1. 1 Submitted by Masakazu ITAKURA (Project Officer) from NEWJEC Inc. 6th Meeting of the Low-Carbon Model Town Task Force APEC Low Carbon Model Town (LCMT) Project Phase 3 Feasibility Study for Ngu Hanh Son District in Da Nang City, Viet Nam 46 th Meeting of the APEC Energy Working Group and Associated Meetings 18 th November, 2013

2. 2 Project Purpose The key objective of the Project is to provide a Feasibility Study on the Re- development witch deals with the existing urban districts in Da Nang (Viet Nam), with a large focus on Ngu Hanh Son District. This will be done by investigating CO2 reduction visions, and verifying how to develop attractive, low-carbon development plan. Ngu Hanh Son District is long skinny district between the East Sea and the Han River. This area is 39.12km2 and the population is approximately 70,667.

3. 3 Da Nang People’s Committee (Implementation Board) Feedback ！ Phase 2: Report on Analyses of CO2 Reductions and Costs for the Selected Design Measures Outline of APEC Low Carbon Model Town (LCMT) Project Phase 3 Present Situation and Issues for the Urbanization of Da Nang LCT Development Project Phase 4: Finalization of the Feasibility Study Report with Executive Summary Phase 3: Report Study on the Implementing Methodology of Proposed CO2 Reductions Measures Phase 1: Report on Low-Carbon Strategy for Da Nang Low-Carbon town Development Project Scope of work Outline

4. 4 1. Regional challenges 2. Improve attractiveness 3. Benchmark of low-carbon 4. LCMT Introduced measures - Re-development - Sprawl - Deterioration of the landscape - Excess of sewage - Traffic growth - Urban development - Resort beach - Tourism With the sustainable development of the future, the realization of attractive and innovative urban development!! - Define the environmental target - Prepare a low-carbon Guideline - Evaluate cost of CO2 reduction - Select CO2 reduction measures Approach to a High-Level Vision for LCMT in Da Nang

5. 5 1) Da Nang’s master plan for socio-economic development up to 2020 2) A General Plan for 2000 - 2020 in Da Nang City 1) Da Nang’s master plan for socio-economic development up to 2020 2) A General Plan for 2000 - 2020 in Da Nang City 3) Building Da Nang City as An Environmental City (Aug. 2008) Based on the Agenda 21 of Viet Nam government (PM Decision, 2004) To aim at a sustainable development with the target year 2020, To develop many different environmental issues such as: air pollution reduction, waste treatment and recycling, energy conservation, and renewable energy. However, not indicate any scope and measure challenging climate change issues, GHG emission reduction and low-carbon city. 1) "Carbon Emission Situation Study at Da Nang City”(2011) cooperated by Asian Institute of Technology (AIT) 2) "Action Plan in Responding to Climate Change and Sea Level Rise for Da Nang up to 2020" financed by Rockefeller Foundation 3) ”Sustainable Urban Energy Program”(2011 to 2013) cooperated by Aus AID and World Bank 4) "Low-carbon Model Town Project Phase 3 " (2013) by APEC Policy development Legal Framework and Policies in Da Nang City

6. 6 CO2 Emission Estimation in the Base Year Estimated CO2 emissions for the base year 2010 in Ngu Hanh Son District totaled 95,720 tonnes of CO2e (CO2 equivalent). Table 3.2.2 CO2 emissions by category in the base year 2010 in Ngu Hanh Son District. Category (sector – subsector) Greenhouse Gas Percentage [%] CO 2 [10 3 tonnes] CH 4 [10 3 tonnes] CO 2 e [10 3 tonnes] 1. Energy77.34 80.79 - Manufacturing industries and construction30.22- 31.57 - Transportation16.99- 17.75 - Commercial/institutional6.89- 7.19 - Residential23.24- 24.28 2. Waste-0.8818.3919.21 - Solid waste-0.326.817.12 - Wastewater- 0.5511.5812.09 - Industrial wastewater- Total 77.34 0.8895.72100.00

7. 7 Population forecast in Da Nang City

8. 8 [Ngu Hanh Son District]Emissions in CO 2 e [k tonnes] Category20102015202020252030 1. Energy77126237436662 - Manufacturing industries3031323334 - Transportation17274369131 - Commercial/institutional71852120197 - Residential2350110214300 2. Waste1832457198 - Solid waste713213861 - Wastewater1219243337 Total96158283508760 % of 2010 base year emissions100%165%295%530%794% Population [persons]68,270111,125178,571287,589370,142 Projections of COe2 emissions by category towards 2030 in Ngu Hanh Son District according to (BAU Scenario – High Growth).

