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Workshop on Policies and Strategies to Mitigate Climate Change
      and Energy Poverty in South East Asia and China
             Sofitel Plaza Hotel – 5 October 2009




Study on Climate Change
  Mitigation options for
         Vietnam
                                                     Ha Dang Son
                                         RCEE Energy & Environment, JSC
Outline
        Overview
        Methodology
        GHG emission trend
        Climate Change Mitigation options




2|
Overview

     World Bank Carbon Finance Assist program
         A multi-donor single purpose trust fund set up to ensure that
          developing countries and the economies in transition are able to
          fully participate in the flexible mechanisms defined under the
          Kyoto Protocol.

     Project identification for Mitigation in Vietnam
         Within the Country Assistance Partnership Strategy for Vietnam
          (2007-2011) developed by the World Bank and the Government
          of Vietnam, and approved in January 2007.
         The study would help identifying both short and medium term
          opportunities for project, program and policy-based
          interventions to reduce GHG emissions.

3|
Methodology
        Difference in GHG emissions between baseline
         scenario and intervention scenario
        Baseline scenario
            Existing technology or common practices for each activity
        Intervention scenario
            New technologies/processes proposed




4|
   Approach
            IPCC 2006 guidelines
            UNFCCC approved methodologies

        Data source:
            Initial National Communication to UNFCCC
            Statistical data from General Statistics Office
            Data from sectoral reports




5|
GHG emission trends by sector
        Considered sectors
            Energy: focus on energy use including extraction,
             transportation and end-use
            Industry: focus on industrial process, excluding industrial
             waste treatment
            Agriculture: focus on non-energy use
            Forestry and land-use-change
            Waste: including municipal waste, industrial waste,
             agriculture waste




6|
GHG emissions trend 1994-2020
     200



     150



     100



      50



       0
       1994            1998      2000            2006     2010        2020


     -50
              Energy               Agriculture            Forestry & LUC
              Waste                Industrial processes

7|
Reasons for trends in emissions
        Energy
            Increase in energy consumption
              Electricity: 14.7–15.8%/yr

              Coal: 16–17%/yr

              Oil: 12–13%/yr

              Gas: 20%

            Increase in fossil-fired power plant
            Low efficient equipment
            Less popular use of alternative renewable sources
              only 2.5% of total power supply




8|
   Transport
            Increased number of vehicles (10% annually) and traffic
             volumes.
            Increase in motorcycle use which has most intensive per
             person per kilometer (15% annually).
            Others:
              Lagging infrastructure improvements;

              Slight changes in modes are increasing emissions:

                 Decreasing use of inland waterways for both freight
                  and passengers
                 Increasing use of maritime traffic for freight.




9|
   Industry process
              Cement Industry:
                High demand for cement for construction (14% in

                  2004 and estimated 10-12% until 2010).
                Lack of investment in energy efficiency.

              Brick Making:
                High demand for bricks for construction (average 13%

                  annual growth in demand from 2000-2005).
                Slow conversion from traditional to more energy

                  efficient kilns (government decree but slow adoption
                  with 65% still traditional)


10 |
   Industry process
              Iron and Steel:
                Demand for iron and steel for construction rapidly

                  growing (18-20% average between 2000 and 2004).
                Some improvements in energy efficiency (2-7%

                  average annually between 2000 and 2004 depending
                  on the process).
              Pulp and Paper industry:
                Growth in paper demand (13% anticipated between

                  2005 and 2010) is increasing energy demand from
                  industry
                Continued used of old technology for some plants.

                Continued reliance on fossil fuels.
11 |
   Agriculture
              Livestock: Steadily increasing domestic demand
               combined with continued use of open manure
               management methods.
              Rice: Area under rice production is decreasing only
               slightly with similar irrigation practices; higher yields
               obtained mainly by using more N-based fertilizers
               annually.




12 |
   Forestry and Land Use Changes
              Pressures for conversion of forest land will remain:
                Continued growth of wood processing and wood

                  products industries.
                Conversion of forest land to cash crops (coffee, pepper,

                  rubber and cashews).
                Shifting cultivation in uplands.

                Infrastructure development.

              Implementation of government programs aimed to
                Increase forest cover to 43% of national land area by

                  2015 will continue to increase the biomass growth.
                Reduce deforestation and degradation and thus

                  emissions from land use change
13 |
   Waste Management
              Municipal Wastes:
                Population growth (1.4% annually)

                Growth in urban population (4.4% annually).

                Installation of aerobic/anaerobic treatment systems

                 (will grow from 2 to 30% in 2010).
                Wastewater sludge disposal practices use landfills.

                Continued use of latrines and septic tanks in rural and

                 urban areas
                Increase in consumption but with less significant

                 decrease in proportion of organic matter.
                Establishment of sanitary landfills without methane

                 capture or composting will increase emissions
14 |
   Waste Management
              Industrial wastewater:
                Growth in output from high BOD industries (average

                  for top BOD producers 9% annually).
                Growth in bioethanol industry (will account for

                  between 17% and 44% of emissions in 2010)
                Adoption of open anaerobic treatment systems for a

                  portion of the industries.
                Lack of treatment for a portion of the industries.




