What is the project about?
The energy sector is by far the largest contributor of total greenhouse gas (GHG) emissions in the country yet it holds a higher potential for emissions reduction due to an increase in building energy efficiency. The building sub-sector alone contributes to over 11% of the overall carbon dioxide (CO2) emissions which is higher than that from the other sectors (INDC and SNC). Mongolia’s GHG mitigation policy is primarily directed towards burning coal by more environmentally friendly technologies. At the same time, it is focusing on the efficient use of the electricity and heat produced from coal burning, in particular through the use of energy efficient appliances and equipment and on reducing heat losses in buildings. While the use of renewable energy sources for electricity and for heat supply is also a relevant GHG reduction strategy for the country, number of related interventions is limited at the moment. Currently the GHG savings and the cost-benefits of low carbon interventions in the building sector are not systematically quantified in Mongolia and their benefits remain unclear and done on ad-hoc basis. Despite that, there is dearth of data on energy consumption and GHG emission from end-users. Major challenges persist in measuring and monitoring the energy consumption and identifying the reference baseline, which are particularly noticeable when it comes to attract financing for scaled investments in energy efficiency measures, achieving 100% compliance, and to go beyond code.
What are the project goals?
In order to fill these gaps, the Nationally Appropriate Mitigation Actions (NAMA) in the construction sector in Mongolia project is designed to facilitate market transformation for energy efficiency by removing barriers to increased adoption of energy efficient technologies in the construction sector.
The project aims to create a comprehensive policy framework that supports building energy efficiency through development of national baselines, GHG inventory & MRV systems, prioritization of mitigation actions and proposed financial scheme for the energy efficient technologies on the basis of Marginal Abatement Cost Curves (MACC). It will systematically quantify GHG savings and benefits of the mitigation interventions in the building sector. Furthermore, such a framework will open up new opportunities to access regional and international climate funding for low carbon interventions in the building sector.
NAMA project’s three overarching outcomes are as follows:
1. Established baseline energy consumption and greenhouse gas emission in the building sector
2. Developed and implemented appropriate mitigation actions in the building sector
3. Developed Measurement, Reporting and Verification (MRV) system for NAMA in the building sector
Activities and results
1. Establishment of Baseline Energy Consumption and GHG Emission in the Construction Sector
- Design and complete capacity building development programs for decision makers and agencies on data collection and sustainable operation of the GHG inventory systems
- Establish and operationalize energy consumption and GHG inventory system for the construction sector with improved data availability and methodology
- Define and establish reference baseline on energy consumption and GHG emission for the construction sector
- GHG inventory methodology is developed. The methodology enables to measure emission reductions that would result from the implementation of EE measures in the buildings, on pre and post measurement basis. It also enables to create a standardized baseline for the building sector in Mongolia. Furthermore, the methodology will be reviewed by an inter-ministerial science and technological committee of MCUD, MET and MOE; and legalized by a decree by the minister of urban development and construction.
- GHG inventory web-based system is developed. The inventory web-system will be the main repository of GHG emission data from all buildings in Mongolia and MRV activities of EE projects and programmes that will be implemented in the construction sector in the future. This will enable the government and the private sector to access to funds from international donor funds on climate change. It will also help to create a public awareness on building energy efficiency.
- Training modules targeting decision makers and technical staff on the imperative of data collection, establishment and operation of GHG inventory system were developed. The capacity building trainings were organized on 14-16 March 2018 and 27-28 June 2018 in Ulaanbaatar, led by NIRAS, the international consultancy team and supported by the national consultants and the PMU. As a result of the training, participants gained knowledge on essential concepts on inventory, QA/QC concept, data requirements and equations for calculations of emissions from buildings and associated data providers. From a knowledge perspective, the participants have acquired very good understanding on the estimation of emission reductions from implementing the NAMA in the building sector.
2. Development and Implementation of NAMA in the Construction Sector
- Develop framework for evaluating appropriate climate change mitigation interventions; and identify priority climate change mitigation actions
- Complete operational structure for coordination among government agencies and key stakeholders for NAMA
- Complete capacity development of private and public-sector actors on successful development and implementation of NAMAs; and in the supportive identification of financing options
- Develop and implement construction sector pilot NAMA
- Develop financial tools that support the implementation of NAMA in the construction sector
- Methodology and the tool on marginal abatement cost curves (MACC) was developed. Detailed marginal abatement cost curves were developed for the EE technologies identified through the TNA report. These include high efficiency boiler, improved insulation, triple glazed windows, improved ventilation with heat recovery system, solar panel and efficient lighting. With some limitations, preliminary findings from the MACC model shows that efficient lighting and ventilation systems are the most economically viable technologies, however their emission reduction potential was not significant to compare with the improved insulation measures.
- The project executive board approved on May 30th, 2018 the list of 5 prioritized NAMA in the construction sector to be supported and implemented by the project as energy efficient demonstration projects. The selected demonstration projects are:
- School building retrofit in Gobi-Altai province, Jargalan soum. EE measures are roof renovation and indoor heating system renovation;
- Construction Development Center laboratory building retrofit. EE measure is outer wall insulation;
- Soum central heating system renovation in Dundgobi province, Erdenedalai soum. EE measures are high efficiency boiler, insulation of heating pipeline, installation of the water softener equipment, heat meters, pump and its frequency convertor controlling systems;
- MUST new laboratory building. EE measures are triple glazed windows, installation of mechanical ventilation system with heat recovery, solar panel, collector system with automated and adjusted valve, heat meter and automate to the heating substation;
- ERC new office building. EE measures are solar panel module with smart system, triple glazed window with Low-E on the glass façade and shading systems.
- Training modules on the MACC tool and EE financing schemes were developed. The capacity building trainings were organized on 20-22 March 2018 and 16 August 2018 in Ulaanbaatar, led by NIRAS, the international consultancy team and supported by the national consultants and the PMU. The training has cultivated a technical understanding of the marginal abatement cost curve, how to use it and its value in the energy efficiency and buildings sector in Mongolia and raised an awareness of what the financial tools are for energy efficient buildings and construction and how they can be used, including how they can be applied to the NAMA context. Furthermore, it has helped the participants to brainstorm the perspectives on how to make investment in energy efficiency in buildings a priority and how to (1) develop projects in this sector and (2) make them bankable.
3. Measurement, Reporting and Verification (MRV) system for NAMA
- Define key indicators (GHG and non-GHG) to be monitored for the selected mitigation actions
- Develop and implement accurate MRV system for the construction sector NAMA
- Design and complete capacity development in the implementation and institutionalization of the MRV system
- Key GHG and non-GHG parameters and indicators were identified and agreed on five required indicators for construction sector NAMAs as:
a) GHG emission reduction in buildings (tCO2eq/year);
b) Specific CO2 emissions for the whole building (tCO2/m2/year);
c) Primary energy use (kWh/m2/year);
d) Indoor environment quality (CO level, Indoor air temperature, humidity, installed ventilation system);
e) Gender and children (number of children, females and males).
- Training module on the MRV system was developed and the capacity building training was conducted on 29 June 2018 in Ulaanbaatar, led by NIRAS, the international consultancy team and supported by the national consultants and the PMU. The training helped the participants to gain knowledge on essential concepts on MRV system and offered a platform for discussion on the institutionalisation of inter-institutional cooperation to enable monitoring and reporting in the building sector. Participants were able to identify relevant institutions/ministries for sourcing the data and reporting on the results of the NAMA.