Educational Material of Vietnam Blended Learning Program, undertaken by Institute of Energy Science, with support of World Bank and Vietnam Development Information Center

1. Vietnam D
Vi t
Development I f
l
t Information Center
ti
C t
The World Bank in Vietnam
Th W ld B k i Vi
Vietnam Blended Learning Program
CARBON ABATEMENT
PROJECT APPRAISAL EXERCISE
Proposed by:
UQ SMART – The University of Queensland (Australia)
Institute of Energy Science (Vietnam)

2. Schedule
I
Introduction to Project Appraisal & MACCs
d i
P j A
i l MACC
 Case Study Case Study: Redland City Council
 Carbon Abatement Project Appraisal Exercise

3. Introduction to
Project Appraisal & MACCs

4. WHAT ARE MARGINAL ABATEMENT COST CURVES
(MACCS)?
“A MACC is an economic decision making tool, designed to assist managers to identify, rank and prioritise the
implementation of GHG abatement projects. Projects are ranked from lowest (most desirable) to highest cost per
tonne of CO2-e reduced”
A MACC presents three visual indicators:
• The cost per tonne CO2-e abatement for a project
• The volume of abatement that the project can deliver (annually or over project life)
at that cost per tonne CO2-e abatement
• The given point at which it becomes cheaper to purchase carbon offsets or
permits
i.e. where abatement is no longer competitive with offsets.

5. MACCS
HOW TO READ A MACC
Projects that present net savings are located
below the horizontal axis, and should be
prioritised for implementation.
By
B contrast, projects found above the
f
d b
h
horizontal axis have a net cost to implement
per tonne of CO2-e reduce.
A MACC may be considered as part of a
pre-feasibility assessment of potential GHG
abatement projects.

6. MACCS
BACKGROUND
In the past, MACCs have mainly been
focused at the macroeconomic
level…

7. BACK
KGROUND
MACCS

8. MACCS
BACKGROUND
In h
I the past, MACC h
MACCs have mainly b
l been f
focused at
d
the macroeconomic level…
…but this is not very valuable to a business,
unless a MACC reflects the organisational
l
fl
h
i i
l
or facility level.

9. MACCS
HOW TO BUILD A MACC
The steps are summarised as follows:
p
1.
Identify potential abatement projects
2.
2
Conduct high level technical / risk pre feasibility analysis of each project
high-level
pre-feasibility
3.
Gather financial and GHG information on each project
4.
Determine NPV and net emissions savings (NES) for each project
5.
Develop the MACC (you will do this).

10. MACCS
HOW TO BUILD A MACC

11. MACCS
HOW TO BUILD A MACC

12. MACCS
HOW TO BUILD A MACC
E.G.T
-5
RETROFIT

13. MACCS
HOW TO BUILD A MACC

14. MACCS
HOW TO BUILD A MACC
E.G.T
-5
RETROFIT

15. MACCS
HOW TO BUILD A MACC

16. Case Study: Redland Cit Council
C
St d R dl d City C
il

17. MACCS
CASE STUDY
Development of a comprehensive
carbon inventory + organisation
specific MACC for a large local council in
Queensland.

18. MACCS
CASE STUDY – CARBON FOOTPRINT (OVERVIEW)

19. MACCS
CASE STUDY – CARBON FOOTPRINT (DETAIL)

20. MACCS
CASE STUDY – TARGETS / OBJECTIVES
Corporate emissions reduction targets set:
- based on 1998 levels
- 25% by 2020
- 50% by 2030
y
-75% by 2050
Objective:
Model to determine out how does this translate into
annual emissions reduction targets?

21. MACCS
CASE STUDY – TARGETS / OBJECTIVES
Used carbon footprint and modelling to figure out what they need
to achieve, now to plan how to do it most cost effectively...

22. MACCS
CASE STUDY – APPROACH
2 MACCs created for purposes of legibility
- efficiency measures
- fuel switching measures
• Two years of intensive eco-efficiency program meant they
needed to look hard and outside the box for additional savings
• Data availability issues and typical people barriers.
g g p
g
• Electronic framework created for ongoing updating.

23. EFFICIENCY MEASU
Y
URES
MACCS

24. FUEL SWITCH
HING
MACCS

25. MACCS
CASE STUDY – FINDINGS
 Large scale solar, on-site wind, natural gas cogeneration, LED lighting and hybrid
vehicles remain cost prohibitive technologies for now...
 Economics of solar and LED projects constantly changing…
 Projects are hampered by cheap electricity rates and short asset life cycles
 A large portion of ‘low hanging fruit has been ‘picked’, likely a consequence of
low
fruit’
picked
achieving impressive reductions in recent years
 Reductions getting harder to find and cheap ‘no regrets’ projects and their contribution are increasingly small.
25

26. MACCS
CASE STUDY – FINDINGS
26

27. MACCS
CASE STUDY – FINDINGS
27

28. Carbon Abatement
C b
Ab t
t
Project Appraisal Exercise

29. CARBON FOOTPRINT EXERCISE

30. CARBON FOOTPRINT EXERCISE

31. CARBON FOOTPRINT EXERCISE

32. CARBON FOOTPRINT EXERCISE

33. CARBON FOOTPRINT EXERCISE
Important notes!

34. CARBON FOOTPRINT EXERCISE
Answer the following Questions
1.
What are your company’s Scope 1 and Scope 2 emissions in t/CO2e
2.
Have any activities been excluded?
3.
What is your company’s ‘carbon intensity’ in tCo2-e/$000?

35. CARBON FOOTPRINT EXERCISE
PRESENTATIONS

36. UQ SMART – The University of Queensland (Australia)
Viện Khoa học năng lượng (Việt Nam)