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Reports of CDM/JI Feasibility Studies: FY2007

Title of Feasibility Study (FS)Fuel Efficiency Improvement and Pollution Abatement in Public Transportation in Metro Manila, the Philippines
FYFY 2007
Main Implementing EntityMitsubishi UFJ Securities Co., Ltd.
FS Partner(s)University of the Philippines National Center for Transportation Study, Inc. (UP-NCTSI) 
Location of Project ActivityMetro Manila, The Philippines
Summary of FS ReportPDF (489KB)
Description of Project ActivityThis project is to improve fuel efficiency of 60,000 Jeepneys operating in Metro Manila by replacing obsolete old engines to new ones. The Project aims to achieve GHG emission reductions by better fuel efficiency.
In the Philippines, the country faces various environmental problems attribute to rapidly increasing population and growing economic activities. Especially, the air quality in Metro Manila is in the level where causing health damages to humans and continue to worsen the situation. The major cause of the problems is said to be the emissions from road transportation especially that of from Jeepneys. The purpose of this study is to review the feasibility to implement this project as a Programme of Activities.
Targeted GHGCO2
Category of Project ActivityTransportation
CDM/JICDM
Duration of Project Activity/ Crediting Period2008-2017 for the first CPA (CDM Programme activity)= 10 years
2008-2035 for PoA (Programme of activities)= 28 years
Baseline Methodology/ AdditionalityBased on SSC-149 Transportation Energy Efficiency Activities using Retrofit Technologies, the following items to be monitored.
  • Number of retrofit vehicles operated under the small-scale CDM project activity
  • Annual fuel consumption
  • Annual hours traveled
  • The changes in service level of vehicles (control group)
Additionality is demonstrated based on investment barrier and common practice barriers.
Estimation of GHG Emission Reductions2,728tCO2/year for the first CPA with 323 Jeepneys
Monitoring MethodologyAccording to SSC-149 Transportation Energy Efficiency Activities using Retrofit Technologies, the following items to be monitored.
  • Number of retrofit vehicles operated under the small-scale CDM project activity
  • Annual fuel consumption
  • Annual hours traveled
  • The changes in service level of vehicles (control group)
Environmental Impact AnalysisEnvironmental Impact Analysis (EIA) is not required for this type of project, according to Philippines regulation.
Issues and Tasks for Project RealisationThe Project is related to Jeepney which is a public transportation that is unique to the Philippines. In order to materialize the Project and continue to generate carbon credits throughout long project duration, an entity with good understanding and familiarity on stakeholders who has a capacity to coordinate and manage overall project is indispensable. The effect of the Project largely depends on the number of Jeepneys to be included in the Project. Currently, the project is still seeking for additional funding to add on to existing budget secured by the government. The CERs generated from replacement of one engine is very small. The sales of CERs will still not be sufficient for the Project to procure new engines. The project needs to seek additional funds not only from public financing, but also from private sectors by demonstrating positive social and environmental impacts which the Project can bring about.

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