Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation

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Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
Shaping Thailand’s Intended
   Nationally Determined
   Contribution (INDC):
Post2020 Mitigation Contributions
               17 October 2014
        Swissotel Nai Lert Park, Bangkok

        Bundit Limmeechokchai
                SIIT-TU
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
• GHG emissions in 2050 will be half of present emissions to
  achieve the 2 Degree Scenario (2DS).
• In 2050, 75% of GHG reduction will come from developing
  countries.

 Source: IEA (2012)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
• สำหรับก่อนปี ค.ศ. 2020 นั้น เพื่อบรรลุเป้ำหมำย 2 องศำ, World Global
  GHG emission reduction ส่วนใหญ่จะลดลงได้จำกกำรลดกำรใช้เชื้อเพลิง
  Fossil ในภำคเศรษฐกิจหลัก

 Source: IEA (2012)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
• CO2 Intensity ของภำคผลิตไฟฟ้ำ (g/kWh) จะต้องลดลงเหลือเพียง 60
  g/kWh ในปี ค.ศ. 2050 จึงจะช่วยรักษำระดับอุณหภูมิโลกไม่ให้เพิ่มขึ้นเกิน 2
  องศำ (สำหรับประเทศไทย ณ ปัจจุบันอยู่ที่ระดับประมำณ 0.5 kg/kWh)

  Source: IEA (2012)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
Decoupling GHG emissions: Need of transformational changes
• World Energy Intensity ในภำคอุตสำหกรรมได้ลดลงอย่ำงต่อเนื่องประมำณ
  2% ต่อปี (1990-2009)

   Source: IEA (2012)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
Transport between 2DS and 4DS

Source: IEA (2014)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
Today decision effects future emissions and the lock-in
• เทคโนโลยีผลิตไฟฟ้ำกังหันแก๊ส ต้องลดระดับกำรผลิต (Capacity Factor) ใน
  กำรผลิตไฟฟ้ำในปี 2050 เพื่อบรรลุเป้ำหมำย 2 องศำ (ส่วนในกรณี 4 องศำ
  เทคโนโลยีผลิตไฟฟ้ำกังหันแก๊ส จะกลำยเป็น Base-load)

       2010           2020        2030          2040         2050

 Source: IEA (2012)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
Integrated electricity systems of the future

Source: IEA (2014)
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
9
Shaping Thailand's Intended Nationally Determined Contribution (INDC): Post2020 Mitigation Contributions - Thai-German Cooperation
ภาพรวมการลดก๊าซของภาคเศรษฐกิจในการบรรลุเป้าหมาย 2DS ในปี 2050

  Source: IEA (2014)
ภาพรวมเทคโนโลยีที่จะช่วยบรรลุเป้าหมาย 2 องศา ในปี 2050

Source: IEA (2014)
Scope of commitments
   Greenhouse gas (GHG) emission reduction targets
    ● Absolute or relative economy-wide emission targets
    ● Absolute or relative sectoral targets
   Other quantifiable targets
    ● Energy intensity targets (eg, EEDP targets at 25% reduction)
    ● Renewable energy targets (eg, AEDP25%)
    ● Area to be afforested
    ● Other technology targets

   Commitment to implement policies
   Emission price commitments
   Technology-oriented agreements
   Commitment to implement individual actions and projects
13
UNFCCC negotiation track
1997 1999        2001 2003 2005 2007 2009 2011 2013 2015                        2017 2019

 1997                        2005        2008
 Signing Kyoto
 Protocol
                          Enter into           1st
                          forces
                                            commitment          2nd commitment Period
                                              Period
                 AWG-KP

 Kyoto Protocol result-based
                                                                                         2020
 emission reduction targets                     2009         2012
    1st Commitment = “reduce
                                                       AWG
     GHG emissions to an average of                    LCA
     5% against 1990 levels”
                                                                                              Post 2020
                                                                                              Regime
    2nd Commitment = “request a
                                                                        2015          2020
     global reduction of 18% of                                      Adoption of     Enter into
     emission compared with the                   2011              New agreement     forces

     baseline reference (mainly 1990)”                                ADP
 Some NAMAs  activity-based
 commitments
SIIT-TU                    14

