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

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

Date: 8-9 April, 2008Venue: LGED Bhaban, Dhaka

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

web: www.wasteconcern.org

Presentation OutlinePresentation Outline

1. Background of the Waste Sector CDM Project2. CDM project cycle3. How the project is implemented4. What aspects needs to be monitored for CDM5. Examples of projects from Vietnam and Sri

Lanka


Waste

Baseline Situation

Existing Practice: land filling of waste

Methane Emission (Green House Gas) No Methane Emission

CDM project

Composting Plant

City Authorities Collecting transport

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

Starting from 100 Tons/day capacity and within 2 years reaching 700

Tons/ day capacity

MAJOR PORTION OF WASTE IS ORGANIC

www.wasteconcern.org

Fig 1: Average Physical Composition of Urban Solid Waste

67.65%

9.73%

5.10%

0.26%

1.13%

4.20%

2.50%

0.64%

8.79%

Food & Vegetable

Paper Products

Plastic, Leather, Rubber

Metals

Glass and ceramic

Wood/ Grass/ Leaves

Rags, Textile, Jute

Medicine/ Chemical

Rocks, Dirt & Misc

•1995: 10,742 tonnes/day

•2005 : 14,000 tonnes/day

•2025: 47,064 tonnes/day (estimated)

URBAN WASTE GENERATION (Tons/ day) IN BANGLADESH

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

Obtained UNFCCC approval on Sept 2005


Identification of project and development of project concept note

Development of Project Design Document

Project Description

Select baseline approach and assess additionalitySet baseline emission level and crediting period

Calculate net emission reductionsDevelop a monitoring plan

Assess environmental impactsInvite local stakeholders for comments

Project developer

Project developer

Includes:

Project developerProject implementation and monitoring

Operational EntityVerification and certification

Registration with the CDM

CDM Executive Board

Issuance of CERs to project developers

CDM Executive Board

Possible review by the CDM Executive Board

CDM Project Cycle

Project developer

Host Government

Operational Entity

CDM Executive Board

Submission of validation reports and Project Design Document

Operational Entity

Validation of Project

Submission of the PDD and host country approval to validator

Project developer

Make PDD publicly available for 30 days

Operational Entity

Host Government (National Authority)Host country approval

Waste Concern

Waste Concern WWR

WC, WWR, FMO and Triodos of NL

Development of CDM Activities in Bangladesh

WC submits two CDM Projects to National CDM Committee for LFG Recovery (LFG & Composting) along with commitment letter of Dutch investor.

WC submits two CDM Projects to National CDM Committee for LFG Recovery (LFG & Composting) along with commitment letter of Dutch investor.29 February 2004

National CDM Committee approved the projectsNational CDM Committee approved the projects18 April 2004

National CDM Board headed by the PM office gives final approval of the project.National CDM Board headed by the PM office gives final approval of the project.8 August 2004

17 Sep 2005 First CDM Project of WC (Landfill Gas Extraction and Utilization) Registered with UNFCCC.

First CDM Project of WC (Landfill Gas Extraction and Utilization) Registered with UNFCCC.

18 May 2006 Second CDM Project of WC (700 ton capacity compost plant) Registered with UNFCCC (after development of a new methodology AM 0025)

Second CDM Project of WC (700 ton capacity compost plant) Registered with UNFCCC (after development of a new methodology AM 0025)

DCC gives NOC for preparation and implementation of the projects under CDMDCC gives NOC for preparation and implementation of the projects under CDM7 January 2004

Compost Project Registered from Board of Investment (BoI) Compost Project Registered from Board of Investment (BoI)16 May 2007

Environmental Clearance (IEE) from DoE for Construction (Site Clearance)Environmental Clearance (IEE) from DoE for Construction (Site Clearance)August 2007

Construction Process of Compost Plant Started November 2007Construction Process of Compost Plant Started November 2007Nov 2007

24 Jan 2006 DCC’s Signs 15 years Concession Agreement for the 700 tons/day capacity compost plant

DCC’s Signs 15 years Concession Agreement for the 700 tons/day capacity compost plant

Trail Production and Monitoring started and full production by June 2008Trail Production and Monitoring started and full production by June 2008March 2008

Project based carbon trading (CER/VER) between industrialized and developing countries

Emission reduction credits (CER)

Industrialized country

Project Reducing GHG emissions inDhaka

CDM investment $$


Dutch Company WWR and Banks, FMO and Triodos


Mode of investment for the projectMode of investment for the project

EQUITY+LOAN (WWR, FMO and Triodos)

