Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines

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Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
Refrigeration and Air Conditioning Green-
house Gas Inventory for the Philippines
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
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Authors and Data Collectors:
Regina Karakina, Dr. Simon Mischel (HEAT GmbH)
Rolando Abad, Jr., Onofre Escota (DENR-EMB), Ella Deocadiz,
Manuel Azucena, Orland Tubola, Jhunearl Getalaga, Fausto Abadines

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Maraida Licerio, Philipp Munzinger (GIZ)

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Publication Date and Place
July 2019, Manila
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
© trainman32 / fotolia

               This publication is a product of the Cool Contributions fighting Climate Change (C4)

               ­Project implemented by GIZ Proklima. It is part of the International Climate Initiative (IKI).

               The Federal Ministry for the Environment, Nature Conservation, and Nuclear Safety (BMU)

               supports this initiative on the basis of a decision adopted by the German Bundestag. The

               project supports an international control for F-gases in combination with increased

               ­energy efficiency in the refrigeration and air conditioning sector. It strengthens ­cooperation

               between various initiatives such as the UNFCCC and the Montreal Protocol by promoting

               a coordinated agreement and reducing overlaps. Furthermore, the project advises s­ elected

               partner countries in formulating national GHG mitigation strategies in the refrigeration

               and air conditioning sector and thereby advancing their NDCs. The project runs from 2016

               until 2021.

                                                                                                                  3
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
TABLE OF CONTENTS

    LIST OF FIGURES AND TABLES                                                                 6/7

    ACKNOWLEDGEMENTS                                                                            10

    SUMMARY		                                                                                   11

    1. INTRODUCTION                                                                             14
       1.1 Project framework                                                                    14
       1.2 Importance and benefits of RAC sector inventories                                    14
       1.3 Geography and basic information of the Philippines                                   16
       1.4 Energy production, energy consumption and other factors influencing the growth of
    		     RAC appliances                                                                       16
       1.5 RAC stakeholders                                                                     18
       1.6 Climate and F-gas policies                                                           19

    2. SCOPE OF THE INVENTORY                                                                  20
       2.1 Methodology                                                                         21
       2.2 Data collection process                                                             23
       2.3 Modelling parameters                                                                 24

    3. RESULTS		                                                                               26
       3.1 Subsector sales and stock data analysis                                             26
    		     3.1.1 UAC sales and stock data                                                      26
    		     3.1.2 AC chillers sales and stock data                                              27
    		     3.1.3 Mobile air conditioning                                                       28
    		     3.1.4 Domestic refrigeration                                                        30
    		     3.1.5 Commercial refrigeration                                                      30
       3.2 BAU emissions and projections in the RAC sector                                     32

4   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
3.3 Total emissions                                                                          33
		    3.3.1 Mitigation scenario emissions for the Philippine RAC sector                        33
		    3.3.2 Energy saving potential                                                            35
		    3.3.3 Use of low-GWP refrigerants                                                        35
		    3.3.4 Reporting to UNFCCC                                                                37
		    3.3.5 Unitary air conditioning emissions                                                 37
		    3.3.6 AC chiller emissions                                                               38
		    3.3.7 Mobile air conditioning emission mitigation potential                              39
		    3.3.8 Domestic refrigeration emission mitigation potential                               40
		    3.3.9 Commercial refrigeration emission mitigation potential                             40

4 REFERENCES                                                                                   42

5 ANNEX		                                                                                      44
  5.1 Contacted companies via questionnaires of unitary air conditioning and
		    domestic refrigeration subsectors                                                        44
  5.2 Subsector definitions                                                                    44
  5.3 Applied modelling parameters and results of model calculations                           47

                   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES   5
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
LIST OF FIGURES AND TABLES

     Figure 1: Projected Business-as-Usual (BAU) scenario for GHG emissions in the RAC sector until 2050
               and the predicted MIT emissions                                                                   11
     Figure 2: Projected Business-as-Usual (BAU) scenario for GHG emissions with the Kigali amendment
               in the RAC sector until 2050 and the predicted MIT emissions                                      12
     Figure 3: Mitigation potential of the Philippine RAC sector in the year 2050. The grey color of the first
               column shows the unabated emissions. The next columns to the right of the first column
               show the emission mitigation potential of each subsectors both for direct (dark blue) and
               indirect (light blue) emissions                                                                   12
     Figure 4: BAU, the BAU under Kigali and MIT scenarios of HFC consumption and Kigali schedule                13
     Figure 5: Climate chart of Manila. Source: compiled by www.klimadiagramme.de, source:
               National Climatic Data Centre (NCDC)                                                              16
     Figure 6: Total primary energy supply (TPES) for the Philippines for the year 2016, Mtoe =
               Million-tons oil equivalent                                                                       17
     Figure 7: Energy consumption by sector, Mtoe = Million tons oil equivalent                                  17
     Figure 8: Approaches for GHG emission estimates relevant to the RAC&F sector (Munzinger et al., 2016) 21
     Figure 9: Overview RAC refrigerant demand versus RAC total emissions                                        22
     Figure 10: Unitary AC units sold (2010 to 2016)                                                             26
     Figure 11: Unitary AC unit stock historic and forecasted (2010 to 2017; 2018 to 2050)                       27
     Figure 12: Sold units (2010 to 2016, top) and stock units of AC chiller (2010 to 2050, bottom)              28
     Figure 13: Sales 2010 to 2016 in the mobile AC subsector                                                    29
     Figure 14: Stock unit development (2010 to 2050) in the mobile AC subsector                                 29
     Figure 15: Domestic refrigeration unit stock taken from the GCI database (2010-2050) and
                adjusted by expert knowledge                                                                     30
     Figure 16: Stock data (2010-2050 CGI database projections) from the commercial refrigeration sector         30
     Figure 17: Total BAU GHG emission for the Philippine RAC sector by subsectors in 2017                       31
     Figure 18: Direct GHG emissions of the RAC subsectors in 2017                                               31
     Figure 19: Indirect GHG emissions of the RAC subsectors in 2017                                             31
     Figure 20: Projected BAU GHG emissions in the RAC sector for the years 2010-2050                            32
     Figure 21: Total annual emissions from the RAC sector, BAU and mitigation scenario                          33
     Figure 22: Direct and indirect mitigation potential for the year 2030. The grey color of the first
                column shows the unabated emissions. The columns to the right of the first column
                show the emission mitigation potential of each subsectors both for direct (dark blue)
                and indirect (light blue) emissions                                                              34
     Figure 23: Chart showing the direct and indirect mitigation potential for the year 2050. The grey color
                of the first column shows the unabated emissions. The columns to the right of the first
                column show the emission mitigation potential of each subsectors both for direct (dark blue)
                and indirect (light blue) emissions                                                              34

6   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
Figure 24: Total cumulative energy saving potential (17.9 TWh) of the Philippine RAC sector (2018 to 2030) 35
Figure 25: Total cumulative energy saving potential (214.5 TWh) of the Philippine RAC sector (2018-2050) 35
Figure 26: HFC reduction steps according to UNEP                                                          36
Figure 27: HFC consumption under BAU, BAU-Kigali and mitigation (MIT) scenario and Kigali schedule        37
Figure 28: Projected GHG emissions of the unitary air conditioning subsector for the years 2010 to 2050   38
Figure 29: Projected GHG emissions of the chiller subsector for the years 2010 to 2050                    39
Figure 30: Projected GHG emissions of the mobile air conditioning subsector for the years 2010 to 2050    39
Figure 31: Total emission of the Domestic refrigeration sector for the years 2010 to 2050                 40
Figure 32: Total emission of the commercial refrigeration subsector for the years 2010 to 2050            41