              ความแตกต่ างของ INDC, NAMAS & CDM
             CDM                          Pre2020 - NAMAs               Post2020 - INDC

CDM projects are driven by         NAMAs are mainly driven by        INDCs are mainly driven
firms involved in carbon market    national governments              by national policy

CDM is at project level.           NAMAs are of policies,            INDCs are mainly of
Programmatic CDM (PoAs) is         strategies, and programmes        policies
closer to NAMA concept

CDM has strict rules for testing   So far, no additionality          No additionality
additionality                      determination of NAMAs exist,
                                   but Incremental NAMAs costs

CDM has stringent MRV              NAMAs MRV could vary
requirement                        significantly, depending on the
                                   nature of activity and funds.

Key purpose of CDM is carbon       NAMAs will not necessary result
 credit                            in emission credits
Pre 2020: developed country ambition

 First Commitment period (2008 – 2012)
 “reduce GHG emissions to an average of 5%
 against 1990 levels”
 Second commitment period (2013-2020)
  “Quantified Emission Limitation and reduction commitments
 (QELRCs); request a global reduction of 18% of emission compared with the
 baseline reference (mainly 1990)”

 Copenhagen accord; developed country submitted to the
 UNFCCC secretariat the “Quantified Economy-wide
 Emission Targets for 2020”
Pre 2020: developed country pledges
  Annex I         Quantified economy-wide                 Base   Economy-wide emissions,
  Parties
                  emissions targets for 2020              year   relative to base year*

 EU           20% / 30% As part of a global and           1990   Advantages
              comprehensive agreement for the period             • High confidence regarding
              beyond 2012,                                          future emissions levels (if
 Japan        25% reduction, which is premised on         1990      commitments are met)
                • the establishment of a fair and
                  effective international framework              • Simplifies emissions trading
                  in which all major economies
                  participate and
                • on agreement by those economies
                                                                 Disadvantages
                  on ambitious targets.                          • Does not take into account
  US          In the range of 17%, in conformity          2005      changing economic
              with anticipated U.S. energy and
              climate legislation, recognizing that the
                                                                    conditions (case of Japan)
              final target will be reported to the
              Secretariat in light of enacted
              legislation.¹

*OECD climate change expert group paper No.2013(3)                                                16
Pre 2020: developing country ambition

“Without a reduction commitment”
Developing countries to earn certified emission reduction (CER)
credits from CDM project, CERs can be traded and sold, and
used by industrialized countries to a meet a part of their
emission reduction targets under the Kyoto Protocol.

Bali Action Plan; developed country submitted to the UNFCCC
secretariat the “Appropriate Nationally Mitigation Actions
(NAMAs) ”
NAMAs Status Update
        55 Parties and African Group have submitted NAMAs
           (UNFCCC; FCC/SBI/2013/INF.12/Rev.2)

          Climate Summit 2014 (23 Sep)  Najib Razak said that
           “Malaysia plans to cut emissions 40 percent by 2020”

    Regional overview of NAMA activity           Sectoral overview of NAMA activity

                                                                                      18
*MitigationMomentum, 2014 NAMAs Status Update
Pre 2020: developing country pledges
      NA I
    Countries
                          NAMAs/Pledges              GHG emissions per unit
                                                     GDP*
                   Lower CO2 emissions per
                   unit of GDP by 40 - 45% by        Advantages
                   2020 compared to the 2005         •   Takes into account changing
    China          level by increasing the share         economic conditions
                   of non-fossil fuels in the
                   primary energy                    Disadvantages
                   consumption.                      •   Low confidence regarding future
                                                         emissions levels
                                                     •   May lead to higher than expected
                   Reduce the emissions                  emissions if economic growth is
                   intensity of its GDP by 20-           strong
    India          25% by 2020 in comparison         •   May complicate emissions trading
                   to the 2005 level

