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FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE

Presented by Iftekhar Enayetullah. Presentation on Design, Implementation and Monitoring of Waste Sector CDM Projects: Experience of Waste Concern in Bangladesh, Sri Lanka and Vietnam. FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE

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FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE

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  1. Presented byIftekhar Enayetullah Presentation on Design, Implementation and Monitoring of Waste Sector CDM Projects: Experience of Waste Concern in Bangladesh, Sri Lanka and Vietnam FIRST CAPACITY BUILDING WORKSHOP ON CLEAN DEVELOPMENT MECHANISM (CDM) UNDER CD4CDM INITIATIVE Date: 8-9 April, 2008 Venue: LGED Bhaban, Dhaka web: www.wasteconcern.org

  2. Presentation Outline • Background of the Waste Sector CDM Project • CDM project cycle • How the project is implemented • What aspects needs to be monitored for CDM • Examples of projects from Vietnam and Sri Lanka web: www.wasteconcern.org

  3. Baseline Situation CDM project Methane Emission (Green House Gas) No Methane Emission City Authorities Collecting transport Waste Composting Plant Existing Practice: land filling of waste Starting from 100 Tons/day capacity and within 2 years reaching 700 Tons/ day capacity The project is recycling organic vegetable waste and instead of disposing in landfill, it is converted Into compost. Waste Concern is involved in the design, implementation and now monitoring of the project

  4. MAJOR PORTION OF WASTE IS ORGANIC www.wasteconcern.org

  5. URBAN WASTE GENERATION (Tons/ day) IN BANGLADESH • 1995: 10,742 tonnes/day • 2005 : 14,000 tonnes/day • 2025: 47,064 tonnes/day (estimated)

  6. Methane Gas Emission is being measured by the expert of the Royal Haskoning of the Netherlands and Waste Concern by land fill gas analyzer at the Matuail Waste Disposal site of Dhaka City Corporation

  7. Obtained UNFCCC approval on Sept 2005 www.wasteconcern.org

  8. CDM Project Cycle Identification of project and development of project concept note Development of Project Design Document Project developer Includes: Project Description Select baseline approach and assess additionality Project developer Set baseline emission level and crediting period Calculate net emission reductions Develop a monitoring plan Assess environmental impacts Invite local stakeholders for comments Host Government (National Authority) Host country approval Submission of the PDD and host country approval to validator Project developer Make PDD publicly available for 30 days Operational Entity Validation of Project Operational Entity Submission of validation reports and Project Design Document CDM Executive Board Registration with the CDM Project implementation and monitoring Project developer Project developer Verification and certification Operational Entity Host Government Possible review by the CDM Executive Board Operational Entity CDM Executive Board Issuance of CERs to project developers CDM Executive Board Waste Concern Waste Concern WWR WC, WWR, FMO and Triodos of NL

  9. Development of CDM Activities in Bangladesh 7 January 2004 DCC gives NOC for preparation and implementation of the projects under CDM WC submits two CDM Projects to National CDM Committee for LFG Recovery (LFG & Composting) along with commitment letter of Dutch investor. 29 February 2004 18 April 2004 National CDM Committee approved the projects 8 August 2004 National CDM Board headed by the PM office gives final approval of the project. 17 Sep 2005 First CDM Project of WC (Landfill Gas Extraction and Utilization) Registered with UNFCCC. DCC’s Signs 15 years Concession Agreement for the 700 tons/day capacity compost plant 24 Jan 2006 Second CDM Project of WC (700 ton capacity compost plant) Registered with UNFCCC (after development of a new methodology AM 0025) 18 May 2006 16 May 2007 Compost Project Registered from Board of Investment (BoI) Environmental Clearance (IEE) from DoE for Construction (Site Clearance) August 2007 Trail Production and Monitoring started and full production by June 2008 Construction Process of Compost Plant Started November 2007 Nov 2007 March 2008

  10. Project based carbon trading (CER/VER) between industrialized and developing countries Dutch Company WWR and Banks, FMO and Triodos CDM investment $$ Industrialized country Emission reduction credits (CER) Project Reducing GHG emissions in Dhaka web: www.wasteconcern.org

  11. Mode of investment for the project CASH upfront for project preparation EQUITY+LOAN (WWR, FMO and Triodos) LOAN Local currency Project Cost: Total Euro 12 million 8,90,000X18=16.02 million in 10 years web: www.wasteconcern.org

