1. Introduction to
the Bilateral Offset Credit Mechanism(BOCM)
and BOCM DS/FS Programme 2012
Kick off Seminar on “Studies for Greenhouse Gas Emission Reduction in
Transportation Sector of Vietnam under the Bilateral Offset Credit Mechanism”
23th August 2012, at Melia Hanoi, Hanoi, Viet Nam
Hideki TAKAO, Carbon Management Dept.,
Global Environment Centre Foundation (GEC)

2. Purpose of the BOCM
 Contribute to the ultimate objective of the UNFCCC through promotion of
mitigation activities globally.
 Facilitate the bilateral cooperation in the field of climate change in such a way that
best suits each country’s national circumstances.
 Contribute to the sustainable development of developing countries.
 Appropriately evaluate the contribution to GHG emission reductions or removals.
 Facilitate diffusion of low carbon technologies, products and services and enhance
capabilities to utilize them.
Partner
JAPAN Low Carbon Technologies,
Products, Services Country
Methodologies will
Project
be developed
cooperatively by
both Japan and
Partner Country
Used to achieve
Japan’s GHG emission
emission Offset Credits reduction/
reduction target removals 2

3. The BOCM as new means of addressing climate change
2008～2012 2013～
Japan will continue to make emissions reduction
Japan is currently making utmost efforts to efforts beyond 2012. Its concrete targets are currently
achieve its target under the first commitment reviewed and considered domestically.
period of the Kyoto Protocol through domestic The BOCM can be an effective way to achieve
measures(GHG emissions reduction and Japan’s post 2012 targets, complementing the existing
carbon sinks) as well as acquiring credits of the Kyoto Mechanism. Although Japan will not participate
Kyoto Mechanism. in the second commitment period of the Kyoto Protocol,
it will remain in the Protocol and will intend to continue
to use the Kyoto Mechanism to achieve its post 2012
targets.
Emissions reduction Emissions reduction
Carbon sinks Carbon sinks
Kyoto mechanism Kyoto mechanism
ＢＯＣＭ
3

4. MRV Model Project and BOCM Model Project
JFY2011 JFY2012 JFY2013
Formal/Basic
understandings on
Governmental Consultation the design of BOCM Operation
BOCM, and start
BOCM
Feasibility Studies
Explore potential BOCM projects/activities
Study feasibilities
Develop MRV methodologies
MRV Model Projects
Apply proposed MRV methodologies to projects in operation
Improve MRV methodologies by using them
Finalize MRV methodologies
BOCM Model Projects
Further improve the institutional
design of the BOCM, while starting
BOCM operation
Capacity Building 4

5. MOEJ's FS Programme for New mechanisms
(Bilateral Offset Credit Mechanism)
JFY 2010 3 projects/activities were surveyed.
• Each FS entities made rough estimation of GHG emission reductions from
target sector/project, and proposed concept of MRV of GHG emission
reductions under New Mechanisms.
JFY 2011 29 projects/activities were surveyed.
• Each FS entities surveyed following points; reference scenario, monitoring
plan, calculation protocol and quantification of GHG mitigation effects,
proposal of a MRV system, securing environmental integrity, etc..
JFY 2012 10 MRV DSs & 11 BOCM FSs will be surveyed.
• To develop MRV methodologies applicable to BOCM projects/activities.
• MRV Demonstration Study (DS) will be conducted in addition to the past
FS programme.
5

6. Overview of BOCM DS/FS Programme in 2012
MOEJ Host countries’
commission Japanese entities counterparts
DS/FS
DS/FS implementation
GEC
(Secretariat) proposals
• Invite public proposals on DS/FS from Japanese entities.
• Select the proposals to be officially adopted as qualified DS/FS
• Provide advice and supervision to the qualified DS/FS.
- Through an expert committee and task force teams
• Consult with host countries to promote cooperative relationships
- Through meetings with host countries’ governments and
stakeholders
• Outreach the DS/FS results
- Through GEC website, UNFCCC Side Events, etc. 6

7. Points of MRV Meth Development
• Identification of the Reference Scenario
• Quantification of the Reference Emissions
• Setting Default Values
– Specific to the project/activity?
– Particular to the host country or the locality?
– Subject to host country’s approval?
– Periodical update or review?
• Minimising monitoring items & frequency
– Reduce burden for projects/activities owner.
– Reduce cost for verification process. 7

8. Purposes of BOCM FS 2012
• To develop MRV methodologies applicable to
BOCM projects/activities:
– Eligibility criteria (positive list)
– Quantifications of reference emissions, project/activity
emissions, leakage emissions (if any), and emission
reduction effects
– Minimised monitoring items and frequency
• As many default values and/or specific fixed values as
possible should be found and set.
• The default values should lead to conservative calculation
results.
 Actual monitoring activity should be workable for a
project/activity owner in a host country.
8