*OECD climate change expert group paper No.2013(3)                                          19
Types of of Mitigation Pledge
     China’s projected CO2 intensity baseline and goal in 2020

                                   Emissions intensity target is based                             GDP
                                   on assumption that GDP rises faster
                                   than emission                                                             CO2

                                                                                                                                     GDP, tCO2
  tCO2/GDP

                                                                                                   Decision to reduce intensity by
                     (CO2/GDP)2005                                                                 X% from reference level

                                                                                                      (CO2/GDP)2020

                                                                                                              2018
                                                                                                      2017
              2005

                            2007

                                           2009

                                                  2010

                                                         2011

                                                                2012

                                                                       2013

                                                                              2014
                                    2008

                                                                                     2015
                     2006

                                                                                            2016

                                                                                                                      2019

                                                                                                                              2020
CO2 intensity is preferable when projected GDP is higher than CO2 such as
the case of China.
                                                                                                                                                 20
Pre 2020: developing country pledges
                                                     Economy-wide GHG
   AN I                                              emissions, relative to a BAU
   Parties NAMAs/Pledges                             Baseline*
                Reduce emissions by 36.1% -
   Brazil       38.9% below BAU by 2020              Advantages
          Reduce emissions by 30% below              •   Can facilitate participation of
   Mexico BAU in 2020.                                   developing countries
                                                     •   Can be a first step towards other
                Reduce emissions by 30% below            commitment types
   Korea        BAU by 2020
   South        Reduce emissions by 34% below        Disadvantages
                BAU by 2020                          •   Low confidence regarding future
   Africa                                                emissions levels
                Achieve a 20% deviation below        •   May complicate emissions trading
   Chile        BAU emission growth trajectory       •   Can have lower transparency
                by 2020                              •   May complicate MRV

*OECD climate change expert group paper No.2013(3)                                           21
Pre 2020: developing country pledges
  NA I            NAMAs/ Pledge                       Commitments expressed in
  Parties
                                                      terms of non-GHG metrics*
                  Achieve carbon neutrality as a
  Maldives
                  country by 2020.                    Advantages
           Cambodia has been implementing a           •   Can facilitate participation of
           pilot project within the framework of          developing countries
           Reducing Emissions from                    •   Can focus on co-benefits and
           Deforestation and Forest                       parts of the economy over which
  Cambodia                                                government has greater control
           Degradation in Developing countries
           (REDD) since 2009, as part of its
           responsibility in tackling climate         Disadvantages
           change                                     •   Low confidence regarding future
                                                          emissions levels
                                                      •   May complicate emissions trading
  Costa           Long-term pledge to become carbon
  Rica’s          neutral.

*OECD climate change expert group paper No.2013(3)                                           22
Pre 2020: developing country pledges
                                                         Annual GHG emissions from
  NA I            NAMAs/ Pledge                          one or multiple sectors,
  Parties
                                                         relative to a base year*
                  Pledge to increase forest
  Tunisia         cover from 12.8% in 2009 to 16%        Advantages
                  by 2020.                               •   High confidence regarding future
                  Pledge to increase                         emissions levels from covered
  Ghana           the share of renewables in the total       sectors (but not uncovered
                  energy mix to 10-20% by 2020;              sectors)
                                                         •   Simplifies emissions trading
                  Pledge to increase the
  Colombia        share of biofuels in national fuel     Disadvantages
                  consumption to 20% by 2020.            •   Possibility of inter-sector leakage,
                                                             if production shifts to an
                                                             uncovered sector
                                                         •   Does not address all emissions
                                                             from an economy
*OECD climate change expert group paper No.2013(3)                                                  23
Summary of 2020 Pledge Types
Thailand pre 2020 Actions
   Thailand is Non Annex I countries “Without a
    reduction commitment” under Kyoto Protocol

