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Solid-Waste Management and Financing: With Special Focus on CDM. Agus P. Sari Managing Director Pelangi – Ecosecurities Alliance on Climate and Energy. Methane-capture to energy. Incineration. Electricity. Wet. Dry. Electricity. Recyclables. Recycling. Anaerobic bio-digestion. - PowerPoint PPT Presentation
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PELANGI
Solid-Waste Management and Financing:With Special Focus on CDM
Agus P. SariManaging Director
Pelangi – EcosecuritiesAlliance on Climate and Energy
PELANGI
Choices of waste-management
Landfilling
Sanitary Landfilling
Wet
Dry
Separator
Anaerobic bio-digestion
Methane-capture to energy
Electricity
Electricity
Incineration
Recyclables
Recycling
PELANGI
Choices for solid-waste managementLandfilling Land, to be provided by the municipal
government, is assumed to be free.
Sanitary Landfilling
Minimum construction of landfill walls and cap is needed.
Anaerobic digestion
Anaerobic digester reactors are needed, not necessarily cheap (about $3 million).
Recycling Separation of usable and recyclable materials.
Incineration Expensive, requires a large amount of dry, combustible waste (mostly paper) — direct conflict with recycling.
Power generation
Methane-capture.Digestion methane-capture.Combustion of dry waste.
PELANGI
Characteristics of (typical small) municipal waste in Indonesia (500 tpd)Types of waste Percent
Organic (wet) waste 78
Inorganic waste 22Recyclables 9Combustibles 10
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Financing arrangements (typical, 500 tpd)
Investment costs (M) Income to 2012 (M)
Bio-digestion reactors
2.0 Recycling 10.5
Other Construction 3.5 Composting 7.0
Power plant 2.5 Electricity 6.3
O and M 1.0 Others 1.4
Others 1.0 CDM 7
Total 10.0
Total 27.9
PELANGI
Industrial countries
Developing
countries
How does CDM work?Emissions reduction with CDM
CertifiedEmissions Reduction
(CERs)
PELANGI
Concepts and terms
Baseline: Emissions that occur with the absence of the CDM project. Methane that will be
released by the landfills. Carbon-dioxide that will be
released from fossil-based electricity generation.
CERs: Certified (and Verified) emissions reduction due to the CDM project implementation.
Emisi tanpa CDM (Baseline)
Emisi dengan CDM
CER
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Institutional setting of CDMConference of the Parties serving as
Meeting of the Parties (COP/MOP)
Countries / Parties
CDM Executive Board
Secretariat
(Accredited) Operational
Entities:Validation
(Accredited) Operational
Entities:Verification
Designated National Authority
(Komnas MPB)
Project Proponents
PELANGI
CDM in waste-management
Methane avoidance: 21 times carbon-dioxide
Out of 500 tpd typical landfills: Emissions of CH4: 10 kt/year Carbon equivalent: 200 kt/year CER revenue, @ $5/t: $1 M/year In 2006 – 2012 (7 years): $7 M
Electricity generation out of 3 MW 24 kt/year CER revenue, @ $5/t: $120 K/year In 2006 – 2012 (7 years): $840 K
PELANGI
Steps to develop a CDM project
1 Feasibility and Due Diligence
2 Documentation
7 Implementation
3 Public consultation
4 Validation by Operational Entity
5 Approval by National Authority
9 Verification by OE
10
Issuance of CERs by EB
11
Transaction of CERs
2 Methodological approval 6 Registration by
Executive Board
PELANGI
Financial needs of the CDMFeasibility and Due Diligence
$5,000 - $10,000
Documentation (PDD) US$ 20,000 – $50,000, up to $100,000 with new methodology
Public consultation About $2,000 – 10,000
Validation $8,000 - $15,000
Approval by the National Authority
At present: free.
Registration by Executive Board
$5,000 - $30,000(depending on the project)
Underlying investment Depending on the project
Project implementation Depending on the project
Monitoring Depending on the project
Verification $5,000 – $10,000
PELANGI
Markets of CDM in the world Demand: 3.2 billion tons of CO2-equivalent.
1.2 billion tons from Canada. 1.1 billion tons from European Union. 0.8 billion tons from Japan, and others.
“Cash” demand: $2.5 billions. $880 million from the Netherlands, $800 juta from Canada,
$160 juta from Denmark, and $140 million from Japan. World Bank provides about $250 million. Private sector provides about $200 million.
“Price” was originally set by the buyers (buyers’ market): Commencement of the EU Emissions Trading Scheme
moves the CER price up (even though not the same market, not the same commodity):
Entry into force of the Kyoto Protocol increases the certainty of the market.
Supply is not as much as we originally thought.
PELANGI
Thank you — Terima kasih
Agus P. SariPelangi – EcosecuritiesAlliance for Climate and EnergyGraha Niaga Lantai 17Jalan Jenderal Sudirman Kav. 58Jakarta 12190Tel: (62-21) 250-5707Fax: (62-21) 250-5708Email: [email protected], [email protected]
