Enhancing market readiness in Thailand Enhancing Market Readiness in Thailand Thailand Greenhouse Gas Management Organization (Public Organization) 1 THAILAND
Enhancing market readiness in
ThailandEnhancing Market Readiness in Thailand
Thailand Greenhouse Gas Management Organization (Public Organization)
1
THAILAND
Enhancing Market Readiness in Thailand
Thailand’s GHG Emissions
BUR
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Source: Thailand’s first BUR, 2015
2015
Enhancing Market Readiness in Thailand
Overview of Thailand’s Policies on Climate ChangeOverview of Thailand’s Policies on Climate Change
Climate Change
National
Policy
Framework
Ministry of Natural Resources and Environment
National
National Plans
on
Environment
The 12th National
Economic and Social
Development Plan
2017-2021
20-Year
National
Strategic Plan
2017-2036
Government Policy of
the Prime Minister
General Prayut Chan-o-cha
- NAMA
- NDC
- Page 3 -
Climate Change
Master Plan
2015 – 2050
National
Sectoral
Plans
• Energy Efficiency Plan
2015- 2036
• Alternative Energy
Development Plan 2015-
2036
• Power Development Plan
• Thailand Smart Grid
Development Master Plan
2015-2036
Sustainable
Transport System
and Mitigation of
Climate Change
Impacts Master
Plan
2013-2030
National Industrial
Development
Master Plan
2012- 2031
Ministry of Energy Ministry of
Transport
Ministry of Industry
National
Environmental Quality
Management Plan
2017-2021
Environment
& Climate
Change
Agricultural Climate
Change Strategy and
Action Plan
Ministry of
Agriculture and Cooperative
Enhancing Market Readiness in Thailand
Thailand’s (I)NDC
“ On Thailand’s part, we
reaffirm our commitment
under the INDCs to
reducing our greenhouse
gas emissions between
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Statement by H.E. General Prayut Chan-o-cha (Ret.)
Prime Minister of the Kingdom of Thailand
at General Debate 70th Session of the United Nations General
Assembly in New York, 29 September 2015
gas emissions between
20 and 25* percent
by the year 2030”
Thailand communicated its INDC to the
UNFCCC on October 1st, 2015.
*Subject to adequate and enhanced access to technology development and transfer, financial resources and capacity building support
through a balanced and ambitious global agreement under the UNFCCC.
Enhancing Market Readiness in Thailand
Projected Thailand GHG emissions in BAU scenario
� The baseline emission is
projected from BAU scenario
from reference year 2005 in
the absence of major climate
change policies which is 555
MtCO2e. 300,000
400,000
500,000
600,000
GH
G e
mis
sio
ns
(Kt-
CO
2e
)
279307
336
414
479
555
Thailand’s NDC
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Source: NDC Roadmap, Office of Natural Resources and Environmental Policy and Planning
(ONEP)
� The assumptions align
with social and economic
development direction.
� The projected Thai GDP
growth during 2014-2036
expected to grow on the
average of 3.94 percent
annually and population
growth rate (data of 2014) is
0.03 percent annually.
2005 2010 2015 2020 2025 2030
Waste 12,878 13,011 14,489 16,135 17,968 20,010
Agriculture 46,294 52,316 57,554 63,316 69,656 76,630
IPPU 19,565 21,408 23,737 26,304 29,148 32,360
Energy 194,681 214,019 254,209 301,947 358,650 426,000
-
100,000
200,000
GH
G e
mis
sio
ns
(Kt
Enhancing Market Readiness in Thailand
Thailand’s NDC
Thailand recognizes the important role of market-based
mechanisms to enhance the cost effectiveness of mitigation
actions, and therefore will continue to explore the potentials of
bilateral, regional and international market mechanisms as well as
various approaches.
�
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The time frame of NDC implementation is 2021-2030.
Coverage: Economy-wide (Inclusion of land use, land-use change
and forestry will be decided later)
�
�
NDC
Enhancing Market Readiness in Thailand
NDC Roadmap
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Source: ONEP, 2017
Enhancing Market Readiness in Thailand
NDC Roadmap
���� The NDC roadmap covers three sectors including
energy and transport, waste and IPPU.
