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Opportunities in the Solid Waste Sector for CDM

Opportunities in the Solid Waste Sector for CDM. - A City Wide Approach to Carbon Finance -. Julie Godin , Carbon Finance Unit, World Bank May 27, 2010. Solid Waste Interventions. Approved CDM methodologies. Prevention/ Minimization. Reuse. AMS IIIAJ. Recycling. AM00025, AMS IIIF.

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Opportunities in the Solid Waste Sector for CDM

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  1. Opportunities in the Solid Waste Sector for CDM - A City Wide Approach to Carbon Finance - Julie Godin, Carbon Finance Unit, World Bank May 27, 2010

  2. Solid Waste Interventions Approved CDM methodologies Prevention/ Minimization Reuse AMS IIIAJ Recycling AM00025, AMS IIIF Composting Waste to Energy (e.g., RFD) AM00025, AMS IIIE Landfill (LFG capture, incineration, use) ACM0001, AMS IIIG

  3. Sustainable Solid Waste Management Program in Morocco Key facts: • 2009: ± 5 million tons of solid waste (SW) • 2020 (est.):  6.2 million tons • MSW collection rate: 70%, of which less than 15% disposed of in a durable manner • SWM’s share in annual municipal budget expenditures = 15% (± US$200 million) • SWM: a priority on the Moroccan Government policy agenda with a 15-year (2008-2022) national program to reform and modernize the sector • 100% use of sanitary landfills in urban areas and closure/rehabilitation of 300 open dumps.

  4. Morocco: Transformation of the Municipal Solid Waste Sector • Private Sector will play a key role in the reform through PPP (BOT/DBO). • Social consideration is an important aspect of the program. • Appointment of the FondsD’Equipement Communal (FEC), a local Development Bank for municipalities to help cities access carbon markets. • PoA developed by the FEC as the CME for landfill gas capture, flaring and/or utilization (electricity/heat). • Initial focus on 11 main landfills with potential ERs of 750,000 tCO2e/y.

  5. Stakeholders Interactions • Key Roles of the CME: • legal expertise: Definition of the titles, Contractual agreement with the cities and operators, investors. • technical expertise: Feasibility studies, PDD preparation, validation/ registration of the PoA, preparation of PDD for new CPAs, prepare monitoring report. • marketing PoA and share carbon revenues as per the contractual agreements. • CADF/ • CPF • World Bank • Carboncreditsbuyers • DOE1 • CME • CDM EB • DOE2 • CitiyAutorities (investor) • DNA Key Roles of the CPA Implementer: Collaboration to CPA-DD preparation, data collection. • Privateoperator (investor)

  6. CERs/ Revenues Distribution • Carboncreditsbuyers • CPF • World Bank • CME Revenues are first allocated to repayment of the investment (private operator or municipality) CME: management of the PoA, administration fees. • Investor(privateoperator) • Cities • Autorities

  7. A typical CPA

  8. First Component of the Program : Oum AzzaLandfill Population : 1,6 M Electricity for a Population: 56,000 Sorting : Organic fraction to compost Sorting of recyclables by waste pickers cooperative 28, 000 MWh/y

  9. Lessons from the first CPA… • Communication with stakeholders is essential to: • manage expectations • build capacities • develop ownership • Design appropriate structure to create incentives for the various stakeholders (financial, contractual). • Define clear roles and responsibilities.

  10. Thank you Julie Godin, jgodin@worldbank.org

  11. Recycling Methodology Development Urban Solid Waste Management Project, Buenos Aires, Argentina Waste Management Project: • Creation of Resources Recovery Centers (8) operated by waste pickers cooperatives (keep revenues from the sale of the recyclables). • Municipal authority purchased the machinery and provide installation and land. Carbon Finance: • Cover the O&M costs associated with the Resources Recovery Centers. • Carbon Credits are available once the project is registered; on the basis of a verification report.

  12. Recycling CDM Methodology • Objectives: • Development of a small-scale methodology (ERs < 60 ktCO2e/y) based on the LCA concept. • Test the approach for one material (plastic) and proposed a modular (e.g., scope can be expanded to cover other products such as aluminium, glass and paper in the future). Baseline: Energy consumed for the production of material using virgin inputs Project activity : Energy consumed for the production of material using recycled inputs Source: US EPA, 2006, solid Waste management and GHG, a LCA of emissions and sinks

  13. Recycling Project BASELINE Emission Reductions = Baseline – Project activity Natural gas for cracking Finished products (e.g. bags) Electricity HDPE/LDPE pellets Polymerization Ethylene production Manufacturing PROJECT ACTIVITY Electricity/ Fossil fuel Electricity Recycling facility: conveyors, washing and drying Processing and Manufacturing Segregated HDPE/LDPE Intermediate or finished plastic products MSW transport

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