Table 1: Statistical data of the Philippines                                                              17
Table 2: Overview of institutions relevant for the RAC sector and their contribution to the survey        18
Table 3: RAC subsectors and related systems                                                               20
Table 4: Modelling parameters for BAU scenario                                                            24
Table 5: Assumed future growth rates of appliance sales                                                   25
Table 6: Sold units for the AC chiller subsector for the years 2010 to 2015                               27
Table 7: Mobile AC sales data for the years 2010-2015 (calculated from GCI stock estimates)               29
Table 8: List of contacted companies                                                                      44
Table 9: Overview of air conditioning subsectors                                                          44
Table 10: Description of Iran’s special case equipment                                                    45
Table 11: Overview of refrigeration subsectors                                                            46
Table 12: Assumed average energy efficiency ratios in equipment sales for the Business as
          Usual scenario                                                                                  47
Table 13: Refrigerant distribution in sales for Business as Usual and Mitigation scenario                 48
Table 14: Calculated sales                                                                                51
Table 15: Calculated stock                                                                                52
Table 16: Common reporting format (CRF) 2016                                                              54
Table 17: Common reporting format (CRF) 2017                                                              56
Table 18: Common reporting format (CRF) 2018                                                              58

                             REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES    7
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
ABBREVIATIONS

     AC                   Air conditioner
     BAU                  Business-as-Usual
     BMU                  German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety
     C4                   Cool Contributions fighting Climate Change
     CCD                  Cooling Degree Days
     CCU                  Climate Change Unit
     CFC                  Chlorofluorocarbons
     DOE                  Department of Environment
     EEI                  Energy Efficiency Index
     EER                  Energy Efficiency Ratio
     ERTLS                Energy Research and Testing Laboratory Services
     F-GAS                Fluorinated gas
     GCI                  Green Cooling Initiative
     GDP                  Gross Domestic Product
     GEF                  Grid Emission Factor
     GHG                  Greenhouse gas
     GIZ                  Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH
     GWP                  Global warming potential
     HVAC                 Heating, Ventilation and Air Conditioning
     HEAT                 Habitat, Energy Application and Technology GmbH
     HPMP                 HCFC phase-out management plan
     HC                   Hydrocarbon
     HCFC                 Hydrochlorofluorocarbon
     HFC                  Hydrofluorocarbon
     HFO                  Unsaturated HFC or Hydrofluoroolefin
     IEA                  International Energy Agency
     IKI                  International Climate Initiative
     INDC                 Intended Nationally Determined Contribution
     IPCC                 Intergovernmental Panel on Climate Change
     LATL                 Lighting and Appliance Testing Laboratory
     MAC                  Mobile Air Conditioning
     MEPS                 Minimum Energy Performance Standard
     MIT                  Mitigation scenario
     MLF                  Multilateral Fund of the Montreal Protocol

8   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
© tmal / pixabay

      MRV          Measuring, Reporting and Verification
      Mtoe         Million tons oil equivalent
      MW           Megawatt
      NAMA         Nationally Appropriate Mitigation Action
      NDC          Nationally Determined Contributions
      NOU          National Ozone Unit
      ODP          Ozone depleting potential
      ODS          Ozone depleting substances
      RAC          Refrigeration and air conditioning
      SATBA        Renewable Energy and Energy Efficiency Organisation
      SEER         Seasonal Energy Efficiency Ratio
      UAC          Unitary Air Conditioning
      UNDP         United Nations Development Program
      UNEP         UN Environment Progamme
      UNIDO        United Nations Industrial Development Organization

                       REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES   9
Refrigeration and Air Conditioning Green-house Gas Inventory for the Philippines
ACKNOWLEDGEMENTS

         This report is the result of a comprehensive data collection and assessment process that has been carried out
         since September 2017 within the project “Cool Contributions fighting Climate Change” (C4)* implemented by
         Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and funded by the German Federal Ministry
         for the Environment, Nature Conservation and Nuclear Safety (BMU) under the International Climate Initiative (IKI).

         The project aims to develop a greenhouse gas (GHG) mitigation strategy in the refrigeration and air ­conditioning
         (RAC) sector as part of the Philippines’ Nationally Determined Contributions (NDCs), including establishing
         ­parameters for increased energy efficiency in RAC technology, finding solutions for greener RAC technologies and
          fostering their marketability and local manufacturing.

         The GHG inventory provides a detailed profile of GHG emissions resulting from refrigeration and air conditioning
         (RAC) in the Philippines and may serve as a basis for further development of emission reduction measures in the
         RAC sector in contribution to the Philippine climate targets. It shall serve as a basis for further planning of the
         Philippines’ NDCs and HFC phase-down schedules in contribution to the Montreal Protocol’s Kigali Amendment.

         We would like to express our gratitude for the support of all the institutions, companies and other stakeholders
         in the Philippines. The conduct of this inventory was led by the Environmental Management Bureau (EMB) of the
         Department of Environment and Natural Resources (DENR). The DENR is the focal agency in the GHG inventory
         and mitigation action in the Industrial Processes and Product Use (IPPU) sector of the Philippine inventory system
         in line with Executive Order No. 174 in partnership with the Climate Change Commission (CCC) as National
         Inventory compiler. We acknowledge the EMB leadership of Director Metodio U. Turbella and former Assistant
         Director Jacqueline A. Caancan for their support.

         The process was a learning experience for the DENR-EMB working on an integrated approach of ozone and
         ­climate protection. Moreover, it was a new experience to work with other national government agencies given the
          cross-cutting nature of the RAC sector compliance and enforcement.

         We especially thank the Lighting and Appliance Testing Laboratory (LATL) of the Department of Energy (DOE)
         Energy Research and Testing Laboratory Services (ERTLS) whose expertise and collaboration were indispensable
         for the realization of this report. The development of a Minimum Energy Performance for RAC appliances is a
         starting point in establishing a database for all RAC appliances in the Philippines, which hopefully would be a
         valuable tool in succeeding RAC inventories in the near future.

     *    http://climate.emb.gov.ph/wp-content/uploads/2017/01/EO-174-National-GHG-Inventory.pdf

10   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
SUMMARY

Summary of key findings                                                                            »»Following the current climate trends, the predicted
                                                                                                     temperature rise for the Philippines would be be-
Over the last few years, there has been a tremendous                                                 tween 0.8-2.0 °C by 2050 2 , coupled with more frequent
growth in the Philippine RAC industry. The growing pop-                                              occurrence of heat waves and dry spells. Thus, the
ulation and climate warming have led to a continuously                                               need for air conditioning and refrigeration will rise and
rising demand for air conditioning and refrigeration.                                                the annual emissions in the Philippine RAC sector are
                                                                                                     expected to increase up to 44.6 Mt CO2eq by the year
»»In 2017, the RAC sector was responsible for 24.7 Mt                                                2050 (see Figure 1). This amount of GHG emissions
  CO 2eq of GHG emissions, constituting 18.0% of the                                                 equals approximately what 11.5 coal-fired power plants
  ­Philippines’ overall energy-related emissions of ­                                                would release in one year of operation 3 . With an ambi-
  137 Mt CO2eq1.                                                                                     tious mitigation strategy, the emissions can be reduced
                                                                                                     to 29.1 Mt CO2eq by the year 2050 (dotted “mitigation”
                                                                                                     MIT curve).

