Appendix

1. Carbon Value Proposition

The Phichit Provincial Biomass Platform generates high-integrity, measurable, and verifiable climate impact by addressing two structurally persistent emission sources in Thailand:

1. Open burning of agricultural residues (rice straw and sugarcane leaves)

2. Fossil-fuel-based grid electricity displacement

By diverting biomass from open-field burning into controlled energy generation and organic composting, the platform delivers real, additional, and permanent emission reductions with strong co-benefits for air quality, soil health, and rural livelihoods.

This dual-impact profile positions the project well for results-based climate finance, voluntary carbon markets, and DFI-aligned blended-finance structures.

2. Sources of Emission Reductions

2.1 Avoided Open Burning (Primary Driver)

Open burning of rice straw and sugarcane residues is a dominant source of:

• CO₂

• CH₄

• N₂O

• PM2.5 and black carbon

By collecting and utilizing 342,968 tons/year of biomass, the project avoids uncontrolled combustion emissions that would otherwise occur during post-harvest seasons.

Indicative emission reduction factor:
~1.2–1.4 tCO₂e per ton of biomass (conservative, ex-ante basis)

Estimated avoided emissions:

• Phichit North Cluster: ~220,000–240,000 tCO₂e/year

• Phichit South Cluster: ~210,000–230,000 tCO₂e/year

Total provincial impact:
~430,000–470,000 tCO₂e per year

2.2 Fossil Fuel Displacement (Secondary Driver)

Electricity generated from biomass power plants displaces grid electricity with a fossil-fuel component.

• Total installed capacity: 21.43 MW

• Baseload renewable generation

• Grid emission factor applied in accordance with registry methodology

This component strengthens eligibility under renewable energy and industrial decarbonization frameworks, particularly for corporate offtakers with Scope 2 and Scope 3 targets.

3. Carbon Credit Eligibility and Use Cases

The platform is designed to support multiple carbon value pathways, depending on investor preference and market conditions.

3.1 Voluntary Carbon Market (VCM)

Potential eligibility under methodologies related to:

• Avoided open burning of agricultural residues

• Biomass energy for electricity generation

• Integrated waste and residue management

Credits may be used by:

• Corporates with Scope 3 emission reduction commitments

• Buyers exposed to CBAM-related supply-chain pressure

• Companies seeking co-benefit-rich credits (air quality, health, rural income)

3.2 Results-Based Climate Finance (RBCF)

The project is structurally aligned with:

• Results-based payment schemes

• Blended finance instruments

• Output-linked climate facilities

Applicable for:

• DFIs

• Climate funds

• Public-sector clean-air programs

• Development partners supporting PM2.5 mitigation

4. Measurement, Reporting, and Verification (MRV)

The platform is designed for robust, digital-first MRV, ensuring transparency, auditability, and investor confidence.

Key MRV Components:

• Biomass sourcing records (district-level aggregation)

• Weighbridge and warehouse intake data

• Power generation and export meters

• Composting input/output tracking

• GIS-based biomass catchment mapping

• Seasonal baseline comparison against historical burning patterns

MRV architecture is compatible with:

• Third-party validation and verification bodies

• Registry requirements

• Digital MRV platforms for scale-up across provinces

5. Additionality and Permanence

Additionality

• No existing large-scale biomass utilization infrastructure in the targeted districts

• Open burning remains the prevailing baseline practice

• Project viability depends on coordinated infrastructure and long-term offtake agreements

Permanence

• Long-life physical assets (power plants, composting facilities)

• Multi-year farmer supply contracts

• Recurring revenue from energy, compost, and logistics

• Embedded community participation, reducing reversal risk

6. Co-Benefits and Impact Premium

Beyond carbon, the platform delivers high-value co-benefits, increasingly demanded by premium carbon buyers and DFIs:

• Significant PM2.5 reduction and public-health impact

• Soil regeneration through organic compost application

• Reduced chemical fertilizer dependency

• Stable, predictable rural income

• Local green job creation

These attributes support impact-weighted pricing and long-term buyer relationships.

7. Investor Relevance

For investors and climate financiers, the carbon component of the Phichit platform:

• Enhances project bankability

• Improves downside protection through diversified revenue streams

• Enables participation in carbon-linked upside without speculative exposure

• Supports alignment with:

  • Net-zero mandates

  • Climate impact reporting

  • ESG and SDG frameworks

The provincial, cluster-based design allows carbon aggregation at scale, enabling future portfolio-level monetization across multiple provinces.