   Thailand earn certified emission
    reduction (CER) credits from CDM
    project. CERs issued from 41 project,
    6,520,024 tCO2e (TGO, as of July 2014)

   Thailand is under the implementation of
    NAMAs

                                                   25
20%

      26
NAMA Pledge
• Baseline, BAU level of GHG emissions & Reduction Goal

                                                                                                                                Reduction goal
                                                                                                                                Against BAU baseline

                                                                                                                                Absolute increase
                                                                                                                                From 2005
Emission tCO2

                                                                                                           2018
                                                                                                    2017
                2005

                              2007

                                            2009

                                                   2010

                                                          2011

                                                                 2012

                                                                        2013

                                                                               2014

                                                                                      2015
                                     2008
                       2006

                                                                                             2016

                                                                                                                  2019

                                                                                                                         2020
                                                                                             SIIT-TU                                           27
จานวนโรงไฟฟ้านิวเคลียร์ ท่ กี าลังก่ อสร้ างในปั จจุบนั
               ประเทศ                 จานวนทั้งสิ้น = 68
                CHINA                         28
                RUSSIA                        11
                KOREA                         5
                JAPAN                         3
               PAKISTAN                       2
               SLOVAKIA                       2
               UKRAINE                        2
 AGENTINA, BRAZIL, FINLAND, FRANCE,        1 (each)
            USA, UAE, etc

  As of December 2013
Thailand’s Mitigation Potential
CO2 Counter-measures for low-carbon green growth
•  Renewable & Alternative Energy: Biomass, biogas, hydro, Solar,
  Wind, Waste-to-energy etc.
• Energy Efficiency Improvement in Industries, Buildings,
  Transportation and Power Generation.
• Bio-Fuels in Transportation.
• Environmental Sustainable Transport System.

“…..Thailand will lower CO2 emissions in the range of 7-
       20% in 2020 when compared to the BAU
      (if international supports are included ).....
                + UNFCCC convention”
                                                                    29
30
Thailand CO2 emissions by sectors in 2000

 Source: Thailand’s Second National Communication, (ONEP, 2011)
                                                                  31
CO2 Emissions in the BAU and NAMA; 7% in 2020
  Total CO2 emissions (kt-CO2)
  400,000
                                                                                     360 Mt
  350,000
                                                     BAU
  300,000
                                                                                7% or 25 Mt
  250,000

  200,000
                                              Recent Assessment with MRV in 2014

  150,000

  100,000

   50,000

       0
            2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Estimated CO2 Reduction by RE Electricity in RE Plan
               CO2 Reduction (kt-CO2)
                              AEDP25%            Actual            Forecast
            30,000

                                                         Forecasted                                               25,585
            25,000                                                                                       23,491
 (kt-CO2)

                                                                                                21,335

            20,000                                                                     19,458
                                                                              17,579                     17,266
                                                                    15,847
            15,000                                        14,132
                                                12,412
                                       10,705
            10,000            8,906
                     7,095

             5,000

                0
                      2554     2555     2556     2557      2558      2559      2560     2561     2562     2563     2564
                     (2011)   (2012)   (2013)   (2014)    (2015)    (2016)    (2017)   (2018)   (2019)   (2020)   (2021)
Estimated CO2 Reduction by Bio-oil in RE Plan
                            kt-CO2           AEDP25%             Actual            Forecast
                            7,000
                                                                                     Forecasted                                            6,199
                            6,000
                                                                                                                             5,263 5,450
 ปริมาณการลด CO2 (kt-CO2)

                                                                                                                     5,204
                            5,000                                                                      4,869 4,899
                                                                                               4,603
                            4,000                                                3,657 4,061
                                                                         3,431                                                   3,194
                            3,000