           50

           45

           40

           35

           30
Mt CO2eq

           25

           20

           15

           10

            5

            0
                2010              2015               2020              2025               2030              2035              2040              2045               2050

■ UNITARY AIR CONDITIONING                   ■ CHILLER ■ MOBILE AIR CONDITIONING ■ DOMESTIC REFRIGERATION                               ■ COMMERCIAL REFRIGERATION
■ INDUSTRIAL REFRIGERATION                   ■ TRANSPORT REFRIGERATION ● ● ● TOTAL MIT EMISSIONS

FIGURE 1: PROJECTED BUSINESS-AS-USUAL (BAU) SCENARIO FOR GHG EMISSIONS IN THE RAC SECTOR UNTIL 2050 AND THE PREDICTED
MIT EMISSIONS

1          See https://publications.europa.eu/en/publication-detail/-/publication/41811494-f131-11e8-9982-01aa75ed71a1/language-en
2          Climate Impact Lab, 2018.
2          Assuming a coal power plant emitting ca 3.8 Mt CO2eq per year. https://www.epa.gov/energy/greenhouse-gas-equivalencies-calculator, last accessed 08.02.2019

                                              REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES                                             11
50

                                               45

                                               40

                                               35

                                               30
                                    Mt CO2eq

                                               25

                                               20

                                               15

                                               10

                                               5

                                               0
                                                    2010          2015            2020        2025           2030         2035          2040          2045           2050

        ■ UNITARY AIR CONDITIONING                                   ■ CHILLER ■ MOBILE AIR CONDITIONING ■ DOMESTIC REFRIGERATION          ■ COMMERCIAL REFRIGERATION
        ■ INDUSTRIAL REFRIGERATION                                   ■ TRANSPORT REFRIGERATION ● ● ● TOTAL MIT EMISSIONS

     FIGURE 2: PROJECTED BUSINESS-AS-USUAL (BAU) SCENARIO FOR GHG EMISSIONS WITH THE KIGALI AMENDMENT IN THE RAC SECTOR UNTIL
     2050 AND THE PREDICTED MIT EMISSIONS

     The RAC sector has a large GHG mitigation potential                                                        »»Compared with the BAU scenario, 15.5 Mt CO 2eq can ­
     with technologically and economically feasible mitigation                                                    be prevented by 2050 as shown in Figure 3, where mit-
     actions.                                                                                                     igation action regarding direct GHG emissions accounts
                                                                                                                  for 8.3 Mt CO2eq and indirect GHG emissions mitigation
                                                                                                                  contributes to a reduction of up to 7.2 Mt CO2eq.

                                      50
                                                                                                                                                             ■ DIRECT EMISSIONS
                                                                                                                                                             ■ INDIRECT EMISSIONS

                                      45
     Total emmissions (Mt CO 2eq)

                                      40

                                      35

                                      30

                                      25
                                                   BAU scenario    Unitary Air          Air           Mobile Air     Domestic       Commercial       Industrial       Transport
                                                                   Conditioning     Conditioning     Conditioning   Refrigeration   Refrigeration   Refrigeration    Refrigeration
                                                                                      Chillers
     FIGURE 3: MITIGATION POTENTIAL OF THE PHILIPPINE RAC SECTOR IN THE YEAR 2050. THE GREY COLOR OF THE FIRST COLUMN SHOWS THE
     UNABATED EMISSIONS. THE NEXT COLUMNS TO THE RIGHT OF THE FIRST COLUMN SHOW THE EMISSION MITIGATION POTENTIAL OF EACH
     SUBSECTORS BOTH FOR DIRECT (DARK BLUE) AND INDIRECT (LIGHT BLUE) EMISSIONS

12   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
A large GHG mitigation potential lies in transitioning                                   Figure 4 shows the RAC-related HFC consumption ­
refrigerants from highly climate-damaging hydro­                                         under the BAU scenario, the “freeze” in consumption ­
chlorofluorocarbons (HCFC) and hydrofluorocarbons                                        and reduction steps under the Kigali Amendment adopted
(HFC) to alternatives with low global warming potential                                  as “BAU-Kigali scenario” as well as the ­consumption
(GWP) in a timely manner, ahead of the current HFC                                       according to a more ambitious mitigation scenario
phase-down schedule stipulated in the Kigali amendment                                   (MIT), which assumes the application of best available
to the Montreal Protocol (Clark and Wagner, 2016).                                       ­technologies and use of low-GWP refrigerants. The term
                                                                                          low-GWP refrigerants is applied for refrigerants with
                                                                                          GWP below 10.

                         10
                          9
                          8
                          7
                          6
              Mt CO2eq

                          5
                          4
                          3
                          2
                          1
                          0
                              2015        2020              2025             2030              2035             2040              2045   2050
                                                  ■   BAU       ■   BAU-KIGALI       ■    KIGALI SCHEDULE        ■    MIT

FIGURE 4: BAU, THE BAU UNDER KIGALI AND MIT SCENARIOS OF HFC CONSUMPTION AND KIGALI SCHEDULE

Furthermore, the transition to low-GWP refrigerants                                      This RAC inventory, which demonstrates direct, indirect
can bring other benefits besides the abatement of GHG                                    and total GHG emissions in the RAC sector, is the first of
emissions. Such co-benefits are energy and cost savings                                  its kind in the Philippines. As no data on RAC emissions
through improved energy efficiency as well as the crea-                                  in the country were established prior to the compila-
tion of local employment through local manufacturing of                                  tion of this RAC emission inventory, they are so far not
refrigerants and appliances. A reduced energy use also                                   included in the Philippines’ Intended National Determined
contributes to the Philippines’ national energy security.                                Contributions (INDCs) to the Paris Agreement submitted
                                                                                         in 2015 4 . With the information provided with this inven-
                                                                                         tory, the Philippines will have a more robust RAC sector
                                                                                         emissions estimate as a basis for mitigation planning
                                                                                         and action as part of the Philippines’ NDCs.

4   https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/Philippines/1/Philippines%20-%20Final%20INDC%20submission.pdf

                                               REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES                        13
1 INTRODUCTION