  12. PARTNERSHIP MODEL UNDER CDM PROJECT International Market CER ( carbon credits) Rural Farmers Compost Project Investment Harnessing CDM BOI Organic Waste COMPOST PLANT Joint Venture of WC, WWR, FMO & Triodos Bank of NL Urban Population CDM Board Project Approval • Direct Collection from Vegetable markets • Paying CBOs/NGOs for waste delivery • Promoting source separation and community participation DCC Giving concession agreement for15 years Attracted 12 million Euro PUBLIC PRIVATE COMMUNITY www.wasteconcern.org

  13. How the project is implemented Waste Bins Demountable Containers Collection Transportation Landfill PROBLEMS • Green House Gas Emission • More Land Required for Landfill Concession Agreement with D.C.C Collection of Organic municipal waste from vegetable markets using our own collection system 700 tons/daySaving of waste collection cost for D.C.C for 2,55,500 tons waste/yr Compost Plant ( land and plant belongs to Company) 700 tons/day Production capacity: 175-210 tons per day Employment: 800 person, specially women Emission reduction: 89000 tons CO2/ yr. 700 tons/day Saving 2,81,050 m3 land filling avoided per year Saving of disposal cost at dumpsite by avoiding 2,81,050 tons per day. Compost Initially 8000 tons/year and reach 50,000 tons/year (Cheaper than chemical fertilizers) No investment from public agency in this project Rural Areas (Farmers) www.wasteconcern.org

  14. www.wasteconcern.org

  15. Unloading platform Reception, sorting & mixing Entrance Basic Layout Storage (roof) Enrichment Screening I Offices & workers building 1st phase composting (Roofed) Screening II Maturing (not -roofed) www.wasteconcern.org

  16. How the CDM Project is helping the city and the poor Input Process Output • Collection (Organic Waste From Markets) • Aerobic Composting • Compost (50,000 tons/year) • Carbon Credits (89,000 ton Co2e) • Saving Landfill Area • Saving DCC cost Pro-poor element Pro-poor element Pro-poor element • 700 tons/ day of waste collection Starting from 100 tons/day • Cheaper • Less Irrigation • Soil Quality Improved • Higher Yield • Leads to higher income • Creating 800 new jobs • Focusing Waste Pickers • Health Insurance • Daycare Center • Free Meal • Job Creation 400 new jobs

  17. Before-After: Waste Collection System Improved Covered Collection Present Collection Practice

  18. Parameters to be Monitored During Implementation Weighing of Waste Input

  19. Process Quality Control Regular Oxygen Monitoring

  20. Parameters to be Monitored During Implementation Temperature Control

  21. Aerobic Composting System

  22. Parameters to be Monitored During Implementation Regular Oxygen Monitoring

  23. Safe Working Condition

  24. Replication of Waste Concern’s Decentralized Composting Model in Vietnam and Sri Lanka With the support from UNESCAP, Waste Concern successfully replicated it small scale (3 tons/ day capacity) compost plants in the Quay Nhon City of Vietnam and Matale City of Sri Lanka. Later both the cities are requesting Waste Concern to bundle these small scale plants for their respective cities. Quay Nhon City, Vietnam generates= 80 tons/day (60% organic) Matale City of Sri Lankagenerates= 30 tons/day (60% organic)

  25. Transaction Cost for CDM Based Projects For small-scale CDM project the total upfront transaction cost is estimated as US $ 25,000 to 40,000.

  26. Community Based Composting Initiative Qyay Nhon City, Vietnam Front View of the compost plant Perforated bottom and side walls of the compost box Rear view of the compost plant Maturing bed of the compost plant

  27. Community Based Composting Initiative Matale City, Sri Lanka Community Mobilization Special containers for waste collection Side view of the compost plant at Matale City

  28. Bundling CDM Projects Sri Lanka and Vietnam One single CDM project Bundling organization VER/CER to Investor Multiple small scale composting projects

  29. Project Cycle for VERs PROJECT INFORMATION NOTE (PIN) Cost for the preparation of PDD and Validation is bourn by the buyer VALIDATION IMPLEMENTATION VERs

  30. Global Impact Reducing Green House Gas Complying with the MDG Attracting Foreign Direct Investment (FDI) Reducing poverty by creating jobs for urban poor Reducing ground and surface water pollution thus reducing health hazards Reducing Solid Waste Management cost of municipalities Promoting PPCP an investtments Improves the quality of life of the city Providing safe and better working condition for the informal sector IMPACT OF THE PROJECT Raises public awareness on Solid Waste Management and recycling Enhancing the life of the Dumpsite Local Impact www.wasteconcern.org

  31. Mitigation-Adaptation Loop Mitigation Adaptation

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