Feasibility study for transportation NAMA in Vientiane Laos



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UNFCCC Workshop for Asia-Pacific region Nationally Appropriate Mitigation Action, NAMA on 22 April 2014, Don Chan Palace Feasibility study for transportation NAMA in Vientiane Laos Department of Disaster Management and Climate Change, MONRE Lao PDR

Outline of the presentation 1. Background of NAMA feasibility study 2. Key activities from the NAMAs Capacity Building Cooperation 3. MRV Demonstration Study using Model Project 4. Challenges and opportunities for the future 2

Background of the NAMA feasibility study Laos has not yet submitted a list of Nationally Appropriate Mitigation Actions (NAMAs) to the UNFCCC (United Nations Framework of Convention for Climate Change) Secretariat in response to the invitation by the COP decisions. Lao s Second National Communication states that its NAMAs would include mitigation efforts in several areas, and that Mitigation is one of the priorities of the national climate change strategy and Climate Change Action Plan 2013-2020. It has also been integrated into the 5-year national development plans, including the current 7th National Socio-economic Development Plan. (1) Source: Lao PDR (2013): Second National Communication 3

In order to realize those issues, MOEJ proposed a Capacity-Building Cooperation for the Development of NAMAs in a MRV Manner in Laos. In 2012 Laos and Japan have Signed MOU for Capacity-building Cooperation and Joint Study Project in NAMA in a MRV manner in the transport sector between the Ministry of Natural Resources and Environment, Lao PDR (MONRE) and the Ministry of the Environment, Japan (MOEJ),

The feasibility study NAMA Project in Transportation sector is base on: The National Strategy and Action Plan on Environmentally Sustainable Transport The Vientiane Urban Master Plan Road Network Development Public Transport Development Traffic development and Traffic safety The potential Mitigation activities in Transportation

Key Activities from the NAMAs Capacity Building Cooperation with OECC, Japan

NAMAs Capacity Building Cooperation: List of activities in FY2012 Activity1:Proposal for the institutional arrangement for NAMA implementation Activity 2: List of the mitigation options in the transport sector in Laos Activity 3: List of environmental technologies in relation to NAMAs options Activity 4: Model Emission reduction calculation for NAMAs option: Introduction of electric vehicles 7

Selected NAMAs options Selected as a model case in FY2012 No. Category NAMAs Options 1 Fuel switching / Introduction of electric vehicle Improvement of 2 fuel efficiency Promotion of operation of electric vehicle 3 per vehicle Promotion of operation of four stroke tricycles 4 Alternative fuel introduction (bio ethanol, biodiesel) 5 Regulation on fuel quality 6 Regulation on fuel economy 7 Regulation on exhaust gas 8 Promotion of eco driving 9 Improvement of Development and promotion of public bus 10 traffic efficiency Development and promotion of BRT 11 Bicycle lanes 12 Car parking project 13 Truck ban 14 Signalization of major intersections 15 Ring road project 16 Introduction of ITS 17 Traffic Control Management Center 18 Establishment of a truck terminal and physical distribution centers 19 Others Installation of LED Signals 8

Data Collection for NAMA Study in Transportation Basic Data: Study on Low-emission Public Transport System in Lao PDR, by JICA Estimation of Vehicle Ownership in future Laos: Estimated accordingly with GDP Growth estimation, and its relations between vehicle ownership Number of Car and Motor Cycle will increase Source: Basic Data Collection Study on Low emission Public Transport System in Lao PDR, JICA 9

Basic Data: Study on Low-emission Public Transport System in Lao PDR, by JICA Diffusion Target of Electric Vehicle in Lao PDR: Estimate Electric Vehicle will increase 7% year 2015, 40% year 2020 and 80% year 2030 Estimate Conventional Vehicles will Decrease 83% year 2015, 60% year 2020 and 20% year 2030 Source: Basic Data Collection Study on Low emission Public Transport System in Lao PDR, JICA 10