     In this chapter, we will discuss the general context            »»BAU scenario considering the Kigali amendment,
     of the project and the inventory, specifically address-           ­referred to as “Kigali BAU”;
     ing the relevance of the inventory of the RAC sector
     to the national strategies on the Paris Agreement and           »»potential market penetration of energy-efficient
     the M
         ­ ontreal Protocol. We will then review the specific          ­appliances using refrigerants with low global warming
     climatic and market conditions in the Philippines and              potential (GWP);
     provide general information on its RAC sector, including
     main stakeholders as well as RAC- and energy-­related           »»potential to mitigate GHG emissions from refrigerant
     policies. This will serve as a background for further             use and energy consumption in the RAC sector and its
     detailed analysis of this sector’s current emissions and          subsectors.
     mitigation potential.
                                                                     This report describes the RAC appliances currently avail-
                                                                     able on the Philippine market, their energy consumption,
     1.1    PROJECT FRAMEWORK                                        the refrigerants used and the respective GHG emissions.
                                                                     Currently used RAC technologies are compared with in-
     The C4 project works among others closely with                  ternational best practice technologies in order to deter-
     the f­ollowing local authorities: the Climate Change            mine the related emissions mitigation potential. Future
     ­C ommission (CCC), the Department of Environment               trends in each of the RAC subsectors are analysed with
      and Natural Resources (DENR) with its Environmental            respect to both BAU and mitigation (MIT) scenarios.
      ­Management Bureau (EMB) of the Philippine Govern-
       ment, the P­ hilippine Ozone Desk (POD), the Department
       of E
          ­ nergy (DOE), the Department of Trade and Industry        1.2    IMPORTANCE AND BENEFITS OF
       (DTI) and the Land Transportation Office (LTO). Close                RAC SECTOR INVENTORIES
       coordination among different entities and authorities
       is essential to promote a coherent and sustainable            Inventories that are based on an estimation of the stock,
       development of the Philippine RAC sector. The full list       i.e. the number of installed equipment in different RAC
       of entities relevant to the project can be found in the       subsectors, as well as average technical parameters
       section 1.5. Additionally, Philippine industry associations   per subsector provide a sound database and as such a
       on heating, ventilation, air conditioning (HVAC), vocation-   starting point for all GHG emission reduction activities
       al training institutions such as the Technical Education      and their monitoring.
       and Skills Development A  ­ uthority (TESDA), as well as
       refrigerant distributors and the petrochemical industry       This equipment-based RAC GHG inventory provides the
       (for information on possible local production of natural      following information:
       refrigerants) were involved in the project.
                                                                     »»Sales and stock per subsector as well as growth rates
     The purpose of this inventory is to provide an overview           per subsector;
     of the current state of GHG emissions of the RAC sector
     in the Philippines. The report includes information on the      »»technical data on systems, which determines their ­
     following topics:                                                 GHG emissions such as average energy efficiency,
                                                                       ­refrigerant distribution and leakage rates;
     »»BAU GHG emissions resulting from refrigerant and
       energy consumption of the RAC sector;                         »»GHG emissions on RAC unit basis;

14   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
© hpgruesen / pixabay

»»GHG emissions for the whole RAC sector including the        Based on these advantages and different purposes, we
  distribution between direct and indirect emissions;         believe that the following Philippine stakeholders can
                                                              benefit from RAC inventories:
»»future projections of RAC-related GHG emissions;
                                                              »»The Climate Change Commission of the Philippines can
»»mitigation scenarios based on the introduction of             integrate RAC sectoral mitigation targets into their
  ­different technical options.                                 climate mitigation strategies and in the regular climate
                                                                communication (National Communications and Biennial
The collected information can be used for the following         Update Reports);
purposes:
                                                              »»The Department of Environment and Natural ­Resources
»»To identify key subsectors with the highest GHG               (DENR) will be able to control GHG emissions and
  ­emissions as well as the highest emission reduction          start mitigation planning as well as UNFCCC reporting
   potential based on available technologies;                   on HFCs. The methodology and information ­provided
                                                                through this inventory can be used to support the
»»to support country-wide GHG emission inventories that         F-gas reporting included in the National Communica-
  can be used for reporting under the UNFCCC. Based on          tions and Biennial Update Report;
  the projections, they indicate how GHG emissions will
  develop in the future. Sectoral RAC mitigation plans        »»The Department of Energy (DOE) will be able to
  based on GHG inventories and GHG emission projections         ­develop and track a national product database for
  can support the development of NDC targets;                    continuous monitoring, reviewing and updating RAC
                                                                 equipment related MEPS and labels.
»»to provide planning tools for mitigation action, such ­
  as the formulation of Minimum Energy Performance            »»the RAC industry can gain understanding of the
  Standards (MEPS) and labelling or bans on refrigerants        ­national development of the RAC sector regarding its
  with high-GWP;                                                 carbon footprint in order to develop product and sales
                                                                 strategies consistent with the required low carbon
»»to give an indication of the impact of legislation on          development;
  stakeholders in different subsectors;
                                                              »»the Department of Trade and Industry (DTI) will benefit
»»to form the basis for a Measuring, Reporting and              using this report during development of RAC related
  ­Verification (MRV) system or a product database;             testing standards on product safety;

»»to support the development of climate finance project       »»the Department of Finance (DOF) including Government
  proposals with the aim of reducing GHG emissions in           Financial Institutions (GFIs) and private banks can
  the RAC sector, such as Nationally Appropriate Mitigation     develop financial mechanisms and incentives for the
  Actions (NAMAs).                                              transition to low carbon strategies;

                                                              »»vocational training institutions (e.g. TESDA) can
                                                                ­integrate low carbon technology practices into their
                                                                 training plans and training curricula.

                                  REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES          15
1.3        CURRENT CLIMATE AND ECONOMIC ­                    Due to the hot temperatures throughout the year, the
                STATUS                                            ­Philippines has a high demand for cooling technologies.
                                                                   The need for cooling increases during the months of
     The Republic of the Philippines is an island country          May to November with hot and humid months.
     in Southeast Asia, which consists of more than 7,600
     islands. It is in the Pacific Ring of Fire and has an area   With higher global temperatures, the number of Cooling
     of 300,000 km² and a population of 103.3 5 million (as       Degree Days (CDDs) in the Asian region will increase be-
     of 2016). Most of the mountainous land area is covered       tween 30% and nearly 100% by 2100 under the ­climate
     with tropical rainforest, the climate is dominated by a      reference scenarios RCP2.5 and RCP8.5, respectively
     rainy season and a dry season. The summer monsoon            (Hasegawa et al., 2016). With rising temperatures, not
     brings heavy rains from May to October. Contrasting ­        only the air conditioning sector will face challenges, but
     the winter monsoon, where colder and drier air dom-          also the demand for food cooling is expected to rise.
     inates from December to February. The mean annual
     temperature in Manila is 27.3°C with about 1.800 mm
     precipitation (Figure 5).                                    1.4    ENERGY PRODUCTION, ENERGY ­
                                                                         CONSUMPTION AND OTHER FACTORS
                                                                         INFLUENCING THE GROWTH OF RAC
                                                                         APPLIANCES
                                                                  The demand for RAC appliances in the Philippines is
                                                                  growing continuously with multiple factors driving this
                                                                  growth (Oppelt, 2013), as listed in Table 1 below. The
                                                                  growing population and number of households leads
                                                                  to an increased demand for more appliances on the
                                                                  market. The high GDP growth rate indicates general
                                                                  economic growth, which coupled with increasing de-
                                                                  mand and growing urbanisation increase the sales in the
                                                                  sector. The current number of households can also give
                                                                  a realistic general guidance on how many appliances
                                                                  such as ACs and domestic refrigerators are in use by
                                                                  the end users. The current total electricity consump-
                                                                  tion in the country can be compared to the equivalent
                                                                  consumption in different mitigation scenarios and thus
                                                                  the potential contribution of the RAC sector to the total
                                                                  country emissions abatement in case of the introduction
                                                                  on nationwide programs.