                            2,000                                1,596

                            1,000

                                -
                                      2550 2551 2552 2553 2554 2555 2556 2557 2558 2559 2560 2561 2562 2563 2564
                                     (2007) (2008) (2009) (2010) (2011) (2012) (2013) (2014) (2015) (2016) (2017) (2018) (2019) (2020) (2021)
การประมาณการณ์ผลสัมฤทธิ์ของแผน AEDP 25% จากการใช้เชื้อเพลิงชีวภาพในสาขาขนส่ง
      กำรพยำกรณ์กำรลดกำรปลดปล่อยก๊ำซ CO2 จำกำรใช้เอทำนอลและเปรียบเทียบกับแผน AEDP25%

                                                      AEDP25%             Actual           Forecast
                            8,000
                            7,000                                                                                                           7,166
 ปริมาณการลด CO2 (kt-CO2)

                            6,000                                                                                                   5,176
                            5,000
                                                                                                                           3,981
                            4,000                                                                                  3,185
                            3,000                                                                    2,389 2,707
                                                                                       1,831   2,070
                            2,000                                        1,433 1,672
                            1,000
                                -
                                     2548     2550     2552      2554          2556             2558       2560             2562             2564
                                    (2005)   (2007)   (2009)    (2011)        (2013)           (2015)     (2017)           (2019)           (2021)
ผลสัมฤทธิ์ของการลดก๊าซเรือนกระจกตั้งแต่เริม่ ใช้ นโยบาย/มาตรการ/แผนงาน/
                       โครงการ EE จนถึงปีปัจจุบัน               หน่วย: kt-CO2
                                ปริมาณก๊าซเรือนกระจกที่ลดลงได้จากนโยบาย/มาตรการ/แผนงาน/โครงการ
         ปี
                           RE ไฟฟ้า            Gasohol           Biodiesel          EE*                            TOTAL
      ๒๕๔๔                    -                            -               ๐                   -                          ๐
      ๒๕๔๕                    -                            -               ๐                   -                          ๐
      ๒๕๔๖                    -                            -               ๐                   -                          ๐
      ๒๕๔๗                    -                            -               ๑                   -                          ๑
      ๒๕๔๘                    -                         ๑๔๗                ๒                   -                        ๑๔๙
      ๒๕๔๙                    -                         ๒๗๙                ๗               ๑๓๒                          ๔๑๘
      ๒๕๕๐                    -                         ๓๘๕            ๑,๐๖๐                   -                      ๑,๔๔๕
      ๒๕๕๑                 ๒,๘๐๘                        ๗๔๑            ๑,๒๕๙                   -                      ๔,๘๐๘
      ๒๕๕๒                 ๓,๒๕๒                        ๙๗๖            ๑,๖๕๘               ๑๒๒                        ๖,๐๐๘
      ๒๕๕๓                 ๓,๖๓๘                        ๙๕๙            ๑,๘๗๘               ๒๘๐                        ๖,๗๕๕
      ๒๕๕๔                 ๔,๐๑๒                        ๙๓๔            ๒,๓๔๒                   -                      ๗,๒๘๘
      ๒๕๕๕                 ๕,๐๐๑                    ๑,๐๓๑              ๒,๕๐๐                ๕๔                        ๘,๕๘๖
     ๒๕๕๖                 ๖,๓๖๕                         ๑,๘๖๐               ๒,๕๓๐                         ๘๗       ๑๐,๘๔๒
หมำยเหตุ *ปริมำณก๊ำซเรือนกระจกที่ลดลงจำกกำรอนุรักษ์พลังงำนรวบรวมข้อมูลจำกโครงกำรเงินหมุนเวียนเพื่อกำรอนุรักษ์พลังงำนและพลังงำน
ทดแทน และโครงกำรส่งเสริมกำรลงทุนด้ำนอนุรักษ์พลังงำนและพลังงำนทดแทนเท่ำนั้น                                                   36
Scope of INDCs (post 2020 contributions)
 What is an "intended contribution" – should it cover
 mitigation, adaptation, finance, technology development and
 transfer, transparency of action and support, and capacity-
 building? (Para 5, Decision 1/CP17 Establishment of ADP)