LOAN Local currency

CASH upfront for project

preparation

Project Cost: Total Euro 12 million

8,90,000X18=16.02 million in 10 years

Organic WasteCOMPOST PLANT Joint Venture of WC, WWR, FMO & Triodos Bank of NL

DCC

CDM Board

Project Investment Harnessing CDM

Project Approval

PUBLIC PRIVATE COMMUNITY

Giving concession agreement for15 years

•Direct Collection from Vegetable markets

•Paying CBOs/NGOs for waste delivery

• Promoting source separation and community participation

PARTNERSHIP MODEL UNDER CDM PROJECT

BOI

CompostCompost

CER ( carbon credits)

CER ( carbon credits)

Rural Farmers

Urban Population

International Market


Attracted 12 million Euro

Concession Agreement with D.C.C

Collection of Organic municipal waste from vegetable markets using

our own collection system

Compost Plant ( land and plant belongs to Company)

700 tons/dayProduction capacity: 175-210 tons per dayEmployment: 800 person, specially womenEmission reduction: 89000 tons CO2/ yr.

Compost Initially 8000 tons/year and reach

50,000 tons/year (Cheaper than chemical fertilizers)

Rural Areas (Farmers)

Waste Bins Demountable

Containers

Landfill

Transportation

Collection

PROBLEMS

Green House Gas EmissionMore Land Required for Landfill


700 tons/day

Saving of waste collection cost for D.C.C for 2,55,500 tons waste/yr

700 tons/day Saving 2,81,050 m3 land filling avoided per yearSaving of disposal cost at dumpsite by avoiding 2,81,050 tons per day.

No investment from public agency in this project

How the project is implemented

COMPOST PLANT (BULTA )

C ollection R oute o fVegetab le W aste

from Kaw ran B azar to C om post P lant

R .R .C PLAN T

STA

LAK

HY

AR

IVE

R

Ja trabariB azar

D H A N M O N D I P S .

LA LB A G P S .

K A M R A N G IR C H A R P S .

H A Z A R IB A G P S .

M O H A M M A D P U R P S .

T E JG A O N P S .

K H ILG A O N P S .

S A B U JB A G P S .

M O T IJH E E L P S .

R A M N A P S .

B A D D A P S .G U LS H A N P S .

K A F R U L P S .

M IR P U R P S .

C A N TO N M E N T P S .

PA LLA B I P S .

Ja tiya S a ng sa dB ha b an

N a tio na lG ra ve yard

E ye H o sp ita l

B ash u nd h araC ity

S on a rg ao nH o te l

H o ly F a m ilyH o sp ita l

M o h ilaS am ity

S cou t B ha b an

B an g la de shS ec re ta ria te

G P O

N a tio na lS tad iu m

B a n g a B h a b an

B a n g la d e sh B a n k

It te fa q u e

N a g a r B h a b a n

D h a k a C e n tra l

J a ilL a lb agF o rt

A z im p ur G ra v e ya rd

P u b licL ib ra ry

R a m n aP a rk

D h a kaM ed ica lC o lle g eH o sp ita l

0 500 1000m .500

LEG EN D

C ollection R oute..............

M arket / Bazar Location...

Transfar S tation...............

Thana H q.........................

R oad................................

R ailway.............................

R iver/Lake........................

D E M R A P S .

S U T R A P U R P S .

S H A M P U R P S .

K O T W A LI P S .

S C A L E

N

EW

S

BUR IG AN GAR IVER

AIR P O R T PS.Z ia

In te rna tionalA irport

U TT AR A PS.

K aw ranB azar

U tta ra B azar

N oadha B azar

G u lshan-2 B azar

Transfa r S ta tionB e tw een G u lshan 1& 2

G u lshan-1 B azar

M ohakha li B azar

Transfa r S ta tion N ava l H .Q .

K a lm ila taB azar

Ind ira roadB azar

M a libaghB azar

K h ilgaonB azar

K am lapurB azarFak irapu l

B azar

S hantinagarB azar

G op ibaghB azar

N ew M arke t

H a tirpoo lB azar

M oham m adpur Tow n H a ll M arke t

M oham m adpur K rish i M arke t

Transfa r S ta tion

M irpur-1 B azar

M irpur-11B azar

R am puraB azar

Transfa r S ta tion D haka G ate

Vegetab le w asteC ollection A rea


Basic Layout

5.5

00

m W

IDE K

ATC

HA

RO

AD

HOME STEAD

DITCH

TO

MO

RA

PA

RA

TO M

AIN R

OAD

CULVERT

9.51

9.20

9.45

9.68

BM

. RL=

10m

.

