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Reports of JCM/BOCM Feasibility Studies: FY2012

Title of Study JCM/BOCM Feasibility Study
Improvement of Vehicle Fuel Efficiency through Introduction of Eco-Drive Management System
FYFY 2012
Main Implementing EntityAlmec Corporation
Study PartnersMinistry of Transport, Viet Nam
Hanoi Taxi Group
Institute of Planning and Transport Engineering, Viet Nam
Energy Conservation Centre, Japan
Ishida R&D, Ltd.
Location of Project/ActivityViet Nam (Hanoi City)
Category of Project/ActivityTransport
Study Report

Note: Preliminary drafts of MRV Methodology and Calculation Sheet are the result of the study. They have neither been officially approved, nor are guaranteed to be officially approved under the JCM/BOCM.
Description of Project/ActivityThe proposed program of activities targets the taxi operators in Hanoi which have been rapidly increasing apace with accelerating urbanization and motorization in the absence of adequate public transport means. The promotion of eco drive activities aims to reduce fuel consumption and thereby improve profitability of taxi operation, while contributing to a reduction of GHG emissions by the taxi fleet.

The project site is Hanoi Taxi, Inc., the leading member of the Hanoi Taxi Group which is known to provide services of highest quality in the city.
Eligibility Criteria
  1. MRV methodology development is applicable to the proposed transport-sector program of multiple activities in which the taxi operation with distance-based fare system would be improved in fuel efficiency with its GHG emissions reduced thereby.
  2. MRV methodologies are applicable to internal-combustion engine vehicles (gasoline, diesel, gaseous fuels and biofuels), electric and hybrid cars.
  3. The database of operated vehicle distance, vehicle occupancy rate and fuel consumption are well managed and available for analytical and monitoring purposes, or will be made available for such purposes.
  4. The activities proposed for improving vehicle/fuel efficiency or transport efficiency are currently practiced by less than 5% of the total fleet of four-wheel taxis in the host city.
  5. The proposed program of activities expects to utilize the technical, manpower and financial supports from Japan.
Reference Scenario and Project/Activity Boundary
  • Project Boundary
    • The geographical boundary is the space encompassed by the administrative boundary in which the target taxi fleet is operated, namely Hanoi City.
    • The physical boundary is the taxi fleet which will participate in the program of activities proposed for improving vehicle/fuel efficiency and transport efficiency.
    • Emission calculation focuses on CO2. If gaseous fuels are used, CH4 will be included.
  • Reference Scenario
    • The reference scenario is the continuance of the present taxi operation (vehicle type, fuel type, driving skills, dispatch method, fuel efficiency)
    • In many large cities of developing countries, the transport demand has been increasing apace with growing population and income and shifting from walk and bicycle to motor bike and automobile. As a result, the increased road traffic is intensifying inner city congestion and raising the fuel consumption per kilometer of travel. The volume of GHG emissions per vehicle kilometer keeps rising in urbanized areas. In Hanoi City where there is yet no mass transit as of 2013, CO2 emissions per vehicle kilometer is on the rise and the trend is expected to continue through 2020, the year when the proposed project activities are scheduled to end.
Forecast of Operational Speed in the Road Network of Hanoi (km/h)
2005 (actual)
2020 Forecast
2020 Forecast
(HAIDEP NW: Mass Transit Development)
Mass Transit Only
Mass Transit & Traffic Demand Management
Source: Study Report on The Comprehensive Urban Development Programme in Hanoi Capital City, Vietnam (HAIDP), JICA, March 2007.
Calculation Method Options
Formula for calculating the emission reductions by the activities proposed for improving vehicle/fuel efficiency.