     FIGURE 5: CLIMATE CHART OF MANILA.
     SOURCE: COMPILED BY WWW.KLIMADIAGRAMME.DE
     SOURCE: NATIONAL CLIMATIC DATA CENTRE (NCDC)

     5   https://www.iea.org/countries/Philippines/

16   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
TABLE 1: STATISTICAL DATA OF THE PHILIPPINES 6                                           15.1%
                                                                                                                                                          26.1%
    STATISTICS OR THE PHILIPPINES                               VALUE

    POPULATION (MILLION)                                        103.3                    17.7%
                                                                                                                          TOTAL :
    POPULATION GROWTH RATE (2010–2015)7                         1.72                                                     54.8 Mtoe

    HOUSEHOLDS (MILLION)8                                       22.42                    1.3%                                                             18.9%

                                                                                         6.0%
    URBANISATION (2015-2020) [%]9                               1.99
                                                                                                             14.9%
    GDP GROWTH RATE10                                           6.7%

    ENERGY PRODUCTION (MTOE)                                    28.5                     ■ COAL ■ CRUDE OIL ■ OIL PRODUCTS ■ NATURAL GAS
                                                                                         ■ HYDRO ■ GEOTHERMAL ■ BIOFUELS/WASTE
    TOTAL PRIMARY ENERGY SUPPLY ­
    (TPES, MTOE)                                                54.8
                                                                                         FIGURE 6: TOTAL PRIMARY ENERGY SUPPLY (TPES) FOR THE
                                                                                         PHILIPPINES FOR THE YEAR 2016, MTOE = MILLION-TONS OIL
    ELECTRIC CONSUMPTION (TWH)                                  82.5                     EQUIVALENT12

    CO2 EMISSIONS (MT CO2)11                                    137
                                                                                                             1.4%                     3.6%

­

Most of the Philippines energy is generated from oil and                                                                                                     24.1%
                                                                                         12.2%
oil products (33.8%), coal (26.1%), geothermal, solar and
other renewables (19%) as well as biofuel and waste
(17.7%). The other energy sources (natural gas and
                                                                                                                           TOTAL :
hydro) supply 7.3%, being minor contributors to the total                                                                 31.6 Mtoe
primary energy supply (TPES, see Figure 6).
                                                                                                                                                             36.2%
                                                                                         22.5%
Approximately two third of Philippines’ total energy is
consumed by the industry (25%) and the transport (38%)
sector (Figure 7).

                                                                                         ■ INDUSTRY ■ TRANSPORT ■ RESIDENTIAL                     ■ COMMERCIAL
                                                                                         ■ AGRICULTURE/FISHING ■ NON-ENERGY USE

                                                                                         FIGURE 7: ENERGY CONSUMPTION BY SECTOR, MTOE = MILLION
                                                                                         TONS OIL EQUIVALENT12

6    https://webstore.iea.org/download/direct/2291?fileName=Key_World_2018.pdf
7    http://psa.gov.ph/population-and-housing
8    http://www.psa.gov.ph/content/housing-characteristics-philippines-results-2015-census-population
9    https://population.un.org/wup/DataQuery/
10   World Bank
11   See https://publications.europa.eu/en/publication-detail/-/publication/41811494-f131-11e8-9982-01aa75ed71a1/language-en
12   https://www.iea.org/statistics/?country=PHILIPPINE&year=2016&category=Energy%20supply&indicator=TPESbySource&mode=table&dataTable=BALANCES

                                               REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES                                       17
1.5    RAC STAKEHOLDERS
     Table 2 provides an overview of the Philippines’ ­key
     institutions from private and public domains r­elevant for
     the climate and energy conservation policy in the RAC
     sector as well as key non-state institutions and stake-
     holders in the sector.

     TABLE 2: OVERVIEW OF INSTITUTIONS RELEVANT FOR THE RAC SECTOR AND THEIR CONTRIBUTION TO THE SURVEY

      INSTITUTION/DEPARTMENT                 DUTIES/FUNCTIONS/RESPONSIBILITIES
      THE CLIMATE CHANGE COMMISSION          The Climate Change Commission (CCC) is an independent and autonomous
                                             ­government body. The CCC is under the Office of the President and is the “sole
                                              policy-making body of the government which shall be tasked to coordinate, monitor
                                              and evaluate the programs and action plans of the government relating to climate
                                              change”. The CCC is the political partner for the implementation of the C4 projects
                                              in the Philippines.

      ENVIRONMENTAL MANAGEMENT               The DENR with its EMB, which has administrative jurisdiction over the POD ­
      BUREAU/DEPARTMENT OF ENVIRON-          (below) and its Climate Change Division (CCD), is responsible for the calculation of
      MENT AND NATURAL RESOURCES (EMB/       refrigerant related emissions and their management in the Philippines; As mandated
      DENR)                                  under Executive Order 174, the Department of Environment and Natural Resources
                                             (DENR) shall take the lead in the GHG Inventory in the Industrial Processes and
                                             Product Use (IPPU). GHG emissions from RAC&F is a one of the IPPU categories as
                                             defined by the IPCC.
                                             DENR is an implementation partner for the C4 project.

      THE PHILIPPINE OZONE DESK (POD) AT     The POD is the national coordinating body of the Montreal Protocol for the
      DENR                                   ­Philippines with the mandate to manage chemical refrigerants. It has managed the
                                              chlorofluorocarbon (CFC) phase out plan and is currently managing the hydrochloro-
                                              fluorocarbon (HCFC) phase-out plan. The POD is also in charge in managing issues
                                              related to the management of hydrofluorocarbon (HFC) under the Kigali Amendments,
                                              where the ratification of the Philippines is pending. The POD coordinates policies and
                                              climate strategies coordination related to the GHG management of refrigerants,
                                              including national GHG emissions reporting and related inputs to the NDC.

      DEPARTMENT OF FINANCE (DOF)/           • Reporting on imports of regulated substances (so far CFCs and HCFCs)
      BUREAU OF CUSTOMS (BOC)                • Provided the information on codes for appliances

      DEPARTMENT OF AGRICULTURE (DA)/        • Provided information on cold store warehouses
      NATIONAL MEAT INSPECTION AUTHORITY

      DEPARTMENT OF ENERGY (DOE)             • Responsible for ensuring energy security of the Philippines. Implements the
                                               renewable energy act and energy efficiency programs. It is an implementing
                                               partner for the project;
                                             • The Lighting and Appliances Testing Laboratory at the Energy Research and Testing
                                               Laboratory Services (ERTLS) and Energy Utilization Management Bureau (EUMB)
                                               provided information on the unitary air conditioning and refrigeration sector

      DEPARTMENT OF TRADE AND ­              • Responsible for developing and promoting standards and certification;
      INDUSTRY (DTI)/ BUREAU OF PHILIPPINE   • Responsible for import licenses;
      STANDARDS (BPS)
                                             • Provided the records related to the issuance of certificates for imported units and
                                               certification marks for locally manufactured RAC-equipment
                                             • Provided the information on codes for appliances

      DEPARTMENT OF TRANSPORTATION           • Responsible for all land transportation in the Philippines, the implementation of
      (DOT)/LAND TRANSPORTATION OFFICE         transportation laws, rules and regulations;
      (LTO)
                                             • Provided data on registered motor vehicles
                                             • Also acted as partner for data on mobile air conditioning and transport
                                               ­r efrigeration, with assistance of the Philippine Ozone Desk Multilateral Fund (POD
                                                MLF).

18   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
TABLE 2: OVERVIEW OF INSTITUTIONS RELEVANT FOR THE RAC SECTOR AND THEIR CONTRIBUTION TO THE SURVEY

    INSTITUTION/DEPARTMENT                            DUTIES/FUNCTIONS/RESPONSIBILITIES
    PHILIPPINE STATISTICS AUTHORITY                   Census of Philippine Business and Industry

    COLD CHAIN ASSOCIATION OF THE                     • Establishing formal linkages with the government and delineating the role of the
    PHILIPPINES                                         private business sector in the food security and development program;
                                                      • Spearheading the formulation, promulgation and enforcement of industry standards
                                                        necessary to ensure efficient performance of all activities within the cold chain;
                                                        and
                                                      • Fostering cooperation and coordination among members in addressing industry
                                                        concerns, particularly those that pertain to industry development.