Basic Data: Study on Low-emission Public Transport System in Lao PDR, by JICA Diffusion Target of Electric Vehicle by type in Lao PDR: Motor Cycle will increase 10% year 2015 and 50% year 2020 Passenger Car will increase 10 % year 2020 Tuktuk/Mini bus will increase 20% year 2015 and 100% year 2020 Meduim Bus /Large Bus will increase 10% year 2020 This is target year for NAMAs year 2020 Source: Basic Data Collection Study on Low emission Public Transport System in Lao PDR, JICA 11

NAMAs Project Emission Calculation NAMA Project Emission Reduction in 2020 CO2 Emission (t/year) 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 BAU : Approx. 2.5 million tons NAMAs: Approx. 0.3million tons of reduction Without EV With EV 500,000 0 2001 2011 2020 Source: Basic Data Collection Study on Low emission Public Transport System in Lao PDR, JICA 12

Capacity building on NAMA development and MRV implementation Calculation for emission reduction in transport sector Emission Reduction = BaU (without EV) Project emission (with EV) BaU = Driving Distances (Km) X CO2 emission factor (tco2/liter) / Fuel Economy (Km/liter) Monitoring parameter National value or IPCC data Should be set for each types of motor vehicles Driving distance/ Amount of fuel Project emission = [Driving Distances (km)] x [CO 2 emission factor of grid electricity (tco 2 /kwh)] / [Electricity Economy (km/kwh)] 13

Capacity building on NAMA development and MRV implementation Survey for fuel economy in Vientiane Applicable reference vehicle Motorbike Passengers car Tuk tuk Method Fill up method Motorbike and Passengers car Record amount of fuel Read odometer Tuk tuk Record amount of fuel Measurement of driving distance with the GPS system 14

Capacity building on NAMA development and MRV implementation Fuel Economy in Vientiane Subject of Survey Motorbike: 100 cc x3, 125 cc x 6 Passengers Car : Gasoline: 1400 cc x 1, 1800 cc x 1, 2000 cc x 1 Diesel : 2500 cc x 4, 3000 cc x 1 Tuk tuk: Gasoline: 1000 cc x 4 Number of Motor vehicle Average of Fuel Economy (km/liter) Standard Deviation Motorbike 9 51 11.0 Passengers car 8 10.7 2.5 Tuk Tuk 4 13.4 1.8 15

Capacity building on NAMA development and MRV implementation Fuel Economy in Lao PDR km/liter 70 60 Fuel economy 50 40 30 20 Vientiane Luang Prabang Average 10 0 Motorbike Tuk tuk Pasengers car Category of Vehicle Fuel economy data in Luang Prabang is provided by Almec VPI (JCM MRV Demonstration study) Fuel economy Motorbike: 53.6 km/liter (n=17 10) Tuk tuk: 13.0 km/liter (n = 10 8) Passengers car: 10.7 km/liter (n=8<15) 16

17 MRV Demonstration Study using Model Project

18 Transportation Improvement through Introduction of Efficient Buses and Provision of Good Services November/2012 Source: Katahira & Engineers International Mitsubishi UFJ Morgan Stanley Securities FUKKEN CO,. LTD.

A History of the Study Phase1 (Mitsubishi UFJ Morgan Stanley Securities(MUMSS), 2010) Feasibility Study for Transportation NAMA in Vientiane, Lao PDR Phase2 (Katahira & Engineers International(KEI), MUMSS, 2011) New Mechanism Feasibility Study for Urban Transport Management in Vientiane, Lao PDR Phase3 (KEI, MUMSS, Fukken, 2012) Transportation Improvement through Introduction of Efficient Buses and Provision of Good Services Source: Katahira&Engineers International Mitsubishi UFJ Morgan Stanley Securities FUKKEN CO,. LTD. 19

GHG Reduction Mechanism by the Projects/Activities (1) Introduction and Operation of New Bus Vehicles New bus vehicles will improve fuel consumption. Existing bus vehicle New bus vehicles Existing bus is aging and deteriorating. Fuel efficiency per vehicle will be improved. Reduction of fuel consumption will directly reduce GHG emission. Source: Katahira&Engineers International Mitsubishi UFJ Morgan Stanley Securities 20