� The plans to meet mitigation
in NDC covers;
� Power Development Plan, 2015-
2036
� Thailand Smart Grid Development
Master Plan, 2015-2036
� Energy Efficiency Plan, 2015-2036
� Alternative Energy Development
Plan, 2015-2036
� Master Plan for Sustainable
Transport System and Mitigation of
- Page 8 -Thailand Greenhouse Gas Management Organization (Public Organization): | TGO
Source: ONEP, 2017
Transport System and Mitigation of
Climate Change Impacts, 2013-
2030
� National Industrial Development
Master Plan, 2012-2031
� Waste Management Master
Plan, 2016 – 2021
� Environmental Quality
Management Plan, 2017 – 2021
� Montreal Protocol Implementation
� RAC NAMA Project
Enhancing Market Readiness in Thailand
Mitigation Potential under the NDC roadmap
NDC Roadmap
Energy and Transport Sectors Reduction Potential
---- MtCO2e ----
113� Renewable energy in households
� Increase energy efficiency in households
� Renewable energy generation
� Promote biofuels
� Increase energy efficiency in buildings
Measures;
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� Increase power generation efficiency
� Increase energy efficiency in transport
� Renewable energy in industry
� Increase industrial energy efficiency
Waste SectorReduction Potential
---- MtCO2e ----
2
� Solid waste management
� Industrial wastewater management
� Municipal wastewater management
Measures;
IPPU Reduction Potential
---- MtCO2e ----
0.6
� Clinker substitution
� Replacement of refrigerants
Measures;
Enhancing Market Readiness in Thailand
Overview of Thailand’s Policies on Climate ChangeOverview of Thailand’s Policies on Climate Change
Climate Change
National
Policy
Framework
Ministry of Natural Resources and Environment
National
National Plans
on
Environment
The 12th National
Economic and Social
Development Plan
2017-2021
20-Year
National
Strategic Plan
2017-2036
Government Policy of
the Prime Minister
General Prayut Chan-o-cha
- Page 10 -
Climate Change
Master Plan
2015 – 2050
National
Sectoral
Plans
• Energy Efficiency Plan
2015- 2036
• Alternative Energy
Development Plan 2015-
2036
• Power Development Plan
• Thailand Smart Grid
Development Master Plan
2015-2036
Sustainable
Transport System
and Mitigation of
Climate Change
Impacts Master
Plan
2013-2030
National Industrial
Development
Master Plan
2012- 2031
Ministry of Energy Ministry of
Transport
Ministry of Industry
National
Environmental Quality
Management Plan
2017-2021
Environment
& Climate
Change
Agricultural Climate
Change Strategy and
Action Plan
Ministry of
Agriculture and Cooperative
Enhancing Market Readiness in Thailand
National Policies and Plans on Carbon Pricing
• The 12th NESDP (2017-2021) focuses on development
of GHG mitigation mechanisms/measures to reduce
GHG emissions in all sectors, promoting the
establishment of financial mechanisms to support
climate change implementation which will be benefit
to both public and private sector such as market-
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to both public and private sector such as market-
based mechanisms and carbon tax and the revision of
law/legislation and city infrastructure development to
move towards the environmentally friendly and low
carbon city
Enhancing Market Readiness in Thailand
National Policies and Plans on Carbon Pricing
Activities which will be implemented for low carbon
development mechanism:
Thailand’s Climate Change Master Plan (2015-2050) focuses on the development of climate
change implementation supporting mechanism
1) Climate change adaptation supporting mechanism
2) Low carbon development mechanism
3) Relevant agencies driving mechanism.
Adaptation to GHG mitigation
The study of cost effectiveness on different GHG
mitigation measures including carbon tax, financial and
tax incentives, carbon fund establishment and carbon
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Adaptation to climate change consequences
Capacity Building
GHG mitigation and low carbon development
tax incentives, carbon fund establishment and carbon
market development which can link with international
market, cap-and-trade system, technology-based
standard setting etc.
Development of GHG mitigation mechanisms/
measures/ instruments to reduce GHG emissions in
the country effectively.
Promotion of low carbon and green investment in the
industrial sector by offers a range of incentives.
Enhancing Market Readiness in Thailand
Market Mechanisms in Thailand
T-VER
Expected Certified Emission Reduction
7.41 MtCO2e/year
154 CDM Projects Registered at CDM EB
Biomass 16.13 %
Biogas 57.15 %
Others 26.72 %
CDM
RE
EE
Forestry and
Agriculture
Waste
OtherExpected GHG reductions
2.118
80 T-VER projects registered at TGO
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7.41 MtCO2e/year Others 26.72 %
---- MtCO2e/y ----
2.118AS of September 2017
AS of September 2017
PMRThailand
V-ETS
Component 1: Preparation of key market
components of Energy Performance
Certificate scheme (EPC)
Component 2: Development of Local
Greenhouse Gas Abatement Plans and a
study on pricing mechanism for Low
Carbon City program (LCC)
Component 3: Policy recommendation
on legal framework to establish the
Emission Trading Scheme (ETS)
Implementation phase 2016-2019
AS of September 2017
Enhancing Market Readiness in Thailand
Joint Crediting Mechanism JCM
Signing ceremony on November 19, 2015
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The MoC was signed by
General Surasak Kanjanarat, Minister of Natural Resources and Environment, Thailand
and
H.E. Ms. Tamayo Marukawa, Minister of the Environment, Japan
Enhancing Market Readiness in Thailand
JCM Model Projects
Project type Number of projectsGHG reduction
(tCO2/y)
Energy demand 17 72,691
Energy industries 6 27,179
23 99,870
Number of project categorized by technology
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5
4
4
3
2
1
1
1
1
12
11 1
Number of project categorized by technology
solar power
air conditioning
chiller
refrigerator
co-generation
waste heat recovery
heat pump
boiler
air-saving loom
ion exchange membrane
lighting
biomass
electric vehicle
hybrid RTG
Enhancing Market Readiness in Thailand
Ongoing Study under PMR
“Impact of carbon pricing instruments on national economy and contribution to NDC”
Key questions and issues expected to be answered from the study:
- Is emissions trading or carbon tax a more cost-effective mitigation instrument
compared to current policies and measures in the identified sectors that
contribute to the achievement of Thailand’s NDC mitigation goal?
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- If ETS and carbon tax has a key role to play, what is the most appropriate
instrument or its combination for the achievement of Thailand’s NDC mitigation
goals? How can/should such instrument or its combination be coordinated with
other national and sectoral policies to effectively contribute to the NDC mitigation
target?
- What are the possible advantages and negative impacts of different design of
instruments on specific sectors and on different type of enterprise within specific
sectors? How to mitigate or remove such negative impacts?
Enhancing Market Readiness in Thailand
FOR MORE INFORMATION
Thailand Greenhouse Gas Management Organization (Public Organization) | TGO
The Government Complex, Building B, 9th Floor,
120 Chaengwattana Road, Laksi, Bangkok 10210, THAILAND
Tel. +66 2141 9841 – 9
Fax. +66 2143 8404
Email [email protected]
- Page 17 -Thailand Greenhouse Gas Management Organization (Public Organization): | TGO