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Reports of JCM/BOCM Feasibility Studies: FY2012

Title of Study JCM/BOCM Feasibility Study
REDD+ through Forest Management Scheme, and Biomass-based Power Generation using Timber Industry Waste
FYFY 2012
Main Implementing EntitySumitomo Forestry Co., Ltd.
Study PartnersDien Bien Department of Agriculture & Rural Development (Ministry of Agriculture & Rural Development (MARD), Vietnam); Vietnam Forestry University; Mitsubishi Research Institute, Inc.; Chiba University; and Response Ability, Inc.
Location of Project/ActivityVietnam (Dien Bien Province, Northwest Region)
Category of Project/ActivityLand Use Management, and Biomass Utilisation
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/ActivityIn Dien Bien Province, northwestern Vietnam, carry out forest preservation and revegetation activities combined with livelihood improvement measures. Quantify the reduction in pressure on existing natural forest and the increase in carbon accumulation by plantations and areas of revegetation in order to acquire emissions credits for reducing GHG emissions. Use timber to be produced in the future as a result of this activity to engage in timber processing business and biomass power generation, and reduce GHG emissions by using biomass to generate electricity instead of fossil fuels. The project will contribute to sustainable development in northwestern Vietnam, one of the country's poorest regions, by helping to enhance forest functions of public benefit, such as cultivation of water resources, national land conservation, and biodiversity preservation.
Eligibility CriteriaForest Management Segment:
  1. Forest preservation plans include activities in REDD+ scope;
  2. Peatland not targeted;
  3. Authority or permission for the project target area;
  4. Distinguishable from A/R CDM etc.;
  5. Safeguards;
  6. Technology transfer and livelihood improvement measures.
Biomass Power Generation Segment:
  1. Only biomass residues used as fuel;
  2. Biomass residues obtained inside project boundary;
  3. Little or no methane is generated;
  4. No competition for biomass residues in surrounding regions;
  5. Cogeneration systems not included.
  6. Most recent emission factors for public power supply are used.
Reference Scenario and Project/Activity BoundaryForest Management Segment:
Administrative boundaries shall be the boundary. The reference scenario assumes that forest management activities of this project are not implemented and that the current trend of forest depletion will continue.

Biomass Power Generation Segment:
The project boundary shall be the power generating unit on the project site and regions/areas where the biomass residue originates, and shall also cover the crushing and transfer of biomass residue, as well as the transfer of fuel consumed for crushing and transport. The reference scenario assumes that public electricity supply is used and GHGs are released from fossil fuels used to generate that electricity.
Calculation Method OptionsForest Management Segment:
Select from the following calculation approaches:
1) Default approach (DA) (without reference area);
2) Default approach (DA) (with reference area);
3) Unique approach.

Biomass Power Generation Segment:
Select calculation method according to whether or not fuel consumed in biomass transportation is to be monitored.
Default Values set in MethodologyForest Management Segment:
Under the DA, methodologies and data officially established by local authorities (official methods) shall be used to calculate emission reductions resulting from national or sub-national level REDD+ activities.

Biomass Power Generation Segment:
Official grid emission factors (tCO2/MWh) for the target region and default CO2 emissions per unit of electricity production (tCO2/MWh) for fossil fuels used in delivery can be used by default.
Monitoring MethodsForest Management Segment:
Under the DA, forest distribution map data (land cover maps) and carbon stock data for the target year, as obtained by official methods, shall be the monitoring data.

Biomass Power Generation Segment:
Monitor electricity production, electricity consumption and fuel travel distances, etc., using records or purchase slips.
GHG Emissions and its ReductionsForest Management Segment:
GHG emission reductions calculated based on a long-term vision for 2040. Under this scenario, project emissions will be zero; sequestration resulting from forest growth will be 46ktCO2/yr; overall expected GHG emission reductions for forest management, after subtracting reference (emission) levels and leakage, will fall from 20 to 7ktCO2/yr and total 425ktCO2 by 2040.

Biomass Power Generation Segment:
GHG emission reductions calculated using monitored values for 4MW biomass power generation. Calculated reductions, assuming truck transportation and on-site conveyance of biomass residues is required, are as follows.
Calculation method 1 (no transportation monitoring):
ERt+ly = 8,729 – 686 = 8,043 (tCO2/yr)
Calculation method 2 (project unique values used):
ERt+ly = 8,729 – 659 = 8,070 (tCO2/yr)
Method of VerificationThe verification procedure shall be as follows.
Step 1:
Examination of formal requirements of the methodology.
Step 2:
Examination of validity of the methodology.
Step 3:
Examination of substantive requirements to be satisfied by the methodology.
Environmental ImpactsForest Management Segment:
The project activity will have few negative effects on the environment and will contribute greatly to environmental protection. However, compliance with domestic regulations and international guidelines relating to areas such as biodiversity and forest preservation and development is required. The contribution to biodiversity has been visualized.

Biomass Power Generation Segment:
The introduction of facilities must comply with environmental standards and regulations.
Financial PlanFor the forest management segment, expenses required to implement the project/activity were calculated after determining the combination and scale of countermeasures to match the scenario. For the biomass power generation segment, necessary initial investment, running expenses and revenue were estimated on the assumption that the forest management segment has reached full implementation.
Promotion of Japanese TechnologyForest Management Segment: Application of Japanese know-how on sustainable forestry business, forestry road network design, forestry road development technology, and forestry machinery is possible. Forestry information management technology, including image analysis and GIS technology, could be introduced. Livelihood-improving agricultural technology could also be put to use.

Biomass Power Generation Segment: Japanese power generating units have high durability and are easy to control. They also boast high environmental performance, for example in terms of controlling emissions.
Sustainable Development in Host CountryIn addition to preserving the environment by increasing the area of forest through planting, and carrying out sustainable forest management, livelihoods of local residents will be improved. At the same time, a high value-added system for biomass use, including power generation, will be introduced, thus contributing to sustainable development in the host country.

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