9. 9 Setting out CO2 emissions reduction target towards 2030 in accordance with the “National Green Growth Strategy”

10. 10 BS-H (BAU Scenario – High Growth) Options for CO2e emission reduction targets N.B. Target figures indicated in blue and red are in accordance with the voluntary reduction target the “National Green Growth Strategy” Ngu Hanh Son District OptionTargetContents Target Year 20202030 A10% from BAU Reductions from BAU 28 ktCO2e76 ktCO2e % above base year level 166 %615 % B20% from BAU Reductions from BAU 57 ktCO2e152 ktCO2e % above base year level 136 %535 % C30% from BAU Reductions from BAU 85 ktCO2e228 ktCO2e % above base year level 107 %456 %

11. 11 Categories Establishment for Creating a Low Carbon Town Possible low carbon measures for Ngu Hanh Son District in Da Nang City can be divided into nine categories listed below: (1) Buildings (2) Transportation (3) Energy - Energy Management System (4) Energy - Area Energy Network (5) Energy - Untapped Energy (6) Energy - Renewable Energy (7) ICT Control (8) Environment (9) Water Supply and Sewage

12. 12 Categories and Possible CO2 Reduction Measures for Example… 1. Buildings - Introduction of a system of comprehensive environment benchmarks that target buildings. etc. 1. Buildings - Introduction of a system of comprehensive environment benchmarks that target buildings. etc. 2. Transportation - Facilitation of the spread of electric motor-bakes and charging facilities. etc. 2. Transportation - Facilitation of the spread of electric motor-bakes and charging facilities. etc. 8. Environment Planning - Making environmental initiatives visible. etc. 8. Environment Planning - Making environmental initiatives visible. etc. 9. Water Supply and Sewage - Bio generation by utilization of water treatment sludge. etc. 9. Water Supply and Sewage - Bio generation by utilization of water treatment sludge. etc. 3. Energy - Energy Management System - Stabilization of the electric power supply by a high capacity electrical storage facility. etc. 3. Energy - Energy Management System - Stabilization of the electric power supply by a high capacity electrical storage facility. etc. 4. Energy - Area Energy Network - Heat pump style cooling system that uses river water and ocean water. etc. 4. Energy - Area Energy Network - Heat pump style cooling system that uses river water and ocean water. etc. 7. ICT Control - Optimized control of traffic flow due to an ITS (intelligent transportation system). etc. 7. ICT Control - Optimized control of traffic flow due to an ITS (intelligent transportation system). etc. 5. Energy - Untapped Energy - Power supplied by renewable energy from wind power and solar power. etc. 5. Energy - Untapped Energy - Power supplied by renewable energy from wind power and solar power. etc. 6. Energy - Renewable Energy - Purification and power generation utilization of biogas (digestive gas). etc. 6. Energy - Renewable Energy - Purification and power generation utilization of biogas (digestive gas). etc. 23 Possible CO2 Reduction Measures

13. 13 Four Viewpoints for Determining Guidelines With these ideas in mind, the following four points are established as a guideline (evaluation viewpoints) in order to create a low carbon town in Ngu Hanh Son District Viewpoint 1: measures by which a large volume of CO2 reductions are expected. Viewpoint 2: measures whose cost-effectiveness is large. Viewpoint 3: measures that may contribute to solving the area‘s current challenges in addition to global warming. (*1) Viewpoint 4: measures that may lead to sustainable development and increasing attractiveness. (*2) (*1) The main current challenges are Re-development, Sprawl, Deterioration of the landscape and Energy supply. (*2) The main attractiveness is Low carbon town, Resort beach, Tourism and Sustainable.

14. 14 Result of calculation Implementation Board Policy for Selecting Measures in This Project

15. 15 1. Buildings Introduction of a system of comprehensive environmental benchmarks that target buildings 2. Transportation – Motorcycle Facilitation of the spread of electric motor-bikes and charging facilities 3. Transportation – BRT Introduction of a Bus Rapid Transit system 4. Untapped Energy – Waste Water Purification and power generation utilizing of biogas (digestive gas) 5. Untapped Energy – Solid Waste Biomass generation from kitchen garbage 6. ICT Control LED Optimum management and energy conservation of the street lights through LED lighting

