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Reports of CDM/JI Feasibility Studies: FY2011

Title of Feasibility Study (FS)CDM PoA Feasibility Study for Fuel Efficiency Improvement through Introduction of Digital Tachograph to Cargo Trucks in Malaysia
FYrFY 2011
Main Implementing EntityNippon Express Co., Ltd.
FS Partner(s)Nittsu Research Institute and Consulting, Inc. 、 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 、 NITTSU TRANSPORT SERVICE SDN. BHD.、 NIPPON EXPRESS SDN. BHD.
Location of Project ActivityMalaysia
Category of Project ActivityTransportation
Targeted GHGCarbon Dioxide (CO2)
CDM/JICDM
Report
Description of Project ActivityThis project aims to improve fuel efficiency by training drivers for effective driving tips through continuous recording of vehicle speed, and functions such as voice alarm to unnecessary idling or sudden acceleration / break by introducing digital tachograph system. This project will be implemented as programmatic CDM activity (PoA). The small scale CDM methodology of AMS-III.AT ver. 01 will be applied to the PoA.
The first CDM program activity (CPA) of the PoA is a project to install digital tachograph to 46 trucks owned by Nittsu Transport Service SDN. BHD. (NTS) established in Selangor State, Malaysia. It aims to achieve 255tCO2 of emission reduction per year.
Methodology to be appliedAMS-III.AT Version 01
Baseline Scenario Baseline scenario is a condition that digital tachograph and feedback system for inefficient driving have not been installed in the vehicles yet. Current situation is under this condition.
Monitoring PlanMonitoring plan is to collect data of transportation and fuel usage for each vehicle as same as baseline. And then CO2 emission is calculated based on these data.

Main monitoring items are as follows:
  • Freight transportation data (each vehicle): route, distance, and weight.
  • Fuel usage (each vehicle): fuel type, refueling quantity and its date.
  • Others: Development on construction of new express ways, changes in biofuel blending ratio, etc.
Estimation of GHG Emission Reductions255tCO2/y
Duration of Project Activity/ Crediting PeriodPoA period is up to 28 years from UN registration.
Duration and crediting period of the first CPA is 10 years. Beginning of the project is assumed in Dec. 2010.
For inclusion of additional CPAs, currently, there are some problems for collecting baseline data. It is necessary to devote more time preparing those data.
Environmental Impact AnalysisThis project will not likely to make any negative impact to the environment since it will not change transport condition, vehicles, and fuel. Therefore, it will not bring in any additional pollutant emission and noise. Then, it is not necessary to cope.
It was confirmed with Malaysia Green Technology Corporation (Malaysian DNA) that the environmental impact assessment would not be required for this project.
Demonstration of Additionality This project is implemented by Nippon Express as a part of their voluntary efforts on corporate social responsibility activity.
The methodology applied to this project was developed by Nippon Express Group in collaboration with Mitsubishi UFJ Morgan Stanley Securities. This fact clearly demonstrates that Nittsu originally intended to develop this project only as CDM. Development of methodology was necessary to move forward with CDM procedure.

Also, through the interviews with MGTC, Ministry of Transport, and Fujitsu, a provider of digital tachograph system, that there is no precedent in Malaysia to install digital tachograph in Malaysia not only for freight transport, but for entire businesses sectors.
Therefore, the Additionality of this project was demonstrated by "first of its kind" barrier. With recent approval of a new guideline related to this issue at EB 63 meeting, project participants will continue to study the guideline to confirm application of “first of its kind”.barrier to their project.
Project FeasibilityThe starting of the project will will be in Dec. 2012.
Validation of PoA-DD is planned to begin in the first half of 2012.
How to Expand CPAs under the PoAThe candidate for the 2nd CPA is the project for the vehicles owned by Port Kelang branch of Nippon Express Malaysia. At first, it is required to grasp data properly to calculate baseline emission, and to prepare to build management/operational scheme for data collection, etc., during the project implementation.
"Co-benefits" (i.e. Improvement of Local Environmental Problems)An applicable criterion from "Co-Benefit Quantitative Estimation Manual" to this project is nitrogen oxide (NOx) reduction.
Referring to the past study conducted in Japan, a correlation is arrived as below.
    y = 0.0057x - 0.0485

    x: CO2 emission(gCO2 )、 y: NOx emission(gNOx )

If emission reduction of 255tCO2/yr assumed in the first CPA is applied in the formula, expected NOx emission reduction will be 1.45t/yr.
Contribution to Sustainable Development in Host CountryReferring to the past study conducted in Japan, considerable reduction of traffic accidents was observed by introduction of digital tachograph and eco-driving.
If digital tachograph is promoted in Malaysia widely, it is estimated that number of traffic accidents will reduce by 22,649, the number of wounded by 1,406, the number of deaths by 384.

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