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Opportunities in the Solid Waste Sector for CDM

Julie Godin, Carbon Finance Unit, World BankMay 27, 2010

- A City Wide Approach to Carbon Finance -

Solid Waste Interventions

Landfill (LFG capture, incineration, use)

Waste to Energy (e.g., RFD)

Composting

Recycling

Reuse

Prevention/ Minimization

ACM0001, AMS IIIG

AMS IIIAJ

AM00025, AMS IIIF

AM00025, AMS IIIE

Approved CDM methodologies

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.

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 Fonds D’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.

Citiy Autorities (investor)

DNA

CME

CADF/CPF

World Bank

CDM EB

DOE2

DOE1

Carbon credits buyers

P r i v a t e o p e r a t o r ( i n v e s t o r )

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.

Key Roles of the CPA Implementer: Collaboration to CPA-DD preparation, data collection.

Stakeholders Interactions

Cities Autorities

CME

CPFWorld Bank

Carbon credits buyers

I n v e s t o r ( p r i v a t e

o p e r a t o r )

CERs / Revenues Distribution

Revenues are first allocated to repayment of the investment (private operator or municipality)

CME: management of the PoA, administration fees.

A typical CPA

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First Component of the Program : Oum Azza Landfill

Population : 1,6 M Electricity for a Population:

56,000

28, 000MWh/y

Sorting of recyclablesby waste pickers cooperative

Sorting : Organic fraction to compost

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.

Thank you

Julie Godin, jgodin@worldbank.org

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.

Recycling Methodology Development Urban Solid Waste Management Project, Buenos Aires, Argentina

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.

Recycling CDM MethodologyObjectives:• 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).

Source: US EPA, 2006, solid Waste management and GHG, a LCA of emissions and sinks

Baseline: Energy consumed for the production of material using virgin inputs

Project activity : Energy consumed for the production of material using recycled inputs

Recycling Project

BASELINE

Ethylene production

Electricity

HDPE/LDPE pellets Manufacturing

Finished products (e.g. bags)

Polymerization

Natural gas for cracking

Emission Reductions = Baseline – Project activity

MSW transport

PROJECT ACTIVITY

Intermediate or finished plastic

products

Electricity/ Fossil fuel

Recycling facility:conveyors, washing

and drying

Processing and Manufacturing

Segregated HDPE/LDPE

Electricity