15 |
GHG reduction potential - Energy




16 |
GHG reduction potential – Transport




17 |
GHG reduction potential – Industrial
                    process




18 |
GHG reduction potential –
         Agriculture/Forestry




19 |
GHG reduction potential – Waste
               Management




20 |

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WB CFU Study On CCM Options For Vietnam

  • 1. Workshop on Policies and Strategies to Mitigate Climate Change and Energy Poverty in South East Asia and China Sofitel Plaza Hotel – 5 October 2009 Study on Climate Change Mitigation options for Vietnam Ha Dang Son RCEE Energy & Environment, JSC
  • 2. Outline  Overview  Methodology  GHG emission trend  Climate Change Mitigation options 2|
  • 3. Overview  World Bank Carbon Finance Assist program  A multi-donor single purpose trust fund set up to ensure that developing countries and the economies in transition are able to fully participate in the flexible mechanisms defined under the Kyoto Protocol.  Project identification for Mitigation in Vietnam  Within the Country Assistance Partnership Strategy for Vietnam (2007-2011) developed by the World Bank and the Government of Vietnam, and approved in January 2007.  The study would help identifying both short and medium term opportunities for project, program and policy-based interventions to reduce GHG emissions. 3|
  • 4. Methodology  Difference in GHG emissions between baseline scenario and intervention scenario  Baseline scenario  Existing technology or common practices for each activity  Intervention scenario  New technologies/processes proposed 4|
  • 5. Approach  IPCC 2006 guidelines  UNFCCC approved methodologies  Data source:  Initial National Communication to UNFCCC  Statistical data from General Statistics Office  Data from sectoral reports 5|
  • 6. GHG emission trends by sector  Considered sectors  Energy: focus on energy use including extraction, transportation and end-use  Industry: focus on industrial process, excluding industrial waste treatment  Agriculture: focus on non-energy use  Forestry and land-use-change  Waste: including municipal waste, industrial waste, agriculture waste 6|
  • 7. GHG emissions trend 1994-2020 200 150 100 50 0 1994 1998 2000 2006 2010 2020 -50 Energy Agriculture Forestry & LUC Waste Industrial processes 7|
  • 8. Reasons for trends in emissions  Energy  Increase in energy consumption  Electricity: 14.7–15.8%/yr  Coal: 16–17%/yr  Oil: 12–13%/yr  Gas: 20%  Increase in fossil-fired power plant  Low efficient equipment  Less popular use of alternative renewable sources  only 2.5% of total power supply 8|
  • 9. Transport  Increased number of vehicles (10% annually) and traffic volumes.  Increase in motorcycle use which has most intensive per person per kilometer (15% annually).  Others:  Lagging infrastructure improvements;  Slight changes in modes are increasing emissions:  Decreasing use of inland waterways for both freight and passengers  Increasing use of maritime traffic for freight. 9|
  • 10. Industry process  Cement Industry:  High demand for cement for construction (14% in 2004 and estimated 10-12% until 2010).  Lack of investment in energy efficiency.  Brick Making:  High demand for bricks for construction (average 13% annual growth in demand from 2000-2005).  Slow conversion from traditional to more energy efficient kilns (government decree but slow adoption with 65% still traditional) 10 |
  • 11. Industry process  Iron and Steel:  Demand for iron and steel for construction rapidly growing (18-20% average between 2000 and 2004).  Some improvements in energy efficiency (2-7% average annually between 2000 and 2004 depending on the process).  Pulp and Paper industry:  Growth in paper demand (13% anticipated between 2005 and 2010) is increasing energy demand from industry  Continued used of old technology for some plants.  Continued reliance on fossil fuels. 11 |
  • 12. Agriculture  Livestock: Steadily increasing domestic demand combined with continued use of open manure management methods.  Rice: Area under rice production is decreasing only slightly with similar irrigation practices; higher yields obtained mainly by using more N-based fertilizers annually. 12 |
  • 13. Forestry and Land Use Changes  Pressures for conversion of forest land will remain:  Continued growth of wood processing and wood products industries.  Conversion of forest land to cash crops (coffee, pepper, rubber and cashews).  Shifting cultivation in uplands.  Infrastructure development.  Implementation of government programs aimed to  Increase forest cover to 43% of national land area by 2015 will continue to increase the biomass growth.  Reduce deforestation and degradation and thus emissions from land use change 13 |
  • 14. Waste Management  Municipal Wastes:  Population growth (1.4% annually)  Growth in urban population (4.4% annually).  Installation of aerobic/anaerobic treatment systems (will grow from 2 to 30% in 2010).  Wastewater sludge disposal practices use landfills.  Continued use of latrines and septic tanks in rural and urban areas  Increase in consumption but with less significant decrease in proportion of organic matter.  Establishment of sanitary landfills without methane capture or composting will increase emissions 14 |
  • 15. Waste Management  Industrial wastewater:  Growth in output from high BOD industries (average for top BOD producers 9% annually).  Growth in bioethanol industry (will account for between 17% and 44% of emissions in 2010)  Adoption of open anaerobic treatment systems for a portion of the industries.  Lack of treatment for a portion of the industries. 15 |
  • 16. GHG reduction potential - Energy 16 |
  • 17. GHG reduction potential – Transport 17 |
  • 18. GHG reduction potential – Industrial process 18 |
  • 19. GHG reduction potential – Agriculture/Forestry 19 |
  • 20. GHG reduction potential – Waste Management 20 |