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Laguna De Bay Carbonshed Project Idea:
A Demand-Driven, Umbrella Approach to Community Carbon Finance
for Environmental Projects
Erosionand Siltation
Pollution(organic, nutrients,
solid waste)
PollutionReduction and
Treatment
Watershedrehabilitation
Key Issues inLaguna de Bay
Global Benefits
CO2
CH4 N2OCO2
sequestration
emissions reductions
Actions
Small scale watershedenvironmental projects.
Community participation inidentification of
environmental prioritiesand projects.
Reduced transaction costs through national intermediaries
LLDA: technical intermediary.MDFO: financial intermediary.
Should reduce transactioncosts by exploring the use of intermediaries
and streamlined procedures.
Projects must benefit communities
and theirlocal environment.
Focuses exclusively onsmall scale projects.
CDCF Carbonshed Project
LISCOP (component 1) Small scale watershed environmental projects
Financing Planning
LGU-NGCost sharing
MDFOFinancial
Intermediary
250 million PhP
Siniloan Tanay Pillila Binan……..
25-50 projects (5 million-10 million PhP each) in up to 24 microwatersheds
River CouncilsParticipatory
Multi-stakeholder
LLDATechnical
Intermediary
LEAPCharacterization Priority setting
Project Identification & Development
CDM eligible projects(Carbonshed projects) Other projects
24 microwatershedsCERs
Project TypesExample
subprojectMicrowatershed Potential GHG
emissions reduction for individual project
Waste treatment
Pig waste biogas Siniloan,
Pagsanjan-Lumban
2,000 ton CO2/yr
Erosion reduction
River bank vegetation
Pagsanjan-Lumban, Tanay
4,000 tons CO2/yr
The total amount for the bundled projects will depend on choice of and demand for subprojects:
Expected: 9,000 tons CO2/yr - 60,000 tons CO2/yrMaximum: 150,000 tons CO2/yr
Baseline Methodology and AdditionalityFor Small-scale Projects
Methodology: Streamlined CDM procedures for small-scale projects. Exist for some proposed subprojects (biogas), may have to develop for others. Would be incorporated as part of LEAP process and included in PDD.
Additionality: Follows small-scale additionality rules, including one of the following:
a. Investment barrier.b. Technological barrier.c. Barriers due to prevailing practice.d. Other: institutional, limited information, managerial or organizational
resources, financial resources, capacity to absorb new technologies.
Would be incorporated as part of LEAP process and included in PDD.
Indicative Project Preparation Schedule
2003 2004 2005 2006 Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
LISCOPSubproject preparation
and implementation
CDCF project cycle
PIN= Project Idea Note
PDD= Project Design Document
ERPA= emissions reductions project agreement
CDCF due diligence
Validation Verification and Certification (continues until 2017)
Construction and implementation (continues until 2017)
4 microwatersheds plans
Subproject agreements signed
ERPA negotiation and signing
PDD preparationPIN
20 remaining microwatershed plans
Prepare baseline, monitoring and verification
Signed and future agreements will be covered by ERPA
Feasibility studies
agreed monitoring and verfication protocol
Representative Subprojects:Pig Waste Biogas Project
HOG FARM WASTE GENERATION IN LAGUNA DE BAY(kgs/year)
1,200 kg/yr
7 backyard piggeries2 commercial piggeries
coconut arearice area
19 households
8,100 kg/yr
23 backyard piggeries19 commercial piggeries
52 households
7,900 kg/yr
34 backyard piggeries14 commercial piggeries
coconut area
176 households
Lu
cb
an
ri
ve
r
Initian
Creek
Majayjay
River
Balanac River
Laguna de Bay Organic Waste LoadingFrom Majayjay
Communal Pig Waste Biogas DigestersProject basicsCost 9.8 million PhP20 LGU-run biogas reactors for backyard piggeries2 LGU-run biogas reactors for commercial piggeries
Baseline: Disposal of waste using current practices without collection of methane.
Emissions reduction: Reduction of methane and N2O emissions from waste and replacement of current cooking fuel use.
Small-scale additionality test:Prevailing practice is no treatment or treatment using lagoons. Biogas collection is very uncommon and not mandated by regulations.Other: Lack financial resources with complementary technical and information support.
Environmental Benefits # of biogas
systems
Waste treatment
(% of pollution from piggery
type)
GHG
emissions reduction (Tons CO2 equiv/yr)
Annual revenues for LGUs and
communities
(PhP/yr)
Backyard piggeries
20
(90 pigs/system)
100%
of pollution from backyard piggeries
198 50,000
Commercial piggeries
2
(5800 pigs/system)
18%
of pollution from backyard piggeries
1,255 314,000
Total 22 17%
of pollution from piggeries in Majayjay
1,453 364,000
Community Benefits• Reduced odors, improved sanitation.• Cost savings from fuel use.• 364.000 PhP/yr of revenues from ERs can be reinvested by LGUs in environmental activities in community.
As the UMBRELLA CONCEPT is an INNOVATIONfor the CDCF, the decision on how this approach or alternativeapproaches would be undertaken will be discussed and agreedwith the CDCF and the Philippine counterparts as part of the
project preparation.
The project will act as a pilot for LdB watershed and a demonstration for other watersheds within the Philippines and therefore catalyze more emissions reductions in the country.
Project Idea Summary
• CDM-eligible investments in sustainable development at the community level.
• Reduces transaction costs through umbrella approach.
•Community ownership through demand driven, participatory approach.
• Brings benefits of CERs to communities.
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