CDM Feasibility Study for the Introduction of Fuel Efficiency Improvement Technologies to Motorcycle in Viet Nam

Global Environment Centre Foundation(GEC)

Reports of CDM/JI Feasibility Studies

Title of Feasibility Study (FS)CDM Feasibility Study for the Introduction of Fuel Efficiency Improvement Technologies to Motorcycle in Viet Nam
FYFY 2010
Main Implementing EntityPacific Consultants Co., Ltd.
FS Partner(s)Tamsui Corporation
Location of Project ActivityViet Nam (Ho-Chi-Minh City)
Category of Project ActivityTransportation
Targeted GHGCO2
Duration of Project Activity/ Crediting Period10 years (From 2012 to 2021)
Summary of FS ReportSummary(PDF 158KB)
Description of Project ActivityThe purpose of the proposed project activity is to introduce the motorcycle maintenance techniques and to conduct maintenance and investigation in order to reduce the greenhouse gas emission (CO2) as well as air pollutants from existing motorcycles in Ho-Chi-Minh city.
Specifically, following items are implemented.
    1. Introduce equipments for the motorcycle exhaust gas investigation,
    2. Establish the system for motorcycle maintenance,
    3. Educate local mechanics about the maintenance techniques for the improvement of fuel economy.
Continuous implementation of the project activities could reduce 15,075tCO2 annually.
Methodology to be appliedNo applicable methodology has existed. Submit a new methodology to the UNFCCC.
Baseline ScenarioIn Vietnam, no regulation for the investigation of motorcycle exhaust gas and the motorcycle maintenance has existed at present. Although the Vietnamese government has planned to introduce a regulation for several years, the details of it or even if it actually introduces or not, are uncertain. Furthermore, it is assumed that establishment of a compliance system is difficult in terms of costs and technologies even if it does. It is also assumed that appropriate maintenance is not provided due to the lack of knowledge and/or techniques about motorcycle maintenance.
Therefore, the baseline scenario is supposed to be a situation where motorcycles are continued to use without appropriate maintenance, which result in consuming more fossil fuel than that consumed in the project activity.
Demonstration of AdditionalityAdditionality of the project is demonstrated by the following analyses.
  • Investment barrier analysis:
      When a project carries out without a CDM, its IRR will be below the benchmark IRR. Thus, it is unattractive for any investment to the project activity without a CDM.
  • Technological barrier analysis:
      The standard level of motorcycle maintenance techniques is not advanced. The two main reasons why most of maintenance mechanics have not trained are: first, they are usually their own small businesses; second, therefore they lack knowledge about motorcycle maintenance due to the lack of appropriate education. In order to promote the improvement of maintenance techniques of mechanics, some maintenance technologies, techniques and knowledge shall be transferred.
  • Barriers due to prevailing practices:
      In the current prevailing motorcycle maintenance practices in Vietnam, simple services are provided by individuals in each own business. Therefore, it is not common for them to provide maintenance services in order to respond to a new exhaust emissions regulation.
Estimation of GHG Emission Reductions
  • Total emission reduction from 2012 to 2021: 139,340tCO2
  • Annual average: 13,934tCO2/yr
Monitoring PlanThe monitoring will be conducted, suppose once every three months, against to the exhaust gases and fuel efficiency of motorcycles when maintenance and exhaust gas investigation are provided to them.
All the collected data that have to be collected according with monitoring plan shall be recorded electricity, and they will be kept for two years after the final crediting period.
In order to identify project motorcycles strictly, information of the owner and his/her motorcycle are requested to users of the project activities of maintenance at any monitoring.
Environmental Impact AnalysisUnder the environmental protection law revised and adopted in 2005 in Vietnam, projects required environmental impact assessments are clearly clarified. In addition, in the accompanying document of the governmental order No. 80/2006/ND-CP of August 9, 2006, projects necessary to be made an environmental impact assessment report are listed. The project activities of developing maintenance facilities etc are not included in the list.
The project activity is an energy efficiency improvement. It results in reductions of the energy losses and thereby contributing the betterment of the environment in Ho-Chi-Minh city. The project activity has no significant negative impact on the environment.
Project FeasibilityFor the project execution, a local enterprise was established in Ho-Chi-Minh city on November 2010. While keep talking with the Investment Center, which manages activities of foreign capital enterprises, and the Department of Transport in Ho-Chi-Minh city, trying to contact some available domestic enterprises which can fund to the project activities.
After establishing a conference with Department of Transport in Ho-Chi-Minh city, securing locations of maintenance facilities, introductions of maintenance/investigation equipments and technical trainings to mechanics will be planned. At the same time, we try to proceed the project soon after August 2011, taking into account the situation of an approval of the methodology.
"Co-benefits" (i.e. Improvement of Local Environmental Problems)Among the carbon monoxide (CO), hydrocarbon (HC) and nitrogen oxide (NOx) commonly assessed by regulations of mobile emission resources such as automobiles and motorcycles, HC is evaluated as co-benefits of the project activity.
HC has a significant toxicity against human. Additionally, HC is one of air pollutants as well as a causative material of photochemical smog by transforming into photochemical oxidant in response to ultraviolet ray.
Contribution to Sustainable Development in Host Country-