Option 1
Measurement of Target Taxis
The reference efficiency is measured before the start of project activities and is held constant throughout the project period.
Option 2
Rate of Improvement
The rate of improvement is determined on the basis of the field test conducted for one year before the start of project activities.
Option 3
Measurement of a Control Group of Taxis
A control group of taxis is designated and the reference efficiency is obtained by regularly monitoring them throughout the project period.
Default Values set in MethodologyThere are three alternatives to establish the default value for Option 2 of Methodology 1
  1. A one-year field test is conducted prior to the start of project activities and the rate of improvement is determined from the monitored results.
  2. The target taxi fleet is monitored before the start of project activities exactly like Option 1 of Methodology 1 to obtain the reference fuel efficiency. During the first year of project implementation, the target taxi fleet is monitored again to establish the rate of improvement vis-a-vis the reference efficiency.
  3. The rate of improvement is determined by comparing the fuel efficiency of with-project vehicles and the reference vehicles with the efficiency quoted in the catalogues of vehicle manufacturers.
Monitoring MethodKey parameters to be monitored and the procedure of monitoring are as follows
Monitoring Method and Procedure
DDi,y : Vehicle Operated Distance (km)1) The data are collected from the monthly operational reports of taxi companies, or
2) Monthly operated distance is outputted to the spreadsheet from the logs of odometers
PFCi,x,y: With-Project Fuel Efficiency (L/km)1) The basic data for fuel consumption are collected from monthly operational reports of taxi companies, or
2) The fuel consumption is ascertained by checking the invoices of suppliers, and the operated kilometers are obtained by reading the logs of GPS and odometers
GHG Emissions and its Reductions
Parameter Calculation or Parameter Source
DDi,y : Annual total operated kilometersTarget fleet of 2,100 taxis
Annual total operated distance of 55,073 km/vehicle
115,653,300 km
PFCi,x,y : With-Project fuel consumption per kmEstimated from the monitored performances (fuel consumption and rates of improvement in fuel efficiency) by participants in the eco drive training program over the period of 7 months
0.0712 L/km
NCVx,y :Net calorie emissionIPCC default (averaged)
32.81 GJ/kl
EFCO2,x,y: CO2 Emission FactorIPCC default (averaged)
0.0693 tCO2/GJ
Pve: Rate of improvement in fuel efficiencyAverage of the performances by the participants in the eco drive training program
5.1 %
PE: With-Project EmissionsObtained by calculation
18,721 tCO2/yr
RE: Reference EmissionsObtained by calculation
19,727 tCO2/yr
ER: Emission ReductionsObtained by calculation
1,006 tCO2/yr
Method of Verification
  • Initial Verification ascertains 1) whether the project activities are being put into practice as programmed, 2) whether the monitoring system is properly established and capable of performing its functions, and 3) whether the project activities are likely to achieve the expected emission reductions.
  • Regular verification is carried out annually to check 1) whether the operative monitoring system and procedure conform to the stipulations in the initially worked out monitoring plan, 2) whether the reported emission reductions contain serious errors or omissions, and 3) whether the reported GHG emission reductions are sufficiently proven by the monitored records and other factual evidences.
Environmental ImpactsThe proposed program of activities is not expected to cause any serious environmental hazards and other adverse influences.
Financial PlanThe proposed activities will be financially self-sustainable during the project period, except for the initial investment in equipment and the startup operational cost. Considering the participation of many taxi companies, a two-step program loan would be needed from the global environmental conservation facility (GREEN) of the JBIC fund.

The credit expected to be certified on the emission reductions will not be very large. However, the effect of energy conservation (saving on fuel consumption) is considerable, enabling the taxi operators to save some \40 million annually. The EMS Center, the provisional operational entity of the project activities, would be sustainable by charging the taxi companies the commissions worth 30% of their energy savings. If the project scope be expanded in the future to include other vehicles, the Center would be able to earn some profits.
Promotion of Japanese TechnologyIn addition to the introduction and promotion of eco drive practices, there are many other technologies and expertise in Japan which will be effectively put to use for the purpose of improving vehicle/fuel efficiency in the taxi business: namely, a taxi dispatch system, ICT ticketing and above all, hybrid cars and other low-carbon vehicles. Hybrid cars merit special consideration because their introduction will greatly increase the saving on fuel consumption and raise the level of fuel efficiency. When accepted by a wider range of automobile users, possible emission reductions would be quite large.
Sustainable Development in Host CountryIn the National Strategy for Climate Change in Viet Nam, the policy stance regarding GHG emission reductions emphasizes the importance of the transport sector. It stipulates that emission reductions will be realized by promoting increased consumption of low-carbon fuels. Specifically, the shift of buses and taxis to compressed and liquefied natural gas is to be accelerated so that such fuels would reach 20% by 2020 and 80% by 2050 of their total consumption. When the anticipated fuel shift is combined with eco drive activities like those suggested by the present Study, the expected saving on energy consumption would become considerable. The MRV methodologies developed by the Study are applicable to such a combination of multiple activities.

In addition to electric and hybrid cars, Japan has an array of technologies usefully applied to Viet Nam. For example, the existing vehicles with gasoline or diesel engines will be easily fitted up with the available kits of fuel conversion to CNG or LNG. The MRV methodologies developed by the Study can be applied to any situation that would combine eco drive activities and the introduction of low-carbon vehicles to reduce GHG emissions. Assured of the accelerating emission reductions as verified by the MRV methodologies, the transport sector is expected to contribute in no uncertain terms to the sustainable development of the host country.

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