9. MRV Demonstration Studies using Model Projects &
BOCM Feasibility Studies in FY2012
Mongolia:
◆ Replacement of Coal-Fired Boiler by Geo-
Thermal Heat Pump for Heating
◆ Upgrading and Installation of High-Efficient ◆-- MRV Demonstration Study (DS)
Heat Only Boilers (HOBs) Thailand: ◇-- BOCM Feasibility Study (FS)
◆ Bagasse-based Cogeneration at Sugar Mill
◆ Transport Modal Shift through Construction of MRT
India:
System
◆ Bagasse-based Power Generation
◆ Energy Savings through Building Energy
including Waste Heat Utilisation
Management System (BEMS)
◆ Waste Heat Recovery System with Cogeneration
Moldova: ◇ Introduction of Electronic Gate to International
◆ Biomass Boiler Heating using Trade Port to Improve Port-related Traffic Jam
Agricultural Waste as Fuel
●
Mexico:
●
◆ Small-scale Wind Power
Generation with Remote
Viet Nam Monitoring System
Sri Lanka: ◆ Integrated EE Improvement at Beer Factory
◆ Biomass-based Thermal Energy ◇ Biogas-based Cogeneration with Digestion of ●
●
Generation to Displace Fossil Fuels ● Methane from Food/Beverage Factory
●
●
●
Wastewater
●
◇ Improvement of Vehicle Fuel Efficiency through
Introduction of Eco-Drive Management System ●
Lao PDR: ◇ REDD+ through Forest Management Scheme,
◆ Transportation Improvement through ● and Biomass-based Power Generation using
introduction of Efficient Buses and Provision Timber Industry Waste
of Good Services Viet Nam, and Indonesia
◇ Introduction of Mechanical Biological ◇ Promotion of Modal Shift from Road-based
Treatment (MBT) of Municipal Solid Waste, Transport to MRT System Colombia:
and Landfill Gas (LFG) Capture, Flaring and ◇ Geothermal Power
Utilisation Generation in a Country
with Suppressed Demand
Indonesia: Cambodia:
◇ Solar-Diesel Hybrid Power Generation to Stabilise ◆ Methane Recovery and Utilisation from
Photovoltaic Power Generation Livestock Manure by using Bio-digesters
◇ Prevention of Peat Degradation through Groundwater ◇ Small-scale Biomass Power Generation with
Management, and Rice Husk-based Power Generation Stirling Engine
◇ REDD+ for Conservation of Peat Swamp Forest, and ◇ REDD+ in Tropical Lowland Forest
Biomass-based Power Generation using Timber Mill Waste NOTE: EE= Energy Efficiency
to Process Indigenous Trees derived from Conserved Forest MRT= Mass Rapid Transit
9

10. BOCM Feasibility Study (FS) Host Country: Viet Nam and Indonesia
Promotion of Modal Shift from Road-based Transport to Mass Rapid Transit (MRT) System
FS Entity：Mitsubishi Research Institute
Outline of GHG Mitigation Activity Sites and GHG Reductions
Mass Rapid Transit (MRT) systems are planned to be introduced in Expected GHG reductions for each line
3 cities; Hanoi, Ho Chi Minh City, and Jakarta. The MRT systems Approx. 110,000 tCO2/year
will lead to the modal shift from the current road-oriented transport
to rail-based mass Line #2
public transport in CO2
the mega cities to
reduce GHG emissions.
Draft Simple MRV Methodology
Line #1
Station A Station B
Limited Boundary:
Traffic Volume on MRT
origin destination
When the project boundary is limited to only MRT transportation, the
monitoring burden would be avoided, however the emission
reduction effect would be also deducted. Line #1
Under this simpler methodology, the monitoring items are limited to
the numbers of and the travel distance of passengers, which can be
recorded through IC-card based ticketing system. CO2 emission
factor (unit: tCO2/PKM) will be defaulted for each traffic mode. North-South
If the project boundary is expanded to the inclusion of Line
access/egress traffic, the GHG reductions would increase – but the
monitoring practice gets burdensome. GHG emission reductions are Jakarta
expected to be as shown in the right figure including only traffic
volume on MRT. 10

11. BOCM Feasibility Study (FS) Host Country: Viet Nam
Improvement of Vehicle Fuel Efficiency through Introduction of Eco-Drive Management
System FS Entity: Almec
Outline of GHG Mitigation Activity
Eco-drive Management System (EMS), which is developed in Japan as application software for smartphone,
will be introduced to taxies running in Hanoi. At the same time, the eco-drive training is provided to the taxi
drivers: Japanese skilled instructors give lectures with the reference to the analysis results based on EMS
driving data, for the Hanoi taxi drivers to learn the eco-driving technique. As a result, fuel consumption will
reduce due to the improvement of fuel efficiency through drivers’ eco-drive practices.
(1) Install EMS (2) Eco-drive training (3) daily Eco-drive Sites of GHG Mitigation Activity
CO2 EMS CO2 EMS Vehicle traffic volume in
Hanoi increase 30 times
in past 10 years. Hanoi
collect and analyze improve drive collect and analyze Economical loss and
driving records technique driving records increasing GHG
(Before) (After) emission due to traffic
Verification of fuel
consumption reduction congestion is the issue.
Draft Simple MRV Methodology Expected GHG Reductions
In principle, CO2 emissions can be calculated through the [GHG Reductions] = [difference of
multiplication of fuel consumptions, travel distance, and fuel emission fuel efficencies between pre- and
factor (specific to fuel type). post-project] x [driving distance] x
Fuel efficiency is the most important parameter to be monitored, [fuel CO2 emission factor]
which can be read from data recorded automatically in EMS during
project/activity implementation period. The pre-project fuel efficiency In case 1,000 taxis improve fuel
(under the reference scenario) should be set based on actual fuel efficiency by 10%, 1,000tCO2/yr of
efficiency data at least for past 1 year. If fuel efficiency data for past 1- GHG reductions are expected. It is
year are not available, actual data should be monitored after the equivalent to 438kl of fuel
installation of EMS equipment. consumption reduction in a year.
11