HG Reduction Mechanism by the Projects/Activities (2) Improvements in Operation and Service Modal Shifts After Projects/Activities Public Bus Transport Before Projects/Activities Public Bus Transport Private Transport : Car, Motor Cycle, others Modal Shifts Private Transport : Car, Motor Cycle, others Reduction of GHG Emission by the Modal Shifts Comparison of GHG Emission before/after the Projects/Activities Increase of public bus transport will increase GHG emission. However decrease of private transport will decrease more GHG emission. Source: Katahira Katahira&Engineers International Mitsubishi UFJ Morgan Stanley Securities 21

Proposed Methodologies for the Project Activity Measure1: Introduction of new bus vehicles Energy Efficiency Improvement (MRV1) Energy Efficiency Improvement of Public Buses in the Lao PDR Measure2: Improvement in bus operation Modal Shifts (Passenger) (MRV2) Improving Transport Efficiency of Public Buses by Operational Improvements in the Lao PDR Source: Katahira Katahira&Engineers International Mitsubishi UFJ Morgan 22 Stanley Securities

First Survey Monitoring on the Improvement of Fuel Efficiency before the Projects/Activities after the Projects/Activities Survey bus operation / operation logs of the project owner (VCSBE) Fuel consumption Vehicle km of travel others Calculate difference of before/after fuel consumption per VKT Calculate GHG reduction from the difference of the fuel consumption Apply the Method1 1 ofmrv1in this Study 23 23

Second Survey Monitoring on the Modal Shifts (for Method2 of MRV2) Ridership Survey for the bus passengers Survey for records of the bus operation Transport After Projects/Activities Transport Before Projects/Activities Public Bus Transport Public Bus Transport Ridership Survey (Interview) Modal Shifts from Private to Public Private transports : Cars, Motor Cycles Private transports : Cars, Motor Cycles Conduct Ridership Survey for public bus passengers after the introduction of the new buses Find evidence of the modal shifts from private transport to mass public transport Calculate GHG reduction from volume of the modal shifts (person kilometer) former means of transport Source: Katahira Katahira&Engineers International Mitsubishi UFJ Morgan 24 Stanley Securities

Results of the Monitoring on the Improvement of Fuel Efficiency Comparison of Fuel efficiency of Reference Bus and Project Bus Raw data Adjusted by capacity Categori es Manufacturer Capacity (person) Travel distance per liter (km/l) Fuel consumption per travel distance (L/km) Travel distance per a liter (km/l) Fuel consumption per travel distance (L/km) Reference Bus Hyundai 45 2.950 0.339 2.660 0.376 Project Bus Isuzu (without air conditioner operating) Isuzu (with air conditioner operating) 20% of Reduction on same condition 50 3.702 0.270 3.702 0.270 50 2.974 0.336 2.974 0.336 Comparison on the Dongdok line Source: Katahira Katahira&Engineers International Mitsubishi UFJ Morgan Stanley Securities 25

Challenges and opportunities for the future

Challenges and opportunities for the next step: 1. Possibility of reviewing current vehicle registration system (i.e. subdividing its vehicle categories into power sources (gasoline, diesel, hybrid, LPG, electricity etc) at the initial registration or annual vehicle inspection). 2. Country specific default value for fuel efficiency by vehicle types need to be develop for calculation of NAMAs options in the transport sector; 3. Capacity building on transport data collection may be required; 4. Other listed NAMA options in the transport sector need to be study. 5. Need finance for NAMAs implementation. 27

Challenges and opportunities for the future: Possible NAMAs projects in Laos Category Fuel Switching / Improve Fuel Efficiency per vehicle Improve Traffic Efficiency Others Mitigation Option Promote use of Electric Vehicle Promote operation of Electric Vehicle Promote Operation of four stroke tricycles Alternative Fuel Introduction (Bioethanol, Biodiesel) Regulation on Fuel quality Regulation on Fuel economy Regulation on exhaust gas Promotion of Eco driving Development and Promotion of Public bus Development and Promotion of BRT Bicycle Lane Car Parking Project Truck Ban Signalization of major intersections Ring Road Project Introduction of ITS Traffic Control Management Center Establishment of Truck Terminal and Physical Distribution Centers Installation of LED Signals (Energy Efficiency) 28

Thank you very much!