    PHILIPPINE ASSOCIATION OF BUILDING                Internationally affiliated, accredited and the only recognized Association in the
    ADMINISTRATORS                                    Philippine Building Management Industry

    PHILIPPINE GREEN BUILDING INITIATIVE              Non-profit, voluntary group of professional associations involved with the built-­
                                                      environment who share a common concern on the impacts of global warming and
                                                      climate change.

    ASHRAE PHILIPPINE CHAPTER                         An international organization with mission of advancing heating, ventilation, air
                                                      conditioning and refrigeration to serve humanity and promote a sustainable world
                                                      through research, standards writing, publishing and continuing education.

    PHILIPPINE SOCIETY OF VENTILATION;                Non-stock, non-profit organization of engineers, consultants, contractors, suppliers
    AIR CONDITIONING AND REFRIGERATION                and manufacturers directly involved in air-conditioning, ventilating and refrigerating
    ENGINEERS (PSVARE)                                practices.

    REFRIGERATION AND AIR CONDITIONING                RACTAP is an organization of refrigeration and air conditioning technicians providing
    TECHNICIANS ASSOCIATION OF THE                    training and support to professional RAC technicians.
    PHILIPPINES (RACTAP)

­

1.6       CLIMATE AND F-GAS POLICIES                                                    the annual import quotas for HCFCs consistent with the
                                                                                        phase-out schedule of the Montreal Protocol, approves
 Regulatory frameworks are required for the ­implementation                             importers, and issues import quotas to registered im-
 of most changes towards environment-friendlier ­technology                             porters in coordination with the Bureau of Customs.
 alternatives in the RAC sector. The Philippines signed the
 Montreal Protocol on Substances that Deplete the Ozone                                 Policies targeting the RAC sector so far are mainly
 Layer on Sept. 14, 1988 and ratified it on March 21, 1991.                             ­driven by ODP management under the HPMP.
 So far, the Philippines has been compliant with the
­Montreal Protocol.                                                                     The current NDC, which is still under development with
                                                                                        key stakeholders, includes an economy wide target of a
Stage I of the HCFC phase-out management plan (HPMP)                                    70% reduction of GHG emissions by 2030 compared to
for the Philippines was approved at the 68th meeting to                                 BAU213 . Whilst the NDC states this as an economy-wide
accomplish the 10 per cent reduction from the baseline                                  target, so far, no specific quantitative targets for the
by 2015 resulting in the phase-out of 45.0 ODP tonnes of                                RAC sector or its subsectors have been included in the
HCFCs. At the 79th meeting, on behalf of the Government of                              NDC. Discussions for the NDC update 2020 covered en-
the Philippines, the World Bank, as the designated imple-                               ergy efficiency measures for home appliances, including
menting agency, submitted a request for funding for stage                               refrigerators and air conditioners, the transition to low
II of the HPMP. The Environmental Management Bureau                                     GWP refrigerants and the enforcement of the building
(EMB) through the Philippine Ozone Desk (POD) establishes                               code 14 .

13 https://www4.unfccc.int/sites/submissions/INDC/Published%20Documents/Philippines/1/Philippines%20-%20Final%20INDC%20submission.pdf
14 See http://www.climate.gov.ph/images/NDC/Sofitel/02_PH-NDC_Liza-Andres.pdf last accessed 12.02.2019

                                              REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES                       19
2 SCOPE OF THE INVENTORY

     The inventory covers GHG emissions from the RAC sector       TABLE 3: RAC SUBSECTORS AND RELATED SYSTEMS
     based on a stock model covering the major RAC sub­
     sectors and their appliances. The current and future          SUBSECTOR                   SYSTEMS
     stock is derived from historic sales figures, while
     historic growth trends and dynamics help to determine
                                                                   UNITARY AIR ­               Window-type air conditioners
     the future stock. The emissions are calculated for each       CONDITIONING                Split residential air condi-
     subsector and appliance type based on critical technical                                  tioners
     parameters determining direct and indirect emissions.                                     Split commercial air condi-
                                                                                               tioners
     The inventory covers the following elements:                                              Duct split residential air
                                                                                               conditioners
     »»The calculated mitigation potential of the RAC sector ­                                 Commercial ducted splits
       of the Philippines using the guidelines of the Inter­                                   Rooftop ducted
       governmental Panel on Climate Change (IPCC);                                            Multi-splits

                                                                   CHILLERS                    Air conditioning chillers
     »»for each of the subsectors and their respective
       ­appliance types (Table 3), an inventory of historic and     MOBILE AIR                 Car air conditioning
        future unit sales and stock data is established;           ­CONDITIONING               Large vehicle air conditioning

     »»for each appliance type, the historic, current and ­         DOMESTIC                   Domestic refrigerators
       future energy and refrigerant use and their respective      ­REFRIGERATION
       emissions are estimated;                                     COMMERCIAL                 Stand-alone equipment
                                                                   ­REFRIGERATION              Condensing units
     »»currently deployed RAC technologies are compared ­                                      Centralized systems for
       with international best practice technologies for their                                 supermarkets
       potential to mitigate GHG emissions on a unit basis;

     »»Future trends of RAC subsectors are analysed both
       with respect to BAU and mitigation scenarios.              This document presents preliminary results based on
                                                                  statistical data, questionnaires, interviews, workshop
     The RAC subsectors and all appliances covered by the         feedback, methodology and assumptions.
     inventory are categorized according to key subsectors as
     outlined in the RAC NAMA Handbook, Module 1: Inventory       Future projections have been included, mostly using
     (Heubes and Papst, 2014) and further illustrated in Table    growth rates based on expert judgements or economic
     25 and Table 26 of the Annex.                                growth projections.

     As outlined in the methodology below, the inventory
     is based on actual emissions gathered at the unit or
     appliance level. This methodology is also applied for the
     calculation of appliance related refrigerant emissions
     as opposed to inventory methodologies based on the
     bulk refrigerant consumption across different sectors.
     The latter approach is usually applied for estimating
     emissions as part of ozone depleting substances (ODS)
     alternative surveys.

20   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
© FreePhotos / pixabay

2.1        METHODOLOGY
The methodology adopted for the report draws on the
concepts outlined by Heubes et al. (Heubes and Papst,
2014), Penman et al. (2006) and on the IPCC Tier 2                                          TIER 1                                           TIER 2
methodology from 2006. It should be noted that the ­
word ‘system’ is used interchangeably in this report ­
with the words ‘appliance’, ‘equipment’ or ‘unit’.
                                                                                               Potential emission
                                                                                                              i                  A t emission
                                                                                                                                 Actual
While alternative refrigerant inventories, such as ODS
alternative surveys, are typically based on the Tier 1
methodology, this inventory is based on the IPCC ­
Tier 2 methodology to cover not only refrigerant-related
emissions and their mitigation options, but also GHG                                           consumption often               Activities leading to
emissions from energy use and their mitigation o­ ption. ­                                    aggregated on entire           emissions disaggregated
                                                                                                    country                    on subsector basis
In addition, the Tier 2 methodology allows for the prepa-
ration of GHG mitigation actions (such as NAMAs) in
relevant RAC subsectors and further NDC ­development
and review. As Tier 2 inventories are based on unit
appliances, an MRV system of mitigation efforts can be                                                                       Number of appliances &
established at the unit level.                                                                                                technical parameters

