Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) Thailand: Partnership for Market Readiness (PMR) (P128965) EAST ASIA AND PACIFIC | Thailand | Environment & Natural Resources Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2016 | Seq No: 4 | ARCHIVED on 17-Jun-2019 | ISR35805 | Implementing Agencies: Ministry of Finance, Thailand Greenhouse Gas Management Organization (Public Organization) Key Dates Key Project Dates Bank Approval Date:31-Aug-2015 Effectiveness Date:05-Mar-2013 Original Closing Date:31-Dec-2019 Revised Closing Date:31-Dec-2019 Project Development Objectives Project Development Objective (from Project Appraisal Document) The project development objective is to provide selected technical and analytical support to Thailand that informs policydecisions to develop readiness of market-based instruments to reduce greenhouse gas (GHG) emissions in Thailand. Has the Project Development Objective been changed since Board Approval of the Project Objective? No PHRPDODEL Components Name Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  Satisfactory  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Implementation Status and Key Decisions Project implementation is progressing well. Several activities have been completed. These include the development of a measurement, reporting and verification (MRV) system for Energy Performance Certificates (EPCs) scheme, the assessment of the Defined Factories and Buildings (DF&Bs) energy management system and the updated Specific Energy Consumption (SEC) for 11 sectors, and the verification of energy data of selected DF&Bs. In addition, data collection and stakeholder consultation has been completed in 25 municipalities that are now in the process of finalizing the identification of potential GHG reduction activities and technologies and developing their local GHG reduction plans. These project 6/17/2019 Page 1 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) activities will be complemented by a Bank-executed study (also financed by the PMR Multi-Donor Trust Fund) on the “Impact of Carbon Pricing Instruments on National Economy and Contribution to NDC.” These activities will help ready Thailand for possible adoption of emission trading mechanisms and provide recommendations on options for carbon pricing instrument(s) that could help the country achieve its nationally determined contributions (NDCs) to climate change mitigation under the Paris Agreement and evaluate the corresponding policy and economic impacts on stakeholders. Risks Overall Risk Rating Risk Category Rating at Approval Previous Rating Current Rating 6/17/2019 Page 2 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) Overall  --  Moderate  Moderate Results Project Development Objective Indicators PHINDPDOTBL Submission of 2 core Energy Performance Certificate readiness components (target setting methodogy and Monitoring, Reporting and Verification system) for DEDE's policy consideration (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 2.00 2.00 Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments The electronic template for the energy performance certificate (EPC) and the monitoring, reporting, and verification system (MRV) guidelines have been submitted, based on the supervisory of TGO and DEDE. PHINDPDOTBL LocalGHG Abatement Plans for 24 cities submitted to city management to inform city's priority abatement projects (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 24.00 Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments The data collection from 25 municipalities was completed. The guidelines for selecting GHG emission reduction activities have been consulted with concerned stakeholders in 25 municipalities. In addition, the development of City Carbon Footprint (CCF), GHG Abatement plans and project evaluation guidelines as well as the ESMF guideline were completed. However, the identification of potential activities and technologies for GHG emission reduction as well as the GHG emission reduction plans for the local GHG Abatement Plans are in the process of finalizing for formal submission to the city management. In total, the potential emission reduction is estimated as 3,468 - 197,934 tCO2eq. – accounting about 3-54% of the total emission. PHINDPDOTBL Submission of the legal framework recommendations to establish emission trading scheme for TGO Board's consideration (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target 6/17/2019 Page 3 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) Value N N Y Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments Yes, the legal framework for the emissions trading scheme (ETS) was completed in February 2019 and has been submitted for the TGO Board’s consideration. The two key elements of the legal framework recommendations are (1) the GHG reporting law for the emission trading scheme (ETS) and (2) the ETS law itself. Overall Comments Many key activities on the technical and analytical support have been conducted for the readiness of market-based instruments to reduce GHG emissions in Thailand. The template for the Energy Performance Certificate and the Verification (MRV) guideline have been submitted. The guideline for selecting GHG emission reduction activities and the ESMF guideline and impact assessment criteria have been completed for the development of low-carbon city schemes, but the 25 municipality-specific GHG reduction plans are finalizing before their submission to city management. The legal framework for the emissions trading scheme (ETS) was completed in February 2019 and been submitted to the TGO Board. Intermediate Results Indicators PHINDIRITBL Assessment of the designated factories and buildings energy management and specific energy consumption for 11 sectors updated (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments Yes, the updated analysis of the Specific Energy Consumption (SEC) for 11 sectors and their potential for energy consumption reduction was completed in February 2019. 6/17/2019 Page 4 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) PHINDIRITBL Energy data of selected designated factories and buildings verified (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments The 38 participating Designated Factories and Buildings (DF&Bs) were tested for the use of the EPC Template and MRV Guidelines, of which the data submitted by the participating DF&Bs had been employed as a baseline for the consultant to construct the forecasting equation of the energy consumption in the future of each sector. The final report, including verification of the DF&Bs energy data, was completed in January 2019. PHINDIRITBL Legal framework for Energy Performance Certificate (EPC) scheme recommended (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments This is still underway. Similar EPC schemes in India, Korea, Japan, and Australia have been reviewed as part of the development of recommendations to revise Thailand’s Energy Conservation Act to ensure that it provides a compatible legal framework for an EPC scheme. The final report / recommendation by the consultant is expected to be delivered to the TGO by the end of June 2019. PHINDIRITBL Pricing mechanism for Energy Performance Certificate unit recommended (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2018 Comments The recommendation for the proper structure of EPC Sink Fund including the management system, legal framework, source of funding is under preparation. The 4 alternative pricing mechanisms has been proposed for Thailand EPC to set up an appropriate price of Energy Saving Certificate as well as to develop the EPC’s sink fund. The final report is expected to be delivered by the end of June, 2019 6/17/2019 Page 5 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) PHINDIRITBL Local GHG Abadement Guidelines developed (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments Development of the guidelines for selecting GHG emission reduction activities and the ESMF guideline and impact assessment criteria was completed in March 2019 and have been used to help the municipalities identify activities and technologies to inform their reduction plans. PHINDIRITBL Pricing mechanism for Low Carbon City unit and incentives for buyers recommended (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N N Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments The Study on Pricing Mechanism for LCC-TVER credits, and Incentives for LCC Program is under preparation. The final report is expected to be delivered in June, 2019. 6/17/2019 Page 6 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) PHINDIRITBL Legal framework to establish Emission Trading Scheme recommended (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value N N Y Y Date 31-Aug-2015 18-Apr-2018 14-Mar-2019 31-Dec-2019 Comments The legal framework for the emissions trading scheme (ETS) including (1) the GHG reporting law for the emission trading scheme (ETS) and (2) the ETS law itself, has been recommended in February 2019. Overall Comments Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed P128965 TF-12663 Closed USD 0.35 0.35 0.00 0.35 0.00 100% P128965 TF-18769 Effective USD 3.00 3.00 0.00 2.86 0.14 95% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P128965 TF-12663 Closed 16-Nov-2012 05-Mar-2013 05-Mar-2013 31-Dec-2015 31-Dec-2015 P128965 TF-18769 Effective 05-Feb-2016 16-Feb-2016 16-Feb-2016 31-Dec-2019 31-Dec-2019 Cumulative Disbursements 6/17/2019 Page 7 of 8 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Thailand: Partnership for Market Readiness (PMR) (P128965) Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 6/17/2019 Page 8 of 8 Public Disclosure Copy