change Policy National Environment Board (NCCC) Technical Sub-committee Negotiation Sub-committee NAMA Sub-committee Ministry of Natural Resources and Environment (Secretariat) Office of Natural Resources and Thailand Greenhouse Gas Management Environmental Policy and Planning Organization (Public Organization) (ONEP) (TGO) Government Agencies Private Agencies Public Agencies Other Stakeholders Thailand’s Draft Market Readiness Proposal (MRP) 11 Version 2.0 : 7 th October 2013
Thailand Greenhouse gas management Organization (TGO) 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 15 th 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) 12 Version 2.0 : 7 th 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. Thailand’s Draft Market Readiness Proposal (MRP) 13 Version 2.0 : 7 th October 2013
1.3 Historic GHG emissions and Key Emitters Thailand’s GHG emissions in 2000 -2009 Thailand’s GHG emissions in 2000 Source: TGO & JGSEE (2012) Source: TGO & JGSEE (2012) The Energy sector is the largest emitter ~ 70% Net GHG emission from the year 2000 to 2009 share , followed by agriculture, industrial has been increased from 229 M tCO 2 e to 331.4 process, LULUCF and waste management. M tCO 2 e (Increase at 3.9% per year). In Energy Sector, energy industries and transport are key drivers, totaling account for almost 70%, of the total emissions. Thailand’s Draft Market Readiness Proposal (MRP) 14 Source: TGO & JGSEE (2012) Version 2.0 : 7 th October 2013
Projected GHG emissions trends Future emission projection in the BAU scenario, 2012 – 2050 (M tCO 2 e) (A) (B) Source: TGO & JGSEE (2012) 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 tCO 2 e (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 tCO 2 e. (B) Thailand’s Draft Market Readiness Proposal (MRP) 15 Version 2.0 : 7 th October 2013
1.4 Mitigation action and its plan for their implementation 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) 16 Version 2.0 : 7 th October 2013
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