V I E TN A M GREENHOUSE GAS MITIGATION TRANSPORT SECTOR 58032 Overview of Sector Vietnam's growing economy relies heavily on its transport infrastructure for a variety of Vietnam Transport Sector At-a-Glance purposes, from meeting the daily needs of its Transport Infrastructure: Fuel use (2005): people, to supporting tourism and trade. Since Roads: 222,179 km Gasoline: 2,797 kTOE the late 1980s, development of the transport Railways: 2,600 km Diesel oil: 3,016 kTOE Inland waterways: 31,841 km Fuel oil: 1,146 kTOE sector has grown at unprecedented rates. Jet fuel: 519 kTOE Between 2000 and 2006, passenger transport Vehicles: volume doubled; freight traffic volume has Motorcycles: Road transport: 5,119 kTOE Number: 21.7 million in 2007 Inland waterways: 151 kTOE increased by 70 percent; and each of the main Growth: 2.9 million / yr (21% /yr) Railways: 241 kTOE forms of transport (road, railway, aviation, Aviation: 519 kTOE inland waterways, and maritime) has steadily Cars, trucks and buses: Maritime: 1,448 kTOE Number: 1.1 million in 2007 increased in volume. Growth: 124,000 / yr (17% /yr) Volume of Passenger Traffic (left) and Freight Traffic (right) by Mode of Transport Source: Vietnam Statistical Yearbook 2007. Transport Modes With over 200,000 kilometers of roads and nearly 25 million vehicles, road transport dominates both passenger and freight traffic. In 2006, road transport accounted for 89 percent of the total number of passengers carried and 68 percent of the total freight volume. This reliance on roads combined with the country's rapid economic growth has since 2002 caused a doubling in the number of motorcycles and the near doubling of the number of other vehicles to the 2007 levels of 21.7 million and 1.1 million, respectively. The next most prevalent type of transport system is Vietnam's 31,841 kilometers of inland waterways, which historically provided and currently provide an important mode of transport. The country also has 2,600 kilometers of railway and maritime shipping routes, which presently play a lesser role. Sources: CDM Guidebook 2004 and RCEE/FA estimates2009 Vehicle Ownership in Vietnam (thousands) . Type of 2003 2005 2007 vehicle Cars, trucks, and other 6,750 891 1,106 vehicles Motorcycles 11,379 16,087 21,721 Sources: World Bank 2006 and VRA 2007. Fuel Use and Greenhouse Gas Emissions Estimates from the "Vietnam Initial The total fuel consumption by the transport National Communication" indicated that in sector in 2005 was 7,478 kTOE. The main 1994 greenhouse gas emissions from types of fuel used in transport are gasoline transport amounted to 3.7 million tCO2-e: and diesel oil, which accounted for 37 16 percent of the emissions from energy use percent and 40 percent, respectively. Road and 3.5 percent of the country's total transport is by far the largest fuel consumer emissions. Transport emissions have been in the sector. The total fuel consumption by growing and are expected to continue to road transport in 2005 was 5,119 kTOE, grow significantly due to the sector's which accounted for around 69 percent of reliance on fossil fuels and the increasing the sector's total fuel use. The second largest levels of total fuel used in each of the main fuel consumer, maritime transport, forms of transport (road, railway, aviation, accounted for 19 percent. inland waterways, and maritime). The predominance of road transport, which uses Share of Energy Use by Fuel and Mode of a large quantity of fuel per person and per Transport (%) in 2005 ton of freight, has exacerbated these trends. In addition to the mix of transport modes Maritime used, the major factors affecting the impact 19.4% of this growth on current and future greenhouse gases are the quality and Av iation quantity of vehicles and their supporting 6.9% infrastructure and the type of fuels used and Railw ays Roads 3.2% 68.5% their efficiency. Inland waterways 2.0% Jet fuel 6.9% FO 15.3% Gasoline 37.4% DO 40.3% Sources: CDM Guidebook 2004 and RCEE/FA estimates2009 Potential Mitigation Measures for 2010 to 2015 Modal shift. Shifting from modes of transport with high emissions per passenger Reducing consumption of fuels, switching or ton of freight to modes with lower from high- to low-carbon fuels, and