POND

HIGH LAND

HIGH LAND

9.265

9.868

Ø 900new

slopeClay walleffective boundry

1:1

Walled / fenced

gate: 8 m1

Weig

h b

ridge

10

*2

,5 M

Entrance

shed

canteen

storage

kitchen

toilets

2 floors

8.00

8.00

reception, sorting and pre-treatment

leachate

water storage

300 m2

storagerefuse

Office

reception

meeting room(s)

lever

525 m2

Enrichment plant

420 m2

lever

roofedstorage

structure

storagecompost

245 m2

roofed

245 m2

245 m2

9.60

11.40+

Screeningphase 1

Screeningphase 2 pre-composting

3 weeks, 3-4 days a cell

Maturing, 4 weeks

roofed, aerated

Not roofed, aerated

2350 m2

245 m2

700 m3

245 m2

700 m3

245 m2

700 m3

Entrance

Unloading platformReception,

sorting & mixing

1st phase composting

(Roofed)Maturing

(not -roofed)

Storage (roof)Enrich

ment

Offi

ces

& w

ork

ers

build

ing Screeni

ng I

Screening II


Input

Collection (Organic Waste From Markets)Saving DCC cost

Output

Compost (50,000 tons/year)

Carbon Credits (89,000 ton Co2e)

700 tons/ day of waste collection Starting from 100 tons/day

Job Creation 400 new jobs

Pro-poor elementCreating 800 new jobsFocusing Waste Pickers Health InsuranceDaycare CenterFree Meal

Pro-poor elementCheaper Less IrrigationSoil Quality ImprovedHigher YieldLeads to higher income

Pro-poor element

Process

Aerobic Composting

Saving Landfill Area

How the CDM Project is helping the city and the poor

Before-After: Waste Collection System

Improved Covered Collection

Present Collection Practice

Weighing of Waste Input

Parameters to be Monitored During Implementation

Regular Oxygen Monitoring

Process Quality Control

Temperature Control


Aerobic Composting System

Regular Oxygen Monitoring


Safe Working Condition

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 Lanka generates= 30 tons/day (60% organic)

CDM Project Cycle for Large Scale> 15,000 Tons of CO2e)/Year

Estimate of Cost (US $)

A) Up-front (pre-operational) Costs:

1. ER Feasibility Assessment 5,000 - 20,000

2. Preparation of the PDD 25,000 – 40,000

3. Registration 10,000

4. Validation 10,000 -15,000

5. Legal Work 20,000 – 25,000

Total Up-front Costs: 70,000 – 110,000

B) Operational Phase Costs:

1.Monitoring and Verification $3,000 – 15,000 per year[2].

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

Transaction Cost for CDM Based Projects

Community Based Composting Initiative Qyay Nhon City, Vietnam

Front View of the compost plant

Maturing bed of the compost plantRear view of the compost plant

Perforated bottom and side walls of the compost box

Community Based Composting Initiative Matale City, Sri Lanka

Community Mobilization

Side view of the compost plant at Matale City

Special containers for waste collection

Bundling CDM Projects Sri Lanka and Vietnam

Multiple small scale composting projects

One single CDM project

Bundling organizatio

n

Bundling organizatio

n

VER/CER to Investor

VER/CER to Investor

PROJECT INFORMATION NOTE (PIN)

PROJECT INFORMATION NOTE (PIN)

VALIDATIONVALIDATION

IMPLEMENTATIONIMPLEMENTATION

VERsVERs

Cost for the preparation of

PDD and Validation is bourn by the

buyer

Project Cycle for VERsProject Cycle for VERs

IMPACT OF THE

PROJECT

Improves the quality of life of

the city

Raises public awareness on Solid Waste Management and

recycling

Reducing Green House Gas

Complying with the MDG

Attracting Foreign Direct Investment

(FDI)

Global Impact

Local Impact

Reducing poverty by

creating jobs for

urban poor

Providing safe and better working

condition for the informal sector

Reducing ground and surface

water pollution thus reducing

health hazards

Enhancing the life of the Dumpsite

Promoting

PPCP an

investtments

Reducing Solid Waste

Management cost of

municipalities


Mitigation

Ada

ptat

ion

Mitigation-Adaptation Loop

Documents

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