12. MRV Demonstration Study using Model Project Host Country: Viet Nam
Integrated Energy Efficiency Improvement at Beer Factory
FS Entity: Recycle One
Outline of GHG Mitigation Activity
Integrated energy-saving and renewable energy systems are introduced to the energy-intensive manufacturing
processes of breweries in Vietnam, to substantially reduce energy consumptions and GHG emissions.
Beer manufacturing process Employed technologies
(1) (2)
(1) Vapor recompression
system (VRC)
(2) Cascade cooling system
(3) (4) (3) Biogas recovery boiler
(4) Heat pump pasteurizer
Preparation Brewing Fermentation Filtration Packaging
Draft Simple MRV Methodology Site of MRV Model Project
GHG emission reductions are evaluated based on Thanh Hoa Brewery as the pilot project, located at
specific energy consumption. Thanh Hoa City, Thanh Hoa Province
By setting default values, only energy consumptions and
production amount under the project/activity scenario
are necessary to be monitored.
Calculation for GHG emission reduction amount
ER,y = (AEMRR,y - AEMPJ,y) x POy
ER,y GHG emission reduction amount
(tCO2/year)
AEMRR,y Specific GHG emissions of Reference
Scenario (tCO2 /HL) [to be defaulted] Expected GHG Reductions
AEMpj､y Specific GHG emissions of Project
Scenario • 7,500 tCO2/year (for the model project）
(t-CO2 /HL)
Poy Annual beer production volume (HL/year)
• 150,000 tCO2/year (potential in entire Vietnam) 12

13. BOCM Feasibility Study (FS) Host Country: Viet Nam
Biogas-based Cogeneration with Digestion of Methane from Food/Beverage Factory Wastewater
FS Entity: Tepia Corporation Japan
Outline of GHG Mitigation Activity Sites of GHG Mitigation Activity
To treat highly concentrated organic wastewater discharged
from food-processing plants (breweries and tapioca plants),
utilizing UASB reactor.
To generate electricity and hot water from biogas occurred in
the process, using biogas cogeneration system. This will be
replacing the considerable amount of fossil fuel and grid
power consumed in the plants, and lead to GHG reductions.
Draft Simple MRV Methodology Expected GHG Reductions
In this MRV methodology, GHG emission reductions 3.9m t-CO2 in 10 years (from 2012 to 2021)
are to be calculated using calorific values and CO2 <Hypothetical situation>
emission factors of both baseline fossil fuel and grid a. Targeting food processing plants whose
power, applying specs (power generation efficiency and displacement is over 1,000 m3 per day.
hot water recovery efficiency). b. Annual GHG reduction is 39k t-CO2/y per plant.
The amount of methane emitted from waste water c. The project is to be implemented at 10 plants
treatment (anaerobic lagoon) is to be calculated, every year for the next 10 years – 100 plants
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applying CDM methodology 【AMSIII.H】. altogether.

14. BOCM Feasibility Study (FS) Host Country: Viet Nam
REDD+ through Forest Management Scheme, and Biomass-based Power Generation
using Timber Industry Waste FS Entity:Sumitomo Forestry Co., Ltd.
Outline of GHG Mitigation Activity
Carry out development of community forests and Sites of GHG Mitigation Activity
production forests for the purpose of timber sales to FS will be carried out in Dien Bien province,
outside parties, as well as regeneration of reserve Northwest region of Vietnam.
forests through low-cost methods such as natural
regeneration. Additionally provide guidance on
sustainable agriculture methods to replace slash-and-
burn techniques. Through this establishment of
agricultural and forestry business, reduce pressure on
existing natural forest, and quantify the resulting increase
in carbon accumulation by plantations in order to
estimate the reduction in GHG emissions.In the future,
timber processing businesses will be attracted to
manufacture high value-added timber products, and
biomass power generation will be undertaken to supply
electricity otherwise provided through thermal
power
Draft Simple MRV Methodology
generation,
Establish new MRV methodology
thereby
• REDD+: based on existing MRV methods, such
reducing
as VCS and J-VER
GHG
• Biomass power generation: based on existing
emissions.
approved CDM methodologies
Expected GHG Reductions
Forest management : 1.3mil t-CO2 and Biomass
utilization : 1.6 mil t-CO2 for 20 years 14