emissions could include (a) changing from improving the energy and operating roads to railways or from roads to inland efficiencies of the traffic fleet can all waterways, and (b) reducing use of private mitigate Vietnam's GHG emissions from cars and motorcycles and increasing use of transport. Specific examples of potential public transport, including establishing bus mitigation measures include the following: rapid transit (BRT) systems. Vietnam is heavily dependent on roads for passenger and freight transport, and increasing use of inland waterways for both offers national- level opportunities for cutting emissions. The overall potential from this modal shirt is 2.2 million tCO2-e per year, a portion of which could be captured in a well-designed intervention. BRT public transport options in the major cities of Hanoi and Ho Chi Minh, when combined, have a potential to reduce emissions by up to 600,000 tCO2-e per year. Fuel switch. Options include switching from liquid to gaseous fuels (CNG or LPG), use of biofuels, or use of electric energy. Vietnam has 47 cities in which vehicles using alternative fuels could be introduced. The combined potential GHG emission reduction for these cities is between 400,000 and 4 million tCO2-e per year, depending on the type of fuel adopted. Biofuels, if produced in a way that minimizes Efficiency improvement. The poor greenhouse gas emissions from land-use condition of the transport infrastructure change and processing, could potentially causes traffic congestion and reduces the reduce greenhouse gases in Vietnam by average speed of road vehicles. between 500,000 and 2 million tCO2-e per Development or rehabilitation of elements year, depending on the type of biofuel and of the transport infrastructure, such as the blending ratio with gasoline or diesel. bridges, fly-overs, intelligent traffic signals, toll roads, and improved road maintenance, can reduce congestion and increase and regulate average vehicle speed, helping to reduce GHG emissions per distance (kilometer) driven. Emission reductions from different interventions in transport sector transport sector Emission reductions from different interventions in million tCO2-e/y 4.50 Electric motorcycles (47 city potential) 4.00 Electric motobike (47 cities) CNG car (47 cites) Em CNG car (47 city 3.50 Electric car (47 cities) issi potential) on Biofuel-B20 (5.8 bill L/yr) red Electric car (47 city ucti 3.00 Freight Road to railway (16 billion potential) ons ton-km) Biofuel- (5.9 bill L/yr) Biofuel-E20B20 (5.8 bill L/yr (tC potential) O2 2.50 Freight Road to water way (16 e billion ton-km) per Biofuel-E10 (5.9 bill L/yr) 2.00 Frieght road to railway (16 billion -km yea ton potential) r) BRT HCM (120,000 passenger/dy) Biofuel E20 (5.9 bil L/yr potential) Biofuel-B10 (5.8 bill L/yr) 1.50 Freight road to waterway (16 billion -km ton potential) LPG car (47 cities) 1.00 Biofuel E10 (5.9 BRT Hanoi (320,000 bill L/yr) passengers/dy) BRT HCM (320,000 passengers/dy potential) Biofuels B10 (5.8 bill L/yr 0.50 potential) (47 city LPG car potential) BRT Hanoi (120,000 passenger/dy potential) 0.00 0% 20% 40% 60% 80% 100% % of sector potential Note: Estimates based on annual reductions during 2010-2015 Contact Information References Ministry of Natural Resources GSO. 2007. Vietnam Statistical Yearbook. Hanoi: Government and Environment (MoNRE) Statistical Office. TUV Rheinland Group, DEGmbH, and RCEE. 2004. CDM Guidebook. 83 Nguyen Chi Thanh UNFCCC. 2003. "Vietnam Initial National Communication under Dong Da - Ha Noi, Vietnam the UNFCCC." VRA. 2007. "Urban Air Pollution Caused by Transportation and Motorcycles: Emissions Control Solutions for Major Cities." Phone: Proceedings of "Conference on Motorcycle Emission Control: Ph: (84-4) 3775-9385 Vietnamese and International Experiences," Hanoi, Vietnam, March 8. World Bank. 2006. "Vietnam Transport Strategy: Transition, E-Mail: Reform, and Sustainable Management." Washington, DC: World Bank. vnccoffice@fpt.vn Contact Information Ministry of Natural Resources and Environment (MoNRE) Technical Assistance provided by Carbon Finance Assist World Bank 83 Nguyen Chi Thanh 1818 H. Street, NW Ha Noi, Dong Da - DC 20433 Vietnam Washington, Phone: Ph: (84-4) 3775-9385