    All Parties seem to accept INDCs should cover mitigation
    However, for some:
     ◦ Parties can also come forward with adaptation and financial and
       other support in INDCs if they want (US, Umbrella Group,
       Singapore); or
     ◦ INDCs should also have that wider scope for all Parties
       (progressive South American countries, "like-minded" developing
       countries, Africa Group)

                                                                         37
DRAFT Text by the Co-Chairs:
“INDCs of Parties in the context of the 2015 agreement” will be
discussed ahead of October session (20-25 Oct 2014)

Annex Information on INDCs of Parties
Information relating to mitigation
Option 1 (All parties should submit)
o Type of mitigation contribution; o Baseline emissions and related
o Time frame or time period          assumptions and methodologies,
o Base year;                         including methods for the
o   Coverage in terms of:                  projection of carbon intensity of
    o Geographical boundaries,             GDP;
    o Sectors, Greenhouse    gases,    o   A quantification of expected
    o Percentage   of total/national       emission reductions, including
     emissions covered.                    estimates with and without land use,
                                           land-use change and forestry;     38
Annex Information on INDCs of Parties
    Information relating to mitigation
Option 1 (All parties should submit ) con.
o   Annual estimated reduction in        o   Approach to accounting for
    emissions intensity of the             the land-use sector;
    economy;                             o Estimated macro-economic

o   Methodologies, emission factors        and marginal costs of
    and metrics used, including global       achieving the commitments
    warming potentials in accordance         or targets, describing the
    with the relevant decisions of the       methods used to estimate
    Conference of the Parties;               them;
                                         o   An indication of additional
o   Peaking year;
                                             mitigation action to be
o   Expected use of international
                                             achieved through the
    market mechanisms, including how
                                             provision of support.
    double counting is avoided;                                            39
Option 2
Developed country Parties and other Parties included in
Annex I to the Convention
   Using the relevant common tabular format for submitting such
    information, as provided for “UNFCC biennial reporting guidelines for
    developed country Parties”

Parties not included in Annex I to the Convention
(developing country Parties)
   Information relevant to their enhanced action to implement the
    Convention, subject to the provision of support from, inter alia,
    developed country Parties in accordance with nationally determined
    actions, indentified support, description of domestic MRV
    arrangement.

                                                                         40
UNFCCC Negotiation
                                        1-12 Dec COP20 Peru
                               ADP identify the information -INDCs, hi-level                     30 Nov-11Dec 15
                                Ministerial, draft TEXT for 2015 Agreement                          COP21 Paris
                                                                                                  Adoption of 2015
                                                                                                    Agreement
                                      23 Sep
                                   UNSG climate
                                   summit in NY

        2014 Jul‘14               Aug’14       Oct’14 Dec’14      Feb’15    Apr’15 Jun’15        Aug’15 Oct’15 2015

                     2-14 Jun                       15-18 Oct
                     ADP 2-5, SB40                  Pre COP Ministerial                     31 Aug 15
                     Ministerial Meeting,                                            Possible all parties to
                     Bonn, Germany                                                    be communicated
                                            20-25 Oct                                       INDCs
                                            ADP 2-6, additional session, draft
                                            negotiation TEXTs
                                            Bonn, Germany
                                                                                            41
What will Thailand’s post 2020
  contributions look like?

                                 42
Thank you
Thailand’s INDC Study
Team 1: Mitigation Planning
1. Dr. Bundit Limmeechokchai (SIIT-TU)
2. Dr. Chontichaprin Nithitsuttibuta (UNDP Coordinator)
3. Dr. Sujeetha Selvakkumaran (SIIT-TU)

Team 2: Preparatory Planning & Adaptation
1. Dr. Buntoon Srethasirote (GSEI)
2. Dr. Chalotorn Kansuntisukmongkol (ECON-TU)

                                                          43
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