Tier 1 and Tier 2 methodologies have the following basic
differences15:
                                                                                                ODS alternatives            UNFCCC Common Reporting
                                                                                              survey under the MP             Format - Category 2:
»»Tier 1: emissions are calculated based on an
  ­aggregated sector-based level (Heubes and Papst,                                                                            Industrial Processes
                                                                                                 Reporting under                 and Product Use:
   2014; Penman, 2006).
                                                                                                 Article 7 of MP
                                                                                                                            Refrigeration/AC and Foam
»»Tier 2: emissions are calculated based on a
  ­disaggregated unit-based level (Heubes and Papst,
   2014; Penman, 2006).                                                                           Approaches for                   Refrigerant
                                                                                                 Direct Emissions                  distribution
The difference between the Tier 1 and Tier 2
­methodology are further illustrated in Figure 8.                                         Graphic Key
                                                                                                                            Mitigation action planning
                                                                                            Approaches                       in contribution to NDCs
                                                                                                            Data used for
                                                                                            for estimates                          (e.g. NAMA)

                                                                                          Figure 8: Approaches for
                                                                                                    GHG emission
                                                                                                    estimates relevant       indirect       direct
                                                                                                    to the RAC&F            emissions      emissions
                                                                                                    sector
15 Please note that sector and application here are used in the context of this report,   FIGURE 8: APPROACHES FOR GHG EMISSION ESTIMATES RELEVANT
   where IPCC 2006 methodology refers to sector as application and application as
   sub-application                                                                        TO THE RAC&F SECTOR (MUNZINGER ET AL., 2016)

                                                  REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES                        21
© Sunti / Shutterstock.com

            The Tier 2 methodology used in this report accounts for           include refrigerant emissions from leakage of refrigerant
            direct and indirect emissions at the unit level as illus-         gases during manufacture, servicing, operation and at
            trated in Figure 9 for the stock of appliances in use,            end-of-life of cooling appliances. The Tier 2 methodology
            their manufacturing and disposal emissions. Indirect              goes beyond the Tier 1 approach, which only focuses on
            emissions result from electricity generation for cooling,         the demand and use of refrigerants. The Tier 1 approach
            considering the annual electricity consumption and the            does not include indirect emissions from the energy use
            Philippines’ grid emission factor (GEF). Direct emissions         of appliances.

                    Production of
                     Appliances                                         Stock (= Appliances in Use) -> Bank
                     (First Fill)

                     Manufacture                        In-Use                        Disposal                      Energy
                      Emissions                    Emissions (Refill)                Emissions                    Consumption

                                   Fill        Refill        Direct Emissions                                  Indirect Emissions

                                          Demand                                         Total Emissions

            FIGURE 9: OVERVIEW RAC REFRIGERANT DEMAND VERSUS RAC TOTAL EMISSIONS

22          REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
Refrigerant consumption is accounted for at all stages                                         »»Secondary data was used from Department of Energy -
during the product life of the equipment:                                                        Lighting and Appliance Testing Laboratory (DOE-LATL17,
                                                                                                 ASEAN-Shine18 , BRG Building Solutions19 and from the
»»Refrigerants that are filled into newly manufactured                                           Department of Environment and Natural Resources -
  products                                                                                       Environmental Management Bureau (DENR-EMB) 20
                                                                                                 HPMP Baseline Survey. Some data was aggregated from
»»Refrigerants in operating systems (average annual                                              World Air Conditioner Demand by Region Report from
  stocks)                                                                                        The Japan Refrigeration and Air Conditioning Industry
                                                                                                 Association (JRAIA, 2018)21. Data for the mobile AC
»»Refrigerants remaining in products at decommissioning                                          subsector was taken from the Land Transportation Of-
                                                                                                 fice (LTO) 22 . The data was compared and updated with
                                                                                                 data from the Philippines Room Air Conditioner Market
2.2         DATA COLLECTION PROCESS                                                              Assessment and Policy Options report (CLASP, 2019)23 .

The following steps were taken to complete the inventory:                                      »»Tertiary data was used to fill gaps, where other data
                                                                                                 was not available. The stock number of the domestic
Step 1. National kick-off workshop with relevant stake-                                          and the commercial subsector (e.g. stand-alone units,
holders on 27th of September 2016.                                                               condensing units and centralized systems for super-
                                                                                                 markets were inserted based on estimates carried out
Step 2. Preparation of questionnaires and list of stake-                                         in the GCI Database 24 (‘Green Cooling Initiative’, 2013).
holders for selected subsectors. Detailed questionnaires
were prepared for manufacturers in the sub-sectors AC                                          The following challenges were encountered during data
and domestic refrigeration.                                                                    collection for this inventory from primary data ­resources:

Step 3. Sending questionnaires to stakeholders.                                                »»Reluctance to provide information or willingness ­
                                                                                                 to provide only partial information due to the
Step 4. Face-to-face interviews with stakeholders to                                             ­confidentiality policy of the companies.
explain the required data.
                                                                                               »»Difficulties with filling out questionnaires on the part
Step 5. Validation checks of primary data and gathering                                          of the companies; questionnaires had to be explained
of complementary information from secondary and ter-                                             during personal visits to get information.
tiary data, call-backs and compilation of data received
through questionnaires into the master sheets from data                                        »»No customs data on imported equipment or car
entry forms.                                                                                     ­registration records could be collected.

Step 6. Verification of data during a national inventory                                       »»Despite multiple feedback loops, the attribution of
workshop in Manila on the 29th of May 2018.                                                      collected equipment data to the appliance groups
                                                                                                 defined in the inventory was difficult. Some appliance
»»For primary data, a survey was conducted among                                                 groups such as self-contained AC were left empty. It
  manufacturers of unitary AC and domestic refrigeration                                         is assumed that those categories are included in other
  equipment such as Kolin, LG, Concepcion Carrier and                                            groups, but this could not be verified.
  Daikin. Manufacturers were contacted individually or
  through associations, four of them provided data16 . The                                     Due to those difficulties, the primary data collected ­
  domestic refrigeration subsector was supplemented by                                         was found incomplete and estimates from s­ takeholders
  data from the GCI Database (‘Green Cooling Initiative’,                                      were often used instead of the collected data. The assump-
  2013).                                                                                       tions are presented in detail in the following chapters.

16   A complete list of approached and responding companies is provided in the Annex
17   https://www.doe.gov.ph/ertls
18   https://storage.googleapis.com/clasp-siteattachments/ASEAN_SHINE_AC_Regional_Roadmap__Report_Final-new-2.pdf
19   http://www.brgbuildingsolutions.com/industry-sectors/air-conditioning-heating-ventilation-market-research-reports-data
20   https://emb.gov.ph/
21   https://www.jraia.or.jp/english/World_AC_Demand.pdf
22   http://www.lto.gov.ph/
23   https://clasp.ngo/publications/philippines-rac-market-assessment-and-policy-options-analysis-2019
24   http://www.green-cooling-initiative.org/

                                                  REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES                             23
2.3        MODELLING PARAMETERS                                                               and information from interviews where possible. Gaps
                                                                                                   were filled with default values obtained from the Green
     For the analysis of this inventory the modelling                                              Cooling database. The major stakeholders consented to
     ­parameters derived from primary and secondary data                                           the preliminary data, but it is important to note that
      collection as shown in Table 4 were applied. The                                             this is mainly due to the lack of comparison data in the
      ­modelling parameters are derived from questionnaires                                        Philippines.

     TABLE 4: MODELLING PARAMETERS FOR BAU SCENARIO

         EQUIPMENT TYPE                                        LIFETIME          MAIN                     INITIAL            EER      SERVICE      DISPOSAL
                                                               [YEARS]           REFRIGERANTS             CHARGE (IC)        (2017)   ­EMISSION    EMISSION
                                                                                                          [KG]                         FACTOR25    ­FACTOR
                                                                                                                                       [% OF IC]    [% OF IC]

         WINDOW TYPE AC                                        8                 R410A, R22,              0.8                3.29     10%          95%
                                                                                 R32

         SPLIT RESIDENTIAL AC                                  8                 R410A, R22,              0.65               3.5      10%          95%
                                                                                 R32

         SPLIT COMMERCIAL AC                                   10                R410A, R22               2.9                3.15     10%          80%

         ROOFTOP DUCTED                                        10                R22, R407C,              2                  3.38     5%           75%
                                                                                 R410A

         MULTI-SPLITS                                          15                R22, R407C,              3.325              3.27     10%          80%
                                                                                 R410A

         AIR CONDITIONING CHILLERS                             20                R134a, R123              35                 2.79     22%          95%

         CAR AIR CONDITIONING                                  15                R134a                    0.6                2.71     20%          100%

         LARGE VEHICLE AIR CONDITIONING                        15                R134a                    8                  2.71     30%          80%

         DOMESTIC REFRIGERATION                                20                R134a, R600a             0.175              1.42     2%           80%

         STAND-ALONE EQUIPMENT                                 15                R134a                    0.8                1.42     3%           80%

         CONDENSING UNITS                                      20                R134a                    4                  2.21     30%          85%

         CENTRALIZED SYSTEMS FOR                               20                R22, R134a               230                1.73     38%          90%
         SUPERMARKETS

     ­

     The grid emission factor (GEF) is a measure of CO 2                                           No substantial indications from industry representatives
     emission intensity per unit of electricity generation in                                      were provided for the future growth rates of appliances.
     the total grid system. In the presented study the GEF of                                      Therefore, growth rates are derived from the historic
     0.63 26 has been used. As there are no future predictions                                     growth rates and trends were conservatively applied for
     of a potential GEF, which can be implemented in the                                           modelling future unit sales in the respective subsectors
     model, the data presented in this report uses the same                                        as listed in Table 5.
     GEF for the BAU and the MIT scenario.

     25 Values taken from http://www.green-cooling-initiative.org and modified according stakeholder/industry consultation
     26 https://pub.iges.or.jp/pub/list-grid-emission-factor

24   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
© GIZ / Proklima

TABLE 5: ASSUMED FUTURE GROWTH RATES OF APPLIANCE SALES

 SUBSECTORS                                         APPLIANCE TYPES                  2016-2020   2021-2030     2031-2050

 UNITARY AIR CONDITIONING                           Window-type air conditioners       4.5%        2.3%          0.6%

 UNITARY AIR CONDITIONING                            Split residential air             7.5%        5.0%          3.3%
                                                    ­conditioners

 UNITARY AIR CONDITIONING                            Split commercial air              7.5%        2.5%          0.6%
                                                    ­conditioners

 UNITARY AIR CONDITIONING                           Rooftop ducted                     7.5%        2.5%          0.6%

 UNITARY AIR CONDITIONING                           Multi-splits                       4.5%        1.5%          0.3%

 CHILLERS                                           Air conditioning chillers          1.7%        0.6%          0.1%

 MOBILE AIR CONDITIONING                            Car air conditioning               2.5%        0.8%          0.2%

 MOBILE AIR CONDITIONING                            Large vehicle air conditioning     1.2%        0.4%          0.1%

 DOMESTIC REFRIGERATION                             Domestic refrigeration27            2%          2%            2%

 COMMERCIAL REFRIGERATION                           Stand-alone equipment              1.7%        0.6%          0.1%

 COMMERCIAL REFRIGERATION                           Condensing units                   1.7%        0.6%          0.1%

 COMMERCIAL REFRIGERATION                           Centralized systems for             1%         0.3%          0.1%
                                                    supermarkets

 COMMERCIAL REFRIGERATION                           Centralised supermarket units      3.2%        0.4%          0.1%

­ Growth is estimated using CAGR between 2018 and 2050
27

                                            REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES   25
3 RESULTS

     3.1            SUBSECTOR SALES AND                                    3.1.1   UAC sales and stock data
                    STOCK DATA ANALYSIS
                                                                           The total sales of unitary air conditioning appliances
     The data was acquired and analysed by subsectors                      have been steady, with a rising trend in the last years
     ­according to the classification presented in section 2.2;            and current amounts of over 800,000 units a year. The
      the results are presented and described below.                       biggest sales share are window type air conditioners,
                                                                           followed by split residential air conditioners. In the near
     The process of secondary data collection and review                   future it is assumed that the split air conditioners will
     targeted both locally manufactured and imported                       be the technology of choice in the Philippines.
     ­equipment. The sales and stock development in the
      key subsectors were examined. The stock analysis
      ­considers the phase-in of new equipment driven by the
       sales d
             ­ evelopment and the phase-out of old equipment
       considering standardised assumptions for the lifetime
       of the equipment.

                        900.000
                        800.000
                        700.000
                        600.000
           Sold units

                        500.000
                        400.000
                        300.000
                        200.000
                        100.000
                             0
                                  2010                 2012                            2014                        2016

     ■ WINDOW-TYPE AIR CONDITIONERS ■ SPLIT RESIDENTIAL AIR CONDITIONERS     ■ SPLIT COMMERCIAL AIR CONDITIONERS
     ■ ROOFTOP DUCTED ■ MULTI-SPLITS

     FIGURE 10: UNITARY AC UNITS SOLD (2010 TO 2016)

26   REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES
© terimakasih0 / pixabay

                               16
                               14
                               12
      Stock units (millions)

                               10
                               8
                               6
                               4
                               2
                               0
                                2010          2015            2020             2055          2030          2035          2040         2045       2050

■ WINDOW-TYPE AIR CONDITIONERS ■ SPLIT RESIDENTIAL AIR CONDITIONERS                                 ■ SPLIT COMMERCIAL AIR CONDITIONERS
■ COMMERCIAL DUCTED SPLITS ■ ROOFTOP DUCTED ■ MULTI-SPLITS

FIGURE 11: UNITARY AC UNIT STOCK HISTORIC AND FORECASTED (2010 TO 2017; 2018 TO 2050)

The stock model shows that there are currently around                   3.1.2 AC chillers sales and stock data
7 million appliances on the Philippine market and rapid
growth of the stock is expected starting from year 2025,                According to the acquired data, a significant increase in
assumedly due to the phase-in of new appliances and                     the numbers of chillers has been observed in the last 3
increase in local production/manufacturing. The current                 years.
breakdown    by appliances
        ■ WINDOW-TYPE         is shown ■inSPLIT
                      AIR CONDITIONERS      Figure   11. AIR CONDITIONERS ■ SPLIT COMMERCIAL AIR CONDITIONERS
                                                RESIDENTIAL
                               ■ COMMERCIAL DUCTED SPLITS   ■ ROOFTOP DUCTED    ■ MULTI-SPLITS

TABLE 6: SOLD UNITS FOR THE AC CHILLER SUBSECTOR FOR THE YEARS 2010 TO 2015

    SUBSECTOR                                                          2010           2011          2012          2013       2014         2015     2016
    AC CHILLERS                                                         290            330          310           340           370       400      450

­

                                                             REFRIGERATION AND AIR CONDITIONING GREENHOUSE GAS INVENTORY FOR THE PHILIPPINES              27
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