16. 16 1. Buildings 16 -Starting of the measure implementation in 2015 -Target number of buildings at 50% of new construction buildings -Expected implementation rate at 50% of target number of buildings -Expected CO2 reduction ratio with 25% reduction for common building Most of the buildings resulted in B+(Good) ～ B-(Slightly poor) → Ranked in Modern CO2 reduction is possible by increasing the buildings ranked in S: Eco-Friendly and Sustainable Development of Assessment System/ Tool for Built Environmental Performance Step 1 Step 2 Administrative procedure of Assessment system Step 3 Action plan of environmental public building construction Approx. 11,764 tCO2/year (6%) reduction from BAU Results of the site survey in Da Nang City based on CASBEE* system *CASBEE: Comprehensive Assessment System for Building Environmental Efficiency (JSBC in Japan) ContentsCASBEE system Total CO2 Reduction Volume 11,764 tCO2/year

17. 17 2. Transportation-Motorcycles Share of means of transportation in Da Nang City in 2010 Share of means of transportation in Da Nang City in 2030 Shift to Electric MC Shift to BRT Policy1: Diffusion & Educational Activities Policy2: Preferential Treatment concerning Taxes & Subsidy for Purchase Policy3: Parking Areas for Electric Motorcycles ContentsShift to Electric MotorcycleDescription Total CO2 Reduction Volume 57,483 tCO2/year Shift from gasoline to Electric Motorcycle

18. 18 3. Transportation-BRT ContentsShift to BRTDescription Total CO2 Reduction Volume 28,515 tCO2/year Shift from car & motorcycle to BRT

19. 19 4. Untapped Energy - Waste Water Population = 370,142 (Ngu Hanh Son District (Y2030)) (A) Reduction of CO2 emissions when generate electricity using the methane recovery (B) CO2 Reduction due to be recovered methane + Contents(A) Generator(B) Digestion Tank CH4 Volume1,770.0tCH4/year CO2 Conversion37,170.0tCO2/year Generation Volume4,765,267.4kWh/year → /2,112kWh = 2,260 Household CO2 Conversion2,578.0tCO2/year Total CO2 Reduction Volume 39,748 tCO2/year

20. 20 5. Untapped Energy - Solid Waste Population = 370,142 (Ngu Hanh Son District (Y2030)) CH4 CO2 ＝ (A) Suppress the naturally occurring methane gas from the landfill (B) To power generation and purified methane gas from garbage + × × Cut! Contents(A) landfill(B) Generator CH4 Volume1,757.0 tGH4/year CO2 Conversion21,085.0 tCO2/year Generation Volume48,462.0 kWh/year → /2,112kWh = 23 Household CO2 Conversion8,783.0 tCO2/year Total CO2 Reduction Volume 29,868 tCO2/year

21. 21 6. ICT Control LED - Optimum Management and Energy Conservation of Street Lights (A) Replacing the existing street lights to LED(B) Smart street lighting system ContentsCO2 Reduction Total CO2 Reduction Volume 327 tCO2/year

22. 22 1.The CO2 reductions by the six countermeasures when implemented will total 54.1kt-CO2 in 2020 and 167.7kt-CO2 in 2030. 2.The total amount of CO2 reductions (161kt-CO2) in 2030 consists of: (1) 57.5kt by electric motorcycles (2) 39.7kt by CH4 use (wastewater) (3) 29.9kt by CH4 use (solid waste) (4) 28.5kt by BRT (5) 11.8kt by EES of buildings (6) 0.3kt by ICT Control - LED Estimated CO2 reductions by the six countermeasures when implemented to Ngu Hanh Son District over the period of 2015 to 2030. Unit: t-CO2 Year BS-H emission s Reductio ns target CO2 Reductions by 6 countermeasures EES of buildings Electric motor cycle BRT Waste Water Solid Waste ICT Control LED Total % of BS- H Level 201095,722000000000.00 2015157,75914,14053492100001,4550.92 2020282,79528,2802,6728,8806,35425,86910,2655754,09719.13 2025507,57590,1446,94833,36617,05235,11819,339327112,15122.10 2030760,044152,00911,76457,48328,51539,72229,868327167,68022.06

23. 23 1.In comparison with the proposed reductions targets in accordance with the National Green Growth Strategy (NGGS), the CO2 reductions expected will total: ■ 19.2% of the BAU scenario emissions in 2020 (Target: 10%) ■ 21.2% of the BAU scenario emissions in 2030 (Target: 20%) The NGGS target (30% reductions) in 2030 consists of: (A) 20% reductions by voluntary effort (B) 10% reductions by international support 21.2% + Just over the target [additional] Roadmap for reducing CO2 by implementing the six countermeasures to Ngu Hanh Son District towards 2030.

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