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DEVELOPMENT OF GREEN FREIGHT PILOT PROJECTS IN THE GMS

GMS Environment Operations Center, Bangkok 8th November 2012

GMS economic coopera.on and transport corridors

20 years of Greater Mekong Subregion economic coopera;on
Signicant investment in infrastructure connec;vity, compe;;veness and community Flagship ini;a;ves: Economic Corridors connec;ng key border crossing areas and trade hubs Increased connec;vity has resulted in signicant benets, but also impacts in terms of GHGs and pressure on land use and ecosystems

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Carbon Neutral corridors in the GMS? Emissions from EWEC (transport only) ~ 1 million tCO2 in 2005 (freight transport 55%) Emissions projected to increase to ~ 3 mtCO2 by 2025 Green freight interven;ons could reduce GHGs by 23% against baseline Forestry interven;ons could reduce another 60%

Million tCO2

3.50 3.00 2.50 2.00 1.50 1.00 0.50

GHG emissions from the East West Economic Corridor - BAU, Low carbon freight and forestry scenarios

AL S USU ESS A T BUSIN EIGH EN FR GRE WITH

2005 BASELINE

WITH CARBO

N SEQUEST

RATION

0.00 2005

2010

2015

2020

2025

Factors aec.ng fuel eciency in the GMS Road dominated Impact of vehicle loading on FE freight sector Fragmented industry 25% to 30% made up of SMEs dierence Poor logis;cs Freight survey: management capacity, - 30% to 50% of trips run empty empty running - Over 90 % of interviewed companies in Lao PDR and Vietnam Use of outdated, use second hand trucks which are second-hand used for 7-25 years. technologies - 60% of surveyed companies stated access to nance as the major Li[le / no access to barrier to inves;ng in new credit technologies Poor driving behavior

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GMS Green Freight Ini.a.ve

Aim: To develop / test ins;tu;onal and nancial mechanisms to deploy green freight measures How: pilot projects in Lao PDR, Thailand and Viet Nam Focus:
PROPOSED GREEN FREIGHT CENTER SET-UP IN VIET NAM Equipment suppliers: provide technologies at a reduced rate

Establishment of Green Freight Center with associa;on at province level Set up revolving fund / guarantee Steering Group: fund to create access to nance (MONRE, MOT, for Green / fuel ecient experts) technologies provide direc;on, Bundle nance with capacity monitor building for drivers and technicians (eco-driving, preventa;ve maintenance), companies (logis;cs management)

EOC: guarantee / revolving fund; nancial support

Associa.on: engage with freight companies

Green Freight Center: technologies nance and capacity

Viet Nam Environment Protec.on Fund: provide low cost loan for SMEs

MOT / Viet Nam Register: approval of technologies

Expected outcomes

Test mechanisms which can be scaled up for wider impact Other outcomes

Pilot projects
~ $1.5 million in 3 countries At least 10% FE gain 1000 drivers, 350 vehicles engaged Expected savings: 9000tCO2 p.a. / 1% of EWEC freight emissions (2013)

Remove policy barriers and / or incen;vize uptake of new technologies Catalyze na;onal government and private sector appe;te for green freight Establish a mechanism for coordina;on between government agencies and other stakeholders

Investment poten.al
~ $20 million in 3 countries At least 10% FE gain 5000 drivers, 4500 vehicles engaged Expected savings of 100 ktCO2 p.a. / 10% of EWEC freight emissions (2015)

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Environmental Safeguards
Na;onal and Development partners environmental policies are subjec;ng infrastructure development project to stronger safeguard measures Thailands road and highway sub-sector Cafeguards requirements Sumit Pokhrel, Senior Climate s hange Specialist, are at par with interna;onal best prac;ces (broad framework of environment laws asumit@gms-eoc.org nd regula;ons) Monitoring and compliance capacity of DOHs environment unit Naeeda Crishna-Morgado, Carbon Footprint Specialist, needs to be strengthened

THANK YOU!

naeeda@gms-eoc.org Project screening process Innova;ve mi;ga;on/oset mechanisms Involuntary rese[lement policies and implementa;on of guidelines Stronger public par;cipa;on Environmental performance monitoring Occupa;onal health and safety standards and guidelines

Trainings